Get Legal Debt Relief. Keep Your Home or Vehicle.
Chapter 13 bankruptcy is an excellent debt relief solution for some consumers while it is not appropriate for others. With a Chapter 13 filing, which deals with all of your bills, unsecured debts (credit cards, medical bills, personal loans and the like) and secured debts (mortgages, auto loans, etc.). When you file, the bankruptcy court appoints a trustee to oversee a debt repayment plan that you can afford.
It is rare that a person will have to pay their unsecured debt in full in a Chapter 13. What is required is that you make a reasonable effort to pay based on what you can afford over a set time period. Generally speaking, once the plan is completed, certain remaining debts that have not been paid, are discharged. Another benefit of Chapter 13 is that if you have unsecured debt that you have to pay (student loans, child support, taxes, etc.) you can pay this through the Chapter 13 at an amount that is usually less than what they are asking you to pay.
Why Chapter 13 and Not Chapter 7?
People choose to file Chapter 13 bankruptcy, instead of Chapter 7, for a variety of reasons. A major reason is that many people have too much income or too many resources to qualify for Chapter 7. Some people either stand to lose too much in a Chapter 7 (such as their home or car) or they cannot show an inability to pay a portion of their debts and thus do not qualify.
In short, the potential benefits of Chapter 13 include:
- Enabling you to keep a home, vacation property or rental property by allowing you to pay off mortgage arrears, usually over a three year period, while other debts can be stretched out over a five year period if necessary
- Preventing the loss of a property by stopping a foreclosure sale, even if the sale is imminent
- Helping you keep a car, truck, motorcycle, boat or RV by restructuring payments over time in a way that is affordable to you, whether you are delinquent or not
- Preserving other possessions that you want to keep but that might have to be surrendered in a Chapter 7
- Reducing or discharging certain debts without the liquidation of assets of a Chapter 7
Talk to a Skilled St. Louis Chapter 13 Bankruptcy Attorney
If you qualify, our experienced Missouri bankruptcy lawyers can help you file Chapter 13 in St. Louis City, St. Louis County, and many surrounding counties or we can explore Chapter 7 bankruptcy and other options for debt relief. We can assess your situation during a free consultation to help you determine if bankruptcy is truly in your best interests. Contact us to learn more.