Kansas City Lawyer
 
Kansas City chapter 13 bankruptcy attorney  
Law Offices of
Mark A. Wortman
9229 Ward Parkway
Suite 255
Kansas City
Missouri 64114
Tel (816) 523-6100
Fax (816) 523-6106
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Kansas City Chapter 13 Bankruptcy Lawyer

Mark A. Wortman is an experienced chapter 13 Kansas City Bankruptcy Lawyer practicing in Missouri and Kansas. Our law firm handles Business and Individual Chapter 7 cases as well as Consumer Chapter 13 reorganization cases in the Western District of Missouri and the District of Kansas. Below we have provided some general information about Chapter 13 bankruptcy proceedings that is applicable to cases filed in Missouri or Kansas. Also review more information on Kansas City Chapter 13 Bankruptcy Lawyer website.

WE ARE A KANSAS CITY DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE

Kansas City Chapter 13 Bankruptcy

A bankruptcy filed under chapter 13 of the bankruptcy code is sometimes referred to as the “wage earner bankruptcy”, “debt reorganization”, or “repayment plan”, and is only available to individuals. Under this type of bankruptcy, the debtor(s) will pay back all or some of their debts over a period of three to five years. This is different than a Chapter 7 bankruptcy where the debtor is “liquidating” all of their non-exempt property in exchange for a complete discharge of the debts. A chapter 13 bankruptcy still provides the “automatic stay” protection of the bankruptcy code, but allows individuals who do not qualify for or do not desire to file a Chapter 7 to still file bankruptcy. Although monthly payments are required, Chapter 13 will allow individuals to file bankruptcy even though their incomes are above the state median, they fail the means test, or they have already received a recent Chapter 7 discharge. Chapter 13 can also allow individuals who would lose property in a Chapter 7 to keep their property, it can be used to set up a “payment plan” for priority debts such as taxes and domestic support obligations, it can eliminate negative equity on secured property, and it can discharge some debts that cannot be discharged in Chapter 7. Chapter 13 is also available to the debtor who wishes to pay off all or some of their debt, but just cannot get ahead of staggering interest rates on debts they owe. The choice between Chapter 7 and Chapter 13 is an important decision, and anyone contemplating filing for bankruptcy should not do so without a qualified Chapter 7 and Chapter 13 bankruptcy attorney.

The amount of the monthly Chapter 13 payment is based on several factors including debtor’s income and expenses, amount of domestic support obligations owed, amount of secured debt, amount of tax debt, value of non-exempt property, total debts owed, the Chapter 13 means test, and other factors.

Once the case is filed, a chapter 13 debtor comes under the immediate protection of the court from their creditors, called the “automatic stay”, and a “trustee” is assigned to administer the case. The trustee is an individual charged with representing a debtor’s “bankruptcy estate”, as well as receiving monthly payments from the debtor and making payments to creditors in accordance with the plan. The trustee’s job is also to conduct an examination of the debtor, under oath, regarding the contents of the petition, related schedules, and Chapter 13 plan. These hearings are called “341” hearings or “creditor’s meetings”, but in most cases creditors do not actually show up at these hearings. The court will assign the case to a 341 hearing usually between 20 and 30 days after the case is filed. In the Western District of Missouri and the District of Kansas, these meetings are not judicial proceedings, and they are generally informal in nature. The Chapter 13 bankruptcy attorney will accompany the debtors to the meeting, and will negotiate the Chapter 13 plan and monthly payment with the trustee on behalf of the debtors.

Once the plan is calculated and approved by Court, creditors will receive a percentage of the money they are owed from the trustee, and at the conclusion of the plan, the debtor will receive a discharge of their remaining debts, just as a Chapter 7 debtor would. In a nutshell, the Chapter 13 debtor is paying what they can afford to pay according to the law, and the unpaid amount is discharged if the plan is completed. However, Chapter 13 will not discharge the following debts:

  • Certain tax debts
  • Money, property or services obtained by false pretenses or fraud
  • Debts not listed in the bankruptcy
  • Domestic support obligations, including alimony, child support, and property divisions
  • Willful and malicious injury caused by the debtor
  • Educational and student loans, either private or governmental
  • Death or injury caused by debtor’s operation of a vehicle if drugs or alcohol were involved
  • Certain other specific debts

Contact Mark A. Wortman, an experienced Kansas City Bankruptcy Lawyer practicing in Missouri and Kansas. Our Kansas City bankruptcy law firm handles Business and Individual Chapter 7 cases as well as Consumer Chapter 13 reorganization cases in the Western District of Missouri and the District of Kansas.

 

Related Topics:
Chapter 7 Bankruptcy
Chapter 7 Means Test
Chapter 13 Bankruptcy
Chapter 13 Plan & Plan Payment
Bankruptcy Exemptions

 

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