What Bankruptcy Can & Cannot Do
In the simplest terms, filing for bankruptcy allows individuals to regain financial control. Depending on the type of bankruptcy filed, this may mean the total discharge of most or all debts, or it may involve the restructuring and repayment of debts over a specified period of time.
Some examples of different types of debts that may be discharged via bankruptcy include:
- Credit card debt
- Medical bills
- Personal loans
- Past-due utility bills
In a reorganization bankruptcy, you may be able to restructure certain secured debts, such as real estate mortgages and auto loans, allowing you to make more manageable monthly payments and catch up on overdue or past-due payments.
However, generally bankruptcy does not eliminate or allow for the restructuring of all financial liabilities.
- Child support payments
- Spousal support (alimony) payments
- Most student loans and tax debts
- Fines and payments associated with criminal legal proceedings
- Court-ordered payments for personal injury or death caused by drunk driving
Frequently Asked Questions
What is the Means Test for Bankruptcy in Missouri?
The means test is a critical step in determining eligibility for Chapter 7 bankruptcy in Missouri. It involves comparing your average income over six months to the state's median income for a household of your size. If your income is below the median, you may qualify for Chapter 7. If it's above, you may still qualify by deducting specific expenses to determine your disposable income. Our team conducts a thorough examination of your finances to determine your eligibility, ensuring that all applicable deductions are considered.
How Long Does the Bankruptcy Process Take in Missouri?
The duration of a bankruptcy case in Missouri varies based on the type of filing. Chapter 7 cases typically conclude within four to six months, involving the liquidation of assets and the discharge of debt. In contrast, Chapter 13 filings include a three- to five-year repayment plan. The precise timeline may vary depending on individual circumstances and court scheduling. Throughout the process, our lawyers will provide timely updates and strategic advice to manage expectations and facilitate a smooth transition through each stage.
Can I Keep My Car & House in a Missouri Bankruptcy?
Whether you can retain ownership of your house and car in a Missouri bankruptcy depends on several factors, including the equity in these assets and the type of bankruptcy filed. Missouri's exemptions play a pivotal role here. The state's homestead exemption can safeguard up to a certain amount of home equity, and there are also specific exemptions for vehicles. For Chapter 13 filers, a repayment plan can help manage arrears on secured debts. Our attorneys will guide you through understanding and applying these exemptions, working to preserve your essential possessions while alleviating your debt burden.
Contact Our Bankruptcy Lawyer in Missouri Today
Navigating the process of filing for bankruptcy can be extremely overwhelming, but Watton Law Group is here to help. We are committed to providing our clients with the personal attention and support they deserve, as well as the information they need to make empowered financial decisions. We can assist you with all aspects of filing for bankruptcy and debt relief, from determining whether this is the right option for you to identifying the most beneficial form of bankruptcy based on your situation. We also regularly help clients with related matters, such as debt lawsuits, foreclosure, vehicle repossession, class actions, creditor harassment, and more.
We invite you to reach out to our Missouri bankruptcy attorneys today to learn more. We offer complimentary bankruptcy evaluations and free consultations to all new and prospective clients.
Contact us today by filling out and submitting a secure online form with our Missouri bankruptcy attorney.
