Numerous people are in the undesirable position of owing more money than they have coming into their respective households. Unemployment, underemployment, rising consumer prices, increasing interest rates, and outsourcing have all lead to people being in debt. If debt if not taken care of, it can result in repossessions, adverse credit scores, and wage garnishments. A person can find financial relief by filing for Chapter 7 in St. Louis, MO. The following information will help a person learn more about this legal status.
Chapter 7 in St. Louis, MO, is a legal status granted by a federal bankruptcy judge. Article I, Section 8, of the United States Constitution gives Congress the power to enact bankruptcy laws that are fair and uniform in nature. The Bankruptcy Code, title 11 of the United States Code, contains all the current laws that govern bankruptcy cases. Local laws also play a role in how the procedural part of bankruptcy is carried out. A United States bankruptcy judge makes the ultimate decisions in all bankruptcy cases. A debtor who is granted a Chapter 7 status will not have much interaction with a federal bankruptcy judge, unless there are objections raised in the debtor’s case.
Chapter 7 in St. Louis, MO, involves the liquidation of a debtor’s non-exempt assets. The proceeds of liquidation will be distributed among the creditors. The priority of the distribution is outlined in the Bankruptcy Code. This type of bankruptcy case is designed to cancel certain types of debts, such as credit cards, medical bills, and other unsecured debts. Many debtors prefer this type of bankruptcy, since it entails paying fewer fees. A person must pay all the fees before filing for Chapter 7 bankruptcy.
Being in debt can have a serious impact on all parts of a person’s life. To get a fresh financial start in life, a debtor can see a lawyer about filing for this type of bankruptcy. For more information on bankruptcy and other debt relief services, visit Website.com. This practice handles many types of bankruptcy cases to help their clients get a new lease on life. Click here to know more about the Chapter 7 in St. Louis, MO.