It’s actually rare that you would have to pay back every single one of your debts in a St. Louis bankruptcy. But then it depends very much on which chapter of bankruptcy you file.
In a St. Louis Chapter 7 bankruptcy, all of your unsecured debts (such as credit cards, medical bills, payday loans, etc) are discharged. When debts are “discharged,” they are literally knocked out forever. They will no longer exist. The creditors can no longer demand payment from you, and you are no longer under any obligation to pay. If on the other hand you have secured debts that you wish to retain (such as a house or car), then the opportunity to do so is available. So long as there is not a great deal of equity in the asset, then keeping a house or car in a Missouri Chapter 7 is possible.
The other main type of filing is a St. Louis Chapter 13 bankruptcy. This is described as a repayment plan over the course of three to five years during which certain debts are paid back. These certain debts would include arrearage on a mortgage (i.e. what you have fallen behind on your house payments), car or truck loans (usually at a much lower interest rate), tax debt (income, personal property, sales, and real estate taxes), and back child support and/or maintenance.
In addition, it is also possible that you would have to pay back a certain portion of your unsecured debts in a Missouri Chapter 13. The goal in such a situation would of course be to put you into a repayment in which you are paying back the least amount of unsecured debt. And in fact, the best case scenario would be when you do not have to pay back any of this kind of debt at all (which is a possibility in a Chapter 13).
Either way, it is very important for you learn exactly what your rights and options are when you file for bankruptcy in St. Louis. The affordable St. Louis bankruptcy attorneys at The Law Office of Jennifer Alter-Rieken have been assisting people with their debts for over ten (10) years. We want to make sure that you fully understand all of your options, that your questions are fully answered, and that you are put in the best position to move forward with life.
We have two locations: in the Central West End, at 1 North Taylor, St. Louis 63018; and in the Twin Cities of Festus / Crystal City, at 1000 Truman Blvd (Highway 61/67), Jefferson County 63019. The initial consultation to discuss your legal affairs is free of charge. So contact us today to learn more!!