When Is It Time to
File For Bankruptcy?

According to the American Bankruptcy Institute, in 2018, there were 6,856 business and non-business bankruptcy filings in Kansas, comprising 3,724 Chapter 7 cases. When going through financial adversity, filing for bankruptcy may be the best option to get the fresh start you need. If you are considering filing for bankruptcy, it is crucial to consult with an experienced Kansas bankruptcy attorney for proper guidance.

Philip L. Weiser, Attorney At Law, is committed to offering outstanding representation to individuals and business owners in bankruptcy-related matters. I'm available to discuss your unique situation and provide the experienced legal guidance you need to navigate key decisions in your bankruptcy proceedings. I proudly serve clients throughout Wichita, Sedgwick County, and Harvey County, Kansas.

Overview of Chapter 7 Bankruptcy

Chapter 7 bankruptcy or "liquidation" bankruptcy is an option that helps individuals and businesses clear away most of their general unsecured debts, thus, giving them a "fresh start." In Chapter 7, there is no repayment plan involved. Rather, an appointed trustee (an independent contractor appointed by the court to oversee your bankruptcy case) will gather and sell your non-exempt assets. Such nonexempt assets may include your vacation homes, second cars, second homes, family heirlooms, bonds, stocks, cash, bank accounts, and other investments.

Chapter 7 bankruptcy helps individuals and businesses:

  • Wipeout general unsecured debts, including medical bills and credit card debts
  • Alleviate financial obligations
  • Activate an "automatic stay" on debts, which prevents creditors from harassing you, collecting payments, or garnishing your wages
  • Stop an eviction, repossession, or foreclosure
  • Gradually rebuild credit 

Chapter 7 bankruptcy may not:

  • Relieve you of child support and spousal support payments
  • Eliminate your student loan debts
  • Eliminate your non-dischargeable debts such as criminal restitution, state taxes, fines, and penalties

Assessing what kind of debt you’ve incurred, will help determine if Chapter 7 bankruptcy is right for your situation.

Eligibility for Chapter 7
Bankruptcy in Kansas

In Kansas, to be eligible for Chapter 7 bankruptcy, your current monthly income must be less than the state's median income for a household of your size. 

You must receive a credit counseling and debtor education course from an agency approved by the U.S. Trustee in Kansas within six months prior to filing. Both courses can be taken online and can be completed within 2 hours.

The Bankruptcy Means Test

For those individuals whose monthly income is not less than the state’s median, they must pass a “means test” to determine whether they are eligible to apply for Chapter 7 bankruptcy. The means test assesses your income, expenses, and debts to determine your disposable income. The higher your disposable income, the slimmer your chances of qualifying for Chapter 7 bankruptcy. If you have enough disposable income that you could pay off your debts over time, then it's likely you won’t get a discharge by filing for Chapter 7 bankruptcy.

When is Chapter 7
Bankruptcy a Good Option?

Once you determine eligibility, filing for Chapter 7 may be a good option for you if:

  • You have income/valuable assets a creditor can go after
  • It'll discharge a good portion of your debt
  • It won't take the property you wish to keep

There are many variables that go into weighing whether or not bankruptcy is the right solution for your financial hardships. Knowing when to file is important because certain legal actions taken by creditors can make the bankruptcy process more complicated. If you are in financial turmoil, it's never too soon to talk to a bankruptcy attorney for guidance.

Talking to a Bankruptcy
Attorney for Guidance

Filing for bankruptcy in Kansas involves a lot of complicated processes. If you are going through financial adversity and considering filing for Chapter 7 bankruptcy, don't go through it alone. Hiring a knowledgeable Kansas bankruptcy attorney is crucial to protect your rights and for proper guidance.

I have devoted my career to guiding clients through the Chapter 7 filing process. As your legal counsel, I will assess your unique situation and determine if Chapter 7 is right for you. Also, I will help you file your bankruptcy forms and provide the strong legal representation and advocacy you need throughout the court proceedings.

Call my law firm, Philip L. Weiser, Attorney At Law, today to schedule a one-on-one case evaluation. I will guide you through the filing process and help you navigate key decisions in your bankruptcy proceedings. I'm proud to serve clients throughout Wichita, Sedgwick County, and Harvey County, Kansas. A one-on-one consultation with an experienced Kansas bankruptcy attorney can put you on the path towards financial freedom.

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