Skilled Legal Advocacy when Filing for Bankruptcy in Missouri

Experienced bankruptcy attorney helps you with Chapter 7 and Chapter 13 filings

If you are overwhelmed with debt and unable to make important monthly payments, it is time to get help. Hernandez Law Firm, LLC has the skill and knowledge to help you understand your options for debt relief and how to get a fresh financial start.

Facing crushing debt damages your health, your relationships, and your ability to build a positive financial future. You may have experienced job loss, medical bills, sudden expenses, or a cutback in hours that left you without income to manage your monthly bills.

If you are at the financial breaking point, speak with an experienced bankruptcy attorney to help you understand the options available to you, including filing Chapter 7 or Chapter 13 bankruptcy.

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

If efforts to control or reduce your debt have failed, it may be time to consider bankruptcy. For consumers, the two forms of relief available are called Chapter 7 and Chapter 13. They are named for the chapters in the US Bankruptcy Code where they appear. Here are some differences between these two types of bankruptcy filings:

• Chapter 13 bankruptcy: The goal behind a Chapter 13 bankruptcy is to reorganize payments to creditors in a way that lifts the immediate pressure for you to pay the debt, but leaves much of the debt intact for you pay. Chapter 13, or a “wage earners plan,” may reduce some of your debt, but it does not discharge debt like a Chapter 7 filing. Many debtors who have significant debt but are still earning a wage do not qualify for Chapter 7 bankruptcy. Like Chapter 7, filing for Chapter 13 bankruptcy halts collection calls, garnishments, and efforts to repossess your assets. Under a Chapter 13 bankruptcy, you present a plan for approval to the Court to repay the debt over three to five years.While you still repay most of the debt, you can oftentimes keep important assets like your home.
• Chapter 7 bankruptcy: Chapter 7 is a liquidation bankruptcy that collects any non-exempt assets you may have and sells them to repay creditors. If you do not have sufficient income to repay your debt, Chapter 7 bankruptcy may be a good option. When all assets have been collected, sold, and creditors paid whatever is possible, the remaining debt is discharged. With either kind of bankruptcy, certain types of debt, like spousal or child support, taxes, legal judgments, and most student loans will not be discharged. To qualify for Chapter 7, you must pass a “means” test to prove you do not make enough money to consider repaying your debt under a Chapter 13 bankruptcy filing.

Both forms of bankruptcy require debtors to receive credit and financial management counseling before filing and after your bankruptcy is settled.

The US Bankruptcy Code provides options to help you get a fresh financial start. When you are out of ideas and squeezed with excessive debt—talk to a skilled bankruptcy attorney in Missouri to learn about your options.

Work with a seasoned Jefferson City bankruptcy attorney today

When you are not able to make monthly payments to your creditors, it may be time to think about bankruptcy. Hernandez Law Firm, LLC can help you understand your options and work with you one-on-one to get the financial relief for which you are eligible. Contact us today or call (573) 349-8200 to set up a free consultation. Se habla Español.