When you’re thinking about filing for bankruptcy, it’s important to know the basics of bankruptcy before you hire a Bankruptcy Lawyer St. Charles MO. While the lawyer will be able to walk you through the bankruptcy process step by step, you need to first decide if bankruptcy is an option you’d like to take advantage of. If you do not own a business, you will be filing first for individual bankruptcy. Within that, however, are other sections. These sections are called chapters, and one of the chapters you may want to take a look at is Chapter 7 bankruptcy. Visit Website for more details.
Chapter 7 bankruptcy is where you have the ability to pay for all of your debts at one time with the help of your lawyer, the courts, and a trustee. If you are granted the chance to complete a Chapter 7 bankruptcy, your lawyer will begin the process by going through all of your finances and coming up with one total amount. This is usually a settlement amount, meaning that it does not cover every fee and late charge you owe to the debt collectors, but if it is granted then upon payment your debts are cleared. Your attorney will work with the court system and the debt collectors to come up with the total settlement amount you will owe.
Once you have the amount, you need a way to pay it. If you had the money, you likely wouldn’t be filing for bankruptcy. Instead, you will surrender all of your qualifying assets to a trustee. Qualifying assets are any assets that are not necessary for your survival. You will need your home and a car, but you don’t need a priceless painting or old jewelry. The trustee is a neutral third party, meaning that they are not on the side of you or the companies you owe money to. They will sell your assets for you to cover the settlement amount of your debts.
Once the settlement has been reached, you have given your qualifying assets to the trustee, and they have sold your assets, the money will pay off the debt collectors. This marks the end of your bankruptcy claim, and you will be free from the debts. If you have any questions about the bankruptcy process or clearing your debts, speak with a Bankruptcy Lawyer St. Charles MO such as one from the Law Offices of Steven K. Brown today.
