Basic Steps in Filing for Chapter 7 Bankruptcy in Missouri

1. Collect all your bankruptcy paperwork 

Filing bankruptcy requires a lot of paperwork – financial documentation, bank statements, property titles, account details, tax returns, bankruptcy forms, etc. Collecting and compiling them together will make the bankruptcy process of filing smoother for you. Everything is already correctly sorted out if they ask for a particular document or your tax return for this specific year. You won’t have to take time chasing down information or looking for forms.

Below are a few of the key bankruptcy paperwork you need to prepare for a seamless Missouri bankruptcy filing:

Basic personal information

• Proof of identification
• Social security number 
• Home address 

Income documentation

• Name and address of your employer
• Copies of pay stubs in the past six months before filing bankruptcy 
• Last two W-2s
• Social security funds
• Disability benefits 
• Rental Properties 
• If self-employed, year-to-date profit and loss statement (two full years before filing)
• Business bank statements 

Tax returns

• Copies of text transcripts or tax returns in the last two years 
• If you were unable to file because you are not required to file, like if your income only comes from disability benefits, explain why 

• Real estate and proof of fair market value, including mortgage statements 
• Vehicle titles, proof of value, and insurance records
• Bank account statements, investment accounts, retirement, and other similar accounts
• List of all assets and property 
• List of all your debt and creditors 
• Alimony/child support obligations proof 
• Proof of credit counseling
• A detailed list of all your recurring monthly expenses, including rent, mortgage, childcare, groceries, etc

2. Complete credit counseling

Before filing for Missouri Chapter 7 bankruptcy, taking and completing a debt counseling course is mandatory. You should complete the credit counseling within 180 days before submitting the bankruptcy petition with an approved credit counseling agency. Once completed, a completion certificate will be provided and presented, including your other bankruptcy paperwork. 

If you want to see the list of companies approved to provide credit counseling courses in Missouri, click here. In contrast, the list for all accredited companies in the United States is available here. 

3. Fill out the bankruptcy forms, including the means test forms

Filling out the bankruptcy forms can be overwhelming, but it can be done. Bankruptcy forms require information from all your financial documents like current income, list of debt and properties, etc. 

Not everyone will qualify for Missouri Chapter 7 bankruptcy. You have to pass the means test. The means test assesses if your income is below the state of Missouri’s median income. If your income is below the state median income, you qualify for Chapter 7 and can file your bankruptcy petition immediately. You don’t need to fill up the rest of the means test forms.

Income Exceeding Missouri’s Median Income: Taking the Means Test

If your income exceeds the state of Missouri’s median income, you must complete the rest of the means test forms, which require you to detail your living expenses and disposable income. If your income is still higher than the state’s median income after deducting your expenses and your disposable income is also significant, you may not be qualified for Chapter 7 bankruptcy. You can consider filing for Chapter 13 bankruptcy or delaying filing until your financial situation changes to meet the means test requirement.

Fill out the forms carefully and thoroughly. Any mistakes can delay and impact your bankruptcy petition. If you need to consult an experienced bankruptcy attorney in Missouri while filling out your forms, reach out to them, and they can fill out the form for you.  

4. Pay your filing fee

Chapter 7 bankruptcy filing fee in Kansas, Missouri, is about $338. In bankruptcy cases where you are not capable of paying for the entire fee at once, you can ask permission from the court to pay up to four installments. You can also request a fee waiver from the court. 

5. Submit your bankruptcy documents 

After completing the forms, passing the means test, and paying the filing, it’s now time to submit all your bankruptcy paperwork to the court. If you don’t want to do it personally, you can ask for legal aid from your reliable bankruptcy lawyer in Kansas, Missouri, and do it for you. 

6. Cooperate with your bankruptcy trustee

Once you have filed your bankruptcy documents, the automatic stay protection will take effect, and all your creditors can no longer collect payments from you. All your properties will now be under the bankruptcy estate. The court will appoint a bankruptcy trustee to oversee your bankruptcy case, and you need to cooperate with them. 

If they have requested additional documents or any paperwork, oblige with their request. You also need to mail them your recent tax return. 

7. Attend your second bankruptcy course

In Missouri, you must attend a second bankruptcy course within 90 days of filing bankruptcy. Another certificate of completion will be given upon completion, which you must file to the court. The second financial course will focus more on how you will manage your finances after your bankruptcy discharge. 

You can find a list of approved debtor education course providers in the United States. 

8. Appear in your 341 meeting of creditors 

After around 21 to 60 days from filing bankruptcy, you will receive a notice from the bankruptcy trustee to attend a 341 hearing or meeting of creditors. Your trustee will verify your identity and all the information you provided and listed in your bankruptcy forms. Creditors are also invited to attend, but in most bankruptcy cases, they rarely appear. 

The trustee and your creditors will also have an opportunity to ask a series of questions about your financial situation. You will be put under oath, and you must answer as honestly as possible. The meeting usually lasts less than an hour, and no bankruptcy judge will be around. 

9. Wait for your bankruptcy discharge

Missouri Chapter 7 bankruptcy discharge decision is usually released within three to four months after filing. Note that the bankruptcy law does not erase all of your debt, only the dischargeable ones. You should still continuously pay a secured debt not covered by the bankruptcy code. 

Once the decision is out, bankruptcy will wipe out all your unsecured debt following the bankruptcy code. You can now start anew and face the world with a clean financial slate!