What is Chapter 7 Missouri+ 2017-09-13T19:55:31+00:00


Chapter 7: Liquidation  [Chapter 7]
·         Court Filing Fee $335

Bankruptcy under Chapter 7 is designed for consumers with debts who are having a hard time financially and also are unable to repay current debts. A person who owes debts which are mostly personal debts has what is called “consumer debts,” are therefore required to take a “test” of sorts to determine their income. This test determines income, also known as “means,” and is designed to determine whether or not a Debtor qualifies for relief under Chapter 7 and therefore should be allowed to file.  Whether or not someone should file Chapter 7 is more complicated than qualifying under the income test.

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Things such as assets and debts against those assets are examples of factors to consider but are in no way exhaustive. Someone who has a sizeable amount of luxury property but is currently earning a very low income may not be a good candidate for a Chapter 7 Bankruptcy.   A trustee may have the right to take possession of and sell the remaining property that is not exempt and use the sale proceeds to pay some of the creditors. Missouri has special exemptions available that may be applied to any property as needed up to a limit, unlike some states where you may only use specific exemptions on a specific property. To determine whether or not you will qualify under Chapter 7, you need to contact an experienced Kansas City bankruptcy attorney for a free consultation.


  • Fairly quick process, especially when compared to a Chapter 13
  • Discharge received relatively quickly
  • Credit card debts, loans without collateral (unsecured), payday loans, medical bills, deficiencies from foreclosures or repossessions, and certain taxes are eligible for Discharge
  • Collections of debt, like garnishments, civil lawsuits for debt, repossession or foreclosure stopped in their tracks
  • Disadvantages:
  • There is a possibility some of your assets may not be protected. To find out, you will need to contact RS Law to schedule your free consultation
  • Creditors have the ability to ask the Court that a specific debt be determined “nondischargeable” if that creditor claims the debt was incurred fraudulently; involved theft; resulted to a malicious and will injury, or arose from a breach of fiduciary duty
  • No mechanism or system in place to help you get caught up on secured debts like past-due mortgage payments or delinquent car payments