No one likes the idea of filing for bankruptcy, but there are times when this is the only practical solution to a problem that has become insurmountable. When talking with an attorney about bankruptcy options, it pays to look at what each approach to personal bankruptcy will provide. Doing so will help the client determine if seeking a Chapter 7 St. Charles MO, is the best choice.
The Types of Debt Involved
To help the client make the best decision, the attorney will look closely at the kind of debt involved. It helps to know that not all types of debt can be discharged in a Chapter 7 action. For example, this is not the way to deal with student loans. Only certain types of tax debt can be discharged using this method, and even then there are specific conditions that must be present for the taxes to be done away with. Many people will not meet the qualifications for getting rid of tax debt using a Chapter 7 St. Charles MO.
There is also the matter of debts secured by some type of property or asset held by the debtor. In many cases, those creditors can rightly repossess the asset used as security as a way to settle the amount owed.
The Income Level of the Debtor
The income generated by the debtor has some bearing on the choice of type of bankruptcy chosen. If the annual income falls below a certain level, and all the debts can be discharged by seeking a Chapter 7 bankruptcy, the attorney is likely to recommend this approach.
For those who have stable incomes over a certain amount, and have the means to eventually pay off all or most of the debt, the attorney will likely recommend a Chapter 13 action. This places the client under the protection of the court and provides for manageable payments to the court over a three to five year period. At the end of that time, any remaining debt is discharged, and the client can begin the task of rebuilding credit.
For anyone who is thinking about filing for bankruptcy, visit the website and schedule an appointment with the Law Offices of Steven K. Brown. It will not take long to find the solution that is right for the client.
