Where To Begin With Chapter 13 In St. Louis

by | May 7, 2014 | Lawyers

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To file for Chapter 13 in St. Louis, consumers should have an income of at least $29,156. Any income level that is below this median will qualify the consumer for chapter 7 only. Any consumer who wishes to successfully file a bankruptcy claim through this chapter should generate a repayment plan. This plan should reflect utilization of all disposable income to repay debts. The consumer is required to comply with this repayment plan for at least three years.

Where to Begin

A chapter 13 bankruptcy case requires that you attend a credit-counseling program that is approved by the state of Missouri. This course introduces you to concepts that prepare you for rebuilding your credit as well as managing your finances more effectively. The state requires this as a measure to prevent a need for a bankruptcy claim in the future.
You should calculate your income based on the six months prior to filing for bankruptcy. The court requires you to present them with documentation that shows all earnings for this period. This is the income level utilized to establish whether you pass the means test. It is also the income calculation utilized to calculate your monthly payments. All payments are deducted from your wages after arrangements are made with your employer by the court. View website for more details.

Any deductions for household expenses utilized in Chapter 13 in St. Louis are calculated after a review of the last six months. If your expenses fluctuate during winter, for example, you may want to file during a time in which these expenses are identified as your household expenses. This may prevent shortages of funds due to bankruptcy payments. Any income that is not included in these expenses is paid to creditors who manage debts that are not listed in your bankruptcy claim.

You should educate yourself about exemptions allowed in chapter 13 bankruptcy. For instance, if you are facing foreclosure, it could become the only option you have to prevent this legal action. However, if you have more equity built in your property than you owe, you may not qualify for a homestead exemption. When this is the case, you should consider other options instead of bankruptcy. To learn more about your options you may contact the Law Offices of Steven K. Brown.

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