1. Bankruptcy
By: Kenyon Briggs

2. Life is Unpredictable Medical Expenses (62%) Foreclosure Divorce
Laid off From Job
Credit Card Debt
Student Debt
Utility Bills

3. How Bankruptcy Works

4. What is Bankruptcy ? Court-supervised legal process
You give up your excess*
Your debts disappear*

5. Types of Bankruptcy Chapter 7 = “Straight” Bankruptcy
Chapter 13 = “Reorganization” Bankruptcy

6. What Happens When I File Bankruptcy?
All collection calls STOP
You cannot be foreclosed
Your car cannot be repossessed

7. What Must I Give Up In Bankruptcy? Will I Lose Everything?
No.
Only “Non-Exempt Assets” obtained BEFORE filing.

8. What Must I Give Up In Bankruptcy. Will I Lose Everything
What Must I Give Up In Bankruptcy? Will I Lose Everything? (Chapter 7 Only)
My House?
$15,000 Exemption
Fully Exempt if Owned by Spouses, and only one files for C7
My Car?
$3,000 Exemption
My Wedding Ring?
$1,500 Exemption
Household Furnishings and Clothing?
$3,000 Exemption
Health Aids?
Fully Exempt
“Wild Card”
$600

9. What May I Keep In Bankruptcy? Will I Have Anything Left?
You Still Live in House
You Still Drive Car

10. What Happens At the End of Bankruptcy?
“Discharge”
Credit Card Debts
Medical Bills
Some Personal Loans
Creditors can NEVER hassle you about old, discharged debts again.

11. What Cannot Be Discharged?
Secured Debts
Mortgage, Car Loan
Domestic Support Obligations / Alimony?
Never dischargeable; Must be paid throughout bankruptcy.
Back Taxes?
Some can be discharged (3 year rule)
Student Loans?
Sometimes

12. What Does Life Look Like After Bankruptcy?
All “secured” debts still exist
Mortgage, Car Loan

13. What Does Real Life Look Like After Bankruptcy?
Rebuilding Credit
Secured Credit Card, Limited Opportunities to Obtain Credit, Live Small
Will I Ever Have Credit Again?
Yes, over time
Can I Ever Own a House / Get a Mortgage?
Yes
Changes Need to be Made

14. How Does Bankruptcy Impact Credit?
Point Ding on Credit Score
Discharged Debts/Bills
Stay on Credit Score for ~ 7 years
Bankruptcy
Stay on Credit Score for ~ 7 and 10 years

15. How Do I File Bankruptcy?
Lawyer (Strongly Advised)
Decide w Lawyer if Bankruptcy is right for you
Lawyer files bankruptcy for you
Lawyer appears in court on your behalf
By Yourself
All Forms are Free on Court Website

16. Bankruptcy Lawyers in Columbia
Missouri Bar Association
Mid Missouri Legal Services

17. How Much Does it Cost to File Bankruptcy?
Filing Cost ~ $300
Attorney Fees ~ Depends

18. Tips NEVER Cash Out Your Employer-Created Retirement Accounts
Pension, 401(k), etc.
Creditors Want Their Money . . .
They Are Sometimes Willing To Work With You
Bankruptcy is IDEAL When You Have Multiple Creditors
Bankruptcy CANNOT Help Much When All Debts are “Secured” (mortgage, car loan)
Bankruptcy CANNOT Fix Everything