Exploring Chapters with a Bankruptcy Attorney in St. Charles, MO

In Missouri, consumers must evaluate all opportunities when facing overwhelming volumes of debt. These circumstances could lead to legal action by creditors, which could cause the consumer to lose their home or automobile. A bankruptcy attorney in St. Charles, MO helps these consumers become debt free.

Reviewing Chapter 13

Chapter 13 bankruptcy requires consumers to prove their eligibility. In order to do so, they must submit income statements for the last six months. The attorney reviews the income statement to determine if the consumer possesses an adequate income level. According to the law, the consumer must have an income higher than the current average for their area. Currently, the median income for the state is $48,363.

What to Expect from Chapter 7

During chapter 7, the court liquidates the consumer’s assets by selling them to the highest bidder to collect proceeds. These proceeds are distributed to the consumer’s creditors to settle the debt. The court appoints a trustee to manage these requirements. Any consumer who doesn’t qualify for chapter 13 bankruptcy has this opportunity if they have adequate assets to sell.

What Are the Prerequisites?

The prerequisites for filing a bankruptcy claim include attendance in a credit counseling program approved by the state. The consumer must provide evidence of their completion to the court to proceed.

The consumer must attend a meeting of creditors. This hearing determines what creditors will allow the consumer to include their accounts in the bankruptcy claim. All creditors have the option to attend this hearing and voice their opinions.

What Is a Discharge of Debt?

A discharge of debt is afforded by the judge indicating that the consumer is no longer responsible for the debt. The account is closed, and the creditor cannot take any further legal action against the consumer.

Missouri consumers must evaluate opportunities to settle their debts. These opportunities could afford them with an automatic stay to prevent creditors from repossessing or foreclosing on the consumer’s properties. Consumers who need assistance from a bankruptcy attorney in St. Charles, MO should contact the Law Offices of Steven K. Brown, or visit us here for more information.

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