When you file for St. Louis Chapter 7 bankruptcy or St. Louis Chapter 13 bankruptcy, the end result is called a ‘discharge of debts.’ This means that your unsecured creditors, including credit cards, medical bills, payday loans, deficiency on a repossession, etc, are knocked out. The slate is wiped clean, and you are on your way towards a fresh start in life.
In a Chapter 7 bankruptcy, this discharge usually comes three or four months after the date of filing. In a Chapter 13 bankruptcy, the discharge you receive will come at the end of your repayment plan (which typically lasts between three to five years). Either way, your opportunities to rebuild a foundation of credit (like a credit score) are immediate after filing for bankruptcy.
Receiving a fresh start in life is something that all of us deserve. That is the primary function of a bankruptcy: allowing you to restart your life, and move forward. But there really is more to the process than simply getting out from underneath your debts. Many of our clients have expressed great emotional relief even after visiting our office for their initial consultation. Being told that they will no longer have to answer phone calls from harassing collection agencies, or no longer worrying about having enough money to cover monthly payments, or no longer wondering if they are going to be sued, can relieve a lot of stress!
Ultimately, the ‘fresh start / clean slate’ idea is there for a very special reason. The United States government determined quite some time ago that bankruptcy should be available to provide a second chance for those who need one. That we should not be burdened for the rest of our lives by creditors chasing us for money we don’t have (especially when most of that money is going towards interest, as opposed to principal). That carrying heavy debt loads for years and years does not in any way help our system of capitalism (and that it in fact can hamper entrepreneurialism). And that living in fear of constant harassment is not beneficial for individuals, families and small businesses alike.
The benefits of the fresh start / clean slate extend even further. Most of our St. Louis bankruptcy clients have not only rebuilt their credit scores, but have also been able to purchase a home and/or automobile within two years of filing for bankruptcy. They have taken out small business loans to get their company moving again, and they have taken out student loans to advance their education. All of these examples have one thing in common: they are actions taken by people who have filed for bankruptcy, received a discharge of their debts, and are now moving forward with life.
Our St. Louis bankruptcy attorneys have helped thousands of clients achieve their fresh start / clean slate, and guided them towards the road of financial recovery. We have watched with a great deal of satisfaction as our clients regain their bearings and move in a more positive direction.