What is Bankruptcy?

If you find yourself facing mounting financial challenges and it feels as though you will never be able to get on top of your current financial situation, you may need to consult with an experienced Kansas City bankruptcy attorney. Getting the help you need from a knowledgeable bankruptcy attorney now can help to assist you with learning about your next steps. You do not have to continue on in the cycle of being frustrated and overwhelmed.

Our office is pleased to provide clients with dedicated and high-quality legal services, including assistance with bankruptcy proceedings. It is natural for you to wonder about the implications of filing for bankruptcy. There are many benefits to filing for Chapter 7 or Chapter 13 bankruptcy that you could be eligible for depending on the kind of relief that you seek. For example, you may be eligible to have all phone calls and bill collections immediately discontinued and immediately stop interest charges on credit cards.

Who Should Consider Bankruptcy?

Bankruptcy is recommended for individuals who have a serious financial situation and are struggling to see the way out. Whether or not you have already attempted to get on top of the issues yourself by making payments or engaging with a debt solution company, it may be the case that you are in over your head and require help from an experienced lawyer.

If you find yourself in this situation, it’s wise to engage with an attorney who has years of experience in the field so that you can get prompt and accurate responses to your questions. Read on to learn more about the different types of bankruptcy. Bankruptcy may give you the fresh start that you need to move forward.

Furthermore, you may be eligible to reduce car and mortgage payments, and the bankruptcy process can also assist you with an orderly form of repayment on your debt, depending on what you pursue. Consulting with an attorney is strongly recommended as there are many different unique facets of the law. 

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Chapter 7 Bankruptcy

Chapter 7 bankruptcy may also be referred to as liquidation, and it is the most common type of bankruptcy filing. This accounts for almost two-thirds of all consumer bankruptcy filings in the United States and leads to a discharge of any unsecured debt such as medical bills, utility bills, personal loans and credit cards. You may be able to keep your home and your car so long as you do not have too much equity in those items. 

A Chapter 7 bankruptcy is different from other kinds of filings because you do not have to make a monthly payment to a trustee. A Chapter 7 bankruptcy could be appropriate for you if you meet the following circumstances:

  • You do not have significant liquid assets.
  • You have a modest or moderate income.
  • You have no or little money left over after paying for your basic living expenses.
  • You have mostly unsecured consumer debts.
  • You have limited equity in your home or you are a renter.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy allows individuals to keep their property while making monthly payments to creditors based out of their future income. This is also known as a repayment plan, and it has to be approved by the court. Most unsecured debt is discharged and any payments made on arrearages such as car loans, mortgages, or tax debts will receive payments. At the end of the plan, you will get an official discharge from the bankruptcy court.

Chapter 13 is ideal for any individual who is behind on their secure payments and is unable to bring his account currents without filing for bankruptcy. Consult with a knowledgeable lawyer if you find yourself in this position is strongly recommended.

If you have more questions about bankruptcy or need some help determining the right path for you, please reach out to our Kansas City bankruptcy offices to discuss your options in further detail. This could be an important first step towards a better financial future for you.


Kansas City Bankruptcy Lawyers

The lawyers at Patton & Knipp take their clients’ needs seriously when it comes to evaluating bankruptcy options and moving forward with an official petition. Contact our offices today to get help with your situation.