Chapter 13 Bankruptcy Lawyer in Topeka 

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If you are finding it harder and harder to repay your debt, consider speaking with us about filing for Chapter 13 bankruptcy. No matter which type of bankruptcy you opt for, filing for bankruptcy will put an immediate stop to credit collection actions – making it illegal for creditors and collection agencies to demand payment from you.

Garrett Law LLC has helped hundreds of families just like you. Many of our clients come from middle and working-class families with modest lifestyles, including subcontractors or small business owners. Allow us to help you take control of your finances again.

Understanding the Chapter 13 Bankruptcy Process

Filing for Chapter 13 can be a challenging and emotionally draining procedure, but it can also lead to financial stability and relief from insurmountable debt. Garrett Law LLC's expert Topeka bankruptcy lawyers will walk you through every stage of the Chapter 13 bankruptcy process, ensuring that you thoroughly comprehend your rights and options.

Key aspects of the Chapter 13 bankruptcy process include:

• Creating a repayment plan to reorganize and manage your debts
• Protection from creditor harassment and collection actions
• Retaining ownership of your assets while repaying creditors
• Working with a court-appointed trustee to oversee the repayment plan
• Potential for debt discharge at the end of the repayment period

Our supportive legal team will work steadfastly to guide you through the Chapter 13 process and help you get a fresh start financially. Make contact with Garrett Law LLC right away to learn greater detail about how Chapter 13 bankruptcy may allow you to take control of your money.

How Can Chapter 13 Bankruptcy Help Me?

With no upfront payments required, Chapter 13 bankruptcy reorganizes your debt by creating reasonable repayment plans and allowing you to keep most of your property. With this option, you may also be able to negotiate reduced monthly payments.

A Chapter 13 bankruptcy payment plan must be reviewed, approved, and overseen by a bankruptcy court before it is settled. Our Topeka Chapter 13 bankruptcy attorney can help you find a manageable solution and a favorable payment plan.

Who is Eligible to File for Chapter 13 Bankruptcy?

To be eligible for Chapter 13 bankruptcy, there are certain criteria that must be met. 

• Regular Income: You must have a regular source of income, such as employment or business income, to demonstrate your ability to make the required monthly payments under the repayment plan.
• Debt Amount Limitations: There are limitations on the amount of debt you can have to qualify for Chapter 13 bankruptcy. It is recommended to consult with an attorney or legal resource for the most up-to-date information on debt limits.
• Proof of Tax Filings: You will need to provide proof of filing state and federal income tax returns for the previous four years as part of the Chapter 13 requirements.

Keeping Your Car After Filing for Chapter 13

In Kansas, a person filing for bankruptcy can keep one vehicle for daily use. The vehicle is “exempt property.” If a couple files for bankruptcy, they can each keep a vehicle.

However, a loan on a vehicle is a secured debt. Normally, if you owe money and do not make the payments, the creditor can repossess the vehicle. However, when you file for bankruptcy, the automatic stay prevents the creditor from possessing, even if you are behind. We commonly file cases within a few business days in order to beat the repo man.

When you file for Chapter 13, you can change the terms of your vehicle loan. The Chapter 13 plan changes the interest rate on the note to the “Till” or “discount” rate. The Court assigns this standard rate to all secured claims in Chapter 13. This is usually (but not always) lower than your loan agreement.

In addition, if you purchase the vehicle more than 910 days before filing, or if the debt is a payday or title loan, you may be able to pay the value of the car, rather than the balance of the contract.

For instance, if you owe $9,500 on your 2006 Kia Sedona, and are paying at 18%, the Plan can amend the contract to pay the $4,600 the vehicle is worth, at 4.75%. This “cram down”, combined with the interest rate deduction, can greatly benefit your budget, lower your payments, and put money in your pocket from the outset.