Missouri Bankruptcy Laws : missouri bankruptcy attorney

Missouri Bankruptcy Law: an overview

admin — Sat, 22 Nov 2008 15:35:00 GMT

Missouri Bankruptcy law is federal statutory law contained in Title 11 of the United States Code. Congress passed the Missouri Bankruptcy Code under its Constitutional grant of authority to "establish... uniform laws on the subject of Missouri Bankruptcy throughout the United States." See U.S. Constitution Article I, Section 8. States may not regulate Missouri Bankruptcy though they may pass laws that govern other aspects of the debtor-creditor relationship. See Debtor-Creditor. A number of sections of Title 11 incorporate the debtor-creditor law of the individual states.

Missouri Bankruptcy law provides for the development of a plan that allows a debtor, who is unable to pay his creditors, to resolve his debts through the division of his assets among his creditors. This supervised division also allows the interests of all creditors to be treated with some measure of equality. Certain Missouri Bankruptcy proceedings allow a debtor to stay in business and use revenue generated to resolve his or her debts. An additional purpose of Missouri Bankruptcy law is to allow certain debtors to free themselves (to be discharged) of the financial obligations they have accumulated, after their assets are distributed, even if their debts have not been paid in full.

Missouri Bankruptcy proceedings are supervised by and litigated in the United States Missouri Bankruptcy Courts. These courts are a part of the District Courts of The United States. The United States Trustees were established by Congress to handle many of the supervisory and administrative duties of Missouri Bankruptcy proceedings. Proceedings in Missouri Bankruptcy courts are governed by the Missouri Bankruptcy Rules which were promulgated by the Supreme Court under the authority of Congress.

Different Types of Missouri Bankruptcy

admin — Sat, 22 Nov 2008 15:26:00 GMT

Chapter 7 Chapter 7 is often called “liquidation” or “straight” Missouri bankruptcy and is available to businesses and individuals. In Chapter 7, a trustee is appointed to sell the debtor’s non-exempt property and distribute proceeds to creditors. In exchange for surrendering assets, the debtor obtains a discharge or release from most debts.

Chapter 13 Chapter 13 is often called a “wage earner plan” and is available to individuals with regular income. In Chapter 13, the debtor makes a fixed monthly payment to the Chapter 13 Trustee who distributes money to the debtor’s creditors. Unlike Chapter 7, in exchange for making monthly payments, the debtor may retain possession of his assets and will receive a discharge at conclusion of the plan (3 to 5 years).

Effects of Filing Missouri bankruptcy
Automatic Stay Generally, filing Missouri bankruptcy imposes an “automatic stay” prohibiting continued collection against the debtor or the debtor’s property. It generally stops garnishments, foreclosures and other collection actions. The automatic stay can terminate for a number of reasons and is usually terminated in Chapter 7 cases to allow foreclosure. Additionally, under the Missouri bankruptcy Reform Act of 2005, the automatic stay does not go into effect on filing a Missouri bankruptcy petition if the debtor had two prior cases pending and dismissed during the year preceding the current filing. If the debtor had a single case pending and dismissed in the preceding year, the automatic stay expires 30 days after filing.

Discharge Unless a debtor commits fraud or dishonesty in connection with the case or fails to meet other obligations, an individual Chapter 7 debtor should receive a discharge from most debts within 60 to 90 days of the meeting of creditors. Certain debts, such as student loans, certain taxes, and child support cannot be discharged. Others can be discharged in Chapter 13 but not in Chapter 7. In Chapter 13, the discharge is granted on completion of all plan payments. The discharge cancels a debtor’s personal liability or obligation to pay a debt. It does not mean the debtor may continue to keep collateral (e.g. a car or home) without paying. Secured creditors normally retain rights that permit them to seize their collateral after the Missouri bankruptcy case is over.

Credit Report Credit reporting agencies regularly check Missouri bankruptcy filings. A Missouri bankruptcy can remain on your credit report for ten years. The court does not control whether, or for how long, credit is affected.

What is Missouri Bankruptcy?

admin — Sat, 22 Nov 2008 13:25:00 GMT

Bankruptcy is a federal court proceeding designed to provide individuals and businesses with a way to address debt problems. It is intended to provide debtors with a “ fresh start” or debt relief, while treating creditors fairly. There are six types of bankruptcy: Chapter 7, 9, 11, 12, 13 and 15. This material discusses Chapter 7 and 13 bankruptcies – the chapters most commonly used by consumers. Chapter 9 is for municipalities. Chapter 11 is typically for business reorganization. Chapter 12 is for family farmer and fisherman reorganization, and Chapter 15 is to recognize a foreign bankruptcy proceeding.