It is understandable that you have questions and concerns about the bankruptcy process. There are many myths out there. When you come to our law firm, Flesner Wentzel, in St. Charles, Missouri, we will take the time to answer all of your questions, including:

Which Chapter is right for me?

There are big differences between Chapter 7 and Chapter 13 bankruptcy protection, the largest being the length of time. Additionally, the amount of assets will make a difference. This is why it is important to speak with an experienced attorney before making any decisions.

Will I lose my home if I file for bankruptcy?

Filing for bankruptcy will stay any foreclosure activities against you. Seeking Chapter 13 protection may give you the time you need to catch up on any late mortgage payments. If you want to get rid of your mortgage, however, you will need to surrender your home.

What debts can I discharge through bankruptcy?

Most unsecured debts — credit card debt, medical debt, payday loans — are dischargeable through the bankruptcy process. Mortgage debt and car loans can be discharged, but there may be ramifications as to whether or not collateral for the debt can be retained after the discharge.  For example, a home can be retained even after discharging the debt if the payments remain current, however, a vehicle will likely be repossessed if the debt is discharged, at the creditor’s discretion even if the payments are current.  Student loan debt, most tax debts, and child support payments cannot be discharged.

Will my bankruptcy affect my credit score?

Unfortunately, filing for bankruptcy will likely cause your credit score to drop. However, by wiping your debts clean, you will have a clean slate from which to rebuild that score. That could be a better outcome than struggling for years to pay debts and your score remaining low.

What assets can I keep?

The bankruptcy code has several exemptions for allowing you to keep assets, including your home, car, retirement savings, family heirlooms and jewelry. As your lawyer, I will use my deep knowledge of the bankruptcy code to help you create a bankruptcy plan that allows you to keep your most valuable assets.

Do I need to report all of my assets?

Being truthful with your lawyer, your bankruptcy trustee and the court is paramount. If you let us know about all of your assets in advance, we can help you create a plan to keep them.

If you would like to further discuss these questions above, or you have more questions about qualifying for bankruptcy, call my law firm at 636-442-4529 to schedule a free consultation. We are looking forward to providing you with the help you deserve.