Which Attorneys are Best for Filing Chapter 13 in Missouri?

Missouri bankruptcy law allows individuals to file for Missouri Chapter 13 bankruptcy protection.  Chapter 13 is for people who have assets that they want to keep.  The court allows you to enter into a reduced debt repayment plan, subject to court approval, with your creditors.  Since Missouri bankruptcy laws are complicated, you should hire a Missouri bankruptcy attorney to assist you with the filing and negotiating of the plan.  Missouri bankruptcy attorneys are also knowledgeable about the Missouri foreclosure laws.  Many people have been filing Chapter 13 and Chapter 7 bankruptcies in Missouri because they cannot afford their mortgage payments and their credit card debt is out of hand.  The attorney can help you keep your home by negotiating a mortgage modification with your lender as part of the repayment plan terms.  Once you have completed the 3-5 year repayment plan, the court will discharge any remaining unsecured debt, and your bankruptcy will be discharged. 

What’s Expected?

Your bankruptcy attorney is knowledgeable about structuring your court-approved repayment plan.  The court requires that you must make your monthly payments on time to the bankruptcy Trustee. The Trustee also gets a commission of 3% to 10% of the total monthly payment.  Payment plans also require the following:

• You must pay 100% for your administrative claim fees, including the Trustee’s commission and your attorney’s fees.
• Debts such as spousal and child support, tax debts, wages, salaries must be paid 100%.
• Secured mortgage debt and other secured debts can be renegotiated to reduce the debt, with your creditor.
• The plan should be completed within 3-5 years.  

The major benefit for filing Missouri Chapter 13 is that you don’t have to sell your assets to pay off your creditors because you enter into a reduced debt payment plan with them instead. 

Statutory Excluded Debts that Cannot be Discharged

 You will not be able to get statutory excluded debts discharged.  Statutory excluded debts include the following:

• Spousal support or alimony
• Child support
• Student loans
• State and federal income taxes (except taxes that are 3 years or older may be discharged)
• Debts resulting from a crime
• Court fees 
• Government fees and penalties 

If you don’t have substantial assets, you may want to file a Chapter 7 bankruptcy, which is a complete liquidation.  You may be able to keep your home, car and some personal assets if the value of the assets does not exceed the statutory exemptions.  Your bankruptcy attorney will be able to advise you which Chapter is the right one for your financial situation. 

Hiring a Bankruptcy Attorney 

Missouri bankruptcy laws are complicated, and they change constantly.  It is recommended that you hire a Missouri bankruptcy attorney to help you with the filing and negotiating of your Chapter 13 plan.  A Missouri bankruptcy attorney is an expert in the Missouri and federal bankruptcy laws and can answer your questions and explain the Chapter 13 procedures to you.