Things to Consider Before Filing Chapter 13 Bankruptcy in St. Charles, MO


Some people have it in their minds that filing for bankruptcy will solve all of their problems and get them totally out of debt without a lot of potential consequences, but this isn’t always the case. There are a number of factors to consider before visiting a Chapter 13 Bankruptcy St. Charles MO lawyer to file for bankruptcy.

Amount of Debt Discharged

Keep in mind that Chapter 13 Bankruptcy St. Charles MO filings won’t get rid of all debt. In fact, in this type of bankruptcy, a payment plan is determined to help people pay off as much of their debt as possible over a certain amount of time. The only debt that is gotten rid of is the amount that can’t be paid under this plan within a certain time frame. Some types of debt aren’t able to be discharged during bankruptcy, such as child support, some types of taxes and student loans.

Effect on Future Credit

Filing for Chapter 13 bankruptcy will be listed on your credit record for 7 years, which means it will be hard to obtain new credit during this time. It also won’t be possible to file for bankruptcy again for many years. This means you’ll need to learn better money management skills to avoid getting into the same situation again.

Effect on Personal Property

With Chapter 13, it’s possible to keep some of the property you own, such as a home and a car, which may not be the case with Chapter 7 bankruptcy.

Chapter 13 Versus Chapter 7 Benefits

Chapter 13 bankruptcy in St. Charles, MO cases may be preferable for those who have a codebtor that they don’t want affected by the bankruptcy, those who want to keep some nonexempt property, or those who are behind on their mortgage and don’t want to lose their home. Also, of course, in some cases people don’t qualify for Chapter 7 bankruptcy, such as when the court determines they make too much money or have filed for bankruptcy too recently.

Speaking to a lawyer can help you determine what type of bankruptcy you might qualify for and whether it would be to your advantage to file or it would be better to attempt to settle the debt in some other manner that might be available to your.

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