When Should I File for Bankruptcy | St. Charles, MO



When Should I File for Bankruptcy?

When faced with several financial issues, you would do whatever is necessary to get out of your current situation. You then start to consider various options that could help you attain debt relief quickly, one of which might be filing for bankruptcy. This action could finally be the way out for someone who may have made bad decisions with their money or accumulated a ton of credit card debt. However, ask yourself this first: “When should I file for bankruptcy?”

Financial troubles are usually caused by dramatic changes in your life, like loss of income, getting very sick, undergoing a divorce, existing credit card debt, and accidents. Bankruptcy is a great way to get back on track financially and ease the stress of worrying about money each day and having to deal with debt collectors constantly.

The question “When should I file for bankruptcy?” is crucial in achieving debt relief. But it is just as important to know what you are about to get into. Choosing Westbrook Law Group LLC as your partner should help save you lots of time, effort, and resources during this journey. Call us today to set up an appointment with an experienced St. Charles Bankruptcy attorney!

Why Do I Need a Bankruptcy Attorney in Missouri?

when should I file for bankruptcy MissouriGoing through bankruptcy can be embarrassing and take a toll on your overall well-being, regardless of how much you owe. That said, being in this situation and not being sure what to do should not stop you from getting the help you need. By allowing an expert to handle the legal aspect of your bankruptcy case, you move a step closer to getting a much-needed fresh start. 

Besides having someone give you a reliable answer to “When should I file for bankruptcy,” you need an attorney who:

  • Specializes in helping all clients recover financially through bankruptcy.
  • Committed to Missouri bankruptcy law and advocates for the rights of everyone suffering from financial problems. 
  • Educates every client on handling debt obligations properly, no matter how burdensome. 
  • Assists each individual or group in protecting their asset and other things which are of great value to them. 
  • Will carefully walk you through each step of the bankruptcy process while making sure you use all your resources wisely. 

If your debt is bothering you constantly, receive excellent debtor education by consulting with a skilled Missouri bankruptcy attorney from Westbrook Law Group LLC immediately.

What is Bankruptcy?

Bankruptcy is a legal process by federal courts in the United States designed to help a group or individual be free of debt or figure out a plan to repay their creditors gradually. Contrary to what most people believe, bankruptcy (if used correctly) can be a good thing since it functions as a safety net for an individual or business that owes a large sum to their creditors.

If you are still unsure of the answer to “When I should file for bankruptcy,” the sections below should tell you more about the types of bankruptcy, you can petition for, the process of filing, who is allowed to file, and other bankruptcy-related options available to you.

What are the Different Bankruptcy Chapters?

Depending on your current financial situation, there are different bankruptcy chapters you can opt to file for in the state of Missouri. Below are four types of bankruptcy according to the United States Bankruptcy Code and who can most benefit from each one:

  • Chapter 7 Bankruptcy is a personal bankruptcy often filed by individuals to liquidate some of their assets. 
  • Chapter 11 Bankruptcy is a business bankruptcy usually filed by businesses wanting to reorganize their debts shortly after their assets have been liquidated. 
  • Chapter 12 Bankruptcy is usually filed by family farmers and fishermen to adjust their debts. 
  • Chapter 13 Bankruptcy is a personal bankruptcy typically filed by individuals to help them gradually pay off their debts within a 3 to 5-year period.

Before you can answer the question “When I should file for bankruptcy,” consulting with a knowledgeable bankruptcy lawyer is necessary. You also need to know about the two most common Missouri bankruptcy chapters being filed – Chapter 7 and Chapter 13.

What is Chapter 7 Bankruptcy?

Also known as liquidation, Chapter 7 bankruptcy is where a bankruptcy trustee gathers and sells some or most of your assets that are not protected by Missouri bankruptcy exemptions. The money raised during the liquidation process will then be used to pay your debt.  Filing Chapter 7 successfully will take effect for three to six months.

Knowing which of your property can be exempted from liquidation is crucial to prevent having all of your valuables taken away from you. Under normal circumstances, you can keep your car, social security, and other personal belongings like your clothes. Nonetheless, talking to a trustworthy Missouri bankruptcy attorney about these bankruptcy exemptions should give you a better idea of what to expect during the Missouri Chapter 7 bankruptcy proceedings.

What is Chapter 13 Bankruptcy?

Also called consumer reorganization, Chapter 13 bankruptcy is where the petitioner does not have to give up any property or personal assets. Instead, you will be given three to five years to pay back your creditors through a debt settlement plan. The length of time you will be given to pay your debt will depend on how much is your monthly income during the date of filing a bankruptcy petition.

Having a regular source of income is key to being qualified to file for Chapter 13 Bankruptcy. It is also considered the most helpful bankruptcy chapter as it gives you more opportunities to pay your dues on time.

To help you answer the question “When should I file bankruptcy” and determine which bankruptcy chapter makes the most sense to your situation, reach out to a St. Charles Bankruptcy attorney immediately!

How Do I File for Bankruptcy in St. Charles, MO?

By now, the question “When should I file for bankruptcy” should already have an answer. But regardless of what bankruptcy chapter you want to petition for, you need to appear before the United States bankruptcy court and should follow their given directives 180 days before the bankruptcy filing. 

You should also undergo credit counseling from an approved credit counseling agency within 180 days before filing unless you qualify for an exception. 

Speak to a Missouri bankruptcy lawyer regarding your preferred chapter, where you can attend credit counseling and all the bankruptcy forms needed during the process.

Call Our St. Charles Bankruptcy Attorney Now!

You can point to many reasons why an individual or business ends up in so much debt. There is no denying that having to deal with mountains of credit card debt and student loan debt or facing the possibility of wage garnishment and foreclosure can break even the most tenacious people. 

Fortunately, attorney Brent Westbrook of the Westbrook Law Group LLC has a proven track record of giving great legal advice, allowing him to help thousands of people get over their financial issues successfully.

Do you want to know the answer to “When should I file for bankruptcy?” If yes, avail of their FREE consultation by visiting their law office today.

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