Are you struggling to make ends meet and considering filing for bankruptcy in Missouri? It’s a tough decision to make, but sometimes it’s the best option to get a fresh start and prevent losing your home.
In this article, we’ll go over the bankruptcy laws in Missouri and explain the differences between Chapter 7 and Chapter 13 bankruptcy. We’ll also discuss the option of selling your house to avoid bankruptcy and the benefits of a cash home sale.
Bankruptcy is a legal process that allows individuals or businesses to eliminate or repay their debts under the protection of a federal court. It can be a helpful tool for those who are drowning in debt and struggling to make ends meet. However, bankruptcy should not be taken lightly as it can have long-lasting consequences on your credit score and financial future.
In Missouri, bankruptcy cases are filed in the United States Bankruptcy Court for the Eastern District of Missouri or the Western District of Missouri, depending on where you live. The bankruptcy process involves filling out paperwork, attending credit counseling, and attending a meeting with creditors. The court will then determine which type of bankruptcy you qualify for based on your income, expenses, and assets.
Missouri follows federal bankruptcy laws, which means that bankruptcy cases are filed in federal court and are subject to federal laws and regulations. In Missouri, you can file for either Chapter 7 or Chapter 13 bankruptcy.
Chapter 7 bankruptcy, also known as liquidation bankruptcy, involves selling your non-exempt assets to pay off your debts. In Missouri, exemptions include
If you don’t have any non-exempt assets, your debts will be discharged, and you won’t have to repay them.
Chapter 7 bankruptcy is a popular option for those who are struggling to pay off their debts and don’t have a regular income. In Missouri, the median income for a household of one is $49,313, and the median income for a household of four is $82,614. If your income is below the median, you automatically qualify for Chapter 7 bankruptcy.
If you have a regular income that is above the median, you may still qualify for Chapter 7 bankruptcy based on a means test. The means test compares your income to your expenses and determines whether you have enough disposable income to pay off your debts.
If you qualify for Chapter 7 bankruptcy, you will need to attend a meeting with creditors and provide evidence of your income, expenses, and assets. Your non-exempt assets will be sold to pay off your debts, and any remaining debts will be discharged. However, there are some debts that cannot be discharged, such as student loans and taxes.
Chapter 13 bankruptcy, also known as reorganization bankruptcy, involves creating a repayment plan to pay off your debts over a period of three to five years. This is a good option for those who have a regular income and want to keep their assets, including their home.
Chapter 13 bankruptcy is a good option for those who have a regular income and want to keep their assets, including their home. In Missouri, you can qualify for Chapter 13 bankruptcy if your unsecured debts are less than $419,275 and your secured debts are less than $1,257,850.
If you qualify for Chapter 13 bankruptcy, you will need to create a repayment plan to pay off your debts over a period of three to five years. The plan will be based on your income, expenses, and assets, and will be reviewed by the court to ensure that it is feasible.
During the repayment period, you will make monthly payments to a trustee who will distribute the money to your creditors. Once the repayment period is over, any remaining debts will be discharged, and you will be able to keep your assets, including your home.
There are several common misconceptions about bankruptcy and selling your house.
If you’re struggling with debt in Missouri, bankruptcy may be a good option to get a fresh start and prevent losing your home. However, it’s important to understand the bankruptcy laws in Missouri and the differences between Chapter 7 and Chapter 13 bankruptcy.
If you’re facing bankruptcy and don’t want to lose your home, you may be wondering if you can sell it to avoid bankruptcy. The answer is yes. You can use the proceeds to pay off your debts and avoid bankruptcy altogether. This can be a good option if you have equity in your home and want to get a fresh start.
If you’re considering selling your house during bankruptcy, you may want to consider a cash home sale. A cash home sale is when you sell your house to a cash buyer, such as a real estate investor, for cash. There are several benefits to a cash home sale during bankruptcy, including:
A cash home sale can be completed in as little as a week, which can be helpful if you’re facing a deadline for your bankruptcy filing.
Cash home buyers will buy your house as-is, which means you don’t have to worry about making any repairs or renovations.
Cash home buyers don’t charge commissions or fees, which means you get to keep all of the proceeds from the sale.
Cash home buyers don’t require showings or inspections, which can be helpful if you’re trying to sell your house quickly during bankruptcy.
If you’re interested in selling your house for cash during bankruptcy, there are a few steps you’ll need to take.
If you’re considering selling your house to avoid bankruptcy, a cash home sale may be a good option. A cash home sale can be completed quickly and can provide you with the funds you need to pay off your debts and avoid bankruptcy.
If you need to sell your house fast but don’t want the hassle of a traditional home sale, contact Rex Buys KC. We buy houses as-is. No repairs are needed. Avoid closing costs and realtor commissions. Close in as little as seven days. Call 816-895-2999 and get a fast cash offer from our local home buyers in Missouri.