(785) 836 - HELP
WE HELP PEOPLE ALL OVER KANSAS GET THE RELIEF THEY DESERVE!
Our office is located in Topeka, Kansas, but we help people all over Kansas get a fresh start by filing bankruptcy, rebuilding credit, and getting the relief you deserve. In Kansas your bankruptcy must be filed in Federal Court in Topeka, Wichita, or Kansas City. We will file your bankruptcy in whichever of these cities you choose. Everything you and I do can be done by phone, online, or through the mail. It’s easy and convenient. You should only need to leave your house once, and that will be about a month after we file your bankruptcy, to attend a very short, easy hearing in whichever city you choose to file your case. We make this process as simple as possible!
CHAPTER 7 BANKRUPTCY
WHAT IS A CHAPTER 7 BANKRUPTCY?
Chapter 7 Bankruptcy can be a viable debt relief method for you if you are struggling financially. If your income qualifies, Chapter 7 is usually the quickest, least expensive, most effective method for erasing debts, regaining financial stability and getting a fresh start. If you file for this chapter you will have most, if not all, of your unsecured debts canceled in a relatively short period of time. If you file bankruptcy under Chapter 7 you’ll probably get to keep most, if not all, of the assets you possess. It should be noted that the entirety of your assets are not liquidated in a Chapter 7 Bankruptcy, only those which are not exempt from the bankruptcy process. This liquidation of assets is usually much easier to experience in a Chapter 7 filing, as you are probably not in possession of many valuable non-exempt assets that may be difficult to part with. If you are married you can file a Chapter 7 jointly with your spouse, or as an individual.
DETERMINING ELIGIBILITY FOR A CHAPTER 7 BANKRUPTCY
Eligibility for a Chapter 7 Bankruptcy is determined by a few factors, such as the amount of debt, monthly disposable income, and a Means Test. The Means Test is a procedure that is used to ensure that those who are filing Chapter 7 Bankruptcy are truly eligible. Essentially, this is a calculation that will determine whether or not your average income falls within the guidelines that Chapter 7 was created to target. To determine this, the test will average your monthly gross income, and then compare that amount to the Kansas median income for a household of your size. If you are below the median, you’ll probably qualify for a Chapter 7 Bankruptcy. If you are above the median, you’ll be allowed to deduct certain monthly expenses, resulting in an amount that is considered “disposable income”. If the amount of your disposable income is low enough, you’ll probably qualify for a Chapter 7 Bankruptcy.
The higher your income is, the more likely it will be that you’ll be above the median. If it is determined that you have more than average income, it’s possible you won’t be eligible to file a Chapter 7 Bankruptcy, and you’ll probably need to file a Chapter 13 Bankruptcy. This process is done in an attempt to prevent people from abusing the system if they truly have the means to pay off their debt.
It is important for you to know that the Means Test is not something you will be required to calculate. Rather, it is something that we will calculate on your behalf when we prepare your bankruptcy petition.
If you would like to learn more about eligibility for Bankruptcy, or see if you qualify for a Chapter 7 Bankruptcy, contact Berberick Law for experienced guidance in your case. There is no charge for this consultation.
CHAPTER 13 BANKRUPTCY
WHAT IS A CHAPTER 13 BANKRUPTCY?
A Chapter 13 Bankruptcy is a debt relief method that may be appropriate for you if you do not qualify for a Chapter 7 Bankruptcy due to an above median income, or if you are behind on house or car payments and want to keep your house or car. Additionally, if you have debts you need to manage, such as tax debt, you may choose a Chapter 13 Bankruptcy. If you file for a Chapter 13 Bankruptcy you’ll work out a payment plan with the bankruptcy court that allows you to pay off some, or all, of your debts over a period of time. The payment plan involves you making monthly payments to a Bankruptcy Trustee, until such time as your financial obligations are considered satisfied. By engaging in a payment plan, you may be able to avoid the liquidation of valuable assets. A Chapter 13 Bankruptcy typically takes three to five years to complete — a significantly longer period of time than that of a Chapter 7 Bankruptcy. However, the end result can be well worth it, by obtaining newfound financial stability without having to part with your most treasured possessions. If you are struggling with an overwhelming debt load and are worried about losing valuable assets such as your home or vehicle, contact Berberick Law as soon as possible. You may be eligible to file for a Chapter 13 Bankruptcy and an attorney can provide you with advice and guidance that may lead to you regaining your financial freedom.
CHAPTER 13 BANKRUPTCY: ELIGIBILITY AND ADVANTAGES
The process of determining eligibility for a Chapter 13 Bankruptcy is much simpler than the Means Test that is typically used for a Chapter 7 Bankruptcy. According to bankruptcy law, if you have unsecured debts that are less than $394,725 and secured debts that total less than $1,184,200, you will usually be eligible to file for Chapter 13. There are, however, some exceptions to this rule. You may not be able to file a Chapter 13 Bankruptcy if you:
- Are a business – not an individual;
- Received a discharge from a Chapter 13 Bankruptcy filed within the last two years;
- Received a discharge from a Chapter 7 Bankruptcy filed within the last four years;
- Had a prior bankruptcy dismissed within the previous 180 days;
- Have not obtained the proper credit counseling;
- Have not filed your income tax returns;
- Propose a repayment plan that doesn’t repay all required debts
Many people consider a Chapter 7 Bankruptcy superior to a Chapter 13 Bankruptcy simply because it is quicker, less expensive, and seemingly easier. However, there may be advantages to filing a Chapter 13 that should not be ignored, such as the ability to help you save your home from the risk of foreclosure, or your automobile from the risk of repossession. Once a Chapter 13 has been filed, an immediate stop will be placed on all foreclosure and repossession proceedings. A Chapter 13 can allow you to cure delinquent mortgage payments and auto loan payments and can determine a schedule in which you will be able to repay all secured debt. Additionally, a Chapter 13 may be attractive to you because it can provide security and protection to anyone who has co-signed any of your debts.
If you are struggling financially and are considering bankruptcy as an option, contact Berberick Law. An experienced attorney will assess your financial situation in order to help you determine how to proceed.
REBUILDING CREDIT AFTER BANKRUPTCY
If you are concerned about your current credit score, or how your credit score can improve after bankruptcy, click: 7 Steps to a 720 Credit Score
All information contained herein is intended for educational purposes only and should not be considered legal advice. All information provided throughout this website should be considered general information, and specific applications may vary. Please contact us to discuss your particular situation and to determine whether Bankruptcy is right for you, and if so, how the information we have provided herein will affect you specifically.
None of the information provided herein is intended to express or imply an attorney-client relationship.
We are a debt relief agency. We proudly help Kansans get a fresh start by filing bankruptcy pursuant to the U.S. Code.