It only takes one heart attack or job loss for many people to fall behind on their bills. They may wait to take to speak with a Bankruptcy Lawyer St. Charles MO because they believe that they will recover quickly or find a new job. However once they fall behind on their payments, late fees and penalties make it impossible for them to catch up. Eventually they are facing collection calls when they wake up and their wages may be garnished. If they don’t move quickly they may lose their home or car.
An attorney from The Law Offices of Steven K. Brown will evaluate their income and types of debt and determine which bankruptcy strategy is best for them. If they make under the median income for the state of Missouri, then they are automatically entitled to apply for bankruptcy using Chapter 7 of the federal bankruptcy law. However, if the make more than that amount and can’t prove a hardship, then they are required to use Chapter 13. Chapter 7 is also known as the Clean Slate bankruptcy process. A judge appoints a trustee that sells all of the non-protected assets and divides the proceeds among the creditors. Any debt that isn’t paid is forgiven. The debtor is free to continue on with their life. The entire process takes about three months.
Chapter 13 is a much longer process. Because the debtor is has a higher income, the law asks them to make a bigger effort to repay their debts. The trustee reviews their income and living expenses and determines how much of their wages and other income they get to keep each month. They are required to give any additional money they make each month to the trustee. He will then divide this among creditors. The Bankruptcy Lawyer St. Charles MO will make sure that the trustee treats their client fairly and allows them enough income to live reasonably well. This process can take up to five years to complete. The debtor must compete the entire program or the remaining debt will not be forgiven. Since a person can only declare bankruptcy every 8 years, they can be worse off than before. To know more Click here.
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