What Are The Requirements For Chapter 13 Bankruptcy In St. Louis, MO?

by | Jul 5, 2016 | Bankruptcy

In Missouri, consumers should evaluate debt relief options. These choices could help them to find a more suitable solution for a high volume of debt. Among the most effective choices is Chapter 13 Bankruptcy St. Louis MO. An attorney could help consumers prepare for this opportunity to settle their debts today.

What are the Income Requirements?

Chapter 13 requires the consumer to qualify based on their income level. The state of Missouri requires the consumer to have an income that is larger than the county’s median. Currently, the county median for St. Louis County is $55,920. The consumer must provide at least six-months worth of income statements. The attorney uses these records to establish eligibility.

Additionally, the consumer must complete credit counseling courses. The program must be state approved. The consumer must also provide a certificate of completion to the court.

How Does It Work?

Chapter 13 bankruptcy in St. Louis MO requires the consumer to submit monthly payments. These payments are income based and divided to provide a portion to each creditor included in the bankruptcy claim. The consumer must also use their disposable income to settle any debts they have that weren’t included in the claim. If the consumer fails to comply with the requirements, the judge could discharge their case. This makes the consumer responsible immediately for all debts that are covered in the bankruptcy.

The Automatic Stay

The automatic stay prevents the consumer’s lenders and creditors from taking legal action against them. It stops foreclosure and repossession. This automatic stay is active until the judge discharges the consumer’s case entirely.

Discharged Debts and Requirements

Unsecured credit card debts are often discharged during bankruptcy. This indicates that the consumer is no longer responsible for the debt. These debts cannot be government backed accounts.

In Missouri, consumers choose a clear debt solution to prevent adverse legal action. This includes foreclosure and repossession. Through bankruptcy, the consumer could achieve these opportunities. They could also eliminate their debts quickly. Consumers who wish to review Chapter 13 Bankruptcy St. Louis MO should contact Van Dillen & Flood P.C. for more information about the requirements and benefits.

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