Many parents who are going through a tough time financially or who have recently filed for bankruptcy prefer not to talk to their children about it. Parents tend to take this route because they do not want to burden their young children with their money problems. But, what many of us do not realize is that children are astute and rather perceptive when it comes to sensing stress, worry and family. Keeping them in the dark is not a good idea because they may get stressed out when they don’t know what is troubling their parents. If your child is old enough to hear some information about the family’s financial crisis, there is a good chance that they can learn some valuable lessons about managing money and staying strong when times get tough.

Here are a few tips, which may be helpful before you sit down to talk with your children. First, do not hide the problem from your kids. Explain what it means to deal with debt. Be honest and straightforward. Tell them exactly what went wrong. Understand that bankruptcy affects your children too. Tell them how they can help trim expenditures.

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If you’re getting ready to graduate high school and start your college career, there is a lot to look forward to, but there is also the large financial burden that can be put on you. If you aren’t sure how you’re going to handle this, below are a few options that you can try to minimize the amount of student loan debt you have to pay off after college.

• Complete the Free Application for Federal Student Aid (FAFSA)
• Apply for a Federal Pell Grant to receive money that you don’t have to pay back in the future.
• Look for scholarship programs. They are offered by many different organizations and this could keep you from racking up as much student loan debt.
• Student loans. Federal or private, click here to find out which type can be better and why. (more…)

You should take some time to think before you decide to start taking money away from your retirement fund to start paying off your debt. Listed below are some things that you should understand about your retirement funds, being in debt, and filing with a St. Louis bankruptcy attorney:

So you can’t pay the minimum payments on your credit cards and may be thinking you’ll take some money away from your retirement funds, bad idea. Not only will you have to pay ridiculous taxes and penalties for taking the funds out early, but it won’t really do you any good. Except if you can pay off the entire credit card balance, the taxes, as well as the penalties, you are simply ruining your retirement fund and not pulling yourself out of any debt. A lot of people don’t consider the penalties and taxes simply because they won’t be really evident to you until you file that year’s tax return. By then, a lot of people have forgotten they even took out the funds and now have huge tax debts to pay off on top of their debts. (more…)

No.

It’s a simple word, but not always one you’ll hear from a St. Louis bankruptcy attorney–especially if they’re quoting you an absurdly cheap rate. But is it one that some attorneys should use a little more? Probably.

To be fair, I hate turning people away when they need help with their medical bills or just to even the playing field with their creditors. But with the high volume of calls we get from the average consumer and the large number of referrals we get from other lawyers, we’ve realized that the only way to maintain the highest standard of customer service and individual attention we’re known for is to be selective.

So under what circumstances should an experienced St. Louis bankruptcy attorney say “no?” There are two types of cases I normally don’t take.

Cases with no real debt

Uh, if you don’t have much debt, then why are you seeking bankruptcy protection?

Filing a bankruptcy case can be a long process. It’s an investment of my time. So if a person who comes to me doesn’t have very much debt, I usually point out another option for them. Bankruptcy fees are regulated by the courts. So if someone’s debt was similar to that amount, what would be the point of filing? It wouldn’t be worth upsetting a client if the fees they paid to handle a case started to approach the amount of debt they were trying to get rid of in the first place. And I’m not going to take a fee to encourage someone to file bankruptcy if it isn’t their best option.

Too many unsuccessful bankruptcy filings

I won’t take cases where the clients have filed too many bankruptcy cases that ended up dismissed. If you have filed for bankruptcy protection several times in the past, but your case was dismissed every time, the next time around is usually the same. For a judge to approve your case this time around is unlikely because you have shown you are not serious about completing a case from start to finish. When I file a case, I am putting everything on the line to stand behind that client 100% to get them to the finish line and when cases get dismissed, my professional reputation can take a hit. I am more than willing to help someone who wants to help themselves, but if you’re not serious about doing that, I can suggest many not-so-experienced bankruptcy attorneys who won’t care enough you can go to.

