There are a few situations in which someone would have to, or prefer instead, to file a St. Louis Chapter 13 bankruptcy. These situations may not apply to every person, but it is important to understand whether your particular circumstances would benefit from a Missouri Chapter 13. These circumstances will be described below.
To begin with, a Chapter 13 is described as a repayment plan over the course of three to five years, during which certain debts are paid back. These debts would include things like mortgage arrearage (i.e. what you have fallen behind on your house payments), car loans, tax debt, back child support, and usually a portion of your unsecured debt (like credit cards, medical bills, payday loans, etc). In addition, most (if not all) of your attorney fees would be paid through the plan as well.
The main type of situation in which someone would benefit greatly from Chapter 13 would be when there is a pending home foreclosure. Filing such a bankruptcy before the foreclosure sale date will stop the pending sale. In addition, a repayment plan will be created (over the course of three to four years) during which you would get caught up on the arrearage. This is a far better way of taking care of the back payments, instead of coming up with one lump sum. And it keeps your house safe, so that you can continue living comfortably with your family.
There is a couple of situations in which an individual does not have any choice but to file a Chapter 13. The first example is when someone has previously filed a St. Louis Chapter 7 bankruptcy within the last eight (8) years. The bankruptcy rules state very clearly that if you have filed a Chapter 7, but a full eight years have not yet passed, then the only type of bankruptcy you can file is a 13. Or if you are significantly above the median income level for your particular sized household, then you might have to do a Chapter 13. For example, if you are a household of one, the government says that the average (or median) income would be approximately $40,000. If your income is significantly above this level, then there is a very good chance that you will have to do a 13.
Of course, understanding which type of bankruptcy you can or should file is very important information for you if you are contemplating filing such a petition for relief. 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. Our goal is to make sure you get rid of the debts you don’t want, retain the assets you want to keep, and to explain all of your options fully.
We have one location by appointment only: 4625 Lindell Blvd St. Louis, MO 63108. The consultation to discuss your case is free of charge. So contact us today to learn more!!