Even people who make a good salary can be forced to declare bankruptcy. While the husband was bringing home good money as a plumber, he was unable to get health insurance for his family. So when his wife became sick, the family faced large medical bills. Even working over time, he could only pay a fraction of the bills. He was forced to speak with a Bankruptcy Attorney St. Louis MO. The lawyer told him because he had had made more than the median Missouri income for the last six months, he would have to use Chapter 13 to declare bankruptcy.
Chapter 13 is a repayment plan that individuals can use to pay off their debts. In addition to making more than the median income, the debtor has to be able to pay $100 each month to settle their debt. The repayment plan can last up to five years. If the debtor successfully completes the repayment plan, then the remaining debt is forgiven.
After the Bankruptcy Attorney St. Louis MO submits the bankruptcy petition, the court will appoint a bankruptcy trustee. The trustee will examine the basic living costs of the debtor. This will include necessities such as the mortgage, car payment, clothing and food. He will then draw up a monthly budget. The debtor’s Bankruptcy Attorney St. Louis MO will make sure that this budget is fair and realistic. Once the debtor is on the budget, he will not be allowed to use credit cards to make up and monetary shortfalls. If the debtor needs to buy a new car, then he will need the trustee’s permission to get a car loan.
Not all creditors are created equal in a Chapter 13 repayment plan. The debtor will have to pay alimony and child support first. If the debtor runs a business he will then be expected to repay any back wages to employees. Unsecured creditors such as credit card companies and medical facilities will come last. If the debtor has no money left to repay them, these debts will be forgiven. Any person who can’t afford to pay their monthly bills can contact Van Dillen & Flood P.C. St. Louis, MO They are one of the law firms that help people through the bankruptcy process. Visit Website.com for more details.
