Do You Need to File for Chapter 13 Bankruptcy in MO?
Going through money troubles can make you feel trapped, and there’s a huge chance your quality of living has been badly affected. Filing for bankruptcy might be a way to welcome change and clear your debts with legal protection against creditor harassment. Chapter 13 bankruptcy filing is a good option to consider in certain situations. However, you must first be aware of who can’t file for Chapter 13 bankruptcy St Charles MO.
Financial struggles can be traced when something significant changes in your life, ranging from losing a job to being buried in credit card debt. Financial struggles can negatively alter your life if no action is taken to address them. Filing bankruptcy helps ease some of the stress it brings and gives you a chance to get back on your feet financially.
Before starting the process of achieving debt relief through filing Chapter 13, you need to determine who can’t file Chapter 13 bankruptcy St Charles MO. Working with an experienced Missouri bankruptcy attorney from Westbrook Law Group LLC should save you a lot of time, money, and energy during this tough time. Talk to a lawyer today to ease your burdens.
Why do I need a Missouri Bankruptcy Attorney?
No matter how much you owe in debt, going through bankruptcy proceedings will surely take a toll on your overall wellness. Nonetheless, the shame of being in this situation and your uncertainties about what’s next must not stop you from seeking help from a lawyer. By letting a skilled bankruptcy attorney take charge of crucial aspects of the procedure, your bankruptcy case should end up giving you the fresh start that you seek!
Apart from having someone give you a solid answer to who can’t file Chapter 13 bankruptcy St Charles MO, choosing Westbrook Law Group LLC gives you a bankruptcy 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 assets 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 you’re looking for excellent debtor education from a seasoned Missouri bankruptcy lawyer, contact our law office immediately to receive a free consultation!
What is Chapter 13 bankruptcy?
Also called the wage earner’s plan, Chapter 13 bankruptcy allows you to develop a repayment plan to clear all your debt within three to five years. One’s income is a significant determining factor to who can’t file for Chapter 13 bankruptcy St Charles MO.
If your monthly income at the time of filing is greater than the applicable state median, your plan will be for five years. If your monthly income at the time of filing is less than the applicable state median, your plan will only be for three years unless a longer period is approved by the bankruptcy court.
The main advantage of filing for Chapter 13 bankruptcy is the chance to keep all your properties intact. Also, you won’t be directly in contact with your creditors while under Chapter 13 protection. Nonetheless, you are still obliged to pay your dues within the set period, which can get quite expensive as time goes on. Converting your bankruptcy case to Chapter 7 or Chapter 11 might be worth considering at some point.
Who can’t file for Chapter 13 bankruptcy?
Knowing who can’t file Chapter 13 bankruptcy St Charles MO is a necessary step to take before submitting the paperwork for your bankruptcy petition. Determining if you qualify to file for Chapter 13 or not allows you to plan your next move ahead without spending more than you need to.
The following scenarios make you unqualified to petition for Chapter 13 bankruptcy. Note that these are specific to filing a Chapter 13 case, and the general eligibility requirements for bankruptcy filing must still be met.
Income Tax Filings Aren’t Current
The first thing that usually determines who can’t file Chapter 13 bankruptcy St Charles MO is if income tax filings are current. The bankruptcy court will look for proof that you have filed your federal and state income tax returns during the four tax years prior to the date of filing bankruptcy.
Your case should get dismissed if you are unable to produce transcripts or returns for that specific period. The bankruptcy proceedings may be postponed if you need additional time to make your filings current, but this isn’t guaranteed.
Insufficient Disposable Income
To make sure you don’t fall under individuals who can’t file for Chapter 13 bankruptcy St Charles MO, you need to prove to the bankruptcy court that your income is sufficient for paying your debts even after subtracting certain allowed expenses and necessary payments to secured debts such as mortgage or car loans. The judge won’t allow you to proceed with your Chapter 13 petition if it’s determined otherwise.
Sources of income include (but aren’t limited to) regular wages, income from self-employment, wages from seasonal work, sales commissions, pensions, social security benefits, welfare payments, child support received, etc.
Too Much Debt
Another situation that determines who can’t file for Chapter 13 bankruptcy St Charles MO is if an individual’s debt is way too big. You aren’t qualified for Chapter 13 bankruptcy if your secured and unsecured debts go beyond specific amounts. Your secured debt must not exceed $1,395,875, while your unsecured debt must not be larger than $465,275 to qualify for a Chapter 13 case.
A knowledgeable St Charles bankruptcy attorney should provide a thorough explanation about the difference between secured and unsecured debts, and how you can repay everything quickly.
Attempts to Discharge Business Debts
A Chapter 13 bankruptcy petition can reorganize a business owner’s debts as long as it isn’t filed under the business’ name. Business debts fall under the category of those who can’t file for Chapter 13 bankruptcy St Charles MO and businesses normally opt to file for Chapter 11 bankruptcy.
Call our St. Charles, MO bankruptcy lawyer now!
Several factors contribute to why you could accumulate so much debt. For instance, paying off student loans must be done in a timely manner. Otherwise, you face the possibility of having your wages garnished if you aren’t careful. Your situation can become a lot worse if you’re someone who can’t file for Chapter 13 bankruptcy St Charles MO.
Westbrook Law Group LLC has helped thousands of people get over their financial issues successfully. So if you live in Missouri and are having trouble financially, give our law office a call and schedule your FREE CONSULTATION right away!