Deciding to file for bankruptcy protection is a very serious decision, usually made after someone has spent endless sleepless nights. Collection efforts are making life miserable for everyone. Would filing for Chapter 7 St. Charles MO be the best answer?

There are a number of pros and cons to be considered before deciding if Chapter 7 is the best solution for you.

Pros of Chapter 7 Bankruptcy

* Chapter 7 in Charles, MO will be completed in six months or less. This is the #1 reason that people choose Chapter 7. Chapter 13 or other debt repayment plans may take three to six years to complete.

* Technically, Chapter 7 is a liquidation bankruptcy, meaning that the bankruptcy trustee is authorized to sell all non-exempt property and divide the proceeds among the creditors. In practice, many of the people who go through Chapter 7 keep most or all of their personal property.

* As soon as the bankruptcy is filed with the court, an automatic stay will halt collection proceedings on credit cards, medical bills and similar debts that will be discharged in the bankruptcy.

* It is illegal for an employer to fire someone from their job because they filed for bankruptcy protection.

Cons of Chapter 7 Bankruptcy

* Not all debt will be discharged in the bankruptcy. Child support, alimony, most student loans and some taxes will remain after the bankruptcy. However, with much of the debt discharged, it should be much easier to pay any remaining debt.

* A Chapter 7 bankruptcy will remain on your credit report for ten years. However, as long as payments are made on time on remaining debts after the bankruptcy, the credit rating will begin to improve in a few months.

* If there were further financial problems, it would not be possible to file Chapter 7 again for six years.

* Any new loans or credit cards will carry a significantly higher interest rate. In fact, shortly after someone has the debts discharged at the conclusion of the bankruptcy process, they can expect to find new offers for credit cards in their mailbox – complete with very high fees and interest rates.

Are you wondering if Chapter 7 St. Charles MO would be the best solution for your financial problems? The experienced bankruptcy attorneys at Van Dillen & Flood, P.C. have been helping people resolve their legal issues for over 30 years. To learn more and schedule an appointment, visit