Ever since the government created filing bankruptcy, most people think about filing Chapter 7. It is pretty rare for someone to decide to file Chapter 13 Bankruptcy St. Louis by choice. People usually use Chapter 13 bankruptcy as a backup plan when they do not qualify for Chapter 7. In fact, if you look into the history around the year 2007 you would see that there were a lot of bankruptcy lawyers helping individuals try to stop foreclosures on their homes by filing Chapter 7. Filing Chapter 7 did stop the proceedings of a foreclosure, but it was only for a short period of time. In most cases, the lender would immediately file what is known as a motion for relief of stay so they could continue with the foreclosure. The most time filing Chapter 7 is going to buy you is six months. Browse website for more details.
Once bankruptcy attorneys realized that filing Chapter 7 only worked to a point, they had to get more creative with this particular situation. This is when a lot of bankruptcy lawyers discovered that real estate prices were dropping so much that they were valued at less than what their clients owed on them. In this situation, your attorney would file a motion to have the lien removed. This would make the debt an unsecured debt which is going to stop it from being a priority pay debt. What this means is that your mortgage will no longer be at the top of the list of things you have to pay back when you file Chapter 13 Bankruptcy St. Louis. It is just going to fall in a payment schedule with all of your other unsecured debts.
Working with a law firm such as the Law Offices of Steven K. Brown to file Chapter 13 ends up being a blessing in disguise for most people. People usually do not want to file Chapter 13 because they are worried about the repayment plan. This is largely because most people are very unaware of the fact that Chapter 13 can cease a foreclosure proceeding for good instead of just temporarily. As long as you pay off your debts according to the repayment schedule you are issued, you will be fine.
