What Is The Difference Between Chapter 7 And Chapter 13 Bankruptcy In Kansas
In Kansas, there are several differences between Chapter 7 and Chapter 13 bankruptcy that include some of the following:
- Under Chapter 7, the trustee appointed by the bankruptcy court oversees the process of repaying creditors, while the debtor under Chapter creates a repayment plan to settle creditors.
- Under Chapter 7, debtors can file for bankruptcy regardless of the amount owed, while Chapter 13 sets a limit to the secured and unsecured debts available to debtors.
- Under Chapter 7, individuals and organizations are allowed to file bankruptcy petitions, while Chapter 13 is only available to persons with a regular income.
- Debtors filing for Chapter 7 may lose their assets and properties due to liquidation, while Chapter 13 enables debtors to remain in control of their assets and properties.
What Is An Automatic Stay
An automatic stay is something that you will receive immediately upon filing the Chapter 7 Bankruptcy.
- Prevents creditors from collecting the debt in any way
- Prevent your creditors from calling and harassing you at home or at work
- Prevent car or vehicle repossessions
- Stop lawsuits and garnishments
If the creditors believe that you should not be entitled to an automatic stay or discharge then they must file the appropriate paperwork with the Court. The creditors may not continue to collect on any debt unless the Court authorizes them to after you have a hearing. Any willful violations of the automatic stay could result in sanctions for a creditor. If you are needing a quick automatic stay then you will want to schedule a free consultation with the Roach Bankruptcy Center so we can discuss how quickly we can file your Chapter 7 bankruptcy.
Estimate Whether You Will Qualify For Chapter 7 Bankruptcy In Kansas
As stated above, you often have to qualify to file Chapter 7 bankruptcy. Qualification is based on US means testing. The means testing is based on the household income and size of the household for Kansas.
Bankruptcy Means Test In Kansas
The bankruptcy means test in Kansas often changes every 6 months. To help, we built the following bankruptcy means test calculator to help you estimate qualification, understand the cost and compare bankruptcy alternatives.
Kansas Chapter 7 Bankruptcy Income Limits
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Mail Documents To Your Trustee
The trustee is the person assigned by the court to handle your Chapter 7 bankruptcy in Kansas. As mentioned before, you have to provide a copy of your federal income tax return to the trustee at least 7 days before your 341 meeting. You will find out the name and contact information for your trustee, as well as the date set for your creditors’ meeting shortly after filing Chapter 7 in Kansas when you receive the official notice from the court.
Since each one of the trustees operates independently, they all have a different system for doing their due diligence. That’s why it is important to keep an eye out for a letter from your trustee after your Kansas bankruptcy has been filed, as they may request certain other information from you. Even though the trustee does not represent you, you both share a common goal: the orderly administration of your Chapter 7 bankruptcy in Kansas. That is why it’s important to carefully review any correspondence you receive from the trustee assigned to your case. Other documents they may request from you include recent paycheck stubs, bank statements, and documentation about your assets, such as copies of your vehicle titles or mortgage documents.
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Mandatory Debtor Education Debt Management Course
$0 to $75
As if you don’t have enough hoops to jump through, when you’ve completed all the other parts of your bankruptcy, you still don’t get that magic piece of paper called the “discharge” until you complete a course in debt management.
This is yet another requirement motivated by Congress’s frequently mistaken assumption that people who file for bankruptcy wouldn’t be broke if they weren’t so careless with their money. Chances are, you really are brokeand not because you’re irresponsibleso you should see if you qualify for free or reduced rates.
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Skilled Bankruptcy Lawyer Counsels Individuals In The Olathe Area Seeking Relief
Sometimes situations beyond your control can profoundly impact your earning potential and lead to overwhelming debt. If you find yourself unable to pay your bills, you may want to consider filing for bankruptcy. At William P. Turner Law Office, I represent clients in the Olathe area and throughout Kansas who seek debt relief through Chapter 7 bankruptcy. Designed to give debtors a fresh start, this filing gives you and your spouse relief from debts through the liquidation of your assets. With extensive experience in this area, I can help you file for Chapter 7 quickly and efficiently. Once you have filed for bankruptcy, creditors must immediately stop collections efforts, including harassing letters and phone calls.
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Bankruptcy Exemptions Under Chapter 13
Bankruptcy exemptions work differently in Chapter 13 bankruptcy than they do in Chapter 7. In Chapter 7, the bankruptcy trustee appointed to your case will sell your non-exempt property to pay your creditors. Under Chapter 13, the trustee wont sell your non-exempt propertybut the value of that property will be used to determine how much you must pay your creditors under your repayment plan. Either way, your creditors get the value of your non-exempt property.
Bankruptcy exemptions may include at least some of the equity in your home, your car, and personal property such as your clothes and household goods. Exemptions are determined by state law some states have their own exemptions, while others allow you to use the exemptions provided by the federal bankruptcy code.
For more information on Kansas law, see the Exemptions section of this website.
Kansas City Bankruptcy Lawyers
While you can act as your own lawyer when it comes to filing bankruptcy in Kansas City, depending on your circumstances you may be better off hiring an experienced and competent bankruptcy lawyer if your case is complex. A lawyer can help you fill out all the paperwork and gather all the necessary documents. They will also answer your questions about filing bankruptcy in Kansas City to put you at ease. The cost of a bankruptcy lawyer in Kansas City varies from $800 to $1,300, but many attorneys offer a free initial consultation. Hiring an attorney is a good investment if your case is complex.
