You can decide to go for bankruptcy filing when you are not able to pay outstanding debts. This bankruptcy filing can give you a chance to start your business afresh as your debts are forgiven and creditors are given some amount of repayment based on the availability of your assets. In the US, implementation of bankruptcy differs from state to state. In order to file bankruptcy in Missouri, you need to be aware of the procedures of filing bankruptcy there.
Specific Changes
In Missouri, a bankruptcy filing can be done either under Chapter 7 or Chapter 13 only. You can file for Chapter 7 bankruptcy when the income is below the median income of your state. A case can be filed under this chapter when your disposable income can cover your debts. Here a plan is devised for the repayment of debts over several years.
Important Specifics for Filing Bankruptcy in Missouri
- The level of income to qualify for Chapter 7 bankruptcy in Missouri varies. Your income must be below the median income as determined by the Census Bureau for families of similar size in order to qualify for bankruptcy filing.
- Amount of assets that can be retained by the debtor also varies. Certain assets like mobile home up to $5,000 value, car up to $3,000 value, wedding ring up to $1,500, tools up to $3,000, professionally prescribed health aids, child support up to $750 a month and more can be exempted from liquidation as per the bankruptcy law of Missouri.
Filing Bankruptcy in Missouri
You can file your bankruptcy case along with the statement of financial affairs after doing the “median test” (checking your income against the median income). You should provide a list of your creditors, amount you owe to them, sources and frequency of income, your properties, and monthly expenses for living. If you are filing the case under Chapter 13, you should also submit a proposed repayment plan over next 3 to 5 years. An automatic stay gets imposed on your creditors from collecting their debts due to this filing. As per the new Bankruptcy Abuse Prevention and Consumer Protection Act, you have to obtain approved credit counseling before you file your bankruptcy case.
Trustee now takes charge of your case, verifies and collects all non exempted assets and arrange to sell them. From that fund, they will repay your debts to the creditors on priority basis.
Eventhough an overview of bankruptcy filing in Missouri is given above, it is advisable to consult an attorney and get the exact details and clarify your doubts regarding the procedure.
