We get a lot of inquiries from people who know they have lost control of their debt but are uncertain of how they can recover. For many people, the reason has to do with a disability, Social Security dependency, or an unexpected decrease in pay. All of these situations are out of their control and have left them feeling overwhelmed at the idea that they now owe more than they make.
In many of these cases, filing for Chapter 13 bankruptcy can help. Chapter 13 bankruptcy works by allowing you to renegotiate your loans and debt under your current income source, making it more manageable over the long run. However, you must be eligible for Chapter 13 under its qualification process before your debt recovery plan can be activated.
Here are a few of the ways you may qualify to file with Kansas City Chapter 13 bankruptcy lawyers.
- You have a steady source of income. The most important factor when determining if you qualify for Chapter 13 bankruptcy in Missouri or Kansas is to determine if you have a steady source of income. This can include disability checks, Social Security benefits, or a secure job. This income is what you will use to help renegotiate your terms and is what will allow you to pay back your debt over time.
- You cannot repay your debt. To determine if you are unable to pay off your debt, you must have reached a specific point where you have no way to reasonably pay back your loans over the course of three to five years. When this happens, you may qualify to renegotiate your loans, making it possible to work out a more manageable payment plan.
- You owe more than your house or car is worth. Part of the renegotiation that is done when filing for Chapter 13 bankruptcy is to try to lower payments. In some cases this can be done if an asset is underwater, or is worth less than what is owed.
While bankruptcy should always be a last resort, there are many situations where it is the only option to achieve freedom from the confines of debt. Call us today at 816-842-6200 to speak with an attorney. Or, you can email us to schedule your free consultation.