Chapter 7 Bankruptcy in St. Louis

Chapter 7, sometimes called "liquidation bankruptcy" or a "fresh start," eliminates most unsecured debts. A court-appointed trustee reviews your assets. If you have non-exempt property, the trustee may sell it to pay creditors -- but most Chapter 7 cases are "no-asset" cases where the filer keeps everything.

In St. Louis, the vast majority of Chapter 7 filers keep all their property because it falls within Missouri exemption limits.

Dischargeable (eliminated)

• Credit card debt
• Medical bills
• Personal loans and payday loans
• Old utility bills
• Deficiency balances from repossessions
• Some older tax debts
• Civil judgments (in most cases)

Not dischargeable

• Student loans (except in rare hardship cases)
• Recent income taxes (generally last 3 years)
• Child support and alimony
• Court-ordered restitution and fines
• Debts from fraud or willful injury
• Certain debts under 11 U.S.C. section 523(a)

To file Chapter 7, you must pass the means test. This compares your household income to the state median:

• Below median income: You automatically qualify for Chapter 7
• Above median income: A detailed calculation of your disposable income determines eligibility

The median income figures are updated periodically. For a single filer in Missouri, the current median is approximately $55,000/year. These figures increase with household size.

1. Weeks 1-2: Preparation -- Gather documents (tax returns, pay stubs, bank statements). Complete credit counseling course ($15-25).
2. Day 1: Filing -- Petition filed with the court. Automatic stay takes effect immediately -- creditors must stop all collection activity.
3. Day 30-45: 341 Meeting -- Brief meeting of creditors. The trustee asks questions under oath. Most last 5-10 minutes.
4. Day 30-60: Debtor education -- Complete the second required financial education course ($10-25).
5. Day 90-120: Discharge -- The court enters your discharge order, eliminating eligible debts.