It can be very hard for an individual to determine if they should contact attorneys in Lawrence, KS about filing bankruptcy. There are two very popular forms of bankruptcies that individuals use to eliminate their debt and get on the road to financial freedom. Chapter 13 and chapter 7 bankruptcy are frequently used by individuals.
Before an individual speaks to an attorney, they should ask themselves several questions including:
- Are they behind on their mortgage or car payments?
- Do they owe back taxes?
- Are they constantly borrowing money to pay their debts?
- Do they have past medical bills they can’t afford to pay?
- Are they short of money to meet their minimum monthly commitments?
Chapter 7 Bankruptcy
Chapter 7 bankruptcy permits an individual to discharge all or a portion of their debts and retain certain assets. After an individual and attorneys in Lawrence, KS determine which assets will be protected because of the exemption clause, the bankruptcy court will appoint a trustee to inventory any remaining assets an individual has. These assets will be sold to pay the creditors.
Chapter 13 Bankruptcy
When a paycheck or other source of income is not keeping up with the monthly payments, an individual should consider filing chapter 13 bankruptcy. A home, car and other assets can be retained by an individual, and their payments will be restructured to an affordable amount. The repayment plan must be approved by the bankruptcy court.
After filing for bankruptcy, creditors will be prohibited from contacting the individual to obtain a payment. In addition, the repayment plan under a chapter 13 bankruptcy will usually take three to five years to complete. When the payments are completed, the remaining debt will be discharged.
Can All Debts Be Eliminated?
There are certain debts that cannot be eliminated by filing bankruptcy. Child support, alimony, and certain taxes cannot be included as part of a bankruptcy.
If overwhelming debt is leaving you unable to make your monthly payments, bankruptcy should be considered. There’s no reason to be struggling with that debt when bankruptcy can help. For more information about bankruptcy in Kansas, please visit JoewLaw.com.
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