St. Louis Bankruptcy FAQ

What is bankruptcy?

Bankruptcy is a legal process, which allows a person to legally declare that they can no longer pay their debts. This process is governed under Title 11 of the United States Code (the bankruptcy code). Most people who file bankruptcy file a Chapter 7, Chapter 11, or Chapter 13.

How much does bankruptcy cost in St. Louis?

Debtors pay a legal fee before their petition is filed. The legal fee will depend on the complexity of the case, but typically the fee is $500 for Chapter 13 and $1100 for Chapter 7.  The court charges a filing fee of $281 for Chapter 13 and $306 for Chapter 7. Debtors filing for Chapter 13 bankruptcy pay additional legal fees during their bankruptcy plan.

Debtors filing complex Chapter 11 cases pay fees that vary depending on the specific details of their case. For an estimate, please fill out our Free Evaluation today.

What Type of bankruptcy Should I File?

This can be a hard question to answer because there can be so many exceptions and it all depends on your situation. Chapter 7 bankruptcy is the most common type of bankruptcy that people file. This is the quickest type of bankruptcy but there are also certain requirements a person must meet to be able to file this type of bankruptcy.

Chapter 11 bankruptcy is usually used for business and is very similar to Chapter 13 bankruptcy. Chapter 13 bankruptcy is the second most commonly filed type of bankruptcy. This type of bankruptcy takes anywhere from 3 to 5 years and the person filing bankruptcy is required to pay off a certain amount of their debt before they are given a discharge.

The best way to determine what type of bankruptcy best fits your situation is to come in and sit down with one of our St. Louis bankruptcy attorneys. They will help you evaluate your situation and help you determine what would be best for your situation.

How Long is the Bankruptcy Process?

The length of your bankruptcy depends on which type of bankruptcy you file. Chapter 7 bankruptcy is the quickest and a person can complete this type of bankruptcy as quick as 4 months but a normal duration is 6 months. Chapter 11 and Chapter 13 bankruptcies take longer and will last from 3 to 5 years depending on the details of each bankruptcy.

How Will Bankruptcy Affect My Credit?

Bankruptcy mostly affects people in the first couple of years. These first couple years will be the most difficult in terms of getting new credit. After a couple years, many people are able to begin to get credit again. They are able to get credit cards and car loans and slightly higher interest rates. After three years, the major effects of bankruptcy begin to diminish. At this point many people are able to get home loans again and the interest rates on their loan begin to get better.

While effects of bankruptcy begin to fade after three years, a bankruptcy will remain on your credit history for seven to ten years. While it is very uncommon, effects from a bankruptcy can be felt for that same duration.

How Do I Get My Creditors to Stop Harassing Me?

When a person files bankruptcy, the first thing that is done is that the bankruptcy papers are completed. Once the proper bankruptcy papers are completed, you file them with the bankruptcy court and the bankruptcy court will automatically issue an automatic stay on your behalf.

An automatic stay legally prohibits creditors from contacting you or collecting from you in any way. All phone calls, wage garnishments, and foreclosures will stop.

St. Louis Bankruptcy Attorney Help

Our attorneys here at the St. Louis Bankruptcy Center are here to help you. Let us help you understand bankruptcy and how it can help you get back on your feet. Fill out our free bankruptcy evaluation today for a free bankruptcy attorney consultation.

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