Financial problems can occur to anyone. The loss of a job, a serious injury or any unforeseen circumstance can place a large financial burden on anyone. Bankruptcy in St. Charles, MO, may be a solution to solve these financial problems and put someone back on its way to a healthier future with their money. There are several types of bankruptcies to choose from, depending on your circumstances. One bankruptcy requires that all assets be liquidated in order to pay off the debt, and another type permits an individual to retain their possessions and establishes a negotiated creditor repayment program established through bankruptcy court.
In a Chapter 7 bankruptcy, some people may be able to keep their home and their car, providing that they are not currently behind on payments. All other assets will be liquidated through the bankruptcy court. This type of bankruptcy is ideal for individuals that have a limited amount of resources or limited income to pay the debt back. A bankruptcy attorney can help determine what type of bankruptcy to choose from. They will review someone’s bills and income to determine which type of bankruptcy they would qualify for through the court.
Chapter 13 bankruptcy in St. Charles, MO, permits an individual to keep any assets currently in their possession and offers a negotiated repayment plan over a specific time period. At the end of the payment plan, the balance of the debt will be discharged. An individual who has a source of income to meet a payment plan can clear the mounting debt they are currently unable to pay for. The largest difference between this type of bankruptcy and Chapter 7 is that an individual needs to have a source of income, and they don’t have to liquidate any of their assets.
Both types of bankruptcies allow for exemptions under certain circumstances. Some debt is not allowed to be discharged, such as certain taxes, child support, alimony and student loans. Feel free to contact the Law Offices of Steven K. Brown for more information about bankruptcy choices, or you can click here.