In Missouri, some consumers face serious debts that could lead to unwanted legal action by their creditors. In order to avoid these legal actions, people must find a way to settle the debt quickly and effectively. An attorney introduces consumers to a variety of methods in which they can settle their debts. A debt settlement attorney in St. Louis, MO can help them navigate through these options.
Acquiring Settlement Offers
Any negotiations with creditors and collection agencies could present the consumer with a settlement offer. In fact, more creditors are likely to accept a settlement offer than to push the account through collections. In this case, the creditor receives a majority of the debt without having to spend more or to file an insurance claim.
Filing for Bankruptcy
Bankruptcy is available to consumers who qualify. For chapter 13, the consumer must have an income that is higher than the county average. Chapter 13 is a repayment plan that allows them to pay off their debts over a period of up to five years.
Chapter 7 requires the consumer to have assets that could generate enough proceeds to pay off their debts. The court sells the assets through a private sale or auction. A trustee distributes the proceeds to each creditor identified in the bankruptcy claim. The entire process takes less than six months to complete and all debts included in the bankruptcy are settled at the end of the case.
How Does Discharge Through Bankruptcy Work?
A discharge indicates that the consumer is no longer responsible for the debt. The court reviews all debts included in the bankruptcy claim. This indicates which debts were collected through an insurance claim. In most cases, unsecured credit card debt is settled in this manner. The court will discharge the debts most often through a bankruptcy case for this reason.
In Missouri, consumers can eliminate their debts more effectively by reviewing their options. For some debts, a settlement is the best opportunity. The creditor may accept a lower value to pay off the debt entirely. For others, the consumer will need to file for bankruptcy. Consumers who need to examine their options can contact a debt settlement attorney in St. Louis, MO or visit Stlbankruptcyfirm.com today.