Deciding to file for bankruptcy protection is not an easy decision. After countless sleepless nights and harassing phone calls, learning more about bankruptcy is a good idea. Bankruptcy is not the answer for everyone, but a rational decision cannot be made without knowing the facts.
Bankruptcy is not a one-size-fits-all matter. Each individual should consider the pros and cons relating to their unique situation. Bankruptcy laws are complex, making it is wise to consult an experienced Bankruptcy Attorney in Hutchinson KS, before making a final decision.
The Pros
The most noticeable effect is the phone calls and letters from creditors stop once the bankruptcy petition is filed with the court. An automatic stay prevents further collection attempts.
Most debts will be discharged, especially credit card debts and overwhelming medical bills. It becomes possible to make a fresh start.
Individuals or couples frequently file for Chapter 7 bankruptcy protection. Bankruptcy exemptions (what property will be kept) are determined by law. In Kansas, the laws on exempt property are more liberal than the federal laws. People are allowed to keep their primary residence and household goods, clothing, personal vehicles and a qualified retirement plan. Other property may also be exempt.
Federal law prohibits an employer from firing someone who files for bankruptcy.
The Cons
Not all debts will be discharged by bankruptcy, especially child support and alimony, most student loans, and most taxes and fines. However, since the discharged debts (credit cards, etc.) no longer need to be paid, it is possible to make payments on any remaining debts.
An individual or couple considering Chapter 7 bankruptcy must be able to pass the Means Test. This is a calculation of the maximum income that a person or couple can have in order to qualify for Chapter 7 protection. This can be complicated, and should be discussed with a Bankruptcy Attorney in Hutchinson KS.
Any property (houses, cars, etc.) pledged as collateral must be reaffirmed, meaning the debtor promises to continue payments on the note.
The bankruptcy will remain on someone’s credit report for 10 years.
Oswalt Henry Oswald and Roberts of Hutchinson KS, have been assisting their Kansas clients with bankruptcy for over 35 years. They are experienced with the complexities of bankruptcy laws and how an individual will be affected by them. Contact the firm for a consultation to learn if this is the right decision for you.
