Experienced, responsible, and fast bankruptcy attorneys, providing clean slates for good people in bad situations.

What Is Chapter 7 Bankruptcy?

Chapter 7 is the most common chapter of individual consumer bankruptcy. A Chapter 7 bankruptcy allows individuals to discharge (no longer be legally responsible for) unsecured debts, such as:

  • credit cards
  • medical bills
  • personal/payday loans
  • judgements
  • certain taxes
  • plus many other debts.

When you file for relief under Chapter 7 in Troy, MO your bankruptcy Trustee will examine your assets and determine whether there is anything of value that could be liquidated. The proceeds are distributed to your unsecured creditors. However, the vast majority of Chapter 7 bankruptcies do not result in the loss of any property. This is because certain property may be exempted from the bankruptcy estate. In other words, you are allowed to retain most property. From beginning to end, a Chapter 7 bankruptcy lasts three to four months.

However, filing under Chapter 7 is not right for everyone. If you make too much money you may not qualify for a Chapter 7; if you are behind on your mortgage or car payments, a Chapter 7 Bankruptcy may not be ideal for you as your creditors may seek a return of the property. Every individual case is unique. Andrew will evaluate your situation and advise you of the best solution.

What Is Chapter 13 Bankruptcy?

A Chapter 13 bankruptcy is a restructuring of debt, whereby your debts are consolidated into an affordable monthly payment, giving you an opportunity to save your home and/or automobile from foreclosure or repossession, as well as eliminate some unsecured debts. These consolidated monthly payments are made to your Trustee, who distributes this money to your creditors according to an individualized Chapter 13 Plan.

The Chapter 13 plan lasts anywhere from three to five years, and the amount of the monthly payment is based on both your income and the debts that are to be repaid. Remember, not all debt has to be repaid, just that which is laid out in the plan. As an added benefit, most secured debts enjoy a reduced interest rate. The Chapter 13 Trustee will not seek to sell your assets, though if you have a large amount of property, this could result in an increased monthly payment.


We provide services to bankruptcy clients in:

  • Hannibal, Missouri
  • Pike County, Illinois
  • Audrain County, Missouri
  • Lincoln County, Missouri
  • Montgomery County, Missouri
  • Pike County, Missouri
  • Ralls County, Missouri
  • Warren County, Missouri

The Troy satellite office for The Law Office of Andrew Magdy is located at 506 E. Cherry St., Troy MO 63379 in the Cherry Street Center.

Call (314) 802-8328 to schedule your free consultation.