Bankruptcy is a legal proceeding where an individual who cannot pay their bills gets a fresh start. The right to file bankruptcy is provided by the federal law and is handled in federal court. Filing bankruptcy immediately stops creditors from seeking to collect debt until the individual’s debts are sorted out. A bankruptcy attorney helps individuals to first decide whether they’re eligible for bankruptcy filing. With a limited free consultation regarding individual or consumer bankruptcy, a bankruptcy attorney can help you start to decide whether or not you should file. Understanding national bankruptcy law makes us well informed and able to help individuals like you seeking financial freedom.
When is it a Good Idea to File for Bankruptcy with a Bankruptcy Attorney?
Individuals that are constantly contacted by creditors, unable to make payments even though they work hard to, or are uncomfortable with their debt would benefit from filing for bankruptcy in Kansas or Missouri. Before filing for any type of bankruptcy, the law requires individuals to take a credit counseling class. In order to receive a discharge of one’s bankruptcy, they must take another class for debt and financial management.
What is Chapter 7 Bankruptcy?
Known as liquidation or straight bankruptcy, Chapter 7 bankruptcy may require a debtor to give up property which exceeds exemption limits so that it can be sold to pay creditors back. In order to discharge debts the debtor may be required to give up property except for exempt property that the law allows them to keep. If you want to keep all of your property, whether exempt or not, then Chapter 7 bankruptcy may not work for you. Generally, in order to qualify for Chapter 7, an individual must make a monthly income that is less than the median income for a family of your size in Kansas or pass a means test.
What is Chapter 11 Bankruptcy?
This type of bankruptcy is known as reorganization and is used by businesses and some individuals with very large debt. Chapter 11 bankruptcy allows a business to restructure its debt and to reorganize how it is operated. It helps to provide short-term relief from debt payments, to restructure debt, to change repayment terms, or to shut down a business and transfer its assets to another business entity, just to name a few reasons. It helps individuals with a sole proprietorship business who need to reorganize their business, those with large asset bases, those who need to liquidate, or individuals who aren’t eligible for either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy due to a high income and large levels of debt.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is known as debt repayment or adjustment. It requires the individual to file a plan to pay debts from their current income. The individual must show how they will pay some or all of their past due or current debt in the next three to five years. This may allow individuals to keep some valuable property if they make their payments on time and in the required amounts. With this type of bankruptcy in Kansas, you will need to have enough income to pay your required payments as well as your daily necessities.
Contact a Bankruptcy Lawyer in Kansas for Expert Advice
Whether individual, business, or consumer bankruptcy, a bankruptcy attorney in Kansas or Missouri can help advise clients on which type of bankruptcy benefits them the most. They have the skills and experience needed to successfully help any individual to complete bankruptcy requirements. A limited free debt consultation from one of our bankruptcy attorneys is just a phone call away. Call 913-962-8700 today!