If you are filing for bankruptcy in Missouri, it is important to understand that the process can be complicated. There are many things to consider before you file, including planning, testing, laws, requirements, and even counseling. Today, the bankruptcy attorneys at Groce & DeArmon are here to explain the details about what happens before you file for bankruptcy in the state of Missouri.
Before you can file for bankruptcy, you will need to go through the process of credit counseling, take a means test, and gather the appropriate paperwork. Here is what you can expect from each step of this process:
2005 Bankruptcy Act Credit Counseling
The 2005 Bankruptcy Act states that all debtors who file for bankruptcy are required to go through credit counseling in the six months prior to filing. Counseling is required for all debtors, no matter their financial state. This process will help determine whether bankruptcy or an informal repayment plan is the best option. Keep in mind that you aren’t required to agree to a repayment plan if the agency proposes one, but you must file it along with your bankruptcy documents.
2005 Bankruptcy Act Means Test
The 2005 Bankruptcy Act also states that all debtors must undergo a means test. This test will analyze their expenses to determine if they qualify for Chapter 7 bankruptcy or if they must file for Chapter 13. This is done by looking at income from the last six months before filing compared to the median income in the state of Missouri. Debtors may file for Chapter 7 bankruptcy if their income is less than the median in Missouri. If your income is greater than the median, other factors will be applied to determine if you may file for Chapter 7 or of you must file for Chapter 13.
Gathering Appropriate Paperwork
In order to file for bankruptcy, you must gather the appropriate paperwork to complete the process. This includes:
- An itemized list of current income sources
- Any large transactions in the last two years
- All monthly living expenses
- Secured and unsecured debts
- All property and possessions
- Tax returns from the past two years
- Deeds and car titles
- Loan documents
What Happens Next
After you have completed these processes with the help of your trusted bankruptcy attorney, you may then file for bankruptcy or follow through with your payment plan. You should always contact an attorney and research the rights, costs, requirements, and process of Chapter 7 and Chapter 13 bankruptcy to ensure the process runs as smooth as possible. It’s also important to understand what happens after you file for bankruptcy and that there are ways to recover in Life After Chapter 13 Bankruptcy.
Bankruptcy Lawyers Groce & DeArmon Can Help
If you are considering filing for bankruptcy and want to learn more about your options, schedule a Free Consultation with trusted bankruptcy lawyers Groce & DeArmon. With over 30 years of experience with legal help and 18 years of experience filing for Chapter 7 and Chapter 13 bankruptcy in southwest Missouri, we can help you find financial freedom. You can call us at 417-862-3706 or visit us online to learn more about our services.