There certainly are some major differences between the two types of bankruptcies that an individual or married couple may file. But the end goal is always the same: Getting rid of as much debt as possible, and keeping all of your assets safe.
A St. Louis Chapter 7 bankruptcy is described as a discharge of unsecured debt, wherein your unsecured creditors (things like credit cards, medical bills, payday loans) are knocked out for good. It is a fairly quick process, and gets you on the road to financial recovery in a relatively short period of time. You also will have the chance to keep assets like your car and house, so long as the fair market value of the asset does not exceed the amount you owe by too much.
A St. Louis Chapter 13 bankruptcy is described as a repayment plan over the course of three to five years, in which certain creditors are paid back. The primary usage of this kind of bankruptcy is for stopping a home foreclosure or a car repossession. By filing a Missouri Chapter 13, the creditor (usually a bank) is unable to take the asset away from you. This will give you a chance to pay off the car note over the course of several years at a much lower interest rate. And it will give you a chance to come current on any arrearage that you have fallen behind on with regards to your mortgage. In addition, it is also possible to get your unsecured debts (or at least a portion of them) discharged in a Chapter 13 as well.
There are certainly pros and cons to both chapters of bankruptcy that are available. And often, it comes down to a question of whether or not you qualify for one or the other. But either way, there are significant advantages to be had for those who are dealing with high levels of debt. Especially if the creditors are harassing you day and night with phone calls and letters.
The St. Louis bankruptcy lawyers at Brinkman & Alter, LLC have been guiding people through the bankruptcy process for years. We have the necessary experience and knowledge to ensure that your case will go smoothly, and get you the fresh start / clean slate that you deserve.