Bankruptcy Overview

Bankruptcy can seem like a complicated process, but with the proper help, it does not have to be.  The two most common types of bankruptcy are Chapter 7 bankruptcy and Chapter 13 bankruptcy.

Chapter 7 bankruptcy is considered a “liquidation bankruptcy.”  Despite the name, the vast majority of Chapter 7 bankruptcies allow you to keep your home, car and possessions. This type of bankruptcy often applies to common debts such as credit cards, medical bills and personal loans.  To be eligible, you must be able to pass the “means test,” which is a formula based on your income and household size.   With a simple phone call, we can help you determine your eligibility for a Chapter 7 bankruptcy.

If you do not qualify to file for Chapter 7 bankruptcy relief, you may need to consider a Chapter 13 bankruptcy.  A Chapter 13 bankruptcy, also known as a reorganization bankruptcy, is a three to five year reorganization approved by a bankruptcy judge.

In a Chapter 13 bankruptcy case, a plan is proposed and monthly payments are made to a bankruptcy trustee.  The bankruptcy trustee is the individual who facilitates your bankruptcy payments; that person is not a judge. Once the plan has ended, the remaining amount of unsecured debts will be discharged.  The amount of each payment is dependent on the circumstances of each individual.  Issues such as mortgage or vehicle arrears, taxes, income and other issues shape what your payment plan will look like.

Filing for bankruptcy is an extremely complicated process.  Having a St Louis bankruptcy attorney can ensure that your interests are protected to the fullest extent under the law.