Financial problems can be a tremendous source of stress for many people and may negatively affect many aspects of your life. There are many reasons that financial problems can occur, including the loss of a job, unexpected health problems, accidents, and just plain bad luck. Sometimes, debts can get so out of control that there a debtor has no option other than filing for bankruptcy in order to restructure or eliminate certain debts. Whether bankruptcy is right for you depends on a variety of factors, and discussing your situation with a St. Louis bankruptcy attorney is often the first step to a brighter financial future.
Among the most common form of consumer bankruptcy in Missouri is a type of bankruptcy known as Chapter 7. Also known as a liquidation bankruptcy, Chapter 7 operates by liquidating a debtor’s non-exempt assets and using the proceeds to pay off outstanding debts. Many of the debts that are not paid off are discharged in a Chapter 7 bankruptcy. The law does not seek to leave people destitute after a bankruptcy, however, and exempts several types of property from liquidation. Some exemptions in Missouri include the following:
- Homestead – equity in your home up to $15,000, or $5,000 in the case of a mobile home.
- Insurance policies
- Personal property, such as clothing, household goods, musical instruments, animals, up to $3,000
- Vehicles, up to $3,000
- Work tools
- $1,250 of any property (wildcard exemption) for heads of household, $400 for others, and $250 per child
There are other exemptions available as well, and it is important to discuss your situation with an attorney who is familiar with Missouri bankruptcy law. A bankruptcy attorney can help make sure that you keep as much of your property as possible while taking advantage of the debt relief provisions offered by bankruptcy.
Contact a St. Louis bankruptcy attorney today to schedule a free consultation
If you are currently experiencing financial distress, bankruptcy may be able to help. To schedule a free consultation with an experienced St. Louis bankruptcy lawyer, call the Law Offices of Kenneth P. Carp today at 636-947-3600.