The current condition of the economy is causing many people to make drastic financial decisions. Families are struggling on whether to allow their car to be repossessed, or fall dangerously behind on their mortgage for another month. The ultimate financial decision typically involves filing Chapter 7 in St. Louis. Did you know that, between March 31, 2012 and March 31, 2013, over 800,000 bankruptcy claims were filed in the United States? Needless to say that that is a staggering number to consider, and that number was even higher just one year ago. If you are one of the many people considering filing for bankruptcy, pay attention to the following information.
Filing for Chapter 7 in St Louis will give you an opportunity to get rid of a majority of your debt, and in some cases all of it. However, those who file must be aware of what the consequences are. For instance, this particular type of bankruptcy is known as liquidation bankruptcy, and that should give you some indication of what’s in-store. This means that, instead of completely wiping your debt clean and leaving creditors high and dry, the courts may order you to sell off some of your assets to pay your debt. You need to decide if this is something you’re prepared to do.
The courts will have a trustee carefully examine the property and assets in your possession. You’re not expected to hand over everything you own in order to pay off your debt. If you were required to do this, there’d be no reason to file for Chapter 7 in the first place. The trustee will typically separate your exempt and nonexempt property. The nonexempt property will likely be sold off, or you can provide the cash value of the property yourself.
You can expect to wait as much as six months before the process is complete. On top of that, filing for Chapter 7 isn’t free. Those attempting to file a claim will have to pay fees that add up to $300. During these six months, you’ll also be required to attend a counseling course on credit. The course is meant to teach you about your responsibilities as a claimer, and what you should do about your credit in the future. As you can see, it can take money and a lot of time to file for bankruptcy. This is why filers should think twice about taking this step. Click here to know more.
