Kansas consumers who wish to file for bankruptcy must meet the initial requirements first. Under new laws passed in 2005, all consumers are required to complete a credit-counseling program to learn how to manage their finances more effectively before filing. They must present proof of completion to their preferred attorney when submitting a claim. If you wish to inquire about this program or how to file for bankruptcy, you should contact Law Services in Garden City KS or Browse their Website for further instruction.
Filing for Chapter 13
To prove eligibility to file for chapter 13, consumers in Kansas are required to submit proof of their income. This attorney will determine eligibility based on whether or not the consumer’s annual income is greater than the county’s median. The median for Finney County is $49,617. The attorney arrives at the value for their annual income by examining income statements for the last six months for the claimant.
How Chapter 13 Works
The consumer’s attorney examines their debts and creates a three-to-five-year plan to repay them. This plan must include all expendable income for the consumer which is not required for monthly obligations. All household expenses and obligations such as child support or alimony are deducted from the consumer’s income. This allows the attorney to report accurate figures in the repayment plan. Any debts that are not included in the claim are to be paid by the consumer with any available earnings left over after they paid the identified expenses or obligations.
The Benefits of these Claims
The first and the most obvious benefit of chapter 13 is the protection acquired under the automatic stay. This action prevents the consumer’s lenders from foreclosing on their home or repossessing any automobiles that are financed. This protection lasts for the full duration of the bankruptcy claim.
Bankruptcy is a permanent solution to overwhelming debt. Chapter 13 provides consumers with more benefits over time than chapter 7, in most cases. However, the eligibility requirements for this chapter indicates that the consumer has a considerably larger annual income. If you wish to inquire about bankruptcy, you should contact Law Services in Garden City KS today. For more information you can visit The Law Offices of Todd Allison and Sarah Newell or you can visit them on Google+ profile.