Depending on which chapter of Missouri bankruptcy you file for, having disposable income may or may not be beneficial. There are certain things to be aware of, and understanding how the specific rules work can determine which chapter you end up filing. But this is why it is so very important to speak with an experienced St. Louis bankruptcy attorney.
In a St. Louis Chapter 7 bankruptcy, you are asking that the court discharge your unsecured debt (credit cards, medical bills, payday loans, etc.) Certain information is required to be disclosed (such as your household income, personal and real property, and a list of all your debts). In addition, the court will ask you to provide a list of your typical and extraordinary budgetary expenses. This would include monthly items such as rent or mortgage payments, gas and electric, medical expenses, gas in the car, automobile insurance, and food (to name a few). After all of your expenses are tabulated, it is normally the case that you do not have a whole lot of money left over (and in fact, it may very well be that you are in the negative). If this is in fact the case, then the court will view you as a proper candidate for Chapter 7 relief, and grant you a discharge.
In a St. Louis Chapter 13 bankruptcy, you are put into a repayment plan over the course of three (3) to five (5) years. During this period of time, certain debts are paid back (such as mortgage arrears, car notes, back child support, and St. Louis tax debt). As a result, it is very important to show that you do indeed have disposable income (after typical expenses are paid out) so that you can make these monthly payments to the Trustee.
So the role of disposable income does indeed become very important, regardless of which chapter you file. This is why it is so vital to hire an attorney that understands the Bankruptcy Code inside and out. The affordable St. Louis bankruptcy lawyers at The Bankruptcy Company have been providing bankruptcy legal services for years. Our goal is to make sure you understand how each chapter works, what the benefits of each filing are, and to answer all of your questions to your satisfaction.