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What You Should Know About Consumer Bankruptcy Topeka KS

Before people begin the process of a Consumer Bankruptcy Topeka KS, it makes sense to learn as much as possible about how the state handles its bankruptcy cases. The 2005 Bankruptcy Act governs much of the nation in terms of how bankruptcy works, however each state has its own individual regulations. Each person who files for bankruptcy protection in the United States today is required to undergo credit counseling classes. During these credit counseling classes, bankruptcy filers will learn more about how to budget properly, and how to stay away from the same type of mistakes that led them to bankruptcy to begin with. The bankruptcy lawyer will inform clients about the time, date, and location of the classes.

Every person who declares bankruptcy in the state of Kansas has to take a means test. The means test will evaluate the bankruptcy filer’s income and will then determine if they are eligible to file bankruptcy under the state laws. The means test will calculate eligibility based upon the last six months of income. If the income is above the median, the potential bankruptcy filer may not be able to file chapter 7 bankruptcy. However, people who have too much income to file chapter 7 bankruptcy can often file chapter 13 bankruptcy instead.

In a chapter 13 bankruptcy, there is not a total dismissal of debts, the way that there is in a chapter 7 bankruptcy. However, people who file chapter 13 bankruptcy do have the advantage of being able to retain as much of their property as they want in many cases. As long as a chapter 13 filer is willing and able to make the regular payments on that property and bring their accounts up to date, the creditors are often willing to enter into repayment agreements with the bankruptcy filer.

An attorney is often an invaluable partner during the frequently complex bankruptcy process. They will help by double checking all the paperwork, representing the client during the bankruptcy hearing, and being there for questions and support when needed. If you are interested in working with an attorney who focuses on Consumer Bankruptcy Topeka KS, you can Visit John Hooge Law Office to learn more.