Chesterfield, Missouri Bankruptcy Attorney Experienced in Chapter 7 Cases

Missouri Bankruptcy Law Firm Will Guide You through Liquidation

In a chapter 7 bankruptcy, an individual is able to erase their debts and make a fresh start. A chapter 7 bankruptcy trustee will collect all your assets, sell, or liquidate any that are not exempt, and distribute the net proceeds to your creditors to pay off all or part of your debt.

Dischargeable and Non-Dischargeable Debt

Some debts are dischargeable (may be wiped out) in a chapter 7 bankruptcy, including credit cards and other unsecured debt, while others cannot be discharged, including:

• Alimony
• Child support
• Student loans
• Fraudulent debt
• Certain tax debt

Those filing for chapter 7 bankruptcy may choose to keep certain secured debts, such as a house or car, by signing a voluntary Reaffirmation Agreement. Reaffirmed debt is still owned and must continue to be paid just as before bankruptcy was filed. Debt can be selectively reaffirmed, meaning that you can decide to keep a car or furniture but let jewelry or electronics go back to the respective creditors.

Means Test

Under the 2005 Bankruptcy Act, an individual's income and expenses will be reviewed to determine whether or not they are eligible to file for chapter 7 bankruptcy relief. To apply the means test, Missouri courts will look at your average income for the six months prior to the bankruptcy filing and compare it to the median income for Missouri. If your income falls below the state median, you may choose chapter 7, but if it exceeds the state median, the remainder of the means test will be applied to determine if you can file for chapter 7 or if you must file for chapter 13 bankruptcy instead.

Before you file for chapter 7 bankruptcy in Chesterfield, Missouri, speak with an experienced bankruptcy attorney like James B. Day. He will examine your financial situation and pursue the best outcome possible for you. Contact The Law Office of James B. Day, LLC online or call 314-786-1218 to schedule your free initial consultation today.