Filing for bankruptcy is no easy task, but it can become necessary if a person is too far in debt and cannot find a way out without assistance. This can happen for a number of different reasons and could mean the person is being called daily by credit collectors who want money to cover the debts. If a person is in this type of situation and is considering bankruptcy, they will want to speak with a lawyer for help. Then, they’ll want to determine if they qualify for Chapter 13 in St. Louis or a different chapter of bankruptcy.
Chapter 13 in St. Louis means a person’s qualified debts will be consolidated into one monthly payment. The person will be able to keep all of their assets so long as they continue to make the monthly payment. This process generally takes between three and five years, depending on the amount of debt the person has. Once the repayment period is completed, any other payments may be discharged. During this time, the person will still have to make any payments that didn’t fall under the bankruptcy.
A person will need to qualify for Chapter 13 based on their income and their debts. They must make more than the median amount of income for their local area and can use a variety of sources of income to meet this requirement. A person can use the income of their spouse to ensure they meet the minimum amount. The debts must also meet certain qualifications. They must be under $1,149,525 for any secured debts, and unsecured debts cannot be more than $383,175. The person must also be current with their income taxes to be eligible to file for Chapter 13.
If a person meets the eligibility requirements, or if they aren’t sure if this is the right chapter of bankruptcy to meet their situation, they will want to speak with a lawyer for help. The lawyer can determine their eligibility and walk them through the process to ensure they are successful with the bankruptcy. For more information, be sure to visit the website for the Law Offices of Steven K. Brown today.