Over the past few years, millions of people have found themselves in terrible financial positions. Millions of people are falling behind on credit card payments, car payments, and even mortgage payments. In fact, statistics show that every year, out of every 200 homes, one home will be foreclosed on. This may not sound like much, but that translates to nearly a quarter of a million families every three months. This may give some indication as to why bankruptcy filings are also very high. Over the past year, over 1.1 million bankruptcy filings were issued. However, if you’re thinking about filing for bankruptcy, you should consider the overall process.
When you file for bankruptcy there’s no guarantee your bankruptcy claim will be accepted. However, once you File Chapter 13 in St. Louis, a stay is put in place by the courts. At this point, once your creditors become aware of your bankruptcy efforts, they’re prohibited from continuing to solicit payments from you. After the stay is put in place, you’ll be instructed by the courts to consult with a trustee. You and the trustee will begin to review your case.
Those who file for Chapter 13 have a misconception about how the claim will be granted. Your claim is never automatically accepted, and creditors do have a say in what happens during the case. In fact, courts are required to allow creditors to file a petition against your claim. They may ask the courts to deny your bankruptcy claim on some grounds that they consider is justifiable. They could argue that you deliberately attempted to defraud them, and never intended on repaying your debt in the first place. They could also argue that the credit, or loan, they provided was secured, and therefore isn’t eligible for bankruptcy. Many of those who file for bankruptcy are surprised when the court grants the petition filed by the creditors. This is simply a possibility you need to prepare for.
This is just the beginning process of a Chapter 13 filing. You should speak with Steven K Brown before filing anything. Become familiar with the process and what’s in store. Bankruptcy should be a last ditch effort to save you from financial ruin, and should be a process that’s used lightly.