Mounting debts and a slow economy have made repayment of debts a difficult task for most people. Debts may spiral out of hand, especially when faced with unforeseen incidences, such significant hospitalization or loss of a job. There are numerous options a person can consider when handling a debt problem, such as refinancing options, debt management plans and bankruptcy. Most people who opt for bankruptcy go for chapter 7 bankruptcy. Chapter 7 bankruptcy is ideal for people with limited or no income to pay off severe debts. It allows the borrower to have most if not all of their unsecured debts discharged. Here are the top reasons why a chapter 7 bankruptcy in St. Charles MO is preferable over a chapter 13 bankruptcy.
Chapter 7 Is a Much Shorter Process
Chapter 7 bankruptcy is designed to help the borrower get rid of their debts within the shortest time possible. The entire bankruptcy process lasts about 5 to 6 months from the time the case is filed with the courts. This is just a fraction of the time spent in a chapter 13 bankruptcy, which lasts for a minimum of three years and a maximum of five years.
There Is no Payback on Most Unsecured Debts
In bankruptcy, different debts are treated differently. Debts are broken down into two broad categories: secured and unsecured debts. Examples of secured debts include cars, houses and anything with collateral. Unsecured debts, on the other hand, include personal loans, credit cards, medical debts, student loans, and taxes. In Chapter 7 bankruptcy, some unsecured debts such as student loans cannot be discharged , and taxes must follow specific guidelines to be wiped out.
Retain Some Assets
Most people do not like chapter 7 bankruptcy since there is a risk of losing properties during the liquidation process. While this is true, the borrower is allowed to keep assets that are exempt from sale under the federal law. Examples of these exempt assets include wedding rings, cars, household goods and retirement accounts.
These just some key reasons to file a chapter 7 bankruptcy in St. Charles, MO bankruptcy. To ensure that the entire bankruptcy process is handled professionally, it is essential to hire a competent chapter 7 bankruptcy attorney at the Law office of Van Dillen & Flood P.C. For additional details about chapter 7 bankruptcy and how to hire a bankruptcy attorney, go to Website.com.
