Feeling crushed under the weight of a financial crisis is a burden facing many Missouri residents, as well as thousands of others throughout the country. Some people have lost their jobs, while others have been hit with unexpected medical bills, car repairs and other expenses that have caused high balances on their credit cards. Chapter 7 bankruptcy is a useful tool for those who qualify for it.
Individuals and business owners can alleviate debt and start building back solvency by filing for Chapter 7 bankruptcy. This is an income-based program, meaning a petitioner’s income must be at or below the Missouri median income for a similar-sized household. If the court approves an application, the petitioner’s assets will be liquidated, and the proceeds used to pay back lenders.
Not all debts are dischargeable through Chapter 7 bankruptcy
Here are several types of debt that cannot be discharged through Chapter 7 bankruptcy:
- Child support
- Compensation ordered by the court for damages in an injury claim
- Certain taxes
- Discharges that have been denied by a court ruling
If a petitioner is unsure whether a debt is dischargeable, he or she can request a meeting with a bankruptcy attorney for guidance and support.
Seeking support when filing for bankruptcy
Chapter 7 bankruptcy is removed from a credit report after 10 years. Many people have been able to bounce back stronger, and in a shorter time span, after gaining a fresh start after a bankruptcy discharge. A Missouri resident or business owner in need of support regarding Chapter 7 bankruptcy issues can schedule a consultation with Tarry Law Firm, L.L.C. for guidance and support to resolve debt relief issues.
