Types of Bankruptcy in Missouri
Our firm handles two types of bankruptcy filings: Chapter 7 and Chapter 13. The main difference between these options is liquidation versus reorganization.
We regularly advise clients throughout Boone County on how Missouri law impacts which chapter of bankruptcy may fit their needs. Every case brings a unique financial reality, so understanding local legal requirements is key to a successful filing. If you live in Columbia, your case will fall under the jurisdiction of the U.S. Bankruptcy Court for the Western District of Missouri, and we make it a priority to stay current on local rules and recent developments that affect debt relief across the region.
Chapter 7 Bankruptcy
Filing for Chapter 7 bankruptcy can discharge most general unsecured debts. During Chapter 7, the trustee will liquidate nonexempt assets and use the proceeds to pay creditors. Missouri law lets you protect certain property from sale, such as vehicles of a certain value, necessary clothing and household goods, pension plans, some home equity, government benefits, and more.
Whether you have high credit card balances or a car loan you cannot afford, Chapter 7 bankruptcy triggers an “automatic stay” that halts most collection efforts immediately.
Your eligibility to file for Chapter 7 depends on your income and financial situation. Chapter 13 works better for those with higher incomes, but you may still use Chapter 7 if you have significant expenses or debts. Eligibility is calculated with a means test that considers your monthly income, debts, and allowable expenses.
The Chapter 7 process in Missouri requires mandatory credit counseling and usually a meeting of creditors, often held in Columbia or a nearby location. Our team explains each local requirement so you know what to expect. Many clients worry about which assets will be protected, and we clarify Missouri’s specific bankruptcy exemptions. Understanding these state rules helps you keep the assets you need while moving forward.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy allows you to reorganize your debts so you can make affordable payments over time. While Chapter 7 requires liquidation of nonexempt assets, Chapter 13 helps you keep your property if you follow a court-approved repayment plan. This approach works for people who cannot repay debts quickly but have regular income to support a payment plan, usually over three to five years. Chapter 13 also stops most creditor harassment and lets you work toward a stable financial future.
Currently, those seeking to file for Chapter 13 can have no more than $419,275 in unsecured debts and no more than $1,257,850 in secured debts.
The bankruptcy court in Columbia will review your repayment plan to ensure it complies with both federal and Missouri laws. Many people filing in the area use Chapter 13 to catch up on mortgage payments and protect their homes, with guidance tailored to fit local financial realities and court expectations. Preparing for a Chapter 13 plan requires accurate documentation and planning, and we walk you through what to anticipate at every step.
You Are Not Alone
According to the American Bankruptcy Institute, in 2019, more than 17,000 people in Missouri declared bankruptcy. If you feel overwhelmed by the process, Sleeth & Associates can answer your questions and address your concerns. We guide you through the filing procedure and assess your eligibility clearly.
Many families and individuals in Boone County and Mid-Missouri face similar worries about protecting their homes, vehicles, or livelihoods. You do not have to go through bankruptcy on your own—support and legal guidance are available right here in Columbia. We aim to help you understand each step of the process, so you can make informed decisions that put you on solid ground.
What to Expect During the Bankruptcy Process in Columbia
When you start a bankruptcy case in Columbia, you will attend a required credit counseling session and submit your completed petition to the U.S. Bankruptcy Court for the Western District of Missouri. An assigned trustee oversees your case and may schedule a meeting of creditors at the courthouse in Jefferson City or Columbia. You should gather and organize documents such as recent tax returns, pay stubs, a list of debts, and proof of assets.
Missouri state law determines what property you can keep, so it is important to review state exemptions before filing your petition. The timeline varies depending on your bankruptcy chapter—Chapter 7 cases may take a few months, while Chapter 13 involves a three- or five-year repayment plan. Staying organized and timely with court and trustee communications keeps your case on track. Our commitment to personal service and prompt responses supports you through each stage, making the bankruptcy process in Columbia more manageable.
Contact us at (573) 279-1349 or fill out our online form today.
Frequently Asked Questions
Will filing for bankruptcy stop creditors from contacting me?
When you file, the court issues an automatic stay that immediately prevents most creditors from calling or pursuing lawsuits against you. This protection lasts until the case concludes or the court changes the stay.
Can I keep my home or car if I file for bankruptcy in Missouri?
In many cases, you can keep your home or car by applying Missouri’s exemption laws, especially in a Chapter 13 case. However, you must stay current on your loan payments and ensure your property qualifies for exemptions.
How is my bankruptcy handled locally?
Your case goes through the U.S. Bankruptcy Court for the Western District of Missouri. You may need to attend meetings or hearings in person at the local courthouse, so working with a firm familiar with local court procedures can help make the process less stressful.
