In the event that your income is well over the state median in Missouri, you are going to have to file under Chapter 13 of the bankruptcy code. This particular chapter has you reorganize your debts, including a mortgage, can strip a second mortgage if one exists, and pay off existing balances in order of their importance. Even though you are paying on your debts, you are left with enough money to handle your cost of living every month, and you only pay what you can afford after living expenses are determined. Visit
Filing for Chapter 13 in St. Charles, MO involves filling out a petition, creating a repayment plan, and submitting it to the court for approval. Upon approval, you begin paying a monthly amount to the court for the amount of years determined in the petition. At the end of the final year, any remaining balances are discharged and you are debt free with no more payments to be made to many of your former creditors.
The process begins when you start by filling out the means test. This determines how much disposable income you have left over after bills, and how much income you have compared to the state median. If your income is too far over the median, you are going to file a chapter 13 in St. Charles, MO as you are ineligible for a Chapter 7. However, the protections that bankruptcy provides are in place, even though you are going to renegotiate your debts.
When you file the petition, the automatic stay goes into place, barring creditors from contacting you while the petition is active. This means that all collection activity must cease or run the risk of penalties. Nothing moves forward until the trustee is satisfied with the payment plan that is worked out. Upon approval, you start making monthly payments to the trustee by a certain date, and the trustee disburses your payment to creditors. This is also the point where negotiations begin with creditors to change the terms of the contract if necessary.
For more information about filing for bankruptcy, contact the Law Offices of Steven K. Brown to set up a consultation today.