The decision to file for bankruptcy is never something to take lightly. The action should only take place after talking with an attorney and exploring every possible option to settle the debt. When it is obvious that the debtor cannot honor those obligations, choosing to file a Chapter 7 St. Charles MO will be the only choice. Here is what to expect once the petition is filed.
No More Dealing with Creditors
From the date that the bankruptcy petition is filed, the debtor no longer has to deal with collection attempts on the part of any creditor. The court will notify all creditors of the action. Should any creditor contact the debtor, the only information that needs to be provided is the name of the attorney and the case number. Should a creditor persist in attempting to contact the debtor by phone or mail, the activity should be reported to the attorney and the court at once.
Working with the Trustee
As part of the Chapter 7 in St. Charles MO, the court will assign a trustee to review all the documentation presented by the debtor and the attorney. The documents will include information about all assets currently held by the debtor. Some of those assets will be considered exempt. Exempt assets are not surrendered to the trustee for sale. Typically, assets that the court considers essential for maintaining a reasonable standard of living are declared exempt. Assets such as second homes or investments are considered non-exempt and must be surrendered. The trustee will oversee the sale of those assets and distribute the proceeds to the creditors according to a schedule approved as part of the bankruptcy action.
A Fresh Start
With this type of personal bankruptcy, it usually takes a few months to complete the action. Once the court discharges the debt, the matter is considered closed. The debtor now has the opportunity to start over without the burden of debt. In the a good scenario, the debtor emerges from the experience a little wiser and committed to creating a sound financial foundation.
For anyone considering the idea of filing a Chapter 7 St. Charles MO, schedule an appointment with Van Dillen & Flood P.C. today. Once the finances of the client are reviewed, it will be easier to know if this is, in fact, the most practical approach to dealing with the debt.