Kansas consumers review the terms of bankruptcy cases to identify the advantages. These claims could help them avoid several adverse legal actions, including foreclosure. With Chapter 13 in Topeka, KS, they acquire benefits such as an extended automatic stay. This feature prevents their lender from taking their primary home.
Choosing an Effective Plan
An attorney generates an effective plan to repay the consumer’s creditors. The plan divides a monthly payment between these creditors to enable the consumer to pay them off before the end of the case. The plans available for Chapter 13 range between three and five years. The duration of the plan affects the payment and how it is divided.
What Debts Could the Court Discharge?
Typically, the judge discharges debts that were settled via alternative means. For example, a charged-off credit card account is paid off through an insurance claim. The creditor could also sell the account to a collection agency to secure the total value owed. These accounts are discharged since the creditor collected the total balance.
Federal student loans aren’t charged off through bankruptcy. The consumer may include them in the claim to reduce their payments. However, the court won’t end their obligation to their lender.
Rules for Disposable Income
All disposable income must be applied to any debt that wasn’t included in the case. The court identifies this income based on all known monthly expenses. This value must be used as directed by the court. Any deviation from this requirement could lead to a discharge of the case.
Exemptions for Certain Properties
Certain properties acquire exempted values. These values are returned to the consumer according to the guidelines of the case. The most common exemptions are the primary home, the vehicle used to travel to work, and select personal belongings.
Kansas consumers assess the details related to bankruptcy to determine if it is the most appropriate choice. These cases could help consumers maintain their home and automobile without legal action against them. For some consumers, this could be the difference they need to avoid homelessness. Consumers who need to evaluate Chapter 13 in Topeka, KS, should click here for more details.