Legal Question in Bankruptcy in Missouri

Credit Card Debt

I have a debt of $8000.00 on credit cards. I presently do not have a job thus can not make headway with payments. What is Chapter 7 or Chapter 13? Do I have to sell my house to file? I owe $46,000 on the house which is close to its value.

How much is the fee for filing? How long does it take? What are the disadvantages to a Credit

Counseling system for adjustment?


Asked on 7/04/99, 9:35 pm

1 Answer from Attorneys
Susan Freiman The Legal Clinic

Re: Credit Card Debt

In Chapter 7, you surrender all your non-exempt proerty to the trustee, and walk away from the debt - assuming you have been completely honest.

Your house would normally be exempt, and you should claim a homestead exemption for it.

In a Chapter 13, you would present a plan to make payments on your debts over the future.

A Chapter 7 is much faster than a Chapter 13 - and normally less complicated.

The local bankruptcy court will advise you what the fees are.

Sometimes credit counselling can be very helpful, and sometimes it can be even worse than a waste of time. You'll have to ask local people how good your local counseling service is.

I would strongly recommend getting a lawyer to help you. If you can't afford one, try Legal Aid, or your local bar association.

Good luck!

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Answered on 7/10/99, 12:42 am


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