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What is a Chapter 13 Bankruptcy?
(816) 628-4900
Attorney at Law
Richard J. Herndon
Kansas City Northland Bankruptcy Lawyer
The Law Offices of Richard J. Herndon
455 Sam Barr Drive - Suite 207
P. O. Box 617
Kearney, Missouri 64060
816-628-4900
800-494-2218
Rick@MoBankruptcy.info
455 Sam Barr Drive - Suite 207
P. O. Box 617
Kearney, Missouri 64060
816-628-4900
800-494-2218
Rick@MoBankruptcy.info
Copyright © 2010 by Richard J. Herndon, Attorney at Law - all rights reserved
THE CHOICE OF A LAWYER IS AN IMPORTANT DECISION AND SHOULD NOT BE
BASED SOLELY UPON ADVERTISEMENTS
WE ARE A DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE
WE ARE A DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE
We serve clients from throughout the Kansas City, Missouri Metropolitan area. This includes Kearney,
Liberty, Excelsior Springs, Gladstone, Smithville, Platte City, Holt, Lathrop, Lawson, and Plattsburg, and
also St. Joseph, and within the counties of Clay, Platte, Clinton, Jackson, Ray and many others.
A Chapter 13 Bankruptcy case is a proceeding under federal
law in which the debtor seeks relief under Chapter 13 of the
Bankruptcy Code. Chapter 13 is the Chapter of the
Bankruptcy Code which allows a person to repay all or a
portion of his or her debts under the supervision and
protection of the Bankruptcy court. The Bankruptcy Code is
the federal law that deals with Bankruptcy. A person who files
a Chapter 13 case is called a debtor. In a Chapter 13 case,
the debtor must submit to the court a plan for the repayment
of all or a portion of his or her debts. The plan must be
approved by the court to become effective. If the court
approves the debtor's plan, most creditors will be prohibited
from collecting their claims from the debtor. The debtor must
make regular payments to a person called the Chapter 13
trustee, who collects le money paid by the debtor and
disburses it to creditors in the manner called for in the plan.
Upon completion of the payments called for in the plan, the
debtor is released from liability for the remainder of his or her
dischargeable debts.
The basic difference between a Chapter 7 case and a Chapter 13 case is that in
a Chapter 7 case the debtor's nonexempt property (if any exists) is liquidated to
pay as much as possible of the debtor's debts, while in Chapter 13 cases
portion of the debtor's future income is used to pay as much, of the debtor's
debts as is feasible under the debtor's circumstances. As a practical matter, in a
Chapter 7 case the debtor loses all or most of his or her nonexempt property d
receives a Chapter 7 discharge, which releases the debtor from liability for most
debts. In a Chapter 13 case, the debtor usually retains his or her nonexempt
property, but must pay off as much of his or her debts as the court deems
feasible and receives a Chapter 13 discharge, which is slightly broader than a
Chapter 7 discharge and releases the debtor from liability for a few types of
debts that are not dischargeable under Chapter 7. However, a Chapter 13 case
normally is much longer than a Chapter 7 case and is usually more expensive for
the debtor.
Chapter 13 is usually preferable for a person who (1) wishes to repay all or most of his or her unsecured debts and has the income with which to do so within a reasonable time, (2) has valuable nonexempt property or has valuable nonexempt property securing debts, either of which would be lost in a Chapter 7 case, (3) is not eligible under means testing maintain a Chapter 7 case, (4) is not eligible for a Chapter 7 discharge, (5) has one or more substantial debts that are chargeable under Chapter 13 but not under Chapter 7, or (6) has sufficient assets with which to repay most of his or her debts, but needs temporary relief from creditors in order to do so.
Chapter 13 is usually preferable for a person who (1) wishes to repay all or most of his or her unsecured debts and has the income with which to do so within a reasonable time, (2) has valuable nonexempt property or has valuable nonexempt property securing debts, either of which would be lost in a Chapter 7 case, (3) is not eligible under means testing maintain a Chapter 7 case, (4) is not eligible for a Chapter 7 discharge, (5) has one or more substantial debts that are chargeable under Chapter 13 but not under Chapter 7, or (6) has sufficient assets with which to repay most of his or her debts, but needs temporary relief from creditors in order to do so.