Chapter 13

Kansas City Chapter 13 Bankruptcy Attorney

Patton & Dean, LLC: Home of the Complete Bankruptcy - Call (913) 203-4786

Most consumers who pursue bankruptcy choose either Chapter 7 or Chapter 13. While both of these processes are geared toward everyday people who have become entrapped in debt, and both ultimately wipe away qualifying debt, they involve very different steps. An experienced bankruptcy attorney can help you determine which type of bankruptcy is right for you.

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What is Chapter 13 Bankruptcy?

Also called the wage earner’s plan, it allows individuals with a regular income to repay all or a part of the debts that they have accumulated. They must propose a repayment plan that allows them to pay monthly installments for 3 to 5 years.

Who Can Declare Chapter 13 Bankruptcy?

Chapter 13 bankruptcy, also known as a wage earner's plan, can be declared by individuals who have regular income and want to pay their debts but are currently unable to do so. This type of bankruptcy allows debtors to propose a plan to repay all or part of their debts over a period of three to five years.

However, not everyone is eligible for Chapter 13 bankruptcy. To qualify, an individual must:

  • Demonstrate consistent earnings. This is to confirm their ability to follow the repayment plan. Regular earnings can come from variety of areas such as salary, self-employment income, welfare benefits, disability or retirement payouts, among others.
  • Have unsecured and secured debt obligations that fall within the limits. The limits change every few years, so be sure to speak with a seasoned Chapter 13 attorney in Lenexa to confirm if you are able to file.
  • Have had a bankruptcy application dismissed in the past 180 days due to deliberate failure to appear before the bankruptcy court or failure to comply with court orders, or if the bankruptcy filing was voluntarily dismissed following creditors' attempts to obtain court assistance to reclaim property they have liens on.
  • They must finish credit counseling from an organization endorsed by the U.S. Trustee's office within 180 days prior to submitting the filing.

Corporations or partnerships cannot file for Chapter 13. Only individuals (including those who operate businesses as sole proprietors) or individuals filing jointly (such as married couples) are eligible.

If you are considering filing, consult a professional Lenexa Chapter 13 bankruptcy lawyer for advice based on your circumstances.

No Money Down Bankruptcy

At the law firm of Patton & Dean, LLC, we provide no-money-down bankruptcy services for those pursuing Chapter 13 bankruptcy. Our legal team provides experienced guidance and one-on-one bankruptcy counseling in Kansas City and the surrounding areas for people facing difficult financial circumstances.

We have developed a unique Complete Bankruptcy model of legal guidance. This means we handle all aspects of the Chapter 13 process — from deciding whether to pursue bankruptcy through the completion of your case, as well as post-bankruptcy matters — for no money down.

What’s Involved in Chapter 13?

The most important aspect of Chapter 13 bankruptcy is the repayment plan. This type of bankruptcy will allow you to tackle past-due payments through a single, affordable monthly payment that takes into account your financial circumstances. At the end of the three- or five-year repayment plan, any qualifying debt that hasn’t been paid off will be discharged (eliminated).

Is Chapter 13 Worth It?

Considering filing for Chapter 13 Bankruptcy? The decision to pursue it is a complex one, and its worth depends on your specific financial circumstances. At Patton & Dean, LLC, our experienced Chapter 13 attorneys in Kansas City can guide you through the evaluation process.

Chapter 13 can be worth it if you're facing overwhelming debts but have a stable income and want to protect your assets. It offers a structured repayment plan spanning three to five years, allowing you to catch up on missed payments, including mortgages and car loans, while keeping your property.

One significant advantage is the possibility of preventing foreclosure or repossession, which can be crucial if you're at risk of losing your home or vehicle. Chapter 13 bankruptcy can halt these actions and provide a framework to address arrears over time.

Furthermore, if you're ineligible for Chapter 7 due to income or asset limitations, Chapter 13 might be the right choice for you. It allows you to consolidate debts and make manageable monthly payments based on your disposable income. This can be particularly beneficial if you're trying to avoid liquidating assets.

However, it's essential to consider the commitment and discipline required for a Chapter 13 plan. You'll need to follow the repayment schedule and maintain regular payments, which may last for several years.

At Patton & Dean, LLC, our Kansas City Chapter 13 lawyers have extensive experience navigating these complexities. We understand that each financial situation is unique, and we're dedicated to providing personalized guidance to help you make an informed decision.

If you're wondering whether Chapter 13 is worth it for your circumstances, reach out to our Chapter 13 attorney in Kansas City, KS, for a consultation. We can evaluate your financial situation, explain the potential benefits and drawbacks, and help you determine the best path forward to regain control of your finances. With years of experience, our team is committed to your financial well-being.

When Does Chapter 13 Make Sense?

For some people, Chapter 7 bankruptcy makes sense because it is a faster process and does not require a repayment plan.

However, Chapter 13 may be a better option if:

  • You do not qualify for Chapter 7
  • You earn a steady income
  • You have assets that could be lost in Chapter 7
  • You want to save your house from foreclosure
  • You want to catch up on overdue car payments to avoid repossession
  • You have an underwater second mortgage on your home

Chapter 13 Bankruptcy FAQ

Who is eligible for Chapter 13 bankruptcy?

To be eligible for Chapter 13 bankruptcy, you must have a regular source of income and your unsecured debts must be less than $419,275 and your secured debts must be less than $1,257,850.

What are the benefits of filing for Chapter 13 bankruptcy?

Filing for Chapter 13 bankruptcy can help you stop foreclosure, catch up on missed mortgage payments, prevent repossession of your vehicle, and create a manageable repayment plan for your debts.

How long does Chapter 13 bankruptcy last?

Chapter 13 bankruptcy typically lasts for three to five years, depending on the repayment plan approved by the court.

Can I keep my assets if I file for Chapter 13 bankruptcy?

Yes, one of the advantages of Chapter 13 bankruptcy is that you can keep your assets while repaying your debts. However, you will need to make regular payments according to your repayment plan.

Can I convert from Chapter 13 to Chapter 7 bankruptcy?

In some cases, you may be able to convert from Chapter 13 to Chapter 7 bankruptcy if you are unable to continue with your repayment plan. However, it is important to consult with a bankruptcy attorney to understand the implications of such a conversion.

Related Pages

Unsure if Chapter 13 is right for you? Speak with a qualified Kansas City Chapter 13 lawyer at Patton & Dean, LLC. We have years of experience and can guide you to the option that best suits your circumstances. Call (913) 203-4786 or complete our form.

  • “Ryan and David both were very personable as well as professional.” - Deana
  • “This team of attorneys has gone out of their way to help me” - Jeffery B.
  • “Very grateful.” - Carlos I.

    What Happens When You Complete Your Chapter 13 Repayment Plan?

    After you finish paying off your Chapter 13 repayment plan, you will receive a discharge order that will erase the remaining debt balance. If you file and qualify for Chapter 13 bankruptcy it can discharge certain debts that do not qualify for Chapter 7.

    How Long Does Chapter 13 Bankruptcy Stay On Your Credit Report?

    Your bankruptcy public record stays on your credit report for 7 years. It is left on for 7 years because partial repayment is required when filing for Chapter 13 bankruptcy. Your unique situation should determine which path you pursue.

    How We Can Help

    Our experienced Kansas City bankruptcy attorneys can help you understand your options and choose the path right for you.

    Take the first step: Schedule a free consultation. Call Patton & Dean, LLC at (913) 203-4786 today.

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