For anyone even thinking about bankruptcy, it is essential to understand exactly what this term means. You must also be aware of what it can do for your financial standing. In basic terms, this is a court process that was originally designed to help both individuals and businesses eliminate debt. In recent years, bankruptcies have also been enacted to help the debtor repay arrears through the use of a plan set by the court.
Two Types
There are two types of bankruptcy, each one with a specific goal in mind. Chapter 7 is commonly known as liquidation, whereas Chapter 13 is often described as reorganization. When you choose the first option, you are requesting the court to discharge what you owe. With Chapter 13 in effect, on the other hand, you work with an attorney and the court to come up with a plan for repaying your creditors. The third type that many people know about is Chapter 11, which applies to a business or a corporation. Click here to know more about bankruptcy in St. Louis, MO
When you file for bankruptcy, the court issues an order called a “stay,” which keeps the creditors from pursuing any further action. They can only contact you about collection once the court lifts this order. Under the Chapter 13 form of bankruptcy, you may have to repay some of these debts in full, whereas others may only have to be repaid partially, or not at all.
Professional Assistance
Fortunately, there are individuals that are well-versed in bankruptcy in St. Louis, MO who will take the time to visit with you and guide you through the process. They can explain the details about the debts that cannot be discharged, such as child support and alimony. Student loans can be eliminated in some cases. You would be wise to get professional assistance from a firm such as Van Dillen & Flood, P.C., where legal experts have been helping individuals for over three decades.
They will tailor their approach to your needs, and they’ll focus on helping you reach your financial goal. Make the wise choice today, and call these professionals for a consultation.
