Chapter 13 bankruptcy is a great option for certain kinds of debts.
Under Chapter 13, you set up a repayment plan according to your monthly income. The court approves the plan, which lets you make regular affordable payments toward your debt. There are a lot of ways Chapter 13 can help you, but here are 3 of the most important:
Chapter 13 Allows You To Keep Your House
Have you missed mortgage payments? Have you received threats of foreclosure? Is foreclosure something you're worried about in the future? Under Chapter 13 bankruptcy, you don't have to give up your home. Because it's set up in the courts, it has the power of law behind it to stop foreclosures from going through.
That means as long as you keep making those regular payments, you can have the peace of mind knowing your house is protected.
Chapter 13 Protects Your Car From Reposession
Fear of repossession is a very common reason for people to consider bankruptcy. Fortunately, the rules on car payments work about the same as the rules on house payments. So when you file Chapter 13, you can usually set up a plan to make sure you keep your car as well.
Chapter 13 Helps With Other Debts
If you have credit card debt, medical debt, payday loans, or other debts you can't pay, a lot of times it's easy to assume you need a Chapter 7, which can wipe away a lot of those debts. But depending on your assets, you might want a Chapter 13. That doesn't mean you're stuck with those other debts, though. We can deal with them in a Chapter 13 as well.
If debts like missed credit card payments are leading to harassing creditor phone calls or wage garnishment, Chapter 13 is able to put a stop to it. The process is different from a Chapter 7, but equally as powerful.
Questions? Concerns? Need to file bankruptcy, stop a foreclosure, or prevent repossession?
Call us today at 816-842-6200 to speak with an attorney. Or you can email us and schedule your free consultation.