The process of filing bankruptcy in Jefferson County, MO becomes much easier when someone speaks with an experienced lawyer. Every situation is unique and just because one spouse is filing bankruptcy, doesn’t mean they both have to file. Sharing debt with a spouse doesn’t mean it’s going to destroy their credit if the other files. Bankruptcy can be a sound solution for someone that has too many bills or does not receive enough income to pay the bills they currently have. Choosing between chapter 7 and chapter 13 bankruptcy is normally suggested by the attorney based on someone’s income and expense.
With the new bankruptcy laws put into effect about ten years ago, everyone must attend credit counseling with a certified agency before the bankruptcy proceeding can continue. If someone is eligible for chapter 13, they will develop a payment plan that will last three to five years. This plan is usually accepted by the judge overseeing the bankruptcy case. The judge always has the option to increase or decrease the payment amount that’s suggested. Chapter 13 bankruptcy debtors are able to retain their assets through the payment plan and after the exemptions have been applied. Chapter 7 bankruptcy assigns a trustee to sell any assets that are not exempt in order to pay off the creditors.
Chapter 7 is a good choice for people who have a lot of unsecured credit card debt and don’t have the income to pay the bill. The payment plan for chapter 13 bankruptcy is usually very fair and the balance of the debt will be discharged when the payments are complete. An attorney can also attempt to perform debt negotiation or debt settlement as an alternative to filing for bankruptcy. When someone’s continually falling behind on the home or auto payment and only making the minimum credit card payment, they should speak with a bankruptcy attorney.
Eliminating debt that is only sending you spiraling into further debt can be done through bankruptcy. An experienced lawyer will explain all of the procedures as well as the pros and cons of each type of bankruptcy. For more information, please feel free to contact us.
