In Kansas, bankruptcy claims provide opportunities for consumers to manage their debt. The claims provide the option to start a new repayment plan or to liquidate their assets. The type of bankruptcy claim defines how long it will last. A chapter 13 claim lasts up to five years. A chapter 7 claim takes up to six months. Attorneys in Lawrence KS provide insight into these claims for consumers.
The Requirements for Filing Bankruptcy
The consumer must have an income higher than $46,929 to qualify for chapter 13. They must have assets that present an adequate value to pay off debts to file for chapter 7. They must present documentation for their income and assets when they start their claim.
How Bankruptcy Can Help Consumers
Bankruptcy presents the consumer with an automatic stay. The automatic stay remains throughout the duration of the claim. For chapter 7, the stay lasts up to six months. A chapter 13 claim has an automatic stay that lasts up to five years.
In addition to this benefit, the claims help the consumer pay off their debts. The judge also provides a discharge for certain debts. If the consumer fulfills all the requirements for the claim, these debts are no longer their responsibility. Typically, unsecured credit cards are discharged first. However, the judge could choose additional debts if they aren’t connected to government lenders.
What Restrictions Apply?
The claims impose certain restrictions on consumers. These restrictions start with stipulations related to disposable income. The consumer must use disposable income to pay off debts that weren’t included in the claim. The consumer also cannot start a new line of credit or take out any loans. Additionally, they receive exemptions on assets based on their filing status only.
In Kansas, bankruptcy claims are available for consumers who qualify. They provide a clear solution for eliminating debts and helping consumers manage their finances. The consumers have more than one option through bankruptcy. They can choose to liquidate their assets or start a new repayment plan. Consumers who want to review their options contact Attorneys in Lawrence KS by visiting Joewlaw.com for more information now.
