Chapter 13 Bankruptcy in Missouri allows a debtor to engage in a financial reorganization supervised by a federal bankruptcy court. Usually, people who are facing a foreclosure, car repossession, or people who can afford to pay their disposable income to their creditors choose to file a Chapter 13. Furthermore, people with substantial non-exempt property (that would be sold in a Chapter 7 bankruptcy) may also benefit. If you’re facing bankruptcy and think you would benefit from filing a Chapter 13 in St. Charles or Troy, call our Chapter 13 bankruptcy attorneys today for a free case evaluation.
Unlike some other forms of bankruptcy, a Chapter 13 bankruptcy is available to individuals and businesses alike. It provides an individual or business debtor the ability to reorganize and restructure the obligations owed to creditors. Chapter 13 differs from a Chapter 7 and a Chapter 11 proceeding. In a Chapter 7 case, an individual’s debt is discharged. In other words, a person is relieved of most of his or her debt obligation as a result of the bankruptcy proceeding. Similarly, in a Chapter 11 case, a business obtains a discharge of most of the debt it owes to its creditors.
In a Chapter 13 bankruptcy, an individual reorganizes their debt in such a way that they propose to pay their creditors their disposable income over a three to five year period. The plan is memorialized in writing, and details all the future transactions that will occur between a debtor and his or her creditors. The debtor in turn makes a payment each month to the court-appointed trustee, who in turn divides the money between the creditors of that debtor. The court establishes a specific time frame in which the obligations or debts in the payment plan must be satisfied or paid off by the debtor. Pursuant to the U.S. Bankruptcy Code, the maximum length of time for a repayment plan in a Chapter 13 bankruptcy case is five years. Generally, the debtor keeps their property, and the creditors receive much less money than had the debtor not filed for bankruptcy.
The amount of money a debtor needs to pay each month to the trustee in a Bankruptcy case is based upon that individual’s income and the total amount of debt due and owing to all of the creditors. The failure to make required payments will result in a dismissal of the bankruptcy case.
Below is a list of what to expect in the event that you choose to hire our St. Charles Chapter 13 attorneys:
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If you’re in over your head financially, call Westbrook Law Group today to schedule a free initial consultation with an experienced Chapter 13 lawyer in St. Charles and Troy, MO. Together, we can evaluate your financial situation and determine what the best course of action is to quickly put you back on track. We understand that the people seeking our services are having financial difficulty, and as a result, offer competitive rates and payment plans. To help our clients rebuild credit after bankruptcy, we offer 720CreditScore‘s credit program to all our clients free of charge! We also are available to meet with you in the evening or over the weekend, by appointment. Call us today at (636) 486-1122 or fill out our online case evaluation and someone will get back to you shortly.
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