In Kansas, bankruptcy claims help consumers reduce their total volume of debt. In some cases, the consumer becomes completely debt-free. A local bankruptcy attorney in Lawrence, KS could provide consumers with the answers to frequently asked questions about the claims.
What Are the Standard Requirements for Bankruptcy?
The claimant must provide evidence of their income and/or assets to qualify for bankruptcy. All individuals who want to file for bankruptcy must complete a state-approved credit-counseling course. For chapter 13, the claimant is required to have an income that exceeds their household median. For chapter 7, the claimant must have adequate assets to sell and pay off their debts.
What Assistance Does Bankruptcy Provide?
The claim stops all foreclosures, repossessions, and legal action taken by creditors. All chapters provide an automatic stay that lasts for the full duration of the case. The claimant is protected from legal action as long as they complete all steps outlined in their claim. Any deviation leads to a discharge of the bankruptcy case, and the claimant is no longer protected by the automatic stay.
Do Married Claimants Have to File Together?
No, married claimants are not required to file a bankruptcy claim together. However, the couple receives more exemptions by filing together. On the other hand, if the couple gets divorced, each party remains responsible for the claim. If monthly payments aren’t submitted, the court takes action against both parties. It doesn’t matter if the divorce agreement identifies one party as responsible for the claim.
Are All Properties Exempted in the Claims?
No, the primary home, one or more automobiles, and specific personal belongings are exempted. In chapter 7, the court could choose any properties or assets to sell to settle the debt. Chapter 13 claims could provide more exemptions for real estate.
In Kansas, bankruptcy claims help consumers either by liquidating their assets or setting up a payment plan. The claims provide an automatic stay to lower the chances of legal action against the consumer. Chapter 13 and 7 are the most common options for consumers. Claimants who need to start a claim can contact a bankruptcy attorney in Lawrence, KS by visiting Website Domain right now.
