How A Chapter 13 Bankruptcy in Kansas Can Help You Find Debt Relief!
A Chapter 13 bankruptcy attorney represents individuals seeking to file a particular type of debt relief action under the bankruptcy code. For overwhelming consumer or medical debt, there are options available under the law for relief. Known more commonly as a “Wage Earners” bankruptcy, this form of bankruptcy helps individuals restructure their secured debt. In many cases most of the debt will be discharged. Coons & Crump are Chapter 13 bankruptcy attorneys in the state of Kansas.
A Chapter 13 can be used by anyone who has a regular source of income, whether this is from a job, a pension, social security, or some combination of sources. Chapter 13 Bankruptcy basically allows those who file to develop a plan to make payments to a bankruptcy trustee. A bankruptcy attorney will advise you to consider alternatives to filing for bankruptcy – it might not be the only way for you to alleviate overwhelming debt. We will explain all your options based on your particular circumstances. If it turns out to not be the best choice, your attorney will suggest an appropriate bankruptcy alternative.
The filing process.
You and your Chapter 13 bankruptcy attorney work together to develop a plan for your creditors. Creditors are placed in different categories which will determine how much they are paid. In some cases creditors are paid almost nothing, in other cases they are paid in full (but usually minus any interest for unsecured creditors such as medical bills and credit cards).
People who file Chapter 13 Bankruptcy often only repay secured creditors (cars loans and similar debts) and not unsecured creditors – medical bills, credit cards, personal loans. In some cases people only pay a percentage of their unsecured debt – it all depends on your income, your budget and the types of debts you have. This form of bankruptcy is sometimes used to pay on a vehicle loan, or to save a home from foreclosure. It can prevent repossessions or foreclosures. Chapter 13 can also be used to cover payment of title loans at a greatly reduced rate.
At Coons & Crump we will sit down with you and work out a budget. Depending on the amount of money left over after a reasonable budget is put together, you will make a payment to the trustee. The court determines whether or not the budget is realistic. Your Chapter 13 bankruptcy attorney is familiar with the guidelines, and will help you plan accordingly. Having a reasonable working budget is one of the most important steps in planning a Chapter 13 bankruptcy as this will ensure your successful completion of the case.
There are three Chapter 13 Trustees in Kansas, located in Wichita, Topeka, and Kansas City. They determine whether or not your plan meets the requirements of the law. Your payments go to the trustee, who manages the money that you pay. Our office typically is paid through the plan payments and no money is paid upfront.
An Automatic Stay (referred to as an Order For Relief) is issued by the court once you have filed. This court order will be mailed to all of your creditors advising them that you have filed for bankruptcy. At this point they have to cease all collection activities. Often called an “injunction” by attorneys, an Automatic Stay is in place throughout the bankruptcy and prevents your creditors from taking any action against you or your assets. When your case is completed it is replaced by a different court order known as the Discharge or Discharge Injunction.
Debts that are usually not discharged in Chapter 13 include: student loans, child support or spousal maintenance (domestic support obligations), criminal fines or penalties, parking tickets, injuries caused to someone else intentionally, and debts incurred with no intent to repay them (fraud), and some tax debts. Your lawyer will make sure you fully understand all the facts and details of the bankruptcy process and outcome.
A discharge in a Chapter 13 Bankruptcy usually takes 3 to 5 years, assuming you have complied with the requirements of the Bankruptcy Court. The discharge wipes out all debt that can be discharged. Your Chapter 13 bankruptcy attorney will explain which creditors in your case will be wiped out and which creditors (if any) will survive the Bankruptcy and will be entitled to collect again once the case is closed.
If you are considering filing for Chapter 13 bankruptcy, the bankruptcy lawyers at Coons & Crump are supportive, knowledgeable, and want you to experience the relief that Chapter 13 bankruptcy can provide. Please contact our office today for more information and for a free, confidential consultation. Contact us now: (785) 856-8720. Locate us online here.
With offices in Lawrence, Topeka and Overland Park, we are conveniently located to the court houses and can represent anyone who resides in the State of Kansas.