Kansas Bankruptcy Lawyers
Bankruptcy does not have to be frightening or difficult. There’s no shame in acknowledging that you need support when life throws you a curveball. If you are in debt and don’t see a way out, bankruptcy may be the solution.
However there is a problem. Even when you do your research and realize that bankruptcy is the best option for you, you’re left with only a two-word solution: “File bankruptcy.” How can you declare bankruptcy in Missouri? Unfortunately, it is not an easy task. It’s the type of complicated financial decision that calls for legal assistance.
Roach Bankruptcy Center LLC is a bankruptcy legal firm that focuses solely on bankruptcy. We are a Debt Relief Agency, which means we assist people in filing for bankruptcy protection under the Bankruptcy Code. Only individuals or debtors who need to file Chapter 7 bankruptcy, Chapter 13 bankruptcy, or emergency bankruptcy are represented by our Kansas City, Missouri bankruptcy lawyers.
Why do I need a Bankruptcy Attorney in Missouri?
Facing Imminent Foreclosure?
We can help save your home! Even if time is running out, we’ll find a way. Find out how by speaking with our bankruptcy lawyer in Kansas City, Missouri today.
What is Bankruptcy?
Bankruptcy is a legal process that involves a person or company that is unable to pay its debts. The bankruptcy procedure begins with a petition submitted by the debtor or on behalf of creditors, depending on the situation. The debtor’s assets are all measured and analyzed, and the assets may be utilized to pay off some of the debt.
Bankruptcy allows an individual or organization to start over by forgiving debts that are simply unpayable and allowing creditors the opportunity to get some kind of payback depending on the assets available for liquidation.
Two major types of Bankruptcy where we can help you
In most ways, declaring bankruptcy in Missouri is similar to declaring bankruptcy in another state. The bankruptcy process is governed by federal law rather than Missouri state law, and it works by dissolving contracts between you and your creditors, allowing you to start over.
However, Missouri’s laws play an important role. They select which assets you are allowed to keep in your bankruptcy case. Other filing information will be required, that you can understand after going over the basics.
The majority of people file Chapter 7 or Chapter 13. You’re not alone if you don’t understand the differences between the two. The following explanation will assist in clarifying things.
- Chapter 7 Bankruptcy
For various reasons, Chapter 7 is frequently the first choice of bankruptcy filers. It’s quick—it takes only a few months to finish. You don’t have to give any to creditors. It’s ideal for those whose possessions are limited to the necessities of life and work.
People with greater assets, on the other hand, may lose them, particularly if they buy superfluous luxury products. For example, if you have too much equity in your home or automobile or are behind on payments, you may have to sell your prized baseball card collection or timeshare in the Bahamas. Unlike Chapter 13, Chapter 7 does not offer a payment plan to make up for a missed mortgage or car payments. If you don’t file on time, you risk losing your home or automobile.
- Chapter 13 Bankruptcy
Chapter 13 filers, on the other hand, must repay creditors in full or in part over the course of three to five years. However, because of the payment plan, Chapter 13 can provide benefits not accessible in Chapter 7. For example, you can preserve your house from foreclosure or your automobile from seizure as well as maintain all of your possessions. You can utilize this chapter to force a creditor into a payment plan if you need more time to settle a debt that you can’t discharge in bankruptcy. What is the chapter’s main flaw? It can be quite costly. Many individuals are unable to make the monthly payment.
Am I qualified to file Chapter 7 Bankruptcy?
The means test is required to determine whether you are qualified for Chapter 7 bankruptcy or not. This test is designed to discourage high-income individuals from taking advantage of the bankruptcy system.
So, how does this examination work? The Missouri means test evaluates your recent earnings to the median earnings of Missouri households of comparable size. The means test will look at your disposable income if your income is higher than the median. After required expenses like food and accommodation have been paid, this is the remaining income. You will most probably not be eligible for Chapter 7 if you have adequate spare revenue to cover your debt.
It’s wise to note that some debts will stay once you file for Chapter 7. Certain debts, such as alimony, criminal fines, child support, divorce property settlements, student loans, and previously owed income taxes and property taxes, will not be discharged by the court. You must also continue to make mortgage and vehicle loan payments, as failure to do so may result in foreclosure or repossession.
The advantages of filing a Chapter 7 bankruptcy in Missouri
- You will most likely be given a new start. After your bankruptcy is discharged, the only debts you’ll have are secured debts for which you can sign a “Reaffirmation Agreement.”
- On the date of filing, you have immediate protection against creditor collection activities and wage garnishment. It will end collection calls and wage or bank account garnishments.
- There is no minimum amount of debt required.
- In 3-6 months, your case will most likely be completed and you will be completely released.
- Except for certain inheritances, all wages and property earned after bankruptcy date of filing are yours. This implies that they will not be seized by creditors or the bankruptcy court.
The disadvantages of filing a Chapter 7 bankruptcy in Missouri
- Your non-exempt property will be sold by the trustee, and you will lose it. You should not file for Chapter 7 bankruptcy if you expect to preserve a secured asset (something like a home or car) that is not totally covered by your Missouri bankruptcy exemptions.
- If you are facing foreclosure on your property, the automatic stay imposed by your Chapter 7 filing is only a temporary deterrent.
- If you previously filed a Chapter 7 bankruptcy case and received a discharge of your obligations, you can only file another Chapter 7 bankruptcy case 8 years after the first one.
- You cannot select which debts to include in your bankruptcy. You must mention all of your debts.
Am I qualified to file Chapter 13 Bankruptcy?
There are limits on how much debt you can have in a Chapter 13 bankruptcy in Missouri. A secured loan is one for which you have pledged some asset, whereas an unsecured loan is one for which you have not pledged any asset. If you owe more than these amounts, you are unlikely to qualify for Chapter 13.
The advantages of filing a Chapter 13 bankruptcy in Missouri
- You’ll almost certainly be able to maintain all of your assets, both exempt and non-exempt.
- If you stick to the plan’s terms, you’ll be protected against lenders foreclosing on your home.
- You have immediate protection from creditors’ wage garnishments and collection operations.
- After completing a Chapter 13, you are only barred from filing for bankruptcy for a shorter period of time.
The disadvantages of filing a Chapter 13 bankruptcy in Missouri
- For the duration of the 3 to 5 year plan, you will be involved in the bankruptcy court process.
- A Chapter 13 bankruptcy filing is not available to stockbrokers or commodity brokers.
Following a Missouri Bankruptcy Filing
After you file, your creditors will cease harassing you. Though it will take a few days since the court sends notice to your creditors of the “automatic stay” order, which prevents most creditors from pursuing you for payment. What will occur afterward is as follows:
- You’ll have to hand up financial documentation that back up the claims made in your bankruptcy application.
- You’ll appear in the 341 conference of creditors, which is the only appearance required of all filers.
- You’ll finish a debtor education course and submit the certificate of completion.
All of these things must occur before you can receive a Chapter 7 bankruptcy discharge. Chapter 13 filers must also attend a hearing to affirm their repayment plan and finish the three- to five-year payment schedule.