Chapter 7 bankruptcy lawyers in Topeka, KS. represent clients who have no way to pay back the debt they have accumulated. The program requires the dissolution of certain assets, so creditors are paid at least some amount of money. However, some men and women filing for bankruptcy truly have no assets left, resulting in their obligations being discharged with no payments made by the program’s trustee.
In many cases handled by Chapter 7 bankruptcy lawyers in Topeka, KS. the clients have a limited asset base and can keep what they own or have been financing. These exemptions vary by state.
The Primary Vehicle
In Kansas, for instance, people filing for Chapter 7 can keep their primary vehicle if its value is $20,000 or less. They also can keep the vehicle if it is worth $25,000, but they owe at least $5,000 for financing. Of course they must continue making timely payments to the financing company or risk repossession. The main restriction regarding the exemption is this must be a vehicle used to get to work and back.
Retirement Accounts and Possessions in the Home
Qualifying retirement accounts are exempt, so people should not start withdrawing money to avoid bankruptcy and pay creditors. Chapter 7 filers also can keep their clothing, furniture, home decor, tools, and other belongings considered necessary for an average lifestyle. Certain expensive items might have to be sold to pay creditors. Questions about exemptions and other Chapter 7 factors can be asked of Hooge John R Attorney At Law PA.
