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File Chapter 13 Bankruptcy

Top Chapter 13 Bankruptcy Lawyers In Missouri

Missouri Chapter 13 Bankruptcy Attorney Introduction

If you have received a demand letter after a deficiency judgment or are facing garnishment, you should get legal assistance as soon as possible. This is because a garnishment can happen at any time and a demand letter is sent to your employer immediately after the garnishment order has been filed in court.

You need to act quickly. The last thing you want is for the garnishment process to continue while your creditor applies for a new deficiency judgment. You need the services of bankruptcy lawyers that understand how to safeguard your interests.

Your lawyer can also negotiate with the creditor and help you obtain the money you need to pay off your debt.

By rearranging the debt into a manageable amount, Chapter 13 bankruptcy, as opposed to Chapter 7 bankruptcy, may aid in the preservation of a debtor’s home and other valuable assets. Chapter 13 bankruptcy may also be beneficial for persons who earn too much money to qualify for Chapter 7 bankruptcy because their income exceeds the amount required to qualify. In certain cases, if you have a regular source of income, Chapter 13 bankruptcy may be an option to allow you to pay off some or all of your obligations via a debt repayment plan. Chapter 13 bankruptcy lawyers in Kansan can be your best friend at this point.

What is Chapter 13 bankruptcy?

Chapter 13 bankruptcy Kansas City MO

Chapter 13 bankruptcy is a consolidation of all of your debts into one payment plan.  You do need to list all of your assets, debts, income, and expenses when filing Chapter 13 bankruptcy. Your Chapter 13 will include all of your debts in a Chapter 13 Plan. That Chapter 13 Plan will propose what you intend to pay to each creditor. Generally, that plan will last close to five years but some plans can be shorter in certain circumstances. You will make one monthly payment to an individual called the Trustee and the Trustee’s office will make the required payments to your creditors. 

Generally, you will not have to pay all of your creditors in a Chapter 13 bankruptcy. You will only have to pay the creditors that the law requires you to pay. Many Chapter 13 Bankruptcies are filed on an emergency basis to prevent foreclosures and stop repossessions. Our Kansas City MO bankruptcy lawyers at The Roach Bankruptcy Center can file your case fast even when you need to file in an emergency.

Understanding Chapter 13 bankruptcy

Chapter 13 bankruptcy is a kind of bankruptcy procedure used in the United States in which debtors reorganize their financial affairs under the supervision and permission of the court system.

A bankruptcy filing under Chapter 13 is available to individuals and married couples, regardless of whether they are self-employed or running a company without a legal entity.

Chapter 13 reorganization, commonly known as a wage earner’s plan, requires debtors to file and follow through with a plan to repay outstanding creditors within three to five years as part of the bankruptcy process.

When practicable, the repayment plan must provide a meaningful payback to creditors—at least on par with what they would get in other types of bankruptcy—and must use 100 percent of the debtor’s disposable income for repayment if required.

If filed in a timely way, a Chapter 13 Bankruptcy may be used to prevent home foreclosure or automobile repossession from taking place. To ensure that the right measures are completed to file your Chapter 13 bankruptcy, it is critical to contact your attorney as soon as you are notified of an impending foreclosure.

The Missouri Means Test is used to evaluate the amount of discretionary income a debtor has available. Whether you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, if your income exceeds the Missouri Median income, you will be required to perform the Means Test for both Chapter 7 bankruptcy and Chapter 13 bankruptcy. The Median Income is calculated based on the number of people in your family.

A Chapter 13 Trustee is in charge of overseeing and implementing the Repayment Plan. To comply with the Trustee’s requirements, the debtor will make needed bi-weekly or monthly payments (or through an automatic withdrawal). The Chapter 13 Trustee will next disburse the monies following the Chapter 13 Repayment Plan that has been authorized.

Some residual obligations may be canceled upon a successful repayment, or early repayment, of the principal and interest.

