Kansas bankruptcy laws require that any consumer who wishes to file a claim should enroll in and attend a credit-counseling program approved by the state. This program is required to ensure that the consumer understands how to manage their finances properly and eliminate the possibility of reoccurring debt-based issues. If you wish to file for bankruptcy, you should contact Attorneys in Topeka KS to assist you.
Shawnee County Bankruptcy
In Shawnee County, attorneys conduct a means test to establish whether or not a consumer qualifies for bankruptcy. This requires them to make the distinction as to where the income level of the consumer falls. For instance, the median income for individuals in Shawnee County is $40,988. If the consumer wishes to file chapter 13 bankruptcy, his or her income should be greater than this value. The average income for families in the county is $51,464. If their income is below this value, they are eligible to file chapter 7 only.
The Catch 22
When filing for bankruptcy, the consumer should be aware of the required fees. Although they are not prohibitively high, a consumer in dire financial circumstances may face difficulties in filing due to these costs. Consumers with lower income levels may face difficulties in filing bankruptcy if they do not possess the assets or properties needed for liquidation. Chapter 7, or liquidation, is the only chapter of bankruptcy these consumers are allowed to file in most cases.
Consumers eligible to file chapter 13 bankruptcy are required to use all expendable income that is not allotted for household expenses to settle debts. The court will garnish the consumer’s wages directly from their employer to ensure that they receive all payments on time. These consumers are restricted through a payment plan that outlines how they can use their wages. Like claimants who file for chapter 7, they are also not allowed to acquire new lines of credit during the process.
If you need immediate debt relief, bankruptcy could provide this answer. You should review your finances to determine whether or not you are able to file a claim based on the associated costs. To learn more about bankruptcy, you can Click here to read more information or contact Attorneys in Topeka KS directly.
