If you live in the Kansas City area of Kansas or Missouri and are considering Chapter 13 bankruptcy, you may be curious regarding the advantages and disadvantages of this type of bankruptcy. Most people realize that filing bankruptcy will impact their credit score and ability to make certain purchases for a period of years, however, bankruptcy can be the perfect solution for those who face overwhelming financial issues – a huge burden off of your shoulders, and your mind, giving you a sense of peace and relief. At Patton Dean, LLC, we want to enlighten those who are thinking of filing Chapter 13 bankruptcy regarding the advantages and disadvantages, including long-term financial relief.
Essentially, Chapter 13 bankruptcy is a solution that you make a single payment on a monthly basis that covers all of your debts, an amount that is determined by your budget. By working with a bankruptcy attorney, it is possible to determine a monthly payment that will work for you, getting you out from underneath overwhelming debt.
The most obvious advantages of filing Chapter 13 bankruptcy include:
- Stops collection efforts, lawsuits, and wage garnishment
- Eliminates medical, credit card and payday loan debt
- Save your home from foreclosure
- Prevent repossession of your vehicle
- Tax delinquency payment plan or tax elimination in certain circumstances
- Ability to defer student loan payments
While there are some disadvantages in filing for Chapter 13 bankruptcy, the advantages outweigh the disadvantages for most people. Disadvantages include:
- Bankruptcy Plan will run from 3 to 5 years
- Those with secured debt in an amount greater than $1,149,525 are usually not eligible for Chapter 13
What if you cannot pay all of your debt over a three to five year time period? The fact is, most people cannot pay back all of their debt. In this case, whatever debt is not paid back over the set time period is handled just as it is with Chapter 7 bankruptcy – you have a fresh start because dischargeable debts are essentially wiped out. You no longer owe these debts!
Ultimately, Chapter 13 bankruptcy gives individuals and families an opportunity to be completely debt-free within three to five years, something that would not be possible to achieve otherwise. Most important of all for many families is the fact they can pay off their debts while keeping their biggest investment, their homes.
If you are considering bankruptcy but are not sure which Chapter is right in your situation, contact the Lenexa bankruptcy attorneys at Patton Dean, LLC for your free consultation today. With three convenient office locations in the Kansas City metro area, let us help you put your finances back on track. Call (913) 203-4786 today.