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Chapter 7 Bankruptcy

Chapter 7 bankruptcy is straight bankruptcy, also known as liquidation, and is available to individuals, couples, corporations and partnerships. It generally lasts between three and five months. The term liquidation is used because a court appointed trustee gathers and sells the debtor's non-exempt property and assets. The money from sales of those items goes to satisfy the debts. Any of the debtor's exempt property can be kept. The trustee is in control of the non-exempt property and all money gained from the sale of that property.

To qualify for chapter 7, the debtor must undergo a means test based on their income over the previous six months. If the results of the means test indicate that the debtor is under the median income for a family of their size, they may file for chapter 7.

When it is time to file for chapter 7 bankruptcy, the debtor must file a petition with the court. The petition is simply an application asking the court to allow the debtor to be declared bankrupt. Included in the petition is statement of financial affairs, information about the debtor's income, property, debts, and creditors. A list of creditors and their claims must also be provided along with lists of all property and detailed monthly expenses.

Once the petition is filed, automatic stay takes effect. Automatic stay prevents creditors from collecting debts. It is a way to protect the debtor during their bankruptcy.

After the petition is filed, the trustee holds the first meeting of creditors, also known as the 341 meeting. The debtor's attendance at the 341 meeting is mandatory. While under oath, the trustee asks the debtor about their property, assets, and debts.

If the bankruptcy estate includes things such as a mortgage or a car loan, the debtor has the option to reaffirm those debts. Reaffirmation agreements must be filed with the court.

The chapter 7 bankruptcy does not stop a repossession or a foreclosure. It stays on the credit report for ten years after the date of filing.

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1861 Sherman Drive
St Charles, MO 63303
Phone: 636-916-5400

At Hwy 94 and Hwy 70.

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3470 Hampton Ave, Suite 101
St. Louis, MO 63109
Phone: 314-353-0834

Close to the corner of Hampton Ave and Chippewa. By appointment only.

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South & Jefferson County office

7321 S. Lindbergh Ave., Suite 222
St. Louis, MO 63125
Phone: 636-916-5400

Across the South County Mall.

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Florissant Office (North County)

1281 Graham Rd, Suite 300
Florissant, MO 63031
Phone: 314-921-1880

At North Hanley and Hwy 270.

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2 Park Place Professional Centre
Belleville, Illinois 62226
Phone: 618-977-9560

On Hwy 159, next to Schnucks.

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Granite City Office (Madison County)

3600 Nameoki Rd, Suite 201
Granite City, IL 62040
Phone: 618-977-9560

Across Shop'n Save, by appointment only.

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