In a Chapter 13 bankruptcy, you typically keep your assets and then make monthly payments. That means while you still have to pay, you also get to hold on to your house or car, even if you were facing foreclosure or repossession.

Filing for Chapter 13 can also help relieve credit card debt, medical debt, and other unsecured personal loans. Debts not discharged in Chapter 13 include alimony and child support, certain taxes, student loans and debts arising from personal injury claims (if they were drugs- or alcohol-related).

If you want to keep your car or home under Chapter 13 bankruptcy you do have to make monthly payments. Those payments are usually much easier to pay because the trustree has helped you set up a plan that fits within your budget. The process lasts about three to five years, after which time your debts are considered discharged.

If you're considering bankruptcy and wonder whether Chapter 13 would be right for you, it's a good idea to consult an experienced bankruptcy attorney to determine your eligibility for Chapter 7 versus Chapter 13 bankruptcy.

Castle Law Office has been handling bankruptcies for Kansas City clients from more than 14 years. If you need the fresh start bankruptcy can provide, call us today at 816-842-6200 to speak with an attorney. Or click here to email us and schedule your free consultation.