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


Most people believe that a St Louis Chapter 13 bankruptcy is undesirable (or that it will not extend to them any benefits). But there are many situations in which a Ch13 makes more sense than a Chapter 7. Below is a brief description of what those situations are (and how a St Louis bankruptcy lawyer can help you:

  1. Your house is being foreclosed on. In this kind of situation, the only thing that makes sense in the world of bankruptcy is to file a Ch13. Why? Because it will stop the foreclosure sale from happening, and get you into a sensible repayment plan to get caught up on the amount that you have fallen behind on.
  2. Your car has just been repossessed. In order to get the car back, a Ch13 must be filed. Again, this will stop the creditor from selling the automobile to someone else, and allow you to get into a repayment plan on the car loan (except at usually a much lower interest rate; the current rate of interest on car loans in a Ch13 plan is 4.75%)
  3. If you own assets that have a great deal of value. Even if you qualify for a Ch7, sometimes it makes more sense to file a Ch13, especially when you have assets that have a great deal of equity. For instance, if you own a car that is paid in full (like a 2012 Honda, with no loan against it), then a Ch7 Bankruptcy Trustee will take that car, sell it, and use the proceeds to pay towards your unsecured creditors. But a Ch13 will protect your assets from that happening (regardless of how much equity exists).
  4. If you have a great deal of student loan debt. The general rule is that student loans cannot be discharged. So if you have a lot of education-related loans, filing a Ch7 will not give you the fullest amount of relief. In a Ch13, the student loans would at least be put on hold for the next three (3) to five (5) years.

So as you can see, there are some very good reasons for why someone would choose a St Louis Chapter 13!! But the best way to understand what your options are is to contact a good lawyer! We will answer all your questions, explain each chapter of bankruptcy thoroughly, and set you on the right path moving forward!!


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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