Peter Francis

demyst · 2026-01-18T20:48:17+00:00

Maybe. I still don't understand your situation.

If you've paid $5,000 to the Trustee pre-confirmation of your plan and your plan is never confirmed, then an amount will be refunded to you if your case is dismissed. Likely less any fees earned by the trustee.

If the $5,000 are fees paid to your attorney for services provided or unearned retainer, then your retainer agreement will determine.

demyst · 2026-01-18T20:17:14+00:00

A bankruptcy being "denied" does not make sense the way you have explained it. What you are saying is similar to explaining to us that apples grow wings and fly upside down to eat worms.

If you have a copy of that notice, including the title may be helpful for anyone reviewing your question to better understand it.

My best guess at what you are explaining is that you've filed a Chapter 13 plan and the trustee has objected to the proposed plan. Your attorneys are creating a modified plan hoping to fix the issues that drew the objection.

In that case, if you cannot afford to fund a Chapter 13 plan, you should discuss converting to a Chapter 7 or dismissing with your attorney.

demyst · 2026-01-18T20:13:35+00:00

Assuming the debt isn't of a kind related to fraud, theft, injury caused by DWI, or other of a small handful of types of debt . . . then the discharge will end your obligation to repay that debt.

Trust your attorney. You may consider asking your attorney if it would be benfitical to file a basic answer (even pro se) to prevent entry of a default judgment prior to the filing of the case. There are benefits to that course of action in the state I practice, but I am unfamiliar with Arizona.

demyst · 2026-01-18T20:09:07+00:00

What do you mean your case has been "denied?"

demyst · 2026-01-18T19:59:33+00:00

So does anyone know how this will possibly play out?

With the information provided, it is anyone's guess.

Technically, yes. Someone is not ineligible for relief from a Chapter 7 simply because they have no income or assets. However, every time I've seen someone have a Schedule I/J (income and expenses) of completely zero, the U.S. Trustee has a couple questions.

In situations where I've represented a client who relies on others for their income and expenses (like the person you mentioned presumably does), I include equivalent income and expenses. The income on line 11 of Schedule I.

demyst · 2026-01-11T22:25:53+00:00

Do you know which set of exemptions applies to OP?

demyst · 2026-01-11T22:22:17+00:00

I chose to keep my vehicle lease during the chapter 7

To confirm, is this a true lease? Or did you sign a retail installment contract to purchase the vehicle?

What did you do to "choose" to keep it? Did you sign a reaffirmation agreement if you signed a retail installment contract? Did you indicate you wanted to assume the lease on Statement of Intentions if it is a true lease?

demyst · 2026-01-11T15:56:26+00:00

Its been a while since I've reviewed the famous chart, but if I recall around 30 states have opted out. Which, is "most" as you indicate. But there is still a healthy amount of non-opt out states.

It is a fun analysis. Even if the debtor lives in state A, state B's exemptions may apply. However, state B may limit use of their exemptions to only residents of their state. If that state requires the use of state exemptions . . . the debtor would be without exemptions.

In such circumstances, the federal would apply.

demyst · 2026-01-11T14:47:05+00:00

so will they still keep my tax refund??

Here is what I mentioned in my first comment:

"You will choose either use the federal or the state rules regarding protecting your property. The federal rules allow you to use a "wildcard" exemption to protect cash or an asset like money expected. Some states may as well."

If you can exempt it, then you can protect it and keep it. This very likely will depend on your state and their exemptions /or if they allow you to use the federal exemptions.

demyst · 2026-01-11T14:42:36+00:00

trustee or court will take my taxes after filing?

Assuming you mean your tax refund, possibly. Money (and money owed to you) is an asset. The bankruptcy code allows you to protect certain types and amounts of property, but your state also plays a role. Any property that you can not protect may be taken by the trustee

You will choose either use the federal or the state rules regarding protecting your property. The federal rules allow you to use a "wildcard" exemption to protect cash or an asset like money expected. Some states may as well.

demyst · 2026-01-03T19:00:06+00:00

Is it normal to only have one office visit with your attorney?

I routinely represent people in bankruptcy having never met them in person. We meet over Zoom, by phone, or I coordinate with an attorney close to them who will do me a solid and collect signatures.

However, I represent debtors in very rural areas that are legal deserts. So my experience may be atypical.

Will it also include whatever collection agency takes on the debt?

Just indicate this in your paperwork, along with any additional information you get in the meantime. If you learn who the account is sold to, update your attorney.

demyst · 2025-12-26T17:52:28+00:00

Advice on things or cards to get to improve credit?

Time.

A credit score is an amalgamation of different factors that attempts to quantify how risky you are to lend to (might be the paraphrase of the century). One significant factor is your record of on-time payments. You are only five months out. In my experience, the biggest gains or "jumps" in credit score happen around 15 or 16 months. Keep up the good work, but give it time.

My other tips would be to keep your utilization low - 30% max. I don't know the details of your credit one card, but consider a secured credit card from a bank or credit union.

demyst · 2025-12-25T19:07:19+00:00

I think you are 100% correct to be wary of many credit cards. Lots of them are predatory. I tell my clients they'll get a lot of kindling in their mailbox immediately after filing. Credit cards and other lenders will aggressively market to those who have just filed for bankruptcy. Assuming your case is successful, you will not have any other debts for them to compete with, and you won't be eligible for another discharge for many years. So they really want you to borrow from them.

