Creve Coeur, Missouri Bankruptcy Attorney Gives Debtors Sound Advice
Missouri Bankruptcy Law Firm Will Guide You Through the Bankruptcy Process
If you're considering filing for bankruptcy in Creve Coeur, Missouri, you may be struggling with choosing between chapter 7 and chapter 13 bankruptcy, and as you might expect, there are pros and cons to each.
Chapter 7
Chapter 7 bankruptcy, also known as liquidation bankruptcy, can provide a fresh start to debtors, and there is no minimum amount of debt required to file. Your non-exempt property will be sold by the bankruptcy trustee to pay off your debt. If you want to keep a secured asset like a car or home, this may not be possible if the asset is not completely covered by the Missouri bankruptcy exemptions.
Under chapter 7, debtors have protection against creditor's collection efforts and wage garnishment immediately upon filing, but if you are facing foreclosure on your home, the automatic stay will only serve as a temporary defense. Chapter 7 cases move relatively rapidly, and most are concluded within three to six months of the initial filing.
Chapter 13
If you are behind on your mortgage or business payments and want to retain your property, a chapter 13 bankruptcy might be a good option for you. This type of bankruptcy will allow you to make up your overdue payments over time and reinstate your original mortgage agreement.
If you have steady income and can afford a payment plan, you may be able to keep all your property, exempt and non-exempt. While your debts will not be cancelled like in a chapter 7 bankruptcy, they will be reduced under a chapter 13 payment plan. Chapter 13 plans typically extend over a three to five year period.
If you have questions about filing for bankruptcy in Creve Coeur, Missouri, an experienced bankruptcy attorney like James B. Day will review your financial situation and provide you with viable options. To schedule your free initial consultation, contact The Law Office of James B. Day, LLC online or call 314-786-1218 today.
