If you make “too much money,” then it may be that you will not qualify for a St. Louis Chapter 7 bankruptcy. But I purposefully put that phrase in quotes because even if it looks like you make too much on paper, there are still ways to get you into a Missouri Chapter 7. Let’s take a look at how the whole thing works:
When you file for bankruptcy, the court is interesting one primary piece of information: whether or not you are above or below the median income level. So let’s assume you are a household of three (you, your spouse, and one child). According to the government, the average (or median) income for a household of three is: $62,110 (as of May 2015). If your total household income is below this level (and you have not filed a Ch7 within the last eight (8) years), then you qualify for a Chapter 7. If your household income is substantially above that level, then you would have to file a St. Louis Chapter 13 (which is described as a repayment plan over the course of five (5) years, during which certain debts are paid back).
But what if your household income is only slightly above the median income level for a household of three? In those kinds of situations, it is still possible to pull you into a 7 (but there are a host of calculations that have to be performed, usually by an experienced St. Louis bankruptcy lawyer). There are certain deductions that can be taken (like deducting the amount you pay out each paycheck towards taxes, health insurance, retirement, and charitable contributions; but also for things like car and house payments, and any childcare coverage). After these calculations are complete, it may at that point be possible to squeeze you into a St. Louis Chapter 7.
But even if a Ch7 doesn’t pan out for you, a Ch13 is still a good option!! For instance, if you are paying a really high interest rate on a car loan, the Chapter 13 would help tremendously because you pay the car off at a much lower rate of interest (it is currently set at 4.75%). Or if you have old taxes debts that are still owed, or back child support, or if you have fallen behind on your mortgage – all of these things can become a part of your repayment plan in a Missouri Chapter 13.
The affordable St. Louis bankruptcy attorneys at Brinkman & Alter, LLC have been saving and protecting people’s assets for years. Our goal is to make sure that you keep the assets and property you want, discharge the debts that you want to get rid of, and do it all at an affordable cost to you. All phone conversations and office consultations are free of charge.