Should I File for Bankruptcy?

should I file for bankruptcy

Bankruptcy Attorney in Sunset Hills, MO

Bankruptcy is a procedure under the Bankruptcy and Insolvency Act (the “BIA”) designed to provide financial relief to individuals, corporations, partnerships, and certain trusts with overwhelming debt loads, by stopping the legal actions of creditors (also known as a stay of proceedings). This stay of proceedings against creditors is in place to prevent one creditor from gaining an unfair advantage over another.

When it is determined that the debtor’s operations are not viable or cannot be restructured to provide higher value to the stakeholders, or when all other options have been exhausted, bankruptcy is deemed a viable option.

At Doyel Law, we are seasoned Sunset Hills, Missouri-based bankruptcy attorneys who take prompt legal action. Please schedule a consultation or call us for more information. We are accessible around the clock to discuss your legal options.

Why do I need a Bankruptcy Attorney in Sunset Hills, MO?

 should I file for bankruptcyIf you are contemplating filing for bankruptcy, you may wonder if it is worthwhile to hire a bankruptcy attorney or if you should take your chances and handle it on your own. You may believe that hearing this recommendation from a bankruptcy attorney is biased. But to demonstrate why it is ultimately the best course of action, we have outlined four reasons why you should not hesitate to hire a lawyer to handle your case.

  1. Bankruptcy attorneys can protect creditors and collection agencies. Your attorney can contact your creditors to stop annoying collection calls, saving you time and allowing you to focus on regaining your financial independence.
  2. Bankruptcy attorneys can assist you in staying on top of your paperwork. Filing for bankruptcy involves a substantial amount of paperwork that, if not completed correctly, can significantly complicate the filing process. You will also need to gather various supplementary materials to accompany your applications. A lawyer can keep you on track with everything required for your application and provide legal counsel, which a document preparer cannot.
  3. Bankruptcy attorneys offer their knowledge and experience. Without a comprehensive understanding of bankruptcy law, it can be challenging to navigate this process yourself. A lawyer can advise you on how to best respond to a judge’s questions and assist you with all the necessary preparations using their legal expertise. They can help you avoid costly errors, such as failing to disclose an asset or property, which could result in loss.
  4. Bankruptcy attorneys provide security and protection from uncertainty. When you entrust your case to an expert, you will experience less anxiety because you will know that it is proceeding as planned. A lawyer can advise you on how to proceed and provide you with regular updates on the status of your case.

Hiring a competent, experienced bankruptcy attorney to handle your case could save you money in the long run if everything is completed correctly from the start. In the legal realm, errors can be extremely costly, as these can affect your time, finances, and even your case. With so much at stake, it is unwise to undertake bankruptcy proceedings without the counsel of someone who has extensive experience with them.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, also referred to as liquidation, is typically a company’s last resort when survival is impossible. A business will usually file for Chapter 7 when its debts cannot be restructured. Moreover, a debtor filing for this type of bankruptcy lacks substantial assets.

If the effort required to reorganize the company exceeds the owner’s capabilities, Chapter 7 is the best option. In this bankruptcy form, a court-appointed trustee will be responsible for liquidating the company’s assets and distributing the proceeds to creditors.

After all the debts have been paid, a sole proprietor is typically discharged, which means they are no longer responsible for their debts. Corporations and partnerships that file for Chapter 7 bankruptcy cannot be discharged. However, it is essential to remember that not all debts can be discharged, and a property lien is not removed after discharge.

Chapter 7 is the most common form of bankruptcy for people who can start over after filing. This chapter is the most convenient option when the debtor cannot repay the money owed, there are no co-signers, and legal action from the creditors is imminent. Individuals undergo a similar procedure; their nonexempt assets are collected and converted to cash, and the funds are distributed among creditors per the Bankruptcy Code. Typically, the debtor will be discharged after the procedure and will no longer be personally liable for the remaining dischargeable debts.

What is Chapter 13 Bankruptcy?

This bankruptcy chapter is a consumer-accessible reorganization form. This option assists people with a steady income in paying off their debt. Chapter 13 bankruptcy is governed by a repayment plan that must be filed by the debtor and approved by the court. This plan describes the steps the debtor will take to repay their debts. The amount of money that the debtors must repay varies according to their income, their debts, and the property they own. 

Under this chapter, debtors have three to five years to repay their debts. After the court approves the plan, the debtor begins making payments to creditors through a trustee. Once approval is obtained, the creditor is granted protection, and creditors can no longer file a lawsuit against them. After the completion of the plan, the debtor is released from the remaining obligations. Individuals with a sole proprietorship can also file under Chapter 13. Among the benefits of Chapter 13 are:

  • The ability of the debtor to save their home from foreclosure
  • The opportunity to restructure and extend secured debts
  • The security afforded to third parties, such as co-signers, who are liable for consumer debts
  • Debtors send payments to the trustee, who then pays the creditors

Chapter 13 is also beneficial when a debtor has debts that cannot be discharged under Chapter 7, such as taxes or child support, or liens that exceed the value of their assets. This type of bankruptcy is also appropriate when debtors fail to file taxes or pay their mortgages for an extended period.

Indications you should consider filing for bankruptcy

You desire to safeguard your retirement savings.

If you’re in significant debt but don’t want to use your retirement savings, such as a 401(k), you can file for bankruptcy and get a fresh start while retaining your assets. In most cases, retirement savings accounts are protected during bankruptcy proceedings.

You are unable to pay off your collection accounts.

If a medical procedure has left you deeply in debt and you have exhausted all other repayment options, you may want to consider filing for bankruptcy.

Or, if you have accumulated substantial credit card debt and other repayment strategies (such as a debt consolidation loan or negotiation) have failed, bankruptcy may be an option.

You could lose your home.

If you are behind on your mortgage payments and at risk of foreclosure, you may want to consider Chapter 13 bankruptcy, which allows you to keep some of your assets. You can create a repayment plan with your lender, allowing you to remain in your home.

You experienced a significant life event, such as a severe illness, job loss, or death in the family.

If a sudden, unforeseen, and detrimental life event has left you in financial distress, declaring bankruptcy may be your only option for regaining financial stability. A credit counselor or bankruptcy attorney can help determine if your financial situation warrants filing for bankruptcy.

You do not believe any alternative solution could help you regain your footing.

If you have been drowning in debt for years, filing for bankruptcy may be your only option. Filing for bankruptcy can provide a fresh start if you’re willing to put in the effort required to learn about financial discipline and budgeting.

Call our Bankruptcy Attorneys Now!

Any client who requires assistance can speak with one of our bankruptcy attorneys, and they will also work with them to create a payment plan that is both flexible and affordable. Because our lawyers and professional staff at Doyel Law understand the stress that your situation may cause, we promptly return all of our client’s phone calls. Please call our Sunset Hills, MO, law office if you would like to speak with an attorney about your legal matter that is kept strictly confidential. To better serve you, we are available to take your call at any time, day or night, seven days a week.

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