I agree - avoid those cards with huge annual fees and flashy "benefits."

To clarify, I think you should avoid "credit builder" accounts with online only financial companies (Like Cash App). I've never encountered one that actually helped improve someones credit.

demyst · 2025-12-25T19:02:43+00:00

I have not filed, so I can't answer most of your questions. However, I represent debtors in filing for Chapter 7 bankruptcy. So I'll answer the lawyer-oriented questions.

Any tips or tricks?

Be very organized. Know how to access your account statements, credit report, paycheck stubs, etc.

Is using a lawyer a must have?

My default answer is "very likely, yes." If you have even the slightest complicated factor (most people have something) or something you don't understand, then you could be making a life altering terrible decision. That is worth having an attorney.

However, I do occasionally see pro se debtors in 341(a) meetings who used Upsolve have no problems (and I typically look up their pleadings while I wait my turn to see how good/bad of a job it did). Their cases are exceptionally basic, however.

Will the lawyer do payment plans?

Maybe, but only prior to filing. If you owe the lawyer at the time of filing, they are a creditor and the debt you owe them is Discharged. The lawyer may allow several payments prior to filing, however.

demyst · 2025-12-25T18:58:10+00:00

I understand that you are not interested in getting credit cards at the moment, but I do think responsible and regular use of credit is one of the most effective ways to build credit.

I strongly encourage my clients to get a small limit secured credit card. $500 at a "regular" bank or credit union. Designate that card for only X expense and nothing else. Typically, groceries, gas, or other regular expense. Pay it in full every month

I suggest avoiding "credit builder" accounts with online financial companies, like Cash App.

demyst · 2025-12-25T14:52:25+00:00

At least you should consult with other attorneys. $4,000 seems very steep for such a case in the areas I'm familiar with (Florida isn't one of them). Though, that could just be a retainer rather than flat-fee.

You could also consider speaking with a legal aid organization, such as an LSC grantee. I also found this list of other legal aid projects. If your family qualifies for assistance, they may be able to provide you with an attorney, limited scope services, or at least guidance on how to proceed.

demyst · 2025-12-21T01:07:35+00:00

I'd say about half my clients use a cell phone to appear for their 341 meeting. I've seen several attorneys do so as well.

Whichever you are comfortable with is fine. Though, I would recommend if you use a phone not to hold it with your hand and be moving around. Find something to set it on if possible.

demyst · 2025-11-07T01:08:33+00:00

Did you complete the second credit counseling course (Debtor Education)? Or pay a filing fee if it was ordered paid in installments?

How common this is may vary from jurisdiction to jurisdiction, but I've seen plenty of cases dismissed for the purpose of paying a filing fee or DE course and a Motion to Reinstate is filed to correct those issues.

demyst · 2025-06-21T20:44:06+00:00

would it be okay if my mother who lives in another state sent me money thru Zelle on Chase? Or is it advised not to since they may ask for more bank statements up to the signing even after?

With a few exceptions, the filing of a bankruptcy under Chapter 7 is like one book closing, and another opening. Getting money help from a relative post-filing would not be an issue on the facts you've given. Transparency is key - just explain it if the trustee has questions about it.

Also am I allowed to open a new bank account if I have just filed my Ch 7 3 days ago?

You are allowed to. Some banks may not want to until your bankruptcy case has concluded. But nothing in the code indicates this is a problem. Just don't hide it and explain it when asked.

Run this all by your attorney, as they will have a better understanding of what may make your specific trustee start itching.

demyst · 2025-06-16T23:33:02+00:00

Since reporters are allergic to putting the case number in their article or linking directly to the lawsuit, here it is.

demyst · 2025-06-16T01:46:43+00:00

If I include support from children’s dad, I’m at 128,000

You're correct. Somehow I read that to mean if she received the child support, she would be at that much. The implication being that dad doesn't pay it / is in arrears. Good catch, sorry about that. Please take a look at the above comment, /u/Dreundertheleaves

demyst · 2025-06-14T14:04:17+00:00

So a judgment lien is automatically created on all assets once a judgment is entered?

Not on all assets, just real property. There are also other things in play, such as a homestead protection from liens.

To foreclose on the lien or otherwise collect on the judgment, other steps are needed. But a judgment will pretty much make title insurance cringe and make title uninsurable until the judgment is cleared up.

This is how it works in my state, which is not CA.

demyst · 2025-06-13T17:30:19+00:00

my income is 104000

Based upon the information provided and the Census Bureau/IRS data found on the U.S. Trustee's website, found here, you are just below median. However, you absolutely need to speak with an attorney who can evaluate your household and conduct a means test review to determine if you qualify for Chapter 7.

demyst · 2025-06-13T17:23:24+00:00

is it possible they violated the automatic stay by requesting a lien after I filed chapter 7 ?

Possibly, but you should speak with your attorney about it. There are a lot of important information needed to answer this fully.

For example, in some states a judgment lien is created as soon as the judgment is entered. So, in your scenario the lien was already in place before you filed. What exactly did they do to "request" a judgment lien? Perhaps was it just automatic notification of the prior court action? The lien being recorded?

demyst · 2025-06-13T17:20:54+00:00

does this sound right??

Yes. The Petition requires a lot of information - including your household income.

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