Kansas City Chapter 13 Bankruptcy Lawyer
Unlike Chapter 7, no property is liquidated under Chapter 13 Bankruptcy. Instead, your debts will be consolidated and a payment plan will be outlined. Subsequently, you must follow the plan over the course of three to five years. This results in repayment of debt at a fraction of the amount you initially owed. For more information on pursuing a Kansas City Chapter 13 case, reach out to our experienced Kansas City Chapter 13 Bankruptcy Lawyer, Jennifer Dodson.
Chapter 13 Bankruptcy Eligibility
Essentially, Chapter 13 gives you an opportunity to pay what you can – a figure ultimately determined by the Bankruptcy Code and state law. The remaining amount is discharged at the conclusion of the repayment plan. Eligibility is limited to those who have regular income and can make regular monthly payments. In Kansas City, total unsecured debts must be less than $383,175 and secured debt must be less than $1,149,525. This is only an option for individuals.
The Benefits of Kansas City Bankruptcy
Only a qualified Kansas City Bankruptcy attorney can review your unique financial circumstances and recommend the right option for you. However, the advantages of Chapter 13 are highlighted below:
- Flexibility in place of (or in addition to) Chapter 7 Bankruptcy. Whether you do not meet the means test requirement for Chapter 7 Bankruptcy or will benefit from another option, filing for Chapter 13 grants you equal peace from creditors. During a period of “automatic stay,” your creditors are not allowed to attempt to collect the debts owed. This extends from the moment your case is filed until your debt is discharged. Chapter 13 can also be pursued in addition to recent Chapter 7 discharges.
- The custom repayment plan. Instead of liquidating assets, a payment plan can be set up to repay debt through Chapter 13. This may address negative equity on secured property and certain debts exempt in a Chapter 7 claim. This is ideal for those individuals subject to high interest rates and ever-accumulating debt.
While the advantages of one type of Bankruptcy may seem apparent, deciding between Chapter 7, Chapter 13, and other financial options should only be done in counsel with an experienced Kansas City Chapter 13 Bankruptcy attorney.
How Much Will I Owe after Chapter 13?
Your consolidation figure is based on several factors. These include:
- Current income and expenses
- Total debts owed
- Domestic support obligations owed, like alimony, child support, and property divisions
- Amount of secured debt and tax debt
- Value of non-exempt property
- The Chapter 13 means test
- And more
Once the repayment plan is calculated with your Chapter 13 attorney, it goes to court for approval. If you stick with this customized plan over the subsequent years, your remaining debt will be discharged. While Chapter 13 does offer key differences over Chapter 7, it will not discharge certain taxes, debts obtained by false pretenses, financial obligations not listed in the Bankruptcy, student loans, and other specific debts.
Working with a Qualified Chapter 13 Bankruptcy Lawyer
The Law Office of Jennifer Dodson can consult with you on your Bankruptcy options. However, the value of my expert legal counseling does not stop there. I can organize and file all relevant paperwork and join you at all Bankruptcy meetings and hearings. I will also negotiate your payment plan with the trustee – an individual charged with representing the debtor’s Bankruptcy estate.
Are you wondering if it is the right time to file for Bankruptcy? Do not try to navigate the legal system alone. Managing debt, creditors, and Bankruptcy can be overwhelming, which is why I offer free consultations. Choose a trusted Chapter 13 Bankruptcy Attorney in Kansas City who will be on your side. Contact me, Jennifer Dodson, to get started on your financial redemption today.