The basics of bankruptcy are pretty easy to understand. The laws allow people to discharge their consumer debts, medical bills and some student loans and taxes. However, the paperwork is actually quite complex and the guidelines for the two types of individual bankruptcy may be confusing for the average person. Attorneys that focus on bankruptcy law in Jefferson County, MO help clients understand how the law could help them and assist them in filing the necessary paperwork to get their case heard in the federal courts.
Regardless of how ashamed they are of their financial circumstances, it’s essential for anyone who wants this type of debt protection to be completely honest on their paperwork. There’s a good chance the court will find out and if they do, that could jeopardize a person’s current bankruptcy and their ability to file in the future. Bankruptcy offers a person or couple the opportunity to get free from their debts but only if the do it exactly according to the bankruptcy law in Jefferson County, MO.
Many people in all socioeconomic classes file for bankruptcy. Debt relief has more to do with a family’s debt to income ratio than the amount of money they make. No one is too rich or too poor to get bankruptcy protection. However, there are income restrictions on chapter 7 bankruptcy. People with income above a certain amount have to use chapter 13 and make a payment arrangement to repay their debts. Although they have to make regular payments, they typically pay less than the total minimum payments for all of their bills.
Low and middle income families can also use chapter 13 of the bankruptcy code. People who have property they want to keep, such as a home or a personal vehicle, might opt for chapter 13 instead of chapter 7. Although chapter 7 bankruptcy does not require people to forfeit all of their assets, most people lose their home when the use it. An experienced attorney may help an individual or couple decide which bankruptcy is right for them and their future.