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St Louis Bankruptcy: Why Would Anyone Want To File A Chapter 13?


More often than not, an individual (or married couple) will file a St Louis Chapter 13 because he/she has no choice. In other words, it is the most viable option, or the court will not allow him/her to file a Chapter 7. Below is a brief description of some examples:

If you are facing a home foreclosure (or a car repossession), the Chapter 13 makes the most sense. It will stop the creditor from moving forward with the foreclosure (or repossession) and get you into a repayment plan (spread out over a number of years) so that you can come current. This plan will hopefully make it easier for you to keep your assets.

Let’s look at a specific example: Your mortgage company has set a foreclosure sale date for next week. You are behind by six months of mortgage payments. The total arrearage (i.e. the amount of money you have fallen behind on your mortgage payments) is $6,000. You really want to keep your house. You thereafter file a Ch13 repayment plan. Part of the plan addresses the amount that you have fallen behind on the mortgage (i.e. the mortgage arrearage of 6K). This amount is spread out over a period of three (3) to five (5) years in the Chapter 13 repayment plan.


Another reason why someone might file a Ch13 is because they do not qualify for a St Louis Chapter 7. The rules state that if you file a Chapter 7, you must wait a full eight (8) years before you may file a new one. As a result, the only option available to you would be a Ch13.

In addition, if you are not below the median income level for your particular household size, then you may not qualify for a Ch7. For example, if you are a household of three, the average (or median) household income is: $62,110 (as of September 2015). But let’s say your household income is $80K. In that set of circumstances, your household income is above the median income, and you would therefore not qualify for a Ch7.

But filing a Ch13 is not the end of the world!! In fact, there are a great many benefits that come with the Ch13 that are not available in a Ch7. The best way to understand which chapter of bankruptcy works best for you is to meet with an experienced St Louis bankruptcy lawyer. We will answer all of your questions, explain your rights and options, and help guide you through the process from start to finish!!

The affordable St. Louis bankruptcy attorneys at The Bankruptcy Company 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.

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