Chesterfield, Missouri Chapter 13 Bankruptcy Attorney Puts Clients First
Missouri Bankruptcy Law Firm Concentrates on Chapter 13
Chapter 13 is the section of the U.S. Bankruptcy Code that provides for the adjustment of debts for an individual with regular income who has gotten behind on his payments but wishes to keep his property and pay his debt over time, usually within three to five years.
A chapter 13 trustee is appointed to administer a chapter 13 case. His responsibilities include:
- Reviewing the debtor's petition and schedules
- Making distributors to creditors
- Overseeing the debtor's payment plan
- Receiving payments from debtors
- Disbursing plan payments to creditors
Advantages of Chapter 13 Bankruptcy
Chapter 13 bankruptcy offers a number of advantages over chapter 7, or liquidation bankruptcy. One of the main advantages to chapter 13 is it may give homeowners the opportunity to save their homes from foreclosure, since filing chapter 13 bankruptcy can stop foreclosure proceedings and give the homeowner time to cure a delinquent mortgage.
Another benefit of chapter 13 bankruptcy is that it allows filers to reschedule their secured debts (other than the mortgage of their primary residence) and extend them over the life of a chapter 13 plan, which is usually three to five years. Under certain circumstances, the interest rate can also be modified.
Chapter 13 also relieves the debtors from any direct contact with their creditors and functions much like a consolidation loan in that the individual makes the plan payments to a chapter 13 trustee, who has the responsibility for distributing payments to creditors.
Missouri bankruptcy attorney James B. Day spent eight years working for a bankruptcy trustee before opening up his own law office, and now dedicates his time to guiding debtors through the chapter 13 process. For sound bankruptcy advice tailored to your individual needs, contact The Law Office of James B. Day, LLC online or call 314-786-1218 to schedule your free initial consultation today.
