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Chapter 7 Bankruptcy Attorney
The Chapter 7 bankruptcy is the most common form of bankruptcy filed. To determine eligibility for Chapter 7 bankruptcy, debtors must complete a Means Test which verifies how much money was made in the last 6 months; a Budget Analysis which determines what their income and expenses will be going forward; and finally, an Asset Analysis which evaluates the value of exempt and non-exempt assets. If the debtor “fails” the Means Test or Budget Analysis, they will be required repay what they can afford to their creditors in a Chapter 13 bankruptcy.
Chapter 7 bankruptcy will discharge or wipe out most unsecured debts. Some common examples of unsecured debts are credit cards, medical bills, payday loans, personal loans, and utility bills. Unfortunately, certain types of debt are not dischargeable in bankruptcy. A few examples include obligations to pay spousal support (alimony), child support, student loans, most taxes, and debts that result from your causing death or injury, either willfully and maliciously, or while under the influence of drugs or alcohol. If you are not sure if your debts can be discharged by filing bankruptcy, contact us for a free consultation.
Also if you have secured debt, meaning that a creditor has a lien on your property, and you want to keep your property, you will have to reaffirm or agree that such loans are unaffected by your Chapter 7 bankruptcy. Typical examples of secured debt are mortgages, car loans, title loans and financed furniture or electronics.
Most Chapter 7 debtors are able to exempt most, or all, of their assets, meaning that if your case is fairly typical, you may get to keep all of your possessions. As for an asset that serves as collateral for a secured debt — common examples include a house or a car — you can keep it if you are current and remain current on the payments, and can exempt the equity you have in the asset. However, if you want to keep property like a home or a car but are behind on the payments, a Chapter 7 case may not be the right choice for you.
We will thoroughly analyze your financial situation to determine which type of bankruptcy you qualify for. In addition, if you qualify for more than one chapter — it sometimes happens — we will clearly explain the pros and cons of each approach so you can make an informed decision. If bankruptcy is not the right option for you, we will tell you. If you decide to proceed with bankruptcy, we will be with you through every step of the process.
If your income is below the median income in Kansas for a household of your size, you may be eligible for Chapter 7 bankruptcy. Even if your income exceeds the median income, you may still qualify for Chapter 7 relief if you pass the means test. The means test is quite complicated to describe, and a detailed discussion is best left to an in-person meeting. Contact Skinner Law, LLC for a free consultation.
When you file for Chapter 7 bankruptcy, an automatic stay is triggered, which stops collection activities against you during the pendency of your bankruptcy case. In particular, the automatic stay will stop creditor calls and prevent creditors from garnishing wages, filing liens, foreclosing on liens and repossessing collateral or property. Call us at 913-839-3073 to schedule a free consultation with a bankruptcy attorney.
