Chapter 7 and Chapter 13 Bankruptcy in Kansas City

If you are facing hard times financially and anyone in your life knows about it, chances are good you have heard all kinds of helpful and not so helpful advice. Everyone thinks they are a financial expert when it comes to someone else's situation. Of course if your brother is an accountant, you may want to listen to him. For everyone else, making the decision to file for bankruptcy is never an easy one. Most people struggle for a while with the idea of finding a bankruptcy attorney and filing bankruptcy under the Kansas City, Missouri bankruptcy laws. It doesn’t help when the terms and plans of bankruptcy are so hard to keep straight. For example Chapter 7 and Chapter 13 bankruptcy plans are the most commonly used. If you don't know what either of those mean, it's pretty hard to make a decision. Here is a brief explanation of the two and how they can impact your financial life.

• description of Chapter 7 bankruptcy
• chapter 13 bankruptcy
• life after bankruptcy

There are different types of bankruptcy in Kansas City, Missouri.  Chapter 7 is one of them.  A Chapter 7 bankruptcy is what most people think of when they think about bankruptcy.  It is a liquidation of all of the debtor's non-exempt assets which could be sold to repay debts.  Most people file chapter 7 without losing any of their property.  It is important to consult with a Kansas City bankruptcy attorney who can help you protect your property.  Chapter 7 results in a discharge, or elimination, of most unsecured debts like credit cards, personal loans, medical bills, or past due utilities.

   

Chapter 13 bankruptcies under the Kansas City, Missouri bankruptcy laws are a bit different. This type of bankruptcy is a reorganization of your debts. Think of it sort of like a consolidation. During the bankruptcy, your income, your debts, and your monthly expenses are calculated together to come up with an affordable monthly payment.  Without the hassles of phone calls, you send your payments to the court appointed trustee who then sends it along to your creditors.  Once the plan of reorganization is complete, typically after 36-60 months, you will receive bankruptcy discharge papers in the mail and you are free and clear, even if your reorganization plan didn’t pay your creditors in full.  Of course there are exceptions, but a Kansas City bankruptcy attorney can provide more information specific to your particular situation.

It takes life after bankruptcy a little while to get back to normal, but most people who go through the Kansas City, Missouri bankruptcy process are ultimately glad they did. In reality bankruptcy is a personal decision that only you can make, but it is certainly a process that should be seriously considered if you are having problems meeting your obligations.