Among the main causes of bankruptcy are excessive borrowing and unexpected medical expenses that can choke the finances of anyone. There comes a time when accounts payable become unmanageable, leading many to consider filing for bankruptcy. Low cost bankruptcy in St. Louis can eliminate some, but not all debts and it may also help a person avoid unpleasant foreclosures, collection calls, and so on. It sounds easy and beneficial, but you should consider the consequences that can affect you in the long run. Only by understanding the process, can a person make the right decision.
In the United States, there are two options of bankruptcy called chapter 7 and chapter 13. A chapter 7 bankruptcy can remove all or part of your debts once your liquid assets (those that are easily convertible in cash and through a checking or savings account) are used to pay part of the debt off. Chapter 13 is the option where a person can pay all or part of the debt they have off through a payment plan over a period of 3-5 years. This plan must be submitted to the court during the bankruptcy filing proceedings, and it must be approved by a judge. Once the filer has completed the plan’s payments, any outstanding balance would be removed. Note that chapter 7 requires you to give your liquid assets up, but if you want to keep them, then the option offered by the chapter 13 bankruptcy would be more convenient.
There are plenty of alternatives to bankruptcy. Bankruptcy is not the magic bullet many people believe it to be and they do not solve your debt problems. In fact, neither one of them may be the best option for your situation, so it is best to consider alternatives such as:
* Reaching a settlement with creditors
* Negotiating a reduction of payments to creditors
* Seeking help through an approved credit counselling agency
* Selling property to pay the debt
* Getting a loan using your property as collateral to pay off debt
Low cost bankruptcy in St. Louis is possible, but the filer has to be smart about the process. Do not try and file alone. Hire an attorney or company who has a reputation for getting their clients the best deal. Visit Stlbankruptcyfirm.com to learn more.
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