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What Happens When You File Chapter 13 Bankruptcy in St. Louis, MO

The decision to file bankruptcy is not taken lightly. The bankruptcy process subjects individuals to scrutiny by a court and trustee, it affects a person’s future credit score and capacity to apply for loans and credit cards, and can also harm a reputation in the local community and beyond. However, if bankruptcy is a viable option to solve financial problems and avoid lawsuits or payment defaults, then it is important to know what happens after you file for Chapter 13 bankruptcy.

Chapter 13 Payment Plans and Creditor Actions

Most people who file Chapter 13 bankruptcy in St. Louis, MO and elsewhere want to avoid impending or unavoidable consequences of having severe financial difficulties. For most individuals, the most important part of this bankruptcy filing is that under Chapter 13 of the bankruptcy code, a debtor (the person who owes money and is filing the bankruptcy claim) is put on a debt management plan to repay creditors. This stops or prevents any collection actions from preceding outside of that predetermined plan.

Under a debt management plan, individuals are given a certain period of time to repay creditors. Normally, this period is between three and five years, and the specifics are dependent upon the circumstances of a given case. Certain debts can also be discharged in full. However, unlike Chapter 7 bankruptcy, in a Chapter 13 bankruptcy case you do not have to surrender any of your property to a bankruptcy trustee.

Importance of an Attorney for Bankruptcy

While reviewing and understanding the basics of a bankruptcy filing can be helpful, to it is best to hire an experienced and competent attorney, such as those who practice at Van Dillen & Flood, P.C. Only an attorney specialized in bankruptcy, with prior experience specific to Chapter 13 bankruptcy filings, can ensure you meet all deadlines and comply with all notice requirements and court procedures.

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