Helping the People of Missouri Eliminate Debts and Obtain a Fresh Financial Start Through Chapter 7 and Chapter 13 Bankruptcy

Falling behind on your bills can be an enormous source of stress and anxiety. You may be worried about losing your home or apartment, the disconnection of your utilities, or be forced to make tough decisions about which of your important bills to pay. If you find yourself in these or other similar situations, bankruptcy may be an option to consider. Bankruptcy often allows people who are struggling with meeting their financial obligations an opportunity to eliminate debts and get a fresh financial start.

What is Chapter 7 Bankruptcy in Lincoln County?

Chapter 7 is the most common type of consumer bankruptcy and involves the liquidation of a debtor’s non-exempt assets. This means that any assets that you own that do not fit under an exemption recognized by Missouri law will likely be sold by the bankruptcy trustee and the proceeds of the sale will be used to pay off debts. For debtors, the main benefit of Chapter 7 is that most, if not all, debts that are left over after liquidating will be discharged. Some categories of debts that are often discharged through Chapter 7 include the following:

  • Credit card debts
  • Medical bills
  • Past-due rent
  • Utility bills
  • Business loans
  • Personal loans
  • Certain tax debts
  • Collection accounts
  • Most civil judgments

What is Chapter 13 Bankruptcy in Lincoln County?

Chapter 13 is a type of bankruptcy that is most appropriate for people who earn a regular income and who have assets that they would like to protect from liquidation, foreclosure, or repossession. For many people who file for Chapter 13, the main benefit they realize is that they are able to keep their property while they get caught up on their bills. The way that Chapter 13 works is that a debtor’s debts are reorganized and he or she enters into a court-approved payment plan, under which one payment is made each month to a bankruptcy trustee. The payment plan can last anywhere from 3 to 5 years, and upon its conclusion, most leftover debts will be discharged. During the repayment period, creditors are barred from pursuing any collection activity while the debtor is current on his or her payments, including sending letters, making calls, initiating repossession proceedings, or filing a lawsuit.

Determining Which Type of Bankruptcy is Right for You

Deciding which type of bankruptcy to file or even whether to file at all is a complicated matter. Some of the issues your need to consider include the exemptions available to you, your total debt level, your income, and the way that bankruptcy could affect your future, as well as others. For this reason, it is highly advisable to speak to a lawyer before filing any bankruptcy documents or making decisions that could affect your legal rights.

Call a Lincoln County Bankruptcy Lawyer Today to Schedule a Free Case Evaluation

If you are having trouble keeping up with your monthly obligations, you should discuss your options with an experienced lawyer as soon as possible. Lincoln County bankruptcy attorney Kenneth P. Carp has been helping people in financial distress for more than 25 years and will evaluate your case at no cost to you. To schedule a free consultation, call our office today at 636-947-3600 or send us an email through our online contact form.