Difference Between a St. Louis Chapter 7 and a St. Louis Chapter 13

In deciding whether to file a St. Louis Chapter 7 bankruptcy or a St. Louis Chapter 13 bankruptcy, there are several things to take into consideration. To begin with, the bankruptcy code will only allow people to file a Missouri Chapter 7 if certain criteria are met. If your household income is above a certain level, then it may not be possible to file this type of bankruptcy. For instance, the current median income level for a household of two is: $54,697.00 (as of August 2016). If the household income is substantially higher than this, you may not qualify for a Chapter 7.

Another example of when a Chapter 7 bankruptcy is not the best solution would involve a situation where someone has assets that have a great deal of value. If for example you have a home or a car that has a lot of equity or is paid in full, the Trustee in a Chapter 7 may wish to sell the asset. In this type of situation, it may be better to file a Chapter 13 with a St. Louis bankruptcy attorney so as to protect the assets in question so that the Trustee does not get his/her hands on them.

There are other occasions when the filing of a Chapter 13 is beneficial as well. The primary example would be when your home is facing foreclosure, and you are trying to keep it. The filing of this chapter of bankruptcy allows you to stop the foreclosure sale, enter into a repayment plan with the court, and save your house. The continual, month-to-month payments in a Chapter 13 also go a long way in helping to rebuild a credit score.

There are several differences between the two main types of bankruptcies. But regardless of the type of issues you are dealing with, the St. Louis bankruptcy lawyers at The Bankruptcy Company are prepared to guide you through the bankruptcy process and ensure that you receive a fresh start / clean slate in life.