Chapter 13 Bankruptcy

Helping You to Keep Your Assets Through Chapter 13

The most common way debtors get involved in Chapter 13 is because the debtor has income above the median income level for the State of Missouri. There are also no extraordinary expenses to lower their funds available for unsecured creditors.

The other way to get into a Chapter 13 is when you own a non-exempt asset (usually too much equity in your home – Missouri law only allows you $15,000 as exempt).

If you have a non-exempt asset and want to keep it through bankruptcy, you can buy back your own asset from the bankruptcy trustee. To learn more, call David W. Lloyd, P.C. at (660) 747-3004.

How Long Does Chapter 13 Last?

Chapter 13 bankruptcy can last from three to five years on a payment plan. If your income exceeds the median income, your plan must go for five years. Plan payments are usually not as bad as you might imagine.

If you have a car financed, you have to pay it through the plan (with few exceptions). If you have an arrearage on your home mortgage payments, you have to pay that through the plan to keep your house. The bankruptcy usually requires you to pay your house payment through the plan payment.

Chapter 13 ends up looking somewhat like a debt consolidation loan that gets paid off within five years. You will have to pay for your secured loans if you are keeping the collateral and usually pay something towards the unsecured creditors.