Wichita Chapter 13 Bankruptcy Attorney

Do you need relief from creditors in Kansas?

Bankruptcy Chapter 13 is for private individuals and families who need relief from creditors.

You may be:

• Facing foreclosure on your house
• Garnishment of your wages
• Or seizure of your bank accounts

You have a regular income and would like to pay your debts but need some help. With Chapter 13 bankruptcy, you get that help.

Upon filing your Chapter 13, you get a Bankruptcy Court stay against creditor actions. You work out a repayment plan to pay off your debts over a three to five year period while keeping your property.

Chapter 13, however, is complex and calls for the guidance of an experienced Chapter 13 bankruptcy attorney. If you are in Kansas, contact a Wichita chapter 13 bankruptcy lawyer.

Struggling with Debt? Get Relief Today!
Take control of your finances with Chapter 13 bankruptcy. Contact us at (316) 613-0952 for a free consultation and explore your options.

What Are the Benefits of Chapter 13 Bankruptcy?

How Chapter 13 Bankruptcy Works

As with any bankruptcy case, Chapter 13 bankruptcy begins when the debtor files his or her petition with the bankruptcy court.

Filing the petition places an automatic stay on all debt collection activity against the debtor, including:

• Foreclosure
• Creditor contact of any kind
• Repossession
• Wage garnishment
• Liens and levies

At the time of filing the Chapter 13 petition, the debtor must also file a detailed schedule of all assets, liabilities, income and expenses as well as provide proof that he or has received credit counseling from an accredited agency. The debtor must also file a proposed repayment plan with the court within 15 days of filing the petition.

This plan will be based upon the debtor’s disposable income, which is calculated by subtracting necessary expenses from the debtor’s income. The plan will last 3 to 5 years and may pay off only a portion of the debt owed, depending on the length of the plan and the payment amount.

A meeting of creditors will be held approximately 20 to 50 days after the filing of the Chapter 13 petition. The bankruptcy trustee will hold this meeting, and the debtor will be placed under oath to answer questions about his or her debt, assets and financial situation. Unsecured creditors may have the option to file a claim with the court within 90 days of the meeting of creditors.

Within 45 days of the meeting of creditors, a second hearing will be held by a bankruptcy judge regarding the debtor’s Chapter 13 repayment plan. This hearing will be held to confirm the plan. Whether the repayment plan is approved or not, the debtor must start making payments to the bankruptcy trustee within 30 days of filing the Chapter 13 petition.

Upon the successful completion of the repayment plan, the bankruptcy court will effectively discharge any remaining eligible debt, thus releasing the debtor from any and all liability for this debt.

Life after Chapter 13 bankruptcy

Many of you might be wondering - is chapter 13 worth it? What does life after chapter 13 bankruptcy look like?

Going through Chapter 13 bankruptcy can leave you with a lot of questions regarding what to expect after filing. We will quickly go over how you can take back control of your life after filing.

The easiest ways to gain back control of your life would be to:

• Pay Your Bills: You want to be able to stay on top of all of your payments post-bankruptcy so that your record can stay clean.
• Maintain a Steady Job: This shows creditors that you are a reliable person and can help you secure an apartment for you to live in.
• Keeping a Bank Balance: Many banks have a second-chance program that will allow you to prove to employers and creditors that you can keep a reliable flow of income.
• Starting to Rebuild Your Credit: You will need to obtain a credit card to build back up what you recently tore down. Getting a plan sorted out to rebuild your credit will prove extremely valuable at this point in your journey.

