Chapter 7

A Chapter 7 Bankruptcy is a liquidation form of Bankruptcy.  All of your assets, liabilities, income and expenses and a statement of financial affairs will be disclosed in a petition filed in the U.S. Bankruptcy Court.  Both Missouri and Kansas law provide for certain exemptions which allow you to protect your property.  Any property not exempted may be sold by a Trustee in bankruptcy, from which funds will be secured to pay your creditors.

Chapter 13

A Chapter 13 Bankruptcy is a payment-based form of Bankruptcy, where in addition to a petition filed with the court, a plan is filed which will propose a method of payment to your creditors under the supervision of the U.S. Bankruptcy Court.

Eligibility

Prior to filing a petition under either Chapter 7 or Chapter 13, most individuals seeking relief must receive a briefing session from an approved provider which will outline various non-bankruptcy alternatives.

What is Means Testing?

Means Testing is a statutory device used to determine ones eligibility to file under Chapter 7 or Chapter 13.  A debtor's income for the preceding six months will be compared to the median income for a similar sized family.  Depending upon your individual circumstances a Chapter 7 or a Chapter 13 Bankruptcy may be more advisable.  Contact our office to discuss your unique situation.