Financial problems occur for a variety of reasons, and no one should feel ashamed when they find themselves with more bills to pay than they have money coming in. Illness, injury, death of a loved one, divorce, and many other life-changing situations can dramatically change someone’s financial picture. A bankruptcy law firm in St. Louis, MO has the answers an individual needs to gain the financial freedom everyone deserves. There are several types of bankruptcies a lawyer can review to see which type will be appropriate for the individual. Chapter 7 and 13 are the most common types of bankruptcies an individual can file.
Although both types of bankruptcies can eliminate debt, the requirements are different. Chapter 7 bankruptcy is for individuals who have a limited amount of income, very few assets, and unsecured debts. Most of the time, an individual can keep their house, car, and household goods. Retirement accounts are usually safe from bankruptcy. A trustee will be assigned to this type of bankruptcy, and any items that are not protected under the exemptions will be liquidated. An experience bankruptcy law firm in St. Louis, MO can usually protect many, if not all, of the assets and eliminate debt from credit cards, medical bills, payday loan debts, old utility and cell phone bills, overdrawn bank accounts, and taxes that are more than three years old.
Chapter 13 bankruptcy requires a restructuring of an individual’s debt. A payment plan is usually arranged for a three to five-year period. After the payments are complete, the creditor will forgive the balance of the debt. Bankruptcy can stop foreclosure, repossession, wage garnishments, and reorganize someone’s debts into a payment plan they can afford. Certain things, such as student loans and past due taxes, cannot be forgiven, but they can be structured for easier payments. Certain things cannot be altered such as child support or alimony payments.
If you want financial freedom from the debt you’re drowning in, bankruptcy should definitely be considered. An experienced bankruptcy attorney can help you through every step of the process, and you can have the financial freedom you need. For more information, please visit Stlbankruptcyfirm.com.
For more updates, follow us on Facebook.
