In Kansas, chapter 13 bankruptcy is available to anyone with an income higher than $37,547. This is the median for Douglas County. However, any consumers who don’t qualify for the chapter could file for bankruptcy. They could select Chapter 7 in Lawrence KS to help them settle their debts.
Filing for Chapter 7
Consumers filing for chapter 7 must provide deeds and titles for their assets to their attorney. To begin the process, the attorney identifies whether or not they have enough income potential to settle their debts. They evaluate the market value of each property to determine an estimated value achievable through a sale. If the value determines that the liquidation could allow the consumer to settle their debts, bankruptcy is feasible.
How Liquidation Works
A meeting with creditors is required to determine if the creditors agree with the bankruptcy case. After approval is achieved, the judge identifies a trustee to manage the liquidation. They sell off each asset included in the bankruptcy claim. The consumer receives the exempted value assigned to each item sold. The exempted value depends on how much is owed and how much the consumer has paid for the loan or mortgage. If the value paid is more than what is owed, the item isn’t eligible for an exemption.
Distributing the Funds
The trustee distributes the funds to each creditor after the sale of the properties is complete. The value paid is identified in the bankruptcy case. If the attorney has negotiated with creditors to reduce the total value, the new value is assigned in the case.
Is the Consumer Debt Free?
In most cases in which the consumer possesses a high value of assets, their debts are settled completely. Any debts discharged through the case are no longer the responsibility of the consumer. Whether or not they are debt-free completely depends on if they included all debts into the case.
Chapter 7 in Lawrence KS is a viable solution for settling debts. It allows the consumer to sell the property to generate adequate funds. During the process, their creditors aren’t allowed to file a legal claim against them. To learn more about this process, Click Here for more information.
