Missouri’s Bankruptcy Court System: What to Expect

Understanding Missouri’s bankruptcy court system is crucial for individuals and businesses considering filing for bankruptcy. This article will guide you through what to expect during the process, including the types of bankruptcy, the court structure, and general procedures.

Types of Bankruptcy in Missouri

In Missouri, individuals and businesses can file for different types of bankruptcy, primarily Chapter 7 and Chapter 13. Each type caters to different financial situations:

Chapter 7 Bankruptcy: Also known as liquidation bankruptcy, Chapter 7 is designed for individuals and businesses with limited income who need to discharge their debts quickly. Most unsecured debts can be eliminated, allowing for a fresh start.
Chapter 13 Bankruptcy: This option is suitable for individuals with a regular income who wish to keep their assets while repaying debts over three to five years. This type allows filers to create a repayment plan to catch up on missed mortgage or car payments.

Understanding the Bankruptcy Court Structure

Missouri's bankruptcy cases are handled in federal bankruptcy courts, and the state is divided into two districts:

Eastern District of Missouri: Located in St. Louis, this district covers a significant portion of the state, including urban areas.
Western District of Missouri: Headquartered in Kansas City, this district serves the western part of the state.

Each district has multiple divisions where bankruptcy cases are heard, focusing on specific geographical areas. Knowing which district applies to your situation is essential when filing.

The Bankruptcy Filing Process

The bankruptcy filing process consists of several crucial steps:

Credit Counseling: Before filing, you must complete a credit counseling course from an approved agency. This step helps you understand your financial situation and explore alternatives to bankruptcy.
Filing the Petition: To initiate bankruptcy, you must file a petition with the appropriate district court. This document outlines your financial situation, including assets, debts, income, and expenses.
Automatic Stay: Upon filing, an automatic stay goes into effect, stopping most creditors from collecting debts while your bankruptcy case is pending.
341 Meeting: After filing, you will attend a meeting of creditors, known as the 341 meeting, where you will answer questions about your finances under oath. Creditors may also attend and ask questions.

After the Filing

Once you have completed the 341 meeting and met all requirements, the court will confirm your bankruptcy plan if you filed under Chapter 13 or discharge your eligible debts if you filed under Chapter 7. The timeline for these processes can vary:

Chapter 7: Typically takes four to six months from filing to discharge.
Chapter 13: Can last from three to five years as you make regular payments according to your court-approved repayment plan.

Conclusion

Filing for bankruptcy in Missouri can be a complex process, but understanding the court system and what to expect can help alleviate some of the associated stress. If you are considering bankruptcy, consulting with a knowledgeable bankruptcy attorney can provide you with personalized guidance through each step.

By familiarizing yourself with Missouri’s bankruptcy court system, you can navigate your financial challenges with greater confidence and clarity.