Why Consider Filing for Chapter 13 in Topeka KS?

by | Jun 19, 2014 | Lawyers

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5928572_lAfter bankruptcy reform legislation went into effect after October of 2005, it became much more difficult for consumers to file for chapter 7 bankruptcy. In particular, there are strict income limits that cannot be exceeded in order to qualify for chapter 7 bankruptcy. Unfortunately, many people in Topeka face financial difficulty despite higher income. With high income, the only other option available within bankruptcy law is Chapter 13 in Topeka KS. Many have heard that it can take years for chapter 13 bankruptcy to result in the elimination of debt. Although this is true, chapter 13 does provide immediate debt relief from creditors.


Unlike chapter 7 bankruptcy, consumers who file for Chapter 13 in Topeka KS have to complete a repayment plan that lasts from three to five years. All payments have to be made. At the conclusion of the repayment plan, any remaining balances on bankruptcy eligible debt will be discharged. Many consumers wonder how the chapter 13 repayment plan differs from doing nothing. With the repayment plan under chapter 13 bankruptcy, the monthly payments have to be affordable. The consumer won’t be able to live a life of luxury. However, it will be possible to make all debt payments while retaining enough income to pay for basic living expenses. With the smaller payments in the repayment plan, it is unlikely that the debt will be paid in full. Most loans will probably have a substantial balance after three to five years, which will go away upon conclusion of the chapter 13 filing.


It can be very difficult for consumers to decide if chapter 13 is the right decision. Filing for bankruptcy will result in a bad credit history. However, many consumers find that they are able to get loans and credit cards within four years after the bankruptcy has been discharged. On the other hand, the credit history of someone who tries to deal with massive debt without bankruptcy won’t be very good either. Having no late payments does not equal good credit. Being overextended on credit can cause credit scores to go down significantly. Those who are considering chapter 13 bankruptcy should contact an experienced bankruptcy attorney or Click to find more info.

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