There are several reasons why someone would file a St. Louis Chapter 13 bankruptcy. Most of the reasons are out of pure necessity (in other words, you don’t have much choice). But there are also a few set of circumstances in which someone might choose a Ch13 over a Ch7.
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To begin with, a Missouri Chapter 13 is described as a repayment plan over the course of three to five years during which certain debts are paid back (such as mortgage arrearage, car loans, tax debt, back child support, and possibly a portion of your unsecured debt). A few primary reasons why someone files a Chapter 13 would be because your car has been repossessed (and you want to get it back). Or if your home is about to go into foreclosure (and you want to prevent that from happening). Or if creditors have judgements against you, which have resulted in wage garnishments (and you want them taken off). These are typical reasons for why someone might find the Ch13 to be the best option.
On the other, it may also be the case that a Chapter 13 is the only type of bankruptcy that you can file. This is because the government uses a median income scale to determine if you qualify for a St. Louis Chapter 7. If (according to the government) you make substantially more than the median income level (for your household size), then it’s possible you will not be allowed to do a Ch7. In this kind of situation, the next best option would be the Ch13.
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And then there are those situations in which the particular facts of your case push you towards a Ch13. For instance, student loans cannot be discharged in a bankruptcy. Let’s assume that you have many different types of unsecured debts (such as credit cards, medical bills, payday loan, etc.), but by far the largest unsecured debt you have is student loans. As mentioned above, that kind of debt cannot be knocked out. But if you file a Chapter 13, it is possible in some situations to put the student loans on hold (almost as if they were deferred) for the next three (3) to five (5) years. This would give you some breathing room, so that you can get caught up with everything else in your life.
So as you can see, there are many different reasons for why a Ch13 can be an appealing option. And the easiest way to determine whether or not those options apply to you is to hire an experienced St. Louis bankruptcy attorney!!
We have two locations: in Central West End of St. Louis, at 1 North Taylor, St. Louis, MO 63108; and in the Twin Cities of Festus / Crystal City, at 1000 Truman Blvd (Highway 61/67), Jefferson County, MO 63019. The initial consultation is free. So contact us today to learn more!!