Don’t Lose Your Home: Understanding Bankruptcy Laws in Missouri

Are you struggling to make ends meet and considering filing for bankruptcy in Missouri? It’s a tough decision to make, but sometimes it’s the best option to get a fresh start and prevent losing your home. 

In this article, we’ll go over the bankruptcy laws in Missouri and explain the differences between Chapter 7 and Chapter 13 bankruptcy. We’ll also discuss the option of selling your house to avoid bankruptcy and the benefits of a cash home sale.

How Does Bankruptcy Work in Missouri

Bankruptcy is a legal process that allows individuals or businesses to eliminate or repay their debts under the protection of a federal court. It can be a helpful tool for those who are drowning in debt and struggling to make ends meet. However, bankruptcy should not be taken lightly as it can have long-lasting consequences on your credit score and financial future.

In Missouri, bankruptcy cases are filed in the United States Bankruptcy Court for the Eastern District of Missouri or the Western District of Missouri, depending on where you live. The bankruptcy process involves filling out paperwork, attending credit counseling, and attending a meeting with creditors. The court will then determine which type of bankruptcy you qualify for based on your income, expenses, and assets.

Bankruptcy Laws in Missouri

Missouri follows federal bankruptcy laws, which means that bankruptcy cases are filed in federal court and are subject to federal laws and regulations. In Missouri, you can file for either Chapter 7 or Chapter 13 bankruptcy.

Chapter 7

Chapter 7 bankruptcy, also known as liquidation bankruptcy, involves selling your non-exempt assets to pay off your debts. In Missouri, exemptions include

• Your primary residence
• Personal property
• Some retirement accounts

If you don’t have any non-exempt assets, your debts will be discharged, and you won’t have to repay them.

Chapter 7 bankruptcy is a popular option for those who are struggling to pay off their debts and don’t have a regular income. In Missouri, the median income for a household of one is $49,313, and the median income for a household of four is $82,614. If your income is below the median, you automatically qualify for Chapter 7 bankruptcy.

If you have a regular income that is above the median, you may still qualify for Chapter 7 bankruptcy based on a means test. The means test compares your income to your expenses and determines whether you have enough disposable income to pay off your debts.

If you qualify for Chapter 7 bankruptcy, you will need to attend a meeting with creditors and provide evidence of your income, expenses, and assets. Your non-exempt assets will be sold to pay off your debts, and any remaining debts will be discharged. However, there are some debts that cannot be discharged, such as student loans and taxes.

Chapter 13

Chapter 13 bankruptcy, also known as reorganization bankruptcy, involves creating a repayment plan to pay off your debts over a period of three to five years. This is a good option for those who have a regular income and want to keep their assets, including their home.

Chapter 13 bankruptcy is a good option for those who have a regular income and want to keep their assets, including their home. In Missouri, you can qualify for Chapter 13 bankruptcy if your unsecured debts are less than $419,275 and your secured debts are less than $1,257,850.

If you qualify for Chapter 13 bankruptcy, you will need to create a repayment plan to pay off your debts over a period of three to five years. The plan will be based on your income, expenses, and assets, and will be reviewed by the court to ensure that it is feasible.

During the repayment period, you will make monthly payments to a trustee who will distribute the money to your creditors. Once the repayment period is over, any remaining debts will be discharged, and you will be able to keep your assets, including your home.

Common Misconceptions About Bankruptcy and Selling Your House

There are several common misconceptions about bankruptcy and selling your house. 

• One of the biggest misconceptions is that you will automatically lose your home if you file for bankruptcy. This is not true, as you may be able to keep your home through Chapter 13 bankruptcy or by selling it to pay off your debts.
• Another common misconception is that you can’t sell your house during bankruptcy. This is also not true, as you can sell your house during bankruptcy to pay off your debts and avoid bankruptcy altogether.

If you’re struggling with debt in Missouri, bankruptcy may be a good option to get a fresh start and prevent losing your home. However, it’s important to understand the bankruptcy laws in Missouri and the differences between Chapter 7 and Chapter 13 bankruptcy.

Can I Sell My House to Avoid Bankruptcy?

If you’re facing bankruptcy and don’t want to lose your home, you may be wondering if you can sell it to avoid bankruptcy. The answer is yes. You can use the proceeds to pay off your debts and avoid bankruptcy altogether. This can be a good option if you have equity in your home and want to get a fresh start.

Benefits of a Cash Home Sale During Bankruptcy

If you’re considering selling your house during bankruptcy, you may want to consider a cash home sale. A cash home sale is when you sell your house to a cash buyer, such as a real estate investor, for cash. There are several benefits to a cash home sale during bankruptcy, including:

Quick Sale

A cash home sale can be completed in as little as a week, which can be helpful if you’re facing a deadline for your bankruptcy filing.

No Repairs Required

Cash home buyers will buy your house as-is, which means you don’t have to worry about making any repairs or renovations.

No Commissions or Fees

Cash home buyers don’t charge commissions or fees, which means you get to keep all of the proceeds from the sale.

No Showings or Inspections

Cash home buyers don’t require showings or inspections, which can be helpful if you’re trying to sell your house quickly during bankruptcy.

How to Sell Your House for Cash During Bankruptcy

If you’re interested in selling your house for cash during bankruptcy, there are a few steps you’ll need to take. 

• The first step is to find a reputable cash home buyer in Missouri. You can do this by searching online or asking for recommendations from friends and family.
• Once you’ve found a cash home buyer, you’ll need to provide them with information about your house, including its location, condition, and any outstanding debts. The cash home buyer will then make you an offer for your house, which you can either accept or reject.
• If you accept the offer, the cash home buyer will handle the paperwork and closing process, which can be completed in as little as a week. Once the sale is complete, you can use the proceeds to pay off your debts and avoid bankruptcy.

If you’re considering selling your house to avoid bankruptcy, a cash home sale may be a good option. A cash home sale can be completed quickly and can provide you with the funds you need to pay off your debts and avoid bankruptcy.

Sell Your House Fast in Kansas City, Missouri

If you need to sell your house fast but don’t want the hassle of a traditional home sale, contact KC Real Estate Buyers. We buy houses as-is. No repairs are needed. Avoid closing costs and realtor commissions. Close in as little as seven days. Call 816-895-2999 and get a fast cash offer from our local home buyers in Missouri.