Reorganization Bankruptcy Attorneys

File Chapter 13 Bankruptcy

Chapter 13 Bankruptcy Lawyer in Kansas City

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.

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.

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.

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

kansas city bankruptcy attorney

Filing Bankruptcy? Saving
Your Home? We Can Help!

What do you need help with?

kansas city bankruptcy attorney

Need Help Filing Bankruptcy in Missouri?

We help stop foreclosures, repossession, garnishments, and lawsuits!
Ask our bankruptcy attorney!

Please be aware that submission of this no-obligation form does not establish an attorney-client relationship. By filling out the form, you agree to receiving emails from our firm regarding your case evaluation and other helpful resources. 

What debt problems are you having?