In Kansas, bankruptcy can provide consumers and business owners with invaluable benefits. Among these benefits is the prevention of serious damage to their credit. The process allows them to add all debts into one claim for a structured repayment plan or to start the liquidation process. The following are FAQs about bankruptcy that a Lawyer in Lawrence KS.
What are the Eligibility Requirements for Bankruptcy?
For chapter 13 bankruptcy, the claimant must have an income that is above the median for their county. They must provide six month’s worth of income statements. The lawyer will use these statements to identify the claimant’s annual income. If they don’t meet the requirements, they are ineligible for filing a chapter 13 bankruptcy claim.
A chapter 7 claim will require the claimant to have assets or properties that have a value to pay off their debts. The attorney reviews the current market value for these assets to determine if the claimant meets these requirements.
How Does an Automatic Stay Help the Consumer?
An automatic stay stops all creditors from taking legal action against the claimant. Once the bankruptcy claim is approved, the automatic stay is engaged. This is helpful for claimants who are facing foreclosure or repossession.
Can a Business Owner Continue to Operate Their Company During Liquidation?
No, the business is required to shut down completely while the liquidation process is conducted. They can, however, choose chapter 11 which will allow them to continue to generate profits during the bankruptcy process. However, this action provides them with a repayment plan and doesn’t include liquidation.
What Happens to Debts that are Discharged by the Court?
Any debts that were discharged at the beginning of the case are no longer the responsibility of the claimant. A creditor cannot take any legal action to collect compensation for these debts.
In Kansas, bankruptcy is a process that helps claimants manage their existing debts. The process provides them with a structured repayment plan or the liquidation process. Each of these options can help them become debt-free. Claimants who want to file for these chapters can contact a Lawyer in Lawrence KS by visiting Joewlaw.com today.
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