It’s not pleasant for a person to start their day answering calls from debt collectors. Many people find themselves unable to pay their bills after an illness, divorce or job loss. They are too ashamed to tell anyone, until they are on the verge of losing everything. A Bankruptcy Attorney in St. Charles, MO can help them sort through their income and debts and develop a strategy for financial recovery. They shouldn’t worry about showing the attorney their financial records. He is there to help and not to judge.
The attorney from the Law Offices of Steven K. Brown will look at how much money the debtor makes each year. If it is below the median income for Missouri, the person automatically qualifies for a Chapter 7 bankruptcy process. The lawyer will then evaluate the type and amount of debt the person is carrying. He makes sure that Chapter 7 is the best way to protect the person’s home and car. He then files the bankruptcy application and a judge appoints a bankruptcy trustee. The trustee will sell off all of the debtor’s possessions and distribute the cash to the creditors. Any debt that is outstanding will be forgiven. However student loans, IRS payments and child support will not be forgiven during this process.
A Bankruptcy Attorney in St. Charles, MO can also negotiate a payment plan with the IRS and argue that child support payments need to be lower. It’s important to straighten out all of a person’s finances when they declare bankruptcy. A person is only allowed to declare bankruptcy every seven years, so if they don’t get types of the debt under control, the person may be worse off than before. The Chapter 7 bankruptcy process is very fast. It can be over in about three months.
If a person makes more than the median income in Missouri, then they will have to use Chapter 13. A bankruptcy trustee also oversees this process. He will draw up a budget for the debtor to live on each month. All income above that level will be distributed to creditors. This process can continue for up to five years. If the debtor successfully completes every payment, then the remaining debt will be forgiven.
