Chapter 13 bankruptcy is often referred to as the wage earner’s plan. Under Chapter 13, debtors with a steady income may be able to keep their house and certain other assets while developing a plan to pay back some or all of their debts in installments over three to five years.
These totaled payments are often less than the total amount that was owed, and the remainder is discharged. This option can be a good fit for people who still have an income but have suffered from serious financial losses nonetheless.
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 drugs- and alcohol-related personal injury claims.
Another advantage of Chapter 13 is that creditors can't object to the discharge if the debtor has completed making plan payments.
If you're considering bankruptcy and have a regular income, or if you want to protect certain assets, Chapter 13 might be the perfect option for you. Our attorneys can help you figure out if you qualify and let you know how to move forward.
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.