Kansas consumers who are facing overwhelming debts can seek debt-relief solutions through bankruptcy. This legal action allows the court to discharge debts such as credit card accounts and any other item that could create a financial hardship for the consumer. These concepts also allow them to pay off their debts over time or initiate the liquidation process. To review your options for bankruptcy, you should contact Law Services in Wichita through The Law Offices of Todd Allison and Sarah Newell immediately.
Requirements for Chapter 7
All consumers who wish to file for bankruptcy in the Witchita area must present their attorney with documentation for all sources of income for the six-month period prior to filing a claim. This allows the attorney to arrive at an annual income for the consumer. If this income is greater than $49,617, the consumer can file for either chapter 13 or 7. However, if it is below this median income for Finney County, they are restricted to chapter 7 claims only.
How to File for Chapter 7
The consumer must provide title and deeds for all properties they own. These documents are researched by the court to determine whether or not they are the rightful owner. Once ownership is established, these properties and assets are assessed based on their current market value. The court determines whether or not they will produce the necessary proceeds to settle the debts listed in the claim.
After a court hearing with the consumer’s creditors, the liquidation process begins. A trustee manages this process by selling these properties and assets based on the requirements of the court. All exempted values are returned to the consumer after the sale is complete. The remaining proceeds are distributed to their creditors to pay off the existing debts.
Consumers who choose chapter 7 will complete the process in up to six months. While this process doesn’t present them with as many benefits as chapter 13, it can place them in better financial shape. If the idea of settlement through liquidation appeals to you, contact Law Services in Wichita to begin the claim submission process. For more information you can visit Facebook page.
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