Alternatives to Chapter 13 Bankruptcy

If you're struggling with debt but unsure if Chapter 13 bankruptcy is the right choice, consider these alternatives:

• Debt Consolidation vs. Chapter 13
  Debt consolidation involves taking out a loan to pay off multiple debts, leaving you with a single monthly payment—often at a lower interest rate. This option works best for those with good credit but may not be ideal for those with overwhelming debt.
• Negotiating Directly with Creditors
  Some creditors may be open to reducing your interest rates, extending your repayment terms, or even settling for a lump sum payment that is lower than what you owe. This can help you avoid the long-term impact of bankruptcy.
• Credit Counseling and Debt Management Plans
  A credit counseling agency can assess your financial situation and help create a debt management plan. This allows you to make one affordable monthly payment to the agency, which then distributes funds to your creditors.
• Chapter 7 vs. Chapter 13: Which Is Better for Your Situation?
  • Chapter 7 is a quicker process (typically lasting 3-6 months) that eliminates most unsecured debts, but it may require selling non-exempt assets.
  • Chapter 13 allows you to keep your assets and repay debts over 3-5 years, making it a better option for those with a steady income.

How Chapter 13 Affects Your Assets

• Can You Keep Your Home and Car During Bankruptcy?
  Yes, Chapter 13 allows you to keep your home and vehicle as long as you stay current on payments and include any past-due amounts in your repayment plan.
• What Happens to Your Retirement Accounts and Savings?
  Most retirement accounts, including 401(k)s and IRAs, are protected during bankruptcy. However, any large withdrawals before filing could impact your case.
• How Bankruptcy Impacts Investment Properties
  Rental properties may be at risk if they are not considered necessary for your financial well-being. You may need to continue making payments or sell the property as part of your repayment plan.

Modifying or Dismissing a Chapter 13 Plan

• What Happens if You Can’t Make Your Payments?
  If you experience financial hardship, you may be able to modify your repayment plan to lower your payments or extend the repayment period.
• Requesting a Modification of Your Repayment Plan
  You can request a plan modification by demonstrating a significant change in your financial situation, such as job loss, medical expenses, or unexpected costs.
• Consequences of Failing to Complete Chapter 13 Bankruptcy
  If you fail to complete your repayment plan, your bankruptcy case may be dismissed, and creditors can resume collection efforts, including foreclosure and wage garnishment.

How Long Does Chapter 13 Bankruptcy Last?

Most Chapter 13 bankruptcies last three to five years and a Chapter 13 bankruptcy will typically be removed from your credit report after seven years.

If you need any help getting your life back on track after filing for Chapter 13 bankruptcy, you can reach out to our attorneys to get a better understanding of what steps to take. We know times like this are challenging, so we are here to help.

Frequently Asked Questions (FAQ) About Chapter 13 Bankruptcy

How does filing for Chapter 13 affect my credit score?

• Filing for Chapter 13 bankruptcy will negatively impact your credit score, but it can also help you rebuild credit over time by demonstrating consistent repayment. The bankruptcy will stay on your credit report for seven years.

Will my employer find out if I file for Chapter 13 bankruptcy?

• In most cases, your employer will not be notified unless your wages are being garnished and need to be adjusted due to the bankruptcy filing.

Can I buy a house or car while in Chapter 13 bankruptcy?

• It is possible, but you will need court approval before taking on new debt. Lenders may also have stricter requirements for financing during an active bankruptcy case.

What debts are not included in Chapter 13 bankruptcy?

• Certain debts cannot be discharged through Chapter 13, including student loans, child support, alimony, and most tax debts. However, Chapter 13 can help you manage payments on these obligations.

Will I lose my tax refund while in Chapter 13 bankruptcy?

• Depending on your repayment plan and the court’s ruling, your tax refund may be used to pay creditors. Some courts allow debtors to keep their refunds for necessary expenses.

Can I include medical bills in my Chapter 13 repayment plan?

• Yes, medical bills are considered unsecured debt and can be included in your repayment plan.

What happens if I get a raise or a new job during my Chapter 13 plan?

• If your income increases significantly, you may be required to contribute more to your repayment plan. However, small raises or cost-of-living adjustments may not affect your payments.

Meet with an Experienced Chapter 13 Bankruptcy Attorney In Kansas

The Kansas Bankruptcy Center has successfully helped people all over the state of Kansas. We are intimately familiar with workings of Chapter 13 bankruptcy and available to help you.

You do not have to come to our office. It is only required that you attend a meeting of creditors in Wichita a month after the filing. We invite you to contact us. We will go over your debt situation and help you through this stressful time.