What You Need to Know About Chapter 7 Bankruptcy in St. Louis, MO

by | Jul 24, 2017 | Attorneys

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In Missouri, consumers identify effective strategies for becoming debt-free. The strategies could lessen the financial burden on the consumer by providing them with access to liquidation. This process allows them to sell property and assets to pay off their debts. Chapter 7 bankruptcy in St. Louis, MO is a form of liquidation that is available to local consumers for these purposes.

A Full Review of Assets

The claims begin with a full review of the consumer’s assets. The key purpose of chapter 7 is to identify all assets that can generate enough proceeds to pay off the consumer’s debts. The consumer must have a clear title or deed for each asset they wish to include in the claim.

Calculating Projected Proceeds

The court assigns a trustee to manage the sale of all assets included in the claim. The trustee reviews the projected proceeds that are possible through the transactions based on the current market value of the asset. They are also based on the potential outcome of an auction in which investors purchase the properties. The calculations define what is possible through the liquidation process.

Paying the Creditors

The trustee distributes all accumulated proceeds to the consumer’s creditors. They acquire receipts to indicate that the debt was paid in full. All payments are also documented with the bankruptcy claim in order to prevent creditors from attempting to take further legal action to collect more money from the consumer.

What to Expect After Chapter 7

After chapter 7, the consumer must rebuild their credit. The bankruptcy case can remain on their credit report for up to ten years. However, the original debts can be removed as soon as they are paid off. The consumer can contact their creditors to remove the listings to improve their credit scores.

In Missouri, consumers can eliminate their debts quickly through chapter 7 bankruptcy claims. The liquidation process takes up to six months to complete. During the process, a trustee appointed by the court handles the payment of all debts as the assets are sold. Consumers who want to review chapter 7 bankruptcy in St. Louis, MO can visit Stlbankruptcyfirm.com for further details now.

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