Taking the first step and talking with bankruptcy lawyers in St. Louis, MO is usually not an easy task as far as the person’s emotions are concerned. The prospect of filing for bankruptcy can create feelings of failure, embarrassment, and shame. However, individuals must keep in mind that the government has devised this system to allow each citizen a fresh start when most needed. It is better for a person and their family, as well as for the economy in general, to not stay bogged down in overdue payments, penalties, and interest.
Filing for chapter 13 bankruptcy offers the advantage of being able to pay creditors back over time with affordable payments. When everyone is demanding a minimum payment at once, it can be impossible for the individual struggling with finances to achieve. With the assistance of bankruptcy lawyers in St. Louis, MO, an arrangement is set up under which the individual pays a designated amount to a trustee once a month. That amount is distributed among the creditors. The payment due each month is significantly more affordable for the individual than the multiple payments had been.
Filing for bankruptcy is not as decimating to one’s credit as was the case years ago. The person may even be able to acquire a car loan after a year or so as long as the finances continue to improve and chapter 13 payments are always made on time. Some companies also offer credit cards with low maximum balances to these customers, giving them a chance to rebuild their credit score. Interest rates will be higher than the norm because the individual is considered somewhat high-risk, but the old concept of someone being unable to be granted credit for a full seven years is no longer valid in most situations. People who do very well on the program and have a certain level of income are even likely to qualify for a mortgage.
To begin the process, an individual will need to hire a St. Louis bankruptcy lawyer such as Sean C. Paul, attorney at law. Free consultations are available. Please visit the website Stlbankruptcyfirm.com to get started.
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