Bankruptcy Attorney in Lee’s Summit Helps Families
Even if you have always managed your money carefully, financial disaster can strike without warning. A job loss, natural disaster or unexpected medical expenses can quickly overwhelm your ability to pay. Some people get into financial hot water because of high-interest credit card debt, a bad auto loan or overdue taxes. The coronavirus pandemic has shown us how close many people are to being in real financial hardship by missing even a paycheck or two. With millions losing their jobs, many have struggled to pay rent and feed their families, much less maintain payments on other kinds of debt. If you need a bankruptcy attorney in Lee’s Summit, the Gedbaw Law Firm is ready to help.
Many people have been through this situation. You are sitting at work and your cell phone rings. Seeing the number, your heart sinks. Another collector on the phone! You get home after a long day and walk right past the mailbox, unable to face the stress. When you finally collect your mail, the words PAST DUE on so many of your bills make you feel like a failure. One advantage of filing for bankruptcy is that it stops all of that. Once you file, all communications with creditors will be handled by your bankruptcy attorney in Lee’s Summit.
There are two types of bankruptcy. Under Chapter 7 bankruptcy, you are able to completely discharge debts. However in 2005, Congress added a means test to determine whether someone is eligible for Chapter 7 or must file bankruptcy under Chapter 13, sometimes referred to as “reorganization bankruptcy” or a “wage earner’s plan.” With this type, debts will be repaid under a court-ordered plan, which is in force for a specific time period, usually at lower payment amounts and interest rates. This plan is binding on your creditors, who cannot hassle you to pay more, pay sooner, or even talk to you about your debt.
A lot of people hold the erroneous belief that filing for bankruptcy will cause them to lose everything they’ve worked for. This is simply untrue. Under Chapter 13 bankruptcy, your assets can be protected from loss. You can keep your home, your car, and most other property. You will simply pay for them over a set period of time as determined by the court. An experienced bankruptcy attorney in Lee’s Summit, like Jeff Gedbaw, can help you determine what assets can legally be protected.