In Missouri, consumers have access to avenues that could help them pay off their debts more proactively. Among these avenues are bankruptcy claims and loan modification. An attorney could help these consumers seek long-lasting debt relief in St. Louis through these opportunities.
Could a Loan Modification Help?
A loan modification is helpful for consumers when they are close to a default on their mortgage or auto loan. Their attorney reviews the terms of the loan to determine if any predatory lending practices are included in the contract. They also negotiate with the lender to determine if new terms are available. This could make the loan more affordable for the consumer and help them avoid foreclosure or repossession.
Is Chapter 13 the Most Appropriate Choice?
Chapter 13 provides the longest automatic stay achievable, so consumers with extensive debts should consider these opportunities. However, they must qualify based on their income. The courts require them to submit six months of income statements to verify eligibility.
Those who qualify are set up on a repayment plan through which the consumer pays their creditors for a period of up to five years. This allows them to make one monthly payment to settle their debts, except those discharged by the judge. Any discharged debts are no longer the responsibility of the consumer.
Becoming Debt Free Through Liquidation
Liquidation is available through chapter 7 bankruptcy. The process requires the court to assign a trustee to take possession of key assets and properties owned by the consumer. They are sold off to generate funds to eliminate the consumer’s debts. The consumer acquires an automatic stay for a period of up to six months. Any debts that aren’t paid at the end of the case remain the responsibility of the consumer.
In Missouri, consumers could eliminate their debts proactively through legal assistance. These opportunities allow them to acquire loan modification and file for bankruptcy. Through these measures, the consumer could achieve long-lasting debt relief. Consumers who need debt relief in St. Louis should contact the Law Offices of Steven K. Brown or click here to schedule an appointment now.