In Missouri, bankruptcy presents consumers with solutions for debts. The claims allow them to find a more appropriate option for settling their debts and finding real relief. The consumer can start the claim by presenting the necessary information to an attorney. Bankruptcy attorneys in St. Louis, MO offer guidance and assistance through each chapter that is available to the consumer.
The Repayment Plan
Chapter 13 bankruptcy is a repayment plan that allows consumers to pay a smaller value to each of their creditors over a period of time ranging between three and five years. The plan enables them to pay off their debts at a faster rate. An attorney can also help them to acquire a settlement offer through their creditors that could be less than 50% of the total debt.
Qualifying for Chapter 13
Consumers can qualify for chapter 13 bankruptcy by possessing the right income. They must have an income higher than the county median for their current household size. The current household median in this area is 52,343. The consumer must provide income statements for the last six months that show an income greater than this value.
Understanding Credit Counseling Requirements
All consumers who are applying for chapter 13 bankruptcy must attend credit counseling courses. They must ensure that their chosen program is approved by the state. During the course, they learn how to manage their debts more effectively. They also assess opportunities for rebuilding their credit.
The Exact Requirements and Benefits
The chapter requires the consumer to avoid opening any new lines of credit. They must also use all disposable income to pay off debts. While complying with the requirements, the consumer receives an automatic stay that stops creditors from foreclosing or repossessing key assets.
In Missouri, bankruptcy presents a clear solution for some consumers who are facing excessive debts. Chapter 13 allows the consumers to acquire a better payment plan to eliminate their debts completely. The chapter lasts up to five years. Consumers who need to start a claim contact bankruptcy attorneys in St. Louis, MO or visit Stlbankruptcyfirm.com for further details about bankruptcy today.