WICHITA CHAPTER 13 BANKRUPTCY LAWYERS
Chapter 7 bankruptcy is like a life preserver thrown to a person fallen overboard. It is society's recognition that this person will be permanently impoverished without some kind of remedy — a liquidation, a fresh start.
By contrast, Chapter 13 is more like a time-out in a sporting event, a breather that allows people who still have earning capabilities but have fallen behind, to pull themselves together. People in Chapter 13 get to regroup — without the threat of garnishment, harassment, repossession or foreclosure — and to resume paying on a restructured schedule.
Chapter 13 is not a liquidation. Your nonexempt assets cannot be sold at auction. So long as you repay an asset's value to unsecured creditors, you keep everything, including your home — even if you have fallen behind on payments.
Chapter 13 lets you spread out the payment of your debts over a three- to five-year period at an amount your budget can afford. In the short term, it stops efforts by creditors to contact you. Over the longer term, it allows you to get back into the game at a pace you can manage.
Stripping Away A Second Mortgage
If you have a second mortgage, and the appraised value of your home is equal to or less than the total of your current and your remaining first mortgage debt, Chapter 13 bankruptcy will allow you to strip away your second mortgage balance, reducing your total debt.
Our firm has stripped off second mortgages for a number of homeowners in the Wichita area. In a free consultation, a lawyer at our firm can review your situation and discuss the possibility of eliminating your second mortgage.
For more than 30 years, Gragert & Hieberthas been helping individuals and families to get "back in the game." David Hiebert is Wichita's Chapter 13 bankruptcy attorney. He would be pleased to be your attorney, too.