Stop Foreclosure on Mortgages

Are you facing home foreclosure? Then Chapter 13 may be the right bankruptcy for you! Debtors choose this type of bankruptcy to help keep their homes. Chapter 13 bankruptcy will stop the foreclosure of any real estate that you own including your principal place of residence.

If you wish to keep your home or any real estate you will generally have to pay the regular monthly mortgage payments each month in the payment to the trustee. If you no longer wish to keep your home or other real estate then you may choose to surrender that real estate to the creditor in lieu of paying the debt to the creditor. 

However, keep in mind that a Chapter 13 bankruptcy cannot alter the terms of a mortgage contract which secures your principal place of residence. The court cannot force the mortgage company to lower your mortgage payments if it is your principal place of residence.

In addition to the regular monthly mortgage payments, you will need to pay all of the missed mortgage payments over the five year plan.  

There are some exceptions to this general rule.:

  1. If your mortgage is due to be paid in full during the Chapter 13 Plan then you will be eligible to spread out the entire mortgage over the 5 year plan and pay a portion each month.
  2. If your mortgage is attached to real estate which is not your principal place of residence then you would be eligible to pay the value of the mortgage if it is less than the amount of the mortgage.  In this case you will be required to pay the entire mortgage during the 5 year plan.
  3. If you have junior mortgages, meaning you have more than one, and the amount of your first mortgage is more than the value of your home, then you will be entitled to “strip off” any junior mortgages.  In this instance you would not be required to pay the junior mortgages so long as you complete the Chapter 13 Plan. 

Receiving a foreclosure notice can be really scary for homeowners. Instead of ignoring the notice, you can still act and save your home with help from an affordable bankruptcy attorney in Missouri.  Call us today at 816-330-2906 to schedule your free consultation and together, let us explore your options!

Stop Repossession of Vehicles and Properties

Chapter 13 is designed to stop a creditor from repossessing your vehicle. If you wish to keep a vehicle or any other personal property that is collateral for a loan then you will need to propose to pay for that vehicle or property in the Chapter 13 Plan.

In some circumstances, you would need to pay the entire balance of the vehicle or property during the 5 years of the Chapter 13. However, you would only be required to pay the value of the vehicle or other property at the time you filed the case. The legal term for paying on the value of the vehicle is called a “cram down” because you are cramming what is owed down to the value. Generally, the interest rate on all vehicle loans will change to a local rule rate of interest called the “Chapter 13 Rate”. 

The “Chapter 13 Rate” changes every six months and your rate will be determined as of the date you file Chapter 13.  If you do not wish to keep a vehicle or other collateral then you may choose to surrender that asset in lieu of paying the debt to the creditor.

When you consult with our Clay bankruptcy lawyers at Roach Bankruptcy Center, we will discuss any secured debts you have, how much you will have to pay them, and what your interest rate will be.

Facing Imminent Foreclosure?

We can help save your home! Even if time is running out, we’ll find a way. Find out how by speaking with our bankruptcy lawyer in Kansas City, Missouri today.

Advantages of Going into Bankruptcy under Chapter 13

Filing for Chapter 13 bankruptcy offers several benefits to persons who are struggling with enormous levels of debt, including the following:

Keeping your house from going into foreclosure.

A homeowner can avoid foreclosure by filing for Chapter 13 bankruptcy, which allows them to pay back past-due mortgage payments for many years. To save the home, it is necessary to make all mortgage payments on schedule while also paying off the Chapter 13 payment plan. If this is accomplished, the house may be salvaged.

 

Rearrange the repayment schedules for secured obligations.

It is possible to prolong secured obligations, other than mortgage debts, throughout the payment plan.

 

Co-signers and other parties should be protected.

Third parties and co-signers who would otherwise be jointly and severally responsible for consumer and credit card bills are better protected in Chapter 13 bankruptcy, according to the Federal Bankruptcy Code. This is beneficial in preventing family members and acquaintances from experiencing financial difficulties.

