In Kansas, consumers have a variety of options to eliminate their debts. These options could present the consumer with great changes that could improve their ability to make larger purchases in the future, such as the home they always wanted or an automobile. Debt help in Lawrence KS, prepares them for these opportunities.
Filing for Bankruptcy
To file for bankruptcy, the consumer must be eligible for their chosen chapter. Chapter 13 is income-based and requires the consumer to have an income greater than the median for their area. In Kansas, the median is $66,020. If the consumer’s income is lower than this value, they would only qualify for Chapter 7. However, to qualify for Chapter 7 they must also own enough property and assets to generate the proceeds to settle their debts.
What Happens During Chapter 13?
Chapter 13 enables the consumer to set up a payment plan. This payment plan allows them to settle their debts over a course of three to five years. They submit monthly payments to the court to settle these debts. The plan provides for an automatic stay for the full duration of the case. This prevents their mortgage lender from starting a foreclosure.
During the full duration of the case, the consumer must use their disposable income to settle additional debts. This includes debts that weren’t included in the bankruptcy claim. The court monitors their wages and compliance with the plan.
What Happens During Chapter 7?
During Chapter 7, the consumer provides titles and deeds for properties or assets. They are sold by a trustee working for the court. The trustee distributes funds to the creditors to settle the debts. This doesn’t include debts that were discharged by the court. They are no longer the responsibility of the consumer.
In Kansas, consumers need reasonable debt relief opportunities. These opportunities allow the consumer to pay off their debts at a slower pace, without financial ruin. Bankruptcy could provide this opportunity for some consumers. The chapter chosen by the consumer defines the rules and guidelines followed. Consumers who want debt help in Lawrence, KS, should contact Business Name today and schedule an appointment.