Benefits of a St. Louis Chapter 13 Bankruptcy
There are a great many benefits for an individual who has filed a Missouri Chapter 13. Unfortunately, most people believe that a Chapter 13 will be detrimental to their credit, or will be too costly, or will not provide as many advantages as a St. Louis Chapter 7. These beliefs are usually the result of common misunderstandings about how a Chapter 13 works, and not with anything inherently wrong with such a filing.
ONLY $300 IN UPFRONT FEES FOR A CHAPTER 13
The most obvious advantage of a St. Louis Chapter 13 is that it allows an individual to spread out payments that are owed on debts over a period of years. This makes the repayment of such debts much more manageable. The monthly payments that are required in this type of bankruptcy are usually less than what someone is currently paying. And instead of paying several different amounts to a variety of creditors throughout the month, there is only one monthly payment that covers all of your debts.
Two specific examples of this would involve arrearage on a mortgage and a delinquency on a car loan. A Chapter 13 stops a St. Louis home foreclosure from going through and prevents the repo man from repossessing your car. Once the case is filed, our Missouri bankruptcy lawyers put you into a sensible repayment plan. The amount that you have fallen into arrears on your house is paid back over a period of three to four years, giving you a chance to get the mortgage caught up. And the balance of your car loan is paid back over a period of three to five years, usually with a much lower interest rate than you are currently dealing with (as of July 1, 2011, the Trustee’s interest rate for secured creditors is 6.01%). In addition, it is also possible to cram down the amount that you owe on a car loan in a St. Louis Chapter 13 bankruptcy from its current balance to the actual fair market value of your particular automobile. This in turn can significantly decrease the amount that you have to pay back to the car creditor, because the fair market value of most automobiles is lower than what is still owed on the note.
There is also an opportunity to get rid of your unsecured debt in a Chapter 13 bankruptcy. Debts such as credit cards, medical bills, payday loans, or deficiency balances can be discharged depending upon your household size and income. Tax debts (whether it is in the form of income tax, personal property tax, or real estate tax) are paid back inside a Chapter 13. And of course, the filing of a Missouri Chapter 13 will stop a St. Louis wage garnishment, St. Louis bank levy, or lawsuit filed against you.
In the end, deciding on which type of St. Louis bankruptcy to file is a personal choice. It comes down to what you feel will be best for you and your family. The St. Louis bankruptcy attorneys at The Law Office of Jennifer Alter-Rieken have many years of experience, and can give you the most expert advice available as you weigh your options. Our staff is ready to provide you with all the information you will need for your path towards financial freedom, and a fresh start / clean slate in life.