Bankruptcy is one way to get out of financial trouble. The process helps if you are in danger of losing a home or car. There are two main individual bankruptcy chapters, 7 and 13. Chapter 7 is a liquidation plan while Chapter 13 is geared towards repayment. Further, some people may not qualify for a Chapter 7. People who make enough money to repay debt cannot file Chapter 7. Exceptions include disabled veterans who incurred debt during active duty. Also, people who owe money from owing a business also get an exception.
Everyone who files bankruptcy is required to get credit counseling. The counseling must be done by a government-approved firm. And, it must be completed within 180 days of filing. Next, the consumer should hire an attorney. If you are interested in Chapter 7 St. Charles MO, visit Website.com. Attorneys know the ins and outs of bankruptcy law and make sure you do too. For example, the attorney knows the importance of filling out paperwork properly. Individuals must include all their debts or they will not be included in the bankruptcy. Filers must also verify how much money they make. Some people may have two or three jobs and the income must be reported. Your paperwork will be intensely scrutinized if the court thinks you are hiding income.
In a Chapter 7 St. Charles MO, some of the debtor’s property is sold. Money from the sale goes towards repaying debt. In the alternative, a lawyer will file a Chapter 13. Chapter 13 is for people who have a regular income. A portion of that income goes towards monthly debt payments. Hence, filers do not have a lot of disposable income left over. This results in major lifestyle changes like limiting shopping and dining out. The payments are spread out over a few years so it is not a quick process. However, when the bankruptcy ends, you will be out of debt. Whether you file Chapter 7 in St. Charles, MO or Chapter 13, you will have a fresh start. Hopefully, you will start new financial habits and not get into debt again.