1. I heard the law changed and I can’t file bankruptcy any more.
The bankruptcy code is still there as a safety net for those Americans who have serious financial problems. We can look at your individual situation and tell you whether or not bankruptcy is right for you.
2.
No. The law allows you to keep certain exempt property. In Missouri, those exemptions are allowed by state statute. You may even keep your house and automobile if you can show the ability to continue paying for them.
4. Will filing bankruptcy ruin my credit?
Chances are, if you are considering bankruptcy, your credit has already been damaged. Filing bankruptcy removes burdensome debt which will allow you to rebuild your credit in a surprisingly short period of time.
5. What debts do I have to list, and will they all go away?
When in bankruptcy, you are required to list ALL creditors including house, car, taxes, student loans, credit cards, loans, medical bills, and any other debt you may have. Some of these will be discharged in the bankruptcy, some will not, depending on YOUR financial condition. Only a consultation with an experienced bankruptcy attorney can completely answer this question.
6. I’ve heard of Chapter 7 and Chapter 13. What’s the difference?
A Chapter 7 bankruptcy is referred to as a “total liquidation”. People whose income falls below the median are usually eligible for a Chapter 7.
A Chapter 13 bankruptcy is helpful for those people whose income is above the median or who have too much non-exempt property to qualify for a Chapter 7. Chapter 13 bankruptcy requires a monthly payment for a period of three to five years.
7. Is there anything I should be doing?
If you are SERIOUSLY considering bankruptcy,
Many dealers are willing to lend to you once you are discharged from bankruptcy.
It is ok for family to loan money to you for a car purchase after you file bankruptcy.
You can purchase an inexpensive “old reliable” to drive temporarily.
You can borrow a car from family to drive temporarily.
- DO continue paying your house payment and your car payment if you intend to keep them. (And, of course, continue to pay your every day living expenses such as utilities).