Kansas Chapter 13 Bankruptcy Attorneys

Filing for Chapter 13 Bankruptcy in Kansas

For those dealing with significant debts who wish to retain their assets, properties, and possession, Chapter 13 bankruptcy may be a viable solution. Chapter 13 is a type of bankruptcy that is frequently referred to as “reorganization” bankruptcy, as it involves the restructuring of debts to allow for manageable monthly payments.

Chapter 13 is a powerful option that allows you to settle your debts by paying back only what you can afford. With Chapter 13, all of your debts can be put into your consolidation. Additionally, the judge can wipe out a large amount of your debt entirely.

Before filing for any type of bankruptcy, it is strongly recommended that you discuss your legal options with an experienced debt relief professional. At Watton Law Group, our Kansas Chapter 13 bankruptcy attorneys can discuss this type of bankruptcy in detail during a free, no-obligation consultation. We strive to help our clients fully understand their options so that they can make the best decisions regarding their finances and their future.

Contact us online or call (816) 750-2388 to set up a free in-person or phone appointment with a member of our team today.

Chapter 13 vs. Chapter 7 Bankruptcy

When most people think of filing for bankruptcy, they imagine “liquidation” bankruptcy in which most—if not all—debts are eliminated in exchange for the sale or repossession of certain properties and assets.

In a Chapter 13 bankruptcy, your debts are not automatically discharged. Instead, you work with the court to establish a feasible plan for repaying your debts. You may file for Chapter 13 bankruptcy if you have a reliable income that is sufficient for paying your debts.

Who Benefits from Filing for Chapter 13 Bankruptcy?

Chapter 13 bankruptcy can be beneficial for certain individuals who are struggling with considerable debt, but who do not wish to lose valuable property and/or assets. As such, Chapter 13 bankruptcies tend to be most beneficial for individuals with valuable assets and properties. Often, these individuals do not qualify for Chapter 7 bankruptcy, meaning they must file for Chapter 13 bankruptcy in order to keep up with payments, pay past-due payments, stop foreclosure on their homes, and avoid other negative debt collection activities.

However, Chapter 13 is not for everyone. In fact, not everyone will qualify for this type of bankruptcy.

To be eligible to file for Chapter 13 bankruptcy, you must have:

• Less than the maximum allowable limit in secured and/or unsecured debts
• Sufficient income to make monthly payments on your debts
• Proof of the past four years’ worth of state and/or federal income taxes

You may also only file for Chapter 13 bankruptcy as an individual; this option is not available to business entities. However, because personal business-related debts generally fall under Chapter 13 bankruptcy, this option may be not only available but also advantageous to sole proprietorships.

Additionally, Chapter 13 bankruptcy requirements include mandatory credit counseling from an approved agency. You must undergo credit counseling within 180 days before filing for Chapter 13 bankruptcy (with some rare exceptions).