In Kansas, bankruptcy offers a chance to deal with overwhelming debt quickly. Consumers who choose to file receive exemptions that protect certain assets and provisions that prevent legal actions against them. Business Name could provide the help consumers need when making choices about bankruptcy chapters.
Why is Bankruptcy Effective?
The proceedings stop all debt collection efforts and prevent legal actions against the consumer with an automatic stay. Consumers have two options including a new repayment plan and the liquidation of key assets. At the end of their case, consumers have the chance to become debt-free.
What are Common Stipulations of Bankruptcy?
The consumer follows all instructions for their selected bankruptcy case. The terms of chapter 13 prohibit the consumer from starting any new lines of credit. The consumer spends all their disposable income on debts included in the claim. All monthly payments are submitted to the court on the due date as identified in the plan.
The terms of chapter 7 require the consumer to provide deeds and titles for assets selected for liquidation. The consumer doesn’t choose what assets are sold. The only assets that are protected from the bankruptcy are those that fall under certain exemption categories. The court-appointed trustee manages all sales and pays the creditors with the generated proceeds.
Are Married Couples Required to File Together?
No, married consumers have the option to file jointly or separately. Consumers who file together receive more exemptions for their bankruptcy case. But, the catch 22 of filing together is that both parties remain responsible for the monthly payments in chapter 13. The bankruptcy court collects the payments by wage garnishment in some cases. The court has the option to discharge the case completely, after which creditors have the legal right to file a lawsuit against one or both parties.
In Kansas, bankruptcy chapters provide options for structured repayment plans and the liquidation of assets. Chapter 13 takes up to five years to complete, and chapter 7 lasts no longer than six months. Consumers who need answers about the chapters contact Business Name or Browse the Website now.