If you are having financial issues, Chapter 13 bankruptcy may be a smart option for you. Please call our law firm for a free consultation to see whether it is the correct choice for you. We can discuss your alternatives with you and determine whether or not a repayment plan is in your best interests.

Debts that cannot be Discharged by bankruptcy

While the purpose of Chapter 13 bankruptcy is to put your obligations behind you and move on with your life, not all debts are eligible for discharge under either chapter.

The United States Bankruptcy Code categorizes debts into 19 separate categories that cannot be dismissed in Chapter 13 bankruptcy proceedings.

While the details varied somewhat throughout the many chapters, the following are the most typical types of non-dischargeable debts in general:

  • Alimony and child support are two types of assistance.
  • Tax liens and other unpaid taxes. Some federal, state, and municipal taxes, however, may be eligible for discharge if they have been outstanding for several years.
  • Debts incurred as a result of intentional and malicious harm to another person or property. “Willful and malevolent” refers to actions done intentionally and without justification. In Chapter 13 bankruptcy, this applies exclusively to personal injury claims; debts incurred as a result of property loss are not dischargeable.
  • Debts for death or personal harm caused by the debtor’s driving while under the influence of alcohol or other drugs
  • You owe money on debts that you did not include in your bankruptcy file.

Priority Debts

In Chapter 13 bankruptcy you must pay all of your priority debts. Priority debts mostly just consist of Taxes and Domestic Support Obligations that you owe on the date of filing.

  • Tax Debts – If you have a tax that you owe on the date you file for Bankruptcy then that tax must be included in your Chapter 13 Plan.  Most of the time your tax debts will be priority debts and will need to be paid in the Chapter 13 Plan Payments. It is also possible that not all of your taxes will be required to be paid during Chapter 13.  That depends on many factors such as what type of tax, how old the tax is, and when the tax returns were filed. Any of the following can be your tax debt:
    • income taxes
    • sales taxes
    • real estate taxes,
    • personal property taxes
    • any other taxes.
  • Domestic Support Obligations – You must also stay current on any ongoing Domestic Support Obligation payments which come due after the filing of your Chapter 13. Domestic Support Obligations are never dischargeable.  If you have any questions about your Taxes or Domestic Support Obligations then we will go over those at your free initial consultation with the Roach Bankruptcy Center. Some examples:
    • Child support – If you are past due on your child support or any Domestic Support Obligation then the past-due support must be paid through the Chapter 13 bankruptcy plan payments.
    • Alimony or spousal maintenance

Non-Priority Debts

In Chapter 13 bankruptcy you may not have to pay all of your unsecured general non-priority debts. These debts are debts that are not secured, such as a mortgage or car loan, or are not a priority, such as taxes or child support.

Unsecured general non-priority debts include credit card debts, medical bills, payday loans, bank loans, old repossessions, and most other debts listed on your credit report. Generally, these debts only have to be paid if you have extra equity in assets or if you have excess income for which you can afford to pay the debts.

Bankruptcy Lawyers Chapter 7 Clay MO

You must pay all of your “projected disposable income” during the applicable commitment period of your plan. This includes any unsecured debts that you can afford to pay when your case is filed. To make this determination, your Chapter 13 bankruptcy attorney will look at two income and expense guidelines:

  1. Means Test. This looks at the last 6 months of income prior to the filing your Chapter 13 and compare that to the Median Family Income for a household of your size in the state in which you reside.
    1. If you are below the median you do not have any excess income.
    2. If you are above the median then we will need to fill out the entire “Means Test” form plugging in IRS deductions and some of your actual expenses to determine if you have excess income.
  2. Monthly budget. When you work with our Clay MO Chapter 13 bankruptcy lawyer, you will be guided on how to do budget projections using your future income and expenses to determine what you can afford to pay. 

Additionally, if you have any changes to your income or expenses while you are in Chapter 13 then you may need to adjust the amount you are paying to the unsecured general non-priority debts.

