Bankruptcy in Kansas City, KS

Are you contemplating bankruptcy or hiring a bankruptcy attorney in Kansas City, Kansas? Are you tired of creditors calling for payments you can’t make? Maybe looking for a way to get out of debt and have you exhausted all other options? Then bankruptcy might be the solution you seek. It is a legal option that can erase a portion or all of your debts.

Types of Bankruptcy in Kansas City, Kansas

Bankruptcy is a legal process that helps individuals and businesses get a fresh financial start. It eliminates a portion of or all of their debts or financial liabilities. In Kansas City, KS, individuals must prove they have a hardship that prevents them from meeting their financial obligations. Keep in mind that not all debts qualify. Some liabilities, such as child support arrears, delinquent taxes, alimony, and student loans do not qualify. Consumers who find themselves falling behind in debt can file either Chapter 7, 11 or 13. To determine which option is right for you, you’ll need to assess your goals, assets, and income. You should also consider working with an experienced bankruptcy attorney.

Kansas City residents facing bankruptcy in Kansas will have to file with the U.S. Bankruptcy Court for the District of Kansas.

Chapter 7 Bankruptcy

Many people find Chapter 7 to be the right solution for their circumstances. This choice usually happens because it provides them with the opportunity to start over financially. However, before filing for Chapter 7 bankruptcy, you should thoroughly assess your income and ability to repay what you owe. You should also speak with a bankruptcy attorney in Kansas City who can help you to decide if a liquidation plan is right for you.

Typically, individuals approved for Chapter 7 lack stable income or had a change in circumstances. Though Chapter 7 erases debts, the tradeoff is you may have to give up certain possessions, such as your home, car, or some other assets. However, once you file your petition, an automatic stay goes into effect. This legal action temporarily stops all collection activity against you like foreclosures and garnishments. However, the automatic stay does not prevent all collection attempts. For example, if you owe child support or restitution for a criminal case, you are still liable for those payments.

Federal Law states that anyone in Kansas that seeks chapter 7 bankruptcy must complete credit counseling and debt education. In fact, you must present a certificate of credit counseling and complete a debtor’s education course to file. In addition, those wishing to file for chapter 7 will have to pass a means test which will determine if their income bracket will allow for this filing.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy is more complex than other types of bankruptcy. It is often used by businesses and certain types of people. It allows petitioners to restructure their debts with a reorganization plan. This arrangement makes it easier to manage over a determined length of time, usually four to 18 months. The main benefit of Chapter 11 bankruptcy is that it does not require petitioners to sell off or liquidate their assets to pay what they owe. It does allow debtors to negotiate with their creditors a reorganization plan that enables them to stay current on their debts.

According to UpSolve, filing Chapter 11 can protect the assets of a business that does not wish to liquidate, and restructure its debt. A trustee is not appointed in Chapter 11 unless the judge decides it is necessary. Anyone filing this type of bankruptcy will have to submit a payment plan. However, your creditors may be able to approve or disapprove of your payment plan depending on the circumstances of the case.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is a debt restructuring or wage earners plan. In Kansas City, KS after you file, the courts will assign a trustee to examine your liabilities and assets and ability to pay bills. Unlike other types of bankruptcy, Chapter 13 involves you restructuring your debt with a three to a five-year repayment plan. The flexibility of this repayment plan will depend on what property you want to keep and how steady your income is. It may also give you the opportunity to have some or most of your debts discharged.

Kansas Bankruptcy Law states that the general time for repayment under chapter 13 is anywhere between 3 and 5 years. Chapter 13 helps individuals protect their homes and pay off their mortgages. It also lets them pay other debts on their automobiles, pay off back taxes, and even helps stop interest from accruing on their accounts. When you file for Chapter 13 you’ll submit proof of a credit counseling course, pay the filing fee, and provide statements. You must complete your voluntary petition, provide a list of creditors, and provide any eviction notices against you also. 

The Bankruptcy Process in Kansas City, Kansas

There is never an ideal time to declare bankruptcy. However, if you are unable to pay off what you owe within five years, filing for bankruptcy can help you to lessen the negative impact.

In Kansas City to begin the filing process, gather all of your financial records, including monthly expenses, debts, assets and annual income. This information is crucial to give the courts an accurate picture of your circumstances. Failure to provide all necessary information can result in a denial of your petition.

If you are considering filing for bankruptcy in Kansas City the first step is to determine if bankruptcy can actually alleviate your debt. Once you’ve filed and paid the appropriate fees, you must discontinue any payment to creditors. An experienced attorney in Kansas City can help you navigate this process

Still, there are several exemptions that can benefit you, and that you should know about according to the Kansas State Legislature. Your mobile or manufactured residence can have an unlimited amount of equity exempted, and your motor vehicle can be protected up to $20,000. Jewelry can be exempted up to $1,000, and you can exempt an unlimited amount of household goods, food clothing, and fuel for up to 1 year.

At least six months before you file for bankruptcy, eliminate unnecessary spending. Do not run up the balances on your credit accounts. You’ll also need to complete an approved credit counseling course, usually online or over the phone. Credit counseling is necessary to help you learn financial literacy and help you learn better financial habits. Once you complete the course, you’ll receive a certificate of completion to include in your filing. If you don’t have the certificate of completion from the credit counseling course that you took, the courts will reject your bankruptcy petition.

Work With an Experienced Kansas City, Kansas Lawyer

Hiring a local bankruptcy lawyer in Kansas City during this process can help reduce the costly risks of self-representation in court. An experienced bankruptcy lawyer understands state and federal bankruptcy laws. He or she can help you understand which laws apply to your case, especially which debts can discharge. An experienced Kansas attorney can also offer you guidance to improve the outcome of your case.

Keep in mind that there are debt management alternatives and financial resources that may benefit you more than bankruptcy, such as debt consolidation. Though bankruptcy is an attractive solution, it is best as a last resort. Do you need immediate help? Then one of our experienced lawyers in Kansas City can guide you through the entire bankruptcy process. We can even help you connect with an attorney across Kansas state lines.

Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!