Filing for bankruptcy comes with visuals of losing everything that you own in order to be able to eliminate debt. Nothing could be further from the truth, especially with a Chapter 13 in St. Louis. Why? A Chapter 13 bankruptcy covers the creation of a reorganization/repayment plan that helps you pay down your debt under a more affordable monthly payment. Because you are paying back your debt, the court has no interest in taking any assets that may have value. You keep everything that you currently own.
Chapter 13 in St. Louis is typically entered into by those who make too much money for a Chapter 7, but there are other circumstances that can qualify someone for Chapter 13 as well. It’s best to talk to a lawyer about how the qualification test works. Once you know you are able to enter into a Chapter 13, you move onto the petition. There, you and your lawyer work out how much you make, how much are your debts, and how much you can afford to pay every month. This is submitted to the trustee, and is confirmed when you sit down to meet with him or her. Once the amount to be paid is accepted, the bankruptcy moves forward into the repayment phase. It can take anywhere from three to five years to fully complete a Chapter 13 bankruptcy, and when it is finished, any remaining debts are wiped out for good.
While your bankruptcy is active, you submit your payments to the trustee overseeing your case. The payments are disbursed to your creditors who have to accept it. At no time do you contact your creditors; the trustee takes over your estate and takes care of contact from creditors. Some creditors, such as a bank that holds your mortgage, may try to get relief from the bankruptcy, but success depends on how the court rules.
Once the last payment is made and discharge reached, you are finished for good. You are now free to rebuild your credit rating and move on with your life.
For more information about filing for bankruptcy, or to set up a consultation with a lawyer, contact the Law Offices of Steven K. Brown.
