If you're overwhelmed with debt in Kansas City, Chapter 13 bankruptcy could be a lifeline. Unlike Chapter 7, which focuses on eliminating debt, Chapter 13 helps you reorganize and repay your debts over a court-approved repayment plan, typically 3 to 5 years. Here's why Chapter 13 might be the right choice for you:
Streamlined Payments: With Chapter 13, you can roll all your debts into one monthly payment. This simplifies things by replacing multiple payments to different creditors with a single payment.
Debt Relief: Chapter 13 can help you significantly reduce your debt. In some situations, the court might allow you to pay only a small portion (like 10%) of certain debts (like credit cards and medical bills). The rest of the debt would be eliminated. In other cases, you might not have to pay back these unsecured debts at all.
Save Your Home: If you're facing foreclosure, Chapter 13 can help you stop it temporarily. While your Chapter 13 plan is being created, the foreclosure process gets put on hold. Your mortgage can be included in your monthly payment plan, allowing you to catch up and avoid losing your house. But remember, you'll still need to make your mortgage payments on time after filing for bankruptcy.
Thinking about filing for bankruptcy in Kansas City? An experienced bankruptcy attorney can help. They can assess your situation, recommend the best chapter for you (Chapter 13 or 7), and create a personalized plan to get you back on track.
Get started by taking our FREE Bankruptcy Evaluator.
