How to File Bankruptcy in Missouri
If you have lost control of your finances and are in need of a fresh start, bankruptcy will wipe the slate clean. While bankruptcy is a federal process, each state implements its own guidelines. In Missouri, state law regulates certain aspects of the bankruptcy. There are two types of bankruptcy for individuals. You can choose to file either Chapter 7 or Chapter 13 bankruptcy.
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Instructions
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Participate in credit counseling. According to the Federal Trade Commission, you must attend credit counseling through an approved agency 180 days prior to filing your bankruptcy petition. .
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Pass the Chapter 7 means test. If your income falls below the Census Bureau's determined median income for the state of Missouri based on household size, you may qualify to file Chapter 7 bankruptcy. The income limit for a single individual is $39,563. Two people can earn up to $51,612. Three people can earn $58,473. A family of four people cannot exceed $70,363. If there are more than four individuals in your household, add $7,500 for each additional member. If your income is less than the median, you pass the means test.
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Gather your financial documents and all bills. Deduct your monthly expenses from your monthly income. The remaining amount will be your disposable income. To file Chapter 7 bankruptcy, the amount must be less than $100. If your disposable income exceeds $100, the amount must not be enough to pay 25 percent of your debt for 60 months. If your disposable income is too high, consider filing Chapter 13 bankruptcy.
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Obtain the proper paperwork. You can pick up the paperwork from the federal bankruptcy court in your area or visit their website to download and print the forms. The United States Courts Western District of Missouri website provides the forms for free.
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Complete all paperwork. Your paperwork includes several schedules, some of which require you to list your debt, creditors and monthly expenses. There is also a bankruptcy petition, statement of intention, credit counseling verification form and application and order to pay filing fee schedule. Additional forms are also included, pertaining to the chapter you choose to file. The court has the authority to deny a petition if any of the forms are incomplete.
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Go to the local bankruptcy court to file your paperwork. The Chapter 7 paperwork also includes an application for fee waiver. The filing fee for Chapter 7 bankruptcy as of 2010 is $299. The Chapter 13 filing fee is $274.
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Tips & Warnings
In Chapter 7 bankruptcy, your assets are sold off in order to pay creditor obligations. Any debt that cannot be paid is usually forgiven. Chapter 7 is reserved for people who cannot pay their debt. Chapter 13 bankruptcy can assist you by allowing you to keep certain assets through a restructured payment plan.
According to the United States Bankruptcy Court of Western Missouri, bankruptcy is a complicated process and individuals should seek the aid of an attorney if possible.
