Chapter 7 Bankruptcy While Behind On House Payments

Many people ask if they can file a Chapter 7 bankruptcy in Kansas City when they are not current on their house payments.  The answer is yes, but you may not want to if you are trying to stay in your home.  If you cannot catch up quickly on your house payments, a Chapter 7 bankruptcy in Kansas City will not protect you from foreclosure.

The automatic stay prevents creditors from taking any more action against you but it does not extend after your bankruptcy is completed.  I suggest being current on your house payments when filing a Chapter 7 bankruptcy.  Chapter 7 bankruptcy is more designed for individuals with unsecured debt. 

Chapter 13 bankruptcy in Kansas City may be a better option for you if you have a lot of secured debt.  For example, if you are behind on your house payments, Chapter 13 allows you to catch up on your house payments over a 3 to 5 year period through your Chapter 13 repayment plan.   For more information please visit my website at http://www.thesmalleylawfirm.com or call me at (913) 601-3549 for a free consultation.