$300 UPFRONT FEES FOR A ST LOUIS CHAPTER 13 BANKRUPTCY
The most common tool used to stop a foreclosure from proceeding is by filing a St. Louis Chapter 13 bankruptcy. This chapter of the Bankruptcy Code allows you to enter into a repayment plan (over the course of three (3) to five (5) years) during which certain debts are paid back. If you file the Chapter 13 because you want to stop a foreclosure, then part of your repayment would include the amount that you have fallen behind of your mortgage (the so-called “arrearage”).
State and federal law makes clear that the Automatic Stay of the bankruptcy petition puts a stop to a bank in their efforts to foreclose on your home loan. So long as the bankruptcy is filed before the actual sale takes place (and yes, it can get right down to very last minute), then the foreclosure sale must be called off.
About one month after your St. Louis Chapter 13 is filed, you will have your first plan payment. This plan payment will include the arrearage on your mortgage, any car loans, tax debt, back child support, most of attorney fees, and possibly a portion of your unsecured debt (such as credit cards and medical bills). In addition to this plan payment (covering the items listed above), you will have to start making your regular monthly mortgage payment thereafter. This means that in a Missouri Chapter 13, you have two big monthly payments: your Chapter 13 payment; and your regular monthly mortgage.
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Of course, you also will have to prove to the court that your household income will support these monthly payments. Because it is quite possible that your finances and/or budget does not allow for this expense. If this turns out to be the case, then one option would be to simply surrender your ownership interest in the home (and get out from underneath the debt altogether).
A Chapter 13 is different from a St. Louis Chapter 7 in many ways. The most obvious difference is that a Chapter 7 is not a repayment plan. It is described as a discharge of your unsecured debts (like payday loans, old utility bills, overdrawn bank accounts, credit cards, medical bills, etc.). Although it should be pointed out that in a Missouri Chapter 7, the Bankruptcy Trustee will also take a close look at all of your assets (everything from a house or car, down to bank accounts and stocks and bonds). If any of those possessions have unexempt value, it is possible that the Trustee could demand that the asset be turned over. But then this is exactly why it is so terribly important to hire a good St. Louis bankruptcy lawyer to help you understand the process!!
We have two locations: in the Central West End of St. Louis, at 1 North Taylor (on the corner of Taylor and Laclede), 63108; and in the Twin Cities of Festus / Crystal City, at 1000 Truman Blvd (Highway 61/67), 63019. The initial consultation to discuss your debt related issues is free of charge. So contact us today to learn more!!