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Filing Bankruptcy in Missouri: A Comprehensive Guide to the Process
Filing for bankruptcy can be a daunting process, especially if you're unfamiliar with the laws in your state. In Missouri, understanding the intricacies of bankruptcy can make the process smoother and less stressful.
Types of Bankruptcy
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is also known as liquidation bankruptcy. It involves selling non-exempt assets to pay off creditors. This option is suitable for individuals with limited income who cannot repay their debts.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy, often referred to as a reorganization bankruptcy, allows individuals to create a repayment plan to pay back debts over three to five years. This is ideal for those with a steady income who wish to retain their assets.
The Filing Process
To file for bankruptcy in Missouri, follow these steps:
- Credit Counseling: Complete a credit counseling course from an approved agency.
- File the Petition: Submit your bankruptcy petition along with required documents to the court.
- Automatic Stay: Once filed, an automatic stay is enacted, stopping creditors from collecting debts.
- 341 Meeting: Attend the meeting of creditors where you will be questioned about your finances.
- Discharge: Upon successful completion of the process, eligible debts are discharged.
Finding Legal Assistance
Hiring a competent attorney can greatly assist in navigating the complexities of bankruptcy. Consider consulting a bankruptcy attorney in Riverside County if you're located there or a bankruptcy attorney in Rochester for personalized assistance.
Impact on Your Credit Score
Filing for bankruptcy can significantly impact your credit score. However, it provides a chance for a fresh start by eliminating debts that are impossible to pay off.
- Initial Impact: Expect a significant drop in your credit score.
- Rebuilding Credit: Focus on responsible credit use to gradually improve your score over time.
Frequently Asked Questions
What debts are dischargeable in Missouri bankruptcy?
In Missouri, most unsecured debts such as credit card debts, medical bills, and personal loans can be discharged under Chapter 7 bankruptcy.
Can I keep my house if I file for bankruptcy in Missouri?
It is possible to keep your house when filing for Chapter 13 bankruptcy by making regular payments under a restructured plan.
How often can I file for bankruptcy in Missouri?
You can file for Chapter 7 bankruptcy once every eight years. For Chapter 13, you must wait two years from a previous Chapter 13 discharge.
Conclusion
Filing for bankruptcy in Missouri involves understanding your options and following the proper legal procedures. While it can have significant effects on your credit, it offers a valuable opportunity to rebuild your financial future. Consulting with a professional attorney is highly recommended to ensure a smooth process.
eSR is an online tool to help individuals complete a Chapter 7 or chapter 13 bankruptcy petition when they have decided to file bankruptcy without an attorney.
Typically, a bankruptcy filing will remain on a credit report from 7 to 10 ...
