How to File Chapter 13 Bankruptcy in Missouri

How to File Chapter 13 Bankruptcy in Missouri

Filing for Chapter 13 bankruptcy in Missouri can be a complex process, but understanding the steps involved can help you navigate it more smoothly. Chapter 13 bankruptcy is designed for individuals with a regular income who wish to create a plan to repay all or part of their debts over a specified period.

Step 1: Determine Eligibility
Before filing for Chapter 13 bankruptcy, it’s essential to determine your eligibility. To qualify, you must have a regular income and your secured and unsecured debts must be below specific limits set by the federal government. As of 2023, your unsecured debts cannot exceed $465,275, and your secured debts cannot exceed $1,395,875.

Step 2: Credit Counseling
Before filing, you are required to complete a credit counseling course from an approved agency. This can typically be done online or over the phone. The agency will help you explore alternatives to bankruptcy, and you will receive a certificate upon completion, which is necessary for your filing.

Step 3: Gather Necessary Documents
Collect all necessary financial documents, including:

  • Income statements (pay stubs, tax returns, etc.)
  • List of debts (creditors, amounts owed, etc.)
  • Details of your assets (property, vehicles, etc.)
  • Monthly living expenses (bills, rent, etc.)

Step 4: Complete the Bankruptcy Forms
Filing for Chapter 13 requires the completion of various forms, including the petition for bankruptcy and schedules detailing your assets, liabilities, income, and expenditures. You can download these forms from the U.S. Bankruptcy Court’s website for the Western District of Missouri or seek assistance from a bankruptcy attorney.

Step 5: File Your Bankruptcy Petition
Once your forms are ready, you can file your Chapter 13 bankruptcy petition with the bankruptcy court in Missouri. It is crucial to file in the correct district, depending on your county of residence. You will need to pay a filing fee, which can sometimes be waived if you are experiencing financial hardship.

Step 6: Attend the 341 Meeting of Creditors
After filing, you will receive a notice of the 341 meeting of creditors, where you must answer questions about your financial situation from the bankruptcy trustee and creditors. This meeting typically takes place about a month after you file.

Step 7: Submit a Repayment Plan
Within 14 days of your filing, you are required to submit a repayment plan outlining how you will repay your debts over a 3- to 5-year period. The plan must be approved by the bankruptcy court, and it’s often wise to work with an attorney to ensure it meets all legal requirements.

Step 8: Confirm Your Repayment Plan
After you submit your repayment plan, a confirmation hearing will be scheduled. During this hearing, the judge will review and approve the plan if it meets all necessary criteria, including feasibility and good faith. Creditors may object, and negotiations may sometimes be necessary.

Step 9: Make Regular Payments
Once your repayment plan is confirmed, you must make regular monthly payments to the bankruptcy trustee. These payments will then be distributed to your creditors according to the terms of the repayment plan.

Step 10: Complete the Process
Upon successful completion of your repayment plan, any remaining eligible debts may be discharged, meaning you are no longer legally required to pay them. It is vital to complete all plan payments to ensure a fresh financial start.

Filing for Chapter 13 bankruptcy in Missouri can provide relief from overwhelming debt and allow you to make manageable payments. Consult a qualified bankruptcy attorney to guide you through the process and ensure all legal obligations are met.