The U.S. federal government has presented a bankruptcy as a tool that consumers can use to help get themselves out of a financial bind. While debtors do realize that there are different types of bankruptcy petitions that they can file, some aren’t quite sure which type is right for them. Although many seem to gravitate towards Chapter 7 bankruptcy because of its potential to wipe out your unsecured debts, there are a few times where it may actually be in your interest to seek Chapter 13 bankruptcy protection. Continue to reading to find out if this may apply to your situation.
• Qualifying to file for Chapter 7 Bankruptcy St. Louis requires that you pass a means test. This is done to ensure that your income is low enough for you to claim that you cannot pay back your debts. If you don’t pass this income test, you’ll have no choice but to file for Chapter 13 bankruptcy protection.
• Debtors must understand that certain debts cannot be discharged no matter which type of bankruptcy you file. These debts include tax penalties, student loans, and a few other types. If you have this kind of debt, you may be better off with a Chapter 13 petition. This will give you a chance to pay off those debts, and you’ll be able to get more time to do so through Chapter 13 Bankruptcy St. Louis.
• If you’re a person who really would prefer to pay back the money you owe and uphold your end of the bargain, Chapter 13 Bankruptcy will give you a chance to do it. Not only will it allow you to fulfill the moral obligation you feel that you have to your creditors, but you’ll be able to hold on to any non-exempt property that you may have in the process.
Most people strive to stay on top of their finances, but job loss, unexpected expenses, and even a lack of money management skills can make that hard to do. If you feel that your financial situation is out of control, it’s time to consult an attorney at the Law Offices of Steven K. Brown. They’ll be able to provide you with a thorough evaluation of your situation and help you figure out which type of bankruptcy will get the job done and help you get back on the right track. Browse website for more information.