A Bankruptcy Attorney St. Charles MO Will Help Protect What’s Important

by | Jan 21, 2016 | Lawyer

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Whatever the reason for having to declare bankruptcy, it can be a scary and overwhelming undertaking. The term bankruptcy is often characterized as being a bad decision for anyone. However, as a last resort, it can be the silver lining in a dark cloud of debt. A Bankruptcy Attorney St. Charles MO can help ease the fears and aid in justifying the need for such an extreme course of action. The primary purpose of filing bankruptcy is to wipe away or reduce the debt and offer a fresh start to the debtor.

Personal bankruptcies are categorized as either a chapter 7 or chapter 13. Before filing for a chapter 13 bankruptcy, a debtor must receive services from a credit counseling agency. The debtor then provides the court with information on income, expenses, and details about both secured and unsecured debt owed. A trustee reviews the case and holds a creditors meeting. The debtor then creates and files a repayment plan with each creditor and submits it to the court. Once approved by the court, the Chapter 13 is complete. This type of bankruptcy helps preserve the home and personal belongings of the debtor from being claimed by the creditors.

A chapter 7 bankruptcy filing is similar to a chapter 13 except that once it is approved by the courts; the debtor no longer owes money to the creditors. A Bankruptcy Attorney St. Charles MO will inform clients about possible exemptions allowed. The exemptions related to a chapter 7 bankruptcy can include the home, car and some personal belongings. A debtor must meet specific criteria of a means test in order to qualify to file for a chapter 7. If the debtor qualifies, the process can take about four months before having all of the debts discharged.

An individual can also file a chapter 7 bankruptcy for a business that is an LLC. In this case, personal assets can be protected from the debts that are accumulated by the business. Unlike a personal chapter 7, there is no means test qualification, if a majority of the debt is business-related. The Law Offices of Steven K. Brown will answer any questions and offer services to anyone who feels they are in need of bankruptcy protection either for business or personal reasons. Browse the website to determine which type of bankruptcy may be right for you. An attorney will guide you throughout the entire process.