The majority of people we help are honest, hardworking people who have simply fallen on bad times. If you’re still not sure whether or not you meet my case acceptance criteria, I am more than happy to meet with you for free to see if I will consider your case. Or, you can request your free copy of my Missouri and Illinois debt relieft guide, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

If you’ve made the decision to take responsibility for your debt by filing for Illinois or Missouri bankruptcy, let me first offer you my congratulations. But once you’ve filed, it is important to make the most of your fresh start.

Usually the best way to do this is to find a steady job (or keep the one you already have). But with more and more employers running credit checks these days, how should you approach the topic with them?

You may think the first rule of Bankruptcy Club is like Fight Club (i.e. don’t talk about it) but that’s not right. The first rule is actually not to lie about it. As you know, a bankruptcy will appear on your credit report, so it’s important that you aren’t caught in a lie if a potential employer asks you to disclose your financial background. It’s important to remember that many of our clients actually see their credit score improve after discharge (plus it looks better on your report than a foreclosure or repossession would).

The second rule is just as easy to follow: think about what led to your Illinois or Missouri bankruptcy. I have never heard of an interviewer throwing away an application as soon as they discover a bankruptcy (1.4 million people filed bankruptcy in 2009–and it looks like that number will be higher for 2010, so it would be hard for them to do that), but sometimes a brief explanation can clear up any concerns.

And I do mean brief. In a lot of cases, people file bankruptcy due to unforeseeable circumstances, like medical issues, a lay off, or other catastrophic event. If your employer tells you they’ll be pulling your credit report, explain your situation. Keep it simple, and focus on the fact that you have taken the responsible steps to protect your family’s future. Then move on.

Now, you know bankruptcy can be a fairly intricate process, and everyone has different circumstances–so why keep your explanation so short? Because the days of letting debt control your life are over. After all, what was the point of filing Missouri or Illinois bankruptcy? Acknowledge it, and move on to showing your future employer what they should really be evaluating you on: your experience and ability to do the job.

You may still have questions. After all, reclaiming your life is a process. You can find more of the information you need by requesting a free copy of my Missouri and Illinois debt relief guide, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

If you have taken responsibility for your debt by making the decision to file bankruptcy let me congratulate you. You’ve made an intelligent and responsible decision for both you and your family. Now that you’ve filed though, you have to take advantage of your fresh start.

It’s important that you find a stable job (or stay with the one you have already). If you don’t have a job you may wonder if it will be tougher to find one because you have filed for bankruptcy. Employers are running credit checks more often now, you should know how to address the topic with them. (more…)

It’s a huge relief to file for Chapter 13 bankruptcy. After successfully filing you will finally have protection from foreclosure, assistance with credit card debt and you won’t have to worry about your wages being garnished any longer. Once the judge approves the repayment plan you have proposed your creditors must accept it whether they like it or not.

Don’t be fooled though. You aren’t completely out of hot water just because you aren’t constantly getting calls from bill collectors anymore. You have to remember a few rules throughout your repayment plan. (more…)

It’s a huge relief to file for(more…)

If you think Chapter 7 bankruptcy is for deadbeats, think again. A lot of people believe that there is a stigma attached to filing Chapter 7. That is absolutely not true. In fact, bankruptcy laws weren’t written yesterday. In the United States, bankruptcy laws were adopted around the time of the U.S. Constitution, in 1800. Bankruptcy laws in Missouri and Illinois have evolved over the years. Just in the 25-year period between 1980 and 2005, bankruptcies in Missouri and Illinois increased six-fold. That said, people’s opinions on bankruptcy have not shown signs of changing with the times. (more…)

The banks are lifting their foreclosure freeze and you are probably one of many wondering how to avoid foreclosure in St. Louis. There are a few steps you can definitely take to avoid foreclosure. The first step is to start researching immediately. You do not have time on your side. Remember, when you get that foreclosure notice, you only have 21 days until your home will be sold. It’s like a ticking time bomb. One way to minimize research time is by getting a copy of our Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.” It’s an easy read and a one-stop source for all the bankruptcy information you will need. (more…)