Kansas Bankruptcy Chapter 13 Lawyer
Do you need relief from creditors in Kansas?
Bankruptcy Chapter 13 is for private individuals and families who need relief from creditors. You may be facing foreclosure on your house, garnishment of your wages or seizure of your bank accounts. You have a regular income and would like to pay your debts but need some help. With Chapter 13, you get that help. Upon filing your Chapter 13, you get a Bankruptcy Court stay against creditor actions. You work out a repayment plan to pay off your debts over a three to five year period while keeping your property. Chapter 13, however, is complex calling for the guidance of an experienced Chapter 13 attorney. Therefore if you are in Kansas requiring this help, you are urged to contact a Kansas bankruptcy attorney.
Advantages of Chapter 13
Chapter 13 has many advantages for the debtor:
- You receive an immediate stay against foreclosures, garnishments and execution against bank accounts
- You get some breathing time to make your mortgage payments. Your arrearages may be spread over the three to five year period of your plan.
- Where your equity is less than your first mortgage, you may be able to get junior mortgages removed and turned into unsecured debt.
- Your arrearages on a car loan may be spread over the period of the plan.
- If you do not qualify for Chapter 7 relief due to excessive disposable income, you may qualify for help under Chapter 13
- Debts non-dischargeable in Chapter 7 such as student loans and taxes may be adjusted. You may get more time to pay them and even get them reduced
- Interest on non-secured loans is cancelled.
How Chapter 13 Bankruptcy Works
As with any bankruptcy case, Chapter 13 begins when the debtor files his or her petition with the bankruptcy court. Filing the petition places an automatic stay on all debt collection activity against the debtor, including foreclosure, creditor contact of any kind, repossession, wage garnishment, repossession, liens and levies. At the time of filing the Chapter 13 petition, the debtor must also file a detailed schedule of all assets, liabilities, income and expenses as well as provide proof that he or has received credit counseling from an accredited agency. The debtor must also file a proposed repayment plan with the court within 15 days of filing the petition. This plan will be based upon the debtor’s disposable income, which is calculated by subtracting necessary expenses from the debtor’s income. The plan will last 3 to 5 years and may pay off only a portion of the debt owed, depending on the length of the plan and the payment amount.
A meeting of creditors will be held approximately 20 to 50 days after the filing of the Chapter 13 petition. The bankruptcy trustee will hold this meeting, and the debtor will be placed under oath to answer questions about his or her debt, assets and financial situation. Unsecured creditors may have the option to file a claim with the court within 90 days of the meeting of creditors.
Within 45 days of the meeting of creditors, a second hearing will be held by a bankruptcy judge regarding the debtor’s Chapter 13 repayment plan. This hearing will be held to confirm the plan.
Whether the repayment plan is approved or not, the debtor must start making payments to the bankruptcy trustee within 30 days of filing the Chapter 13 petition.
Upon the successful completion of the repayment plan, the bankruptcy court will effectively discharge any remaining eligible debt, thus releasing the debtor from any and all liability for this debt.
Experienced Kansas Bankruptcy Chapter 13 Attorney
Rick Hodge has filed hundreds of bankruptcy filings for people all over the state of Kansas. We are intimately familiar with workings of Chapter 13 and available to help you. You do not have to come to our office. It is only required that you attend a meeting of creditors in Wichita a month after the filing. We invite you to contact us. We will go over your debt situation and help you through this stressful time.
Contact the Kansas Bankruptcy Chapter 13 lawyer
for reliable help with your bankruptcy needs.