Chapter 7 bankruptcy is what many refer to when they are talking about filing for personal bankruptcy. These individuals typically have a great deal of debt and no resources to pay it back. Thanks to modifications to bankruptcy law in 2008, some individuals will no longer qualify for this type of bankruptcy, however, thus everyone needs to understand the new rules. An Attorney in Lawrence KS, will be of great assistance during this process, so anyone considering this move should seek legal advice.
First and foremost, individuals wishing to file for Chapter 7 bankruptcy must pass a means test. This test is reserved for those who plan to file and have a higher income. Individuals with an income that falls below the Kansas median income for their household size will typically be eligible to file for this type of bankruptcy. For those who don’t pass the means test, more information must be gathered, including information on income and expenses. The expenses are subtracted from income to determine how much money is available to pay creditors. If disposable income falls below a certain threshold, Chapter 7 may be filed.
Individuals filing for Chapter 7 bankruptcy need to also agree to undergo credit counseling, and the provider must be approved by the court. Furthermore, the counseling must take place within the 180 days prior to the bankruptcy filing. The credit counselor then provides a certificate of credit, and this document must be submitted to the court, along with a statement of compliance. Failure to comply may lead to dismissal of the bankruptcy case and a loss of the right to file. For this reason, many opt to make use of legal counsel, to ensure this step is properly followed.
Anyone in need of a bankruptcy Attorney in Lawrence KS, should contact Business Name. He has the experience needed to help individuals through this difficult time and works to stop any harassment on the part of creditors. Clients find they can move forward with life, rather than drowning under their debt, thanks to the assistance of this law firm. Contact Mr. Wittman today to have any questions and concerns addressed, as solid facts often provide relief before the process even begins.
