Most people know what it is like to be behind on the bills. However, it is really scary to fall behind on the mortgage. The mortgage company calls and sends letters threatening foreclosure. Individuals with more money coming in that going out should consider bankruptcy. That is one way to Stop Foreclosure St. Louis. When bankruptcy is filed, the judge issues an automatic stay. The stay means that all collection activities have to stop, including foreclosure.
Are you a candidate for bankruptcy? There are two main types for consumers, Chapters 13 and 7. Certain groups easily qualify for Chapter 7. These include disabled veterans and some business owners. Disabled veterans qualify if debts occurred while on active duty. Likewise, people qualify for chapter 7 if their debts are related to running a business. Other people have to pass the income test. This means one’s monthly income must be less or equal to the median state income. Further, the bankruptcy trustee sells some of the debtors assets to repay debt. Bankruptcy may be the best way to Stop Foreclosure St. Louis. Call the Law Offices of Steven K. Brown for an appointment.
Chapter 13 filers must have a regular income. The debtor has to pay a large portion of disposable income toward debt. The Debtor can Stop Foreclosure in St Louis because some of the payment goes to the mortgage company. The bankruptcy trustee looks at the debtor’s income and debts. They use a formula to determine a monthly payment. The monthly payment is divided among the companies they owe. The term of the repayment plan is usually five years. The government passed new laws several years ago. The laws were aimed at stopping certain people from filing. These people filed bankruptcy to stop collection efforts. However, they never completed the bankruptcy. For instance, a lot of people filed Chapter 7 and they made enough money to repay some debts. All filers are required to complete credit counseling. The goal is to let consumers know whether or not they really need to file bankruptcy. Make an appointment with an experienced bankruptcy attorney if you are in danger of losing your home.
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