Filing Bankruptcy in Missouri

What Does It Entail, And How Will It Affect your Future?

Requirements prior to filing bankruptcy

Missouri law requires you to participate in credit counseling for the six months prior to filing bankruptcy. Start to assemble the supporting documentation you'll need early. You'll need itemized income and expanse statements, and you'll also need copies of your tax returns for the past two years. Gather together any titles and loan documents you may have. Also keep in mind that the requirements don't end with your court date. Plan to complete a financial management course after filing.

Determining what chapter of bankruptcy to file

When you file for bankruptcy in Missouri, the court will analyze your income and expenses averaged over the six months prior to filing. This will be compared to the median income in Missouri. If your income is below Missouri's median income, you will be allowed to file Chapter 7 bankruptcy. Chapter 7 bankruptcy essentially erases your debts. If your income is above Missouri's median income, you may still be able to file a Chapter 7 bankruptcy if you are unable to pay at least $100 per month toward your unsecured creditors. You can still choose to file a Chapter 13 bankruptcy, even if you qualify for a Chapter 7. In a Chapter 13 bankruptcy, you make arrangements to pay your creditors.

Filing bankruptcy in Missouri

Missouri state procedures for filing for bankruptcy are pretty straightforward; they just require new uses for words you already know. You'll complete the petitition for bankruptcy, and the accompanying forms (called 'schedules.') There's a small fee to be paid to the court. Once you file for bankruptcy in Missouri, an automatic stay will immediately go into effect. This will protect you from creditors engaging in any direct collection activity against you or your assets.

Bankruptcy and your financial future

Filing bankruptcy in Missouri will affect your finances for the next several years. If filing a Chapter 13 bankruptcy you will be making payments to your creditors over the next few years. In addition, regardless of which bankruptcy chapter you file under, you will spend the next few years rebuilding your credit. The bankruptcy will remain on your credit report for the next seven to ten years, impacting your credit score and any kind of financing you may want to obtain.