 Filing Bankruptcy in Kansas |
|
|
Filing Bankruptcy in Kansas
Are you considering filing bankruptcy in Kansas? Consder a few things before you actually file. Have you been unable to make payments on your debt for the past five years? When you complete your five-year budget, are you still not able to pay off your debt? Are you facing foreclosure of your home? You may qualify for bankruptcy. Bankruptcy is not meant to be an easy way out of debt. It's meant to give a fresh start for those who got in over their head. There are laws in place to prevent fraud from bankruptcy. This law is called the Bankruptcy Abuse Prevention and Consumer Protection Act. There are a couple of different ways to file bankruptcy in Kansas; chapters 7, 11 and 13. Once you have filed, all harrassing phonecalls and letters automatically stop. This is required by law until everything is settled. Before filing bankruptcy in Kansas, you must complete credit counseling from an approved counselor. After this is completed and you've received a certificate, you can then file. Chapter 7 is also known as liqudation bankruptcy. It basically wipes the slate clean of almost all debt and allows the filer to start fresh. It does have a few exemptions, such as alimony, taxes, student loans, child support and fines. To qualify for bankruptcy in Kansas under Chapter 7, your household income must fall under the average for the state. For a single person, the average income is $41,000, and for family of two it is $56,000. Your income must be less than these amounts to file. Many people are afraid to file bankruptcy because they think they will loose all their belongings. This isn't true. You're allowed to keep your home up to $125,000, furniture, clothes for a year, jewelry up to $1,000, books, burial plot, pensions, worker's compensation, life insurance, and a car up to $20,000.
Chapter 11 is meant mainly for businesses. It is the least common type of bankruptcy filed in the United States. It is very similar to Chapter 13 in that it is a reorganization of debt and a repayment plan. The debtor comes up with a plan of repayment and submits it to bankruptcy court and to the creditors. If it is approved, the debtor then makes monthly payments to a trustee, who then pays back the creditors. When you are weighing the pros and cons of filing bankruptcy in Kansas, consider using the help of a bankruptcy lawyer. Here is a list of a few to get you started:
Add Your Comments about Filing Bankruptcy in Kansas: |
Chapter 13 bankruptcy is considered the reorganization plan. This is meant for individuals who don't want to be at risk for losing their homes. It can also be used for the student loans, child support and other loans that are not erased by Chapter 7. Chapter 13 allows the filer to come up with a plan proposal to repay the money they owe. To file Chapter 13, you have to come up with a monthly budget and show you have some money left over at the end of the month after paying the rest of your essentials. This is to show you can actually make payments on the rest of your debt you owe.
|