Any of the unsecured general non-priority debts which are not paid through the plan payments will be discharged at the end of Chapter 13 with a few exceptions. The biggest exception is a student loan as student loans are generally not dischargeable debt unless you can show undue hardship. 

Student loans can be paid like the other unsecured debts or you could choose to pay the regular monthly payment in many circumstances. When you file Chapter 13, your bankruptcy attorney can go over any particular questions you have about any of these debts which will have to be paid or can be discharged. 

Want to learn more? Call our Missouri bankruptcy firm or schedule your free consultation today!

Facing Imminent Foreclosure?

We can help save your home! Even if time is running out, we’ll find a way. Find out how by speaking with our bankruptcy lawyer in Kansas City, Missouri today.

Protection of Property

When you file Chapter 13 you will have to list all of the property you own on the date you file for bankruptcy. 

  • Real estates such as the residences, buildings, vacant lots, or timeshares
  • Vehicles such as your boat, bicycle, or motorcycle
  • Household goods such as furniture and appliances, stereos, computers, cell phones, cameras, antiques, collectibles. Even books, pictures, decorations
  • Equipment for sports, camping equipment, fishing equipment
  • Tools and firearms
  • Accessories such as jewelry
  • Clothing and apparel
  • Financial assets like money in a bank account, stocks, bonds, retirement funds, Pensions, 401(k)’s,
  • Interests in any businesses, corporations, partnerships, security deposits, annuities, education savings accounts, trusts, equitable or future interests
  • Intellectual properties like patents, copyrights, trademarks, trade secrets, licenses, franchises
  • Tax refunds
  • Alimony or child support o
  • Insurance or inheritances

You should list all your items regardless if they are small or seem too low in value. All properties are protected in Chapter 13 because it is not a liquidation form of bankruptcy. Debtors like you are able to do this because you pay the value of any unexempt assets to unsecured creditors during a 5-year Chapter 13 Plan.

In any case, you will not have any unexempt assets and therefore, your assets will be protected without having to compensate unsecured creditors.

If you want to seek financial independence but don’t want to lose any property, Chapter 13 may be right for you! To make sure you are eligible, visit our office in Kansas City, Missouri, or schedule a meet with one of our Chapter 13 bankruptcy attorneys today!

3 Things to Know Before Filing Chapter 13

  1. Your Chapter 13 Plan will last approximately 5 years. It is possible for your plan to be shorter but that does not happen often. What that means is that our Kansas City Chapter 13 bankruptcy attorney will be representing you for the entire time you are in Chapter 13 and our attorneys will be there to guide you through any of the changes you may experience.
  2. Your first Chapter 13 Plan Payment will be due 30 days from the date that you file your Chapter 13 case. You may be filing an emergency filing to stop a foreclosure or repossession and that date will always remain the same. However, many of your changes in life could result in you needing to make changes to your Chapter 13 Plan.
  3. One of the many changes that could occur is that you may need to borrow money to purchase a house or vehicle or obtain any type of loan, for any reason, while in Chapter 13.  Additionally, you may need to sell or purchase property while you are in Chapter 13. All of these are permissible so long as you first obtain permission from the Bankruptcy Court. 

Our experienced Chapter 13 bankruptcy lawyers here in Kansas City, Missouri will help you with any of the changes that you need to make in your Chapter 13.

 

We specialize in bankruptcy.

Roach Bankruptcy Center LLC focuses only on the practice of bankruptcy law and has been in for more than a decade. In other words, we are a debt relief agency, which means that we assist clients in filing for Bankruptcy under Chapter 7 of the United States Bankruptcy Code.

All of our Kansas City, Missouri bankruptcy lawyers assist people or debtors who need to file for Chapter 7 bankruptcy, Chapter 13 bankruptcy, or an emergency chapter 7 bankruptcy filing.

Please call our law office for a free consultation to see whether Chapter 13 is the correct solution for you.

 

Is Chapter 13 Not For You? You may want to take a look at Chapter 7 bankruptcy instead.

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