Overwhelmed by Debts? Hire a Chapter 7 Bankruptcy Lawyer

by | Dec 9, 2014 | Lawyers


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Many Missouri residents are only a few paychecks away from insolvency. When they become seriously ill or get laid off, they quickly fall behind. Within a few months bill collectors are calling. People in debt are often too embarrassed to seek help. They keep hoping that they’ll get a new job or overtime to get ahead. When neither of these things happen, they eventually realize that they have to hire a Chapter 7 Bankruptcy Lawyer. In preparation of their first meeting with the lawyer, they should make a list of all of their income sources and debts.

Federal bankruptcy law now limits who can file for bankruptcy using Chapter 7. Only those Missouri residents who make less than the median Missouri income are automatically allowed to use it. Those residents who make more have to apply for a hardship exception. If the debtor qualifies, the lawyer will file the application with the court. The judge hearing the case then appoints a bankruptcy trustee who will over see the process. Chapter 7 allows the trustee to sell of all of the non-protected assets of the debtor. Often the debtor is allowed to keep their car, home and equipment they need to make a living.

First the trustee will schedule a meeting with the creditors. The debtor and their Chapter 7 Bankruptcy Lawyer must attend. Most debtors are terrified at the prospect of meeting all of their creditors. Their lawyer will be there to help them through this process. Very few creditors attend these meetings and they usually last about 10 minutes. If creditors do attend, they can ask about the status of the debtor’s finances and debts.

After the meeting, the trustee can sell all of the non-protected assets. The profits are then distributed to the creditors. If there is not enough money to cover the full amount of the debts, then the remaining debt is forgiven. Not all debts qualify for Chapter 7. These include student loans, tax liens and child support. The lawyer can work with government agencies and the court to reduce or reorganize these debts. Sean C. Paul Attorney at Law is one of the attorneys that provide these services in Missouri. People concerned about their debts can contact him. For more information visit us.