Are credit cards covered in Missouri under a bankruptcy filing?

If your credit card debt has become unmanageable and you can't pay the bills each month, you need to understand the rules for credit cards bankruptcy in Missouri.

• Credit card debt is a form of unsecured debt, and credit card companies are often very low on the list of those who are paid in a bankruptcy proceeding. This means that the credit card companies may end up getting very little of the money you owe them back, depending on the chapter of bankruptcy you file
• If you file a chapter 7 bankruptcy, the first thing you will need to do is prove your eligibility by showing that your income is either below the Missouri state median or that it isn't enough to sustain you and allow you to make debt payments. Next, property and assets that aren't exempt will be seized and sold. The proceeds from this sale will be distributed among all your different creditors with claims on your estate. Any balance of your credit cards that remains unpaid at this point is forgiven
• If you file a chapter 13 bankruptcy, you will have to propose a repayment plan wherein you pay back some of the credit card debt (and other debts). The creditors will need to approve it, as will the court, and then the repayment plan will continue for a 3-5 year period of time.

To better understand which chapter of bankruptcy you are eligible to file and what will happen to your credit card debt, it is important to consult with an experienced Missouri bankruptcy attorney.