Bankruptcy in Wichita, KS
Are you contemplating bankruptcy or hiring a bankruptcy attorney in Wichita, 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 Wichita, 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 Wichita, KS to be approved, individuals must prove they have a hardship that prevents them from staying current on their financial obligations. Keep in mind that not all debts qualify. Some liabilities, such as child support arrears, delinquent taxes, alimony, and student loans generally do not qualify for discharge. 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.
Wichita bankruptcies are under the jurisdiction of the U.S. Bankruptcy Court for the District of Kansas. The court has locations in Wichita, Topeka, and Kansas City.
Chapter 7 Bankruptcy
Many people find Chapter 7 to be the right solution for their circumstances 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 Wichita who can help you to decide if a liquidation plan is right for you.
Typically, individuals who qualify for Chapter 7 bankruptcy either lack stable income or have encountered a change in circumstances that has made it difficult to manage their debts. While Chapter 7 can eliminate many types of debt, it often requires giving up certain assets, such as your home, car, or other possessions.
Once you file your petition, an automatic stay takes effect, halting most collection activities, including foreclosures and wage garnishments. However, this stay does not stop all collections. For instance, you will still be required to pay child support or restitution for any criminal cases.
Before filing a Chapter 7 bankruptcy in Wichita, you must pass a Means Test. In short, your family’s income must be lower than the median income of Kansas families of the same size. When you file a bankruptcy petition in Wichita, an automatic stay prevents your creditors from continuing their attempts to collect your debt. However, under Local Bankruptcy Rules, a creditor can request an exemption from the court to continue collecting the debt.
Bankruptcy law also requires that you undergo credit counseling before you file. Fortunately, this can typically be completed online. The Department of Justice maintains a list of approved providers for the District of Kansas.
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, so they are 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 moving forward.
Some of the filing requirements for a Chapter 11 bankruptcy in Wichita include:
- File petition and pay $1,738 fee
- Creditor list
- Certificate of credit counseling and debt repayment plan
- Statement of income and expenses
- Summary of assets and liabilities
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is a debt restructuring or wage earners plan. In Wichita, 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 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.
The District of Kansas provides a Chapter 13 Packet to assist Wichita residents. Some of the requirements include:
- File a petition and pay the $313 fee
- List of creditors
- Statement of income and expenses
- Summary of assets and liabilities
- Chapter 13 plans using the local form
The Bankruptcy Process in Wichita, 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 on your situation and help you get back on track.
In Wichita 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 your petition being denied.
Unlike some states, Kansas does not permit a choice between federal and state exemptions. When you file for bankruptcy in Wichita, you can only use the exemptions provided under Kansas law. Some of these include:
- Homestead exemption for your residence, limited to one acre in the city or 160 acres of farmland
- Up to $20,000 of equity in a vehicle
- Any necessary home furnishings, clothing, and supplies
- Pensions and retirement accounts
Unfortunately, Kansas does not offer a wildcard exemption.
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 Wichita, Kansas Lawyer
Hiring a local bankruptcy lawyer in Wichita 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 that can be discharged or can’t be discharged. 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 Wichita 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!
About the Author
Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.
With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.
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