Legal Question in Bankruptcy in Missouri

There are several different analysis that should be done when calculating the appropriate chapter 13 payment. The first step is to go through the Means Test, which is a portion of the bankruptcy petition. In this form, your income is entered and then various expenses are subtracted, such as taxes, secured debt payments, health insurance costs, etc.. This can be, but is not necessarily the same as a Disposable Income analysis. After you pay your necessary expenses, the amount left over is the amount of your chapter 13 payment. Why are they not the same? The Means Test is calculated on the six months before filing, but the Disposable Income analysis looks to what your income and expenses are reasonably expected to be in the future. Another analysis is the Liquidation Analsys; in a hypothetical chapter 7, how much would the unsecured creditors receive? They must receive at least as much in a Chapter 13.

Truly, this isn't a job for a do-it-yourselfer. If nothing else, I would encourage you to meet with an attorney who offers free consultations. Bring the amount of money you've earned in the past 6 months, the actual amount of your taxes (if you usually receive a big refund, this may not be the amount withheld, and the amount you pay on housing, cars, health insurance, work expenses and other categories. Separate it out, and if something like a car or house will be paid off in 3 to 5 years, know the number of payments that are due. Also know details of any balloon payments that may be coming due. This basic information will enable the attorney to get a rough idea of how much your chapter 13 payment would be.

It sounds like you would probably qualify to file a Chapter 7. The only reason I can think of to file a 13 instead of a 7 would be the ownership of nonexempt property.