Koury Hicks wants to help people through the tumultuous and confusing process of declaring bankruptcy, and the pandemic has only reinforced the importance of his mission.

“When this started last March, I don't think anyone had any idea of how long it was going to go on, and how far-reaching the effects would be,” he says. “There's a lot of desperation right now. If you're one of those people that's feeling hard-hit and the recovery is just not there for you, pick up the phone and call us. The only error here is inaction. There is a solution, and we want to help you see that solution.”

In the fifth episode of Orcutt Answers, our host Shawn Orcutt is joined by Koury, an Associate Attorney at the Law Offices of John T. Orcutt, who has devoted his career to bankruptcy law since 2008. 

This episode breaks down the key differences between Chapter 13 and Chapter 7 bankruptcy, including which is more applicable in different scenarios. 

“There's no way to catch up debts in a Chapter 7. However, a Chapter 13 lets you restructure those debts over time, allows you to catch up on the mortgage, catch up on the car payments, and it may even allow you to lower the payments on those things,” Koury says.

Find out which type of bankruptcy might fit your needs or your client’s, and what to do when obstacles present themselves.

Name: Koury Hicks

What he does: Focused on bankruptcy law since 2008, Koury is a board-certified specialist in consumer bankruptcy law, dedicated to guiding clients through bankruptcy with grace and expertise. 

Company: The Law Offices of John T. Orcutt 

Words of wisdom: “This is a very difficult decision for a lot of folks, and we want to make it as pain-free as possible, because it's not something to be embarrassed about. It's not something to be sensitive about. It's something that's going to free you, in ways that you can't even imagine right now.”

Connect: LinkedIn 

Here’s what we learned about debt and bankruptcy in this episode 

★    Knowing what type of bankruptcy to file is critical. The intricacies of Chapter 7 and 13 are intimidating, but knowing which one will best serve you and your debt is key to a successful resolution.

★    Understand that Chapter 13 is flexible. Whether you’ve lost your job, had a medical emergency, or gone through a different life change, there are aids to help you during bankruptcy. Missing payments isn’t the end of the world, and payment plans can be altered to a point.

★    COVID-19 patients may benefit from a conversion.  Medical debt is particularly prevalent at the moment, as COVID-19 bills are starting to pile in. A way to help with medical debt is to convert to a Chapter 7 bankruptcy.

★    When faced with bankruptcy, don’t panic. Common but wrong responses to bankruptcy include pulling money out of retirement funds, giving away items, or closing accounts. It’s easy to make mistakes, but some can severely affect how much you will have to repay or lose during bankruptcy.

[2:35] 13 vs. 7: Koury breaks down the differences between Chapters 13 and...

Rodney Debro helps bring a personal touch to his clients who have dealt with bankruptcy.

“I genuinely like to help people who don't think they can purchase a home,” he says.  

In the fourth episode of Orcutt Answers, our host Shawn Orcutt welcomes Rodney Debro, a Mortgage Loan Officer at AmCorp Mortgage, to discuss the steps for refinancing or purchasing a new mortgage while in an active bankruptcy case.

This episode offers key steps to take such as obtaining a secure credit card, becoming an authorized user, and providing proof of payment to help a client re-establish credit. By following through on these steps, Rodney describes how mortgage loan officers can help clients realize refinancing goals. 

“Go ahead and file bankruptcy if that's the route they're thinking about, because the sooner you take action, the sooner you're going to be able to put yourself in a position to purchase a home because the bankruptcy helps you restructure your debt,” Rodney remarks.

Tune in to learn how getting ahead of bankruptcy and enlisting the help of a Mortgage Loan Officer can help your refinancing options improve and provide a brighter outlook.

Name: Rodney Debro

What he does: As a Mortgage Loan Officer at AmCamp Mortgage, Rodney helps clients make the best decisions when financing a new home.

Company: AmCap Mortgage 

Words of wisdom: “Circumstances do happen. I've done loans where people have multiple bankruptcies. I was able to get a lady approved where she had multiple bankruptcies and a foreclosure. … So, things can be done. I tell everybody, every situation is different. Let's sit down and examine things and then we'll go from there.” 

