When people seek out bankruptcy protection, they may be aware that there are two types, Chapter 7 and Chapter 13, but they may know little other than that. Fortunately, a St. Louis Bankruptcy Lawyer can help explain which type if right for you, allowing you to keep the assets you want while still getting free of onerous debt. If you have questions about Chapter 7 and how it may be able to help you, contact The Westbrook Law Group today.
Types of Debt Discharged under Chapter 7 with a St. Louis Bankruptcy Lawyer
The type of debt you owe will be the most important factor in determining which form of bankruptcy is right for you. If you owe primarily unsecured nonpriority debt, Chapter 7 will allow you to discharge this debt if you qualify. This type of debt includes:
- Credit card debt
- Medical bills
- Payday loans
Under Chapter 7, your debts will be liquidated and the proceeds user to pay off your creditors. While this sounds like it will leave you with nothing, the fact is that most people who qualify for Chapter 7 pay little to nothing back. This is because Missouri offers Chapter 7 filers many exemptions which will allow you to keep the equity in your assets. If the exemption does not fully cover the value of the asset, then the filer will receive the cash value of the amount of the exemption. This way, even if you lose some of your assets, you will not be left destitute.
If you have questions about Chapter 7, Chapter 13, or about the debts you owe, contact The Westbrook Law Group for a free consultation. We will work to find the right bankruptcy for you that allows you to keep your assets while still getting a fresh start free of serious debt. To learn more, contact The Westbrook Law Group today.