Kansas City Chapter 7 Bankruptcy Lawyer
If you are unable to pay monthly debt balances or consolidate loans, find relief with a Chapter 7 Bankruptcy. Filing is relatively simple, and it is effective for getting finances back on track. A Chapter 7 Bankruptcy accounts for assets, debts, income, and expenses of the debtor on the date his or her petition is filed. This is a viable option if your income is less than the state median or if you pass the means test.
First, meet with a qualified credit counselor to ensure you make the right choices and correctly file all forms and applications. The Law Office of Jennifer Dodson is standing by to help you safely down this path. Contact our Kansas City Chapter 7 Bankruptcy lawyer today to get started.
Meet with a Chapter 7 Attorney to Discuss the Pros and Cons
An experienced Chapter 7 Bankruptcy attorney ensures the process goes as smoothly as possible. With Chapter 7 (also known as “liquidation” or “straight Bankruptcy”), your non-exempt property will be liquidated, and the money will pay off any current debt(s). As you can imagine, understanding how declaring this form of Bankruptcy will affect your credit, property, and outstanding debt is paramount:
- Your credit. A Bankruptcy will appear on your credit report for seven years after filing. This does not mean that you will not have access to credit; lenders will simply see that you filed for Chapter 7.
- Your property. While “non-exempt assets” may be sold to reimburse creditors, the majority of your property should stay in your possession. The amount of property you retain depends on the skill of your Kansas City Chapter 7 Bankruptcy lawyer. For example, debtors qualify for exemptions that protect certain holdings from liquidation. These can include homes, vehicles, property, and comparable interest; these are “exempt” assets. So working with a legal expert with a record of local success is vital.
If all property is exempt, you will not lose a thing.
- Your debt. At the end of Chapter 7, most of your unsecured debt will be discharged. Unsecured debt excludes certain tax debts, debts not listed in the Bankruptcy, domestic support obligations, and more. Meet with our legal team for more information on which of your debts Chapter 7 Bankruptcy will discharge. After applying the value of your non-exempt property towards what you owe, your remaining debt will be discharged.
With the help of a skilled Kansas City Bankruptcy attorney, your debt can be discharged within a few short months, and you will be on the path to financial recovery.
Kansas City’s Three-Step Means Test
To fully qualify for Chapter 7, household income must be less than a certain figure based on the median income of a comparably sized family in Kansas or Missouri. However, you may still qualify even if your earnings exceed this amount. In that case, you must pass an expense analysis to file a Chapter 7 claim. The means test accounts for: military and non-consumer debtors (veterans, active duty members, etc.); income, based on household size and median estimates; and expenses, including IRS allowances and secured debts.
After Your Debt Is Discharged
When your Chapter 7 Bankruptcy claim is filed, you enter into a period of “automatic stay” while the case is administered. Throughout this time, and at the conclusion of your case, creditors included in the petition cannot take action to collect any more unsecured debt.
If you have debts you cannot pay, contact the Law Office of Jennifer Dodson. We will assess your financial situation and walk you through your options.