People who are drowning in debt should consider bankruptcy. The most common consumer bankruptcies in this country are chapters 7 and 13. Do your homework and find out what chapter you are eligible for. First, the court assigns a bankruptcy trustee to each filer’s case. In chapter 7 bankruptcy, the trustee sells nonexempt property to repay creditors. The creditors will not be paid if the filer has no such assets. Chapter 7 filers do not have a lot of money.
Debtors who file chapter 13 Bankruptcy in St. Louis, MO must have a source of income as chapter 13 is a repayment bankruptcy. A great percentage of the debtor’s disposable income goes toward monthly payments. It is a good idea to have a lawyer when filing bankruptcy. Visit website to learn more about the process. There is a lot of paperwork no matter what chapter you file that needs to be complete and accurate. For example, it is important to list all your debts, income, and assets. In chapter 13, the monthly payment is based on income and expenses; therefore, the trustee needs accurate accounting. You could end up with a monthly amount that you cannot pay. The lawyer goes over the filings with clients to ensure accuracy.
There are some debts that cannot be discharged in bankruptcy in St. Louis, MO, such as child support, debts for injuries or deaths caused by a DUI, or fines related to criminal matters. In certain rare circumstances, the court may discharge student loan and income tax debts. Debtors who are behind on mortgages and car notes may be able to keep their possessions because the arrears will be included in the monthly chapter 13 payment. However, the current notes must be paid as well. One of the best parts of bankruptcy in St. Louis, MO is the automatic stay. The stay prevents creditors from taking any collection action once someone files. Bankruptcy is a tool to help consumers get a fresh start. And, the important thing is to learn from the past and not get into debt again. Click here for more details about the bankruptcy in St. Louis, MO.
