Missouri Bankruptcy Lawyers
Contact a Missouri Bankruptcy Attorney to Learn Your Bankruptcy Options
If you're struggling financially, the time to take action is now. You don't have to wait until your car is repossessed or you are unable to make the next payment on your house.
Whether you're looking to file bankruptcy today or just looking for advice, the information provided by a Missouri bankruptcy attorney may help you make good decisions about the next step.
Simply fill out the free case evaluation form below now or call 877-833-2410 and schedule a no-obligation consultation with a bankruptcy lawyer in your area.
Bankruptcy Laws in Missouri
If you're considering filing bankruptcy in Missouri, there are two main bankruptcy options available to you: Chapter 7 and Chapter 13.
Which option is right for you? It depends on your debts, income, assets and other factors. Each chapter provides unique benefits, which, depending on your financial situation, could help you meet your debt-relief goals.
Filing Chapter 7 Bankruptcy
Chapter 7 bankruptcy, also known as "straight" bankruptcy, is the type of personal bankruptcy most often filed in Missouri. Chapter 7 is designed to wipe out debts related to credit cards, medical bills and personal loans.
Chapter 7 provides debt relief through a court process called "liquidation", during which the court may seize and sell certain assets of the debtor in order to make payments to creditors. However, not all property is up for grabs.
Missouri laws allow for individuals filing bankruptcy to keep certain assets exempt from liquidation. These exemptions include:
- Homestead: $15,000 worth of real property
- Wages: 90% of gross earnings if head of household; 75% of gross earnings for others
- Automobiles: Up to $3,000 worth of automobiles
- Up to $3,000 worth of household furnishings, household goods, clothing, appliances, books, animals, crops and musicals instruments
- Wedding rings worth up to $1,500
- Other jewelry up to $500
- $600 of miscellaneous property
- $3,000 of trade books, tools or implements
- Mobile home house as a primary residence worth up to $5,000
If you have valuable assets not covered by these exemptions, Chapter 13 bankruptcy could protect all of your property while allowing you to achieve freedom from debt.
Filing Chapter 13 Bankruptcy
In a Chapter 13 bankruptcy, you are given the chance to work out an affordable repayment plan with your creditors, supervised by the bankruptcy court.
The plan, which lasts from three to five years, covers secured debts like mortgages and car loans. Credit card debt may be significantly reduced or even wiped out completely, depending on your situation.
Because creditors receive partial repayment of debts, there is no liquidation of assets, meaning your home, car and other property can be completely protected in a Chapter 13 bankruptcy.
Chapter 13 is also used to help stop home foreclosure. Filing bankruptcy brings a court order called the automatic stay, which halts all forms of collections, including foreclosure, typically for the duration of your bankruptcy case.
Deciding Which Chapter is Right for You
Deciding which bankruptcy chapter may help you meet your goals depends on your unique situation. If your debts are primarily due to credit card debt or medical debt, and you have few valuable assets not protected by Missouri's exemptions, Chapter 7 may be right for you.
If your debts are due to missed mortgage or car loan payments, or you have property above the value that can be exempted, Chapter 13 may be right for you.
A Missouri bankruptcy lawyer can help you evaluate your situations and the options you have available.
Connect with an attorney near you is simple. Just use our free case evaluation form or call 877-833-2410 to arrange your free, no-obligation bankruptcy consultation.
Missouri bankruptcy laws may have changed since our last update. For
the latest information on your state's bankruptcy laws, speak to a local
Missouri bankruptcy lawyer.