Chapter 13 bankruptcy works differently than Chapter 7 bankruptcy. While they are the two most common types of ways individuals file, they're popular for different reasons. Below are 3 benefits of filing Chapter 13 bankruptcy in Kansas City that you may want to consider when deciding what type of bankruptcy is best for you and your financial situation.
1) One Payment
When you file for Chapter 13, it allows you to consolidate all of your debts into one monthly payment. This reduces the number of payments going out. Instead of paying for five credit cards, your car, and your house separately; it all comes in one monthly payment.
2) Debt Reduction
Imagine paying a fraction of the money that you pay in debt each month. That is what Chapter 13 can do. In certain cases, the court will allow you to pay as little as 10% of your unsecured debt. Unsecured debts are things like credit cards, medical bills, etc. The remaining 90% of the debt, in this case, would be wiped clean. In some cases, unsecured debt even be completely wiped away and not paid back at all.
3) Foreclosure Suspension
When filing for Chapter 13, it allows you to stop a foreclosure on your house temporarily. While the details of your Chapter 13 are being worked out for your debt and payment arrangement, the foreclosure gets suspended. Your mortgage could become part of your monthly payment, which allows you to avoid foreclosure altogether. Just make sure to make all of your mortgage payments on time after your bankruptcy filing. Then, catch up on your payments and your home will remain yours.
Now What? Get in Touch With an Experienced Kansas City Bankruptcy Attorney!
If you would like more information related to the 3 benefits of filing chapter 13 bankruptcy in Kansas City mentioned above, then it may be worth talking to our experienced Kansas City bankruptcy attorney. We will sit down with you (or visit with you virtually) and go over your debts and assets to determine which chapter is best for you and build a custom solution for you based on the bankruptcy chapter that is best for you.
If you find yourself wondering what life after bankruptcy would be like without all the debt hanging over your head, fill out the contact form on this page or call Castle Law Office at 816-842-6200 to speak with our Kansas City bankruptcy attorney today!