Connect: LinkedIn 

Here’s what we learned about debt and bankruptcy in this episode 

★    Going ahead and filing bankruptcy isn’t the end of the road. The sooner you can get ahead of it and file, the sooner you’ll be able to restructure your debt.

★    Refinancing in North Carolina needs to be justified with a net tangible benefit worksheet to show how the refinance benefits the client. Whether it’s changing from an ARM to a fixed rate to lower your interest, saving you money or getting cash out, a mortgage loan officer can help provide you with the best course of action.

★    Outstanding judgements need to be paid at least three months prior to closing on your mortgage.  Medical collections aren’t a huge deal, but judgments are treated differently. You have to show a pattern on your payments because an underwriter has discretion over this. In some cases, the underwriter may want to see 12 months of a payment pattern.

★    When navigating final signings, consider partnering with someone like a loan officer who can help navigate timeframes and speak on your behalf. Having someone in your corner who you can trust to deliver on the technicalities of the notices is a huge advantage to feeling more secure when any change in circumstances (positive or negative) occurs.

[02:07] Refinancing and new mortgage steps: Rodney explains after 6 payments are made under confirmed Chapter 13, a client should obtain their credit report. He’ll help a client pull it by using

Filing for bankruptcy may seem daunting — but a professional can help. Outcomes vary state to state and depend on what the individual’s actual debt picture looks like. There are vast differences between filing a Chapter 13 or a Chapter 7, and thresholds to qualify for each one vary.

But no matter which route is followed, remember that the aim of bankruptcy is not to take away everything from a person. Rather, it’s meant to help them begin anew.  

“[Courts] They're not taking the shirt off your back. Bankruptcy is about a fresh start,” says attorney Matthew Schmidt.

In the third episode of Orcutt Answers, our host Shawn Orcutt welcomes Matthew, an associate at The Law Offices of John T. Orcutt, to explain the differences between filing a Chapter 13 and a Chapter 7, the role of a trustee and the general process for each type of filing. Matthew also talks about how not all debts are dischargeable, such as student loans or taxes (at least, for a certain amount of time).

The episode reveals what happens when someone’s financial circumstances change — for example, if they lose their job — and can no longer make payments to a trustee after filing Chapter 13. Matthew also shares some advantages from filing a Chapter 13, which can help a client turn their financial situation around.

“Because there's special power with that Chapter 13 trustee, we can actually, in some instances, pay less than what you owe,” says Matthew. “You're still going to walk away at the end, owning that car at the end of that five years outright and you will pay less.”

Name: Matthew Schmidt

What he does: As an associate attorney at the law offices of John T. Orcutt, Matthew mainly practices in the Eastern District of North Carolina between Raleigh and Fayetteville. He focuses his daily practice entirely on consumer bankruptcy, but has also practiced criminal, DWI/Traffic and Social Security disability matters. 

Company: The Law Offices of John T. Orcutt 

Words of wisdom: “The situation is beyond everybody's control and we're all struggling. We're all unhappy with things. There's a way out.”

Connect: LinkedIn 

Here’s what we learned about debt and bankruptcy in this episode 

★    Means test thresholds vary by state and are the main step to deciding if someone qualifies for Chapter 7. Means tests look at the average income in the state and your area as well as what a client has left over after paying for their necessary expenses like housing, food and a car payment.

★    With Chapter 13, people may end up paying less than they owe. The repayment plan to a trustee can be less than what a person owes on their debt, such as with a lower interest rate.

★    It’s possible to go from Chapter 13 to Chapter 7. Chapter 7 is essentially for people who don’t have enough money to pay their creditors. But if their financial circumstances change and they can no longer afford Chapter 13 payments, Chapter 7 may be a viable option.

[02:26] The 411 on automatic stay vs. discharge orders: An automatic stay is an order that gets creditors temporarily off of people’s backs. It’s a quick fix to give people some peace of mind. A discharge order means you are no longer personally liable for...