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...

Attorney Ed Boltz can’t stress this enough: getting out of debt is always easier with the help of an expert.

“There are so many traps and pitfalls in bankruptcy that you can bumble into without even knowing,” he says. “And then the cost of fixing that, both in terms of money and sweat and blood and tears, it can be much higher than if you went to somebody who's dealt with these [matters] before.”

In the second episode of Orcutt Answers, our host Shawn Orcutt welcomes Ed, a partner at The Law Offices of John T. Orcutt and Vice President of the National Association of Consumer Bankruptcy Attorneys, to discuss what’s happening with mortgages in the era of COVID-19, the mortgage outlook for 2021 and your options for saving your home from foreclosure, the latter of which now includes a program known as Loan Modification Management (LMM).

The episode also offers advice for what to look for in a lawyer and insight for people struggling to cover rent, student loan, and car payments during the pandemic.

“I think the advice is come get more advice, sooner rather than later,” Ed says. “If you're struggling with your mortgage, if you're struggling with your car payments, if you're struggling with your other debts, talk to us first, because whether it's dealing with the stimulus check that may be coming out soon, we can help you advise you what to do with that money so that you get the maximum benefit. Before you go and sell assets or repay family members, there are ways that we can help.”

Name: Ed Boltz

What he does: As a partner at the law offices of John T. Orcutt, he mainly practices in the middle district of North Carolina (from Durham to just past Winston-Salem) and as Vice President of the National Association of Consumer Bankruptcy Attorneys, Ed presents at conferences and is the acting leader of arguably the most important organization for bankruptcy attorneys. 

Company: The Law Offices of John T. Orcutt 

Words of wisdom: “People often make a mistake and think, ‘oh, if I file bankruptcy, I won't be able to help my kid with student loans or get any other kind of debt while I'm in a Chapter 13.’ And that's really not true at all. We do this routinely for people based on all the other factors that go into a loan.”

Connect: LinkedIn 

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

★    Going ahead with a foreclosure sale is rarely a good idea. Because such a sale is a lawsuit against you, you'll have that on your credit report and history for 10 years. Also, mortgage companies could try to screw you over with a credit bid.

★    Loss Mitigation Mediation (LMM) is one of the best ways to save your house. The goal of this program is to get your ongoing monthly payment down to 80% of the principal and interest payment you used to have, so it’s about more than getting caught up — and there’s no penalty for prepayment.

★    Bankruptcy attorneys can help with specific payments like rent, car loans and student loans. If you’re behind on any of these payments, go into a law office sooner rather than later so you can start to get them managed before you completely lose...

Attorney John Orcutt hates the word “bankruptcy,” but he’s a big believer in what it can do to help people.

“If I had my way, I’d go back and somehow I'd change the word ‘bankruptcy’ into something else, ‘angel dust’ or something very positive,” he says. “… It's like a pretty girl in a fantasy movie that has been under a curse where all you see is ugly. I've spent a career trying to get that curse off of her so that people can really see the beauty.”

In the premiere episode of Orcutt Answers, our host Shawn Orcutt welcomes John, Founder and Partner at The Law Offices of John T. Orcutt, to discuss the power of bankruptcy, how bankruptcy erases debt, how bankruptcy laws can override other laws, and the biggest mistakes he and his colleagues see from people trying to get rid of debt. They also discuss how filing for bankruptcy functions as a restraining order against creditors and how people can get answers faster.

“Something we tried to get across to people forever and ever, amen, is that the free consult is free,” John says. “There's no strings attached. There's no pressure. I tell my staff, I've told you, I tell everybody, ‘Look, we're not here to sell bankruptcy. We're here to tell people about bankruptcy.’ I tell them, ‘Don't let me ever catch you selling something that's not right for them. … Make sure they understand the full picture of something that's going to save their family.’ Who do we save? Families, all day long.”

Name: John Orcutt 

What he does: As the Founder and Partner at The Law Offices of John T. Orcutt, John works to bring awareness to the benefits of bankruptcy laws. 

Company: The Law Offices of John T. Orcutt

Words of wisdom: “Maybe we can help you, maybe we can't, but you can find out for free. Otherwise, you're just walking in the darkness. You don't know where the stairs are. You don't know where the pits are. You don't need to walk in the darkness. We can at least, from our point of view and knowledge, take you from the dark to the light.”

Connect: LinkedIn 

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

★    Bankruptcy is misunderstood. John points out key misconceptions about bankruptcy laws. The stigma attached to declaring bankruptcy keeps many people from getting rid of debt and having a fresh start.

★    Bankruptcy lawyers are here to help (ASAP). Whether you want to go into an office or use a COVID-19-safe method of communication like a phone consultation, attorneys like John are available to answer your questions as soon as possible.

★    Bankruptcy is the cheapest way to survive major debt. If you’re in over your head, Hail Mary attempts to solve the problem, such as borrowing more money or taking money out of your 401(k), aren’t the answer. Bankruptcy most likely is, because it’s the least expensive way to make your debt disappear.

★    Most people can afford a bankruptcy lawyer. Attorneys are here to help you get you and your family back on your feet, and one way they help is by offering an initial consultation for free.

[01:42] “The power of bankruptcy”: John explains why he uses this term, diving into the

Financial problems can be stressful, exhausting, and embarrassing. At the Law Offices of John T. Orcutt, we’ve been practicing Bankruptcy law in Raleigh, North Carolina for more than 30 years. We’ve seen it all and we’re here to guide you through this uncertain time. Tune in as we walk you through the Bankruptcy process, the myths, the misconceptions, the secrets, and answer your questions that have been keeping you up at night.

In each episode, our experienced debt relief lawyers provide guidance surrounding financial matters including, debt, credit, credit scores, personal finance, financial planning, Title 11, Chapter 7, Chapter 13. Ready to put this chapter of your life behind you? Let’s get fresh started.

Ready to speak to one our experienced attorneys today? The Law Offices of John T. Orcutt are located across North Carolina in North & South Raleigh, Durham, Wilson, Greensboro, New Bern, Jacksonville, Southport, Fayetteville, Wilmington, and Charlotte. To schedule a consultation with one of our attorneys, visit our website at billsbills.com or call us day or night at 888-234-4190.

The insights and views presented in “Orcutt Answers” are for general information purposes only and should not be taken as legal advice for any individual case or situation. The information presented is not a substitute for consulting with an attorney. Nor does tuning in to this podcast constitute an attorney-client relationship of any kind. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. If you’re ready to talk to someone who understands what you’re going through, contact The Law Offices of John T. Orcutt today.