Bankruptcy FAQ

Find answers to some commonly asked questions about bankruptcy in St. Peters.

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At Adams Law Group, we are dedicated to providing the people of our community with quality legal advice and representation. We get to know each one of our clients and your specific situation so that we can create a plan of action that will work best for your unique circumstances. We understand that no two bankruptcy cases are alike, and we will always strive to understand yours fully and ensure that you are receiving the representation that you deserve.

Below, we have answered some of the most commonly asked questions about filing for bankruptcy in St. Peters. If you have any further questions, please reach out. We’ll provide you with a free consultation to get started.

Bankruptcy chapter 7

Chapter 7 Bankruptcy FAQ

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, also called liquidation bankruptcy, is the easiest and shortest form of bankruptcy to file. In order to qualify, you must pass an income test. After a Chapter 7 bankruptcy, your dischargeable debt such as credit card bills, personal loans, and medical bills will be wiped out, and you will be ready to move forward with a clean slate.

Who Should Consider Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is ideal for those who do not have money left at the end of the month and who do not have non-exempt property. Also, the individual must pass the Means Test. If this does not sound like your situation, a Chapter 13 bankruptcy may be your best option.

Will I Be Able to Keep My Assets in a Chapter 7 Bankruptcy?

During a Chapter 7 bankruptcy, you will be allowed to keep your exempt assets. These typically include items that you use for everyday living, such as your car and house, but there are limits to each exemption. Your St. Peters bankruptcy attorney can help you determine if your assets are exempt and which you would be able to keep during a Chapter 7 bankruptcy. If your assets are worth more than the exemption limits, you may be required to sell them to pay off creditors. In this case, a Chapter 13 bankruptcy may be the better choice for you.

Chapter 13

Chapter 13 Bankruptcy FAQ

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is another way for individuals to tackle their financial situation so that they are able to move forward with a brighter financial future. This chapter of bankruptcy requires the individual to pay back some of their debt through a three to five year repayment plan. The payments are based on your income and what you can afford. After the repayment period has been completed, the remainder of your unsecured debt is discharged, tax-free.

Who Should Consider Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is ideal for those who want to keep certain assets that they would have to sell during a Chapter 7 bankruptcy, or for those who do not qualify due to the Means Test. Chapter 13 bankruptcies are also ideal for individuals who are facing a foreclosure on their home or repossession of their automobile. In order to decide if Chapter 13 bankruptcy is the right decision for you, the attorneys at Adams Law Group can help. Reach out to us today.

Will I Be Able to Keep My Assets in a Chapter 13 Bankruptcy?

During a Chapter 13 bankruptcy, you will likely be able to keep your assets as long as you are able to continue to make the monthly payments. Filing for bankruptcy will induce an automatic stay from the court, which will stop all foreclosures, repossessions, and collection activity. You will then be able to work with your attorney and figure out which assets you can and can’t afford to keep.

Process

The Bankruptcy Process FAQ

How Do I File for Bankruptcy?

The bankruptcy process is not necessarily a difficult one, but can be complex if you do not have an experienced attorney on your side. If you are considering filing for bankruptcy, the first step you’ll want to take is to contact a bankruptcy law firm like Adams Law Group in St. Peters. Our attorneys can help you determine if bankruptcy is the right choice for you, as well as the differences between a Chapter 7 and Chapter 13 bankruptcy, and which you could benefit from most. Reach out to us today and we’ll get you started with a free, no-obligation consultation.

What Is a Discharge?

A discharge is the term used during a bankruptcy when you are no longer responsible for certain, specified debts. Whether you file a Chapter 7 or Chapter 13 bankruptcy, certain debts will be discharged, which means that you will no longer have to pay this money back to your creditors. During Chapter 7, this typically occurs after the court proceedings. In a Chapter 13 bankruptcy, this occurs after the repayment period is complete. Which debts are discharged will vary from case to case.

What Is an Automatic Stay?

An automatic stay is the legal term used for when collection activity is ordered to stop by the court. This occurs when you first file your bankruptcy case. The court will order that all collection calls, foreclosures, repossessions, and other collection activity ceases while the bankruptcy case is ongoing. This means whether you file a Chapter 7 or Chapter 13 bankruptcy, the collection calls and harassment will stop immediately after filing. However, this does not mean that you are no longer responsible for those debts.

General bankruptcy

General Bankruptcy FAQ

Should I File Chapter 7 or Chapter 13 Bankruptcy?

Every bankruptcy case is different. Some individuals will benefit from a Chapter 7 bankruptcy, while others are better off filing a Chapter 13 bankruptcy. Chapter 7 requires you to meet certain income requirements and may require you to sell some assets to pay off creditors, while a Chapter 13 bankruptcy requires a repayment period of three to five years. Our experienced bankruptcy attorneys can help you determine which would be best for your unique situation.

How Do I Stop Collection Calls?

If you are preparing to file for bankruptcy, and you are concerned about the amount of collection calls that you are receiving, these calls will stop when you officially file with the court. An automatic stay will be ordered immediately after filing which will halt all collection activity while the case is ongoing.

Do I Need to Hire a Bankruptcy Lawyer?

Filing for bankruptcy can be a complex situation if you do not have experience in the field. That’s why, at Adams Law Group, we always recommend that you hire a bankruptcy attorney. An experienced lawyer can help you determine which type of bankruptcy is best and knows their way around the legal system to make the process go as smoothly and as quickly as possible.

Reach Out to Our Bankruptcy Attorney for More Information

Whether you still have questions about bankruptcy or you are ready to discuss the details of your case, reach out to our St. Peters attorneys today. We will get you started with a free consultation so that you can better understand how we can help you with your case and you can begin to move forward to your brighter financial future.

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