Combined, this means that the cost to file a Chapter 7 bankruptcy in Kansas City is $338. In case the Court waives your fee, you donât need to pay it when filing bankruptcy in Kansas City. However, to qualify for a fee waiver, you have to meet the following conditions:
Your income has to be below 150 percent of the poverty line
You have to be unable to pay the $338 in installments after filing bankruptcy in Kansas City
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Can I Get Free Bankruptcy Forms
Yes! All official federal and local bankruptcy forms are available free of charge. You can find the links you need by visiting our bankruptcy forms page.
If you want copies of bankruptcy forms with plain-language instruction and tips for filling them out, you might want to use a good self-help book like How to File for Chapter 7 Bankruptcy or Chapter 13: Keep Your Property and Repay Your Debts Over Time, both published by Nolo.
How Can I File A Bankruptcy In Kansas
Several resources are available. Pick the one that is right for you.
Upsolve provides a screening tool to see if their free program is a good fit for you. Then, the free program guides you to questions. Answering these questions will automatically complete bankruptcy forms that you can file as a self repesented person.
If you request it, this site does make referrals to private attorneys who take bankruptcy cases for a fee that you pay.
Kansas Bar Association Reduced Fee program allows a family to hire an attorney at a lower than typical rate. This program is for people under 250% of the Federal Poverty Guidelines .
There is a charge for this attorney. The attorneys are located near the bankruptcy courts, rather than in your local community. Kansas Legal Services is part of this progarm.
This program does not have free or low fee attorneys. You can contact this program here.
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What Types Of Debt Cant Be Discharged By Filing Bankruptcy In Kansas
Filing for bankruptcy doesnt mean that every single debt you have will go away. There are exceptions under Kansas law. These include:
- Back child support and alimony
- Student loans
- Income tax debts incurred within the past three years, plus all other tax debts
- Legal fines and penalties, including tickets
- Debts owed for an injury or death that were the result of a DUI
These apply to both chapter 7 and chapter 13 bankruptcies in Kansas. You must also continue to pay secured debts if you want to keep the property.
In chapter 7 bankruptcies, a judge may rule certain types of debt non-dischargeable if they are challenged by the creditor. These can include credit purchases of luxury goods within 60 days of filing, loans or cash advances of $1,150 or more within 60 days of filing, debts incurred through illegal activity, and certain debts owed under a divorce decree.
Estimate Whether You Will Lose Any Property
As you can imagine, many people want to keep their home, car, cash, etc. when filing bankruptcy.
You need to understand the bankruptcy exemptions in Kansas. The bankruptcy exemptions are complex because some states allow you to choose between state and federal exemptions when filing bankruptcy. For example, check out the Kansas homestead exemption.
As such, we created this Kansas bankruptcy exemptions calculator to simplify the information. This free calculator helps you estimate whether your belongings are at risk when filing bankruptcy in Kansas.
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Wichita Ks Is Within The District Of Kansas
In addition to the national bankruptcy forms described above, the District of Kansas Bankruptcy Court requires you to file your pay stubs for the 60-day period before your filing date. Along with your pay stubs, you must file a special local free bankruptcy forms for Kansas called the Declaration Regarding Payment Advices. On this local form, you certify that you have attached all your pay stubs for the 60-day period or you explain the reason why you donât have pay stubs, such as âI was unemployedâ or âI am self-employed and donât receive pay stubs.â
Can A Church File For Bankruptcy
Yes, a church can file for Chapter 11 bankruptcy if it reaches a level of debt that it cannot repay on its own. Because a church is not a for-profit company, different rules apply to a church bankruptcy. Churches and other religious organizations can file for Chapter 11 to work out debts and avoid accruing new debt in the future by restructuring, just like private companies do. Often, churches accrue debt from their mortgages and the other expenses of operation. There have been cases in which churches have filed for bankruptcy as a way to settle claims of sexual abuse. By filing for bankruptcy, the churches are protected from debt collection efforts and may be able to reduce the amount of compensation they are ordered to pay to their victims in the event their clergy or other church officials are found guilty of sexual abuse or other forms of mistreatment.
A Church Cannot be Forced into Involuntary Bankruptcy
One significant difference between church bankruptcies and bankruptcies involving private companies is that a church cannot be required to complete an involuntary bankruptcy. An involuntary bankruptcy occurs when a company’s creditors file a bankruptcy petition with the court to start the bankruptcy process. This is only possible when certain circumstances are met, which include:
Involuntary bankruptcy can be a complicated process. Usually, it is a last resort for creditors.
What Happens After a Church Files for Bankruptcy?
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Filing Motions & Responding To Creditor Objections
$0 to $200
Depending on your circumstances these are two things you may or may not need to do.
Filing motions with the court. If creditors’ have placed claims on your property you may be able to have them removed by filing some extra paperwork.
Responding to objections. Your creditors or the bankruptcy trustee will have a certain number of days to object to statements on your forms. You may respond before the court has a hearing on the matter. Depending on the objection you may need to hire a lawyer to respond effectively.
Tip: If you are hiring an online service to prepare your bankruptcy papers, be sure to ask whether the standard fee includes filing motions for lien avoidance, or responding to the trustee’s or a creditor’s objection.
District Of Kansas Requirements
If you plan on filing your Chapter 7 bankruptcy in Kansas without a lawyer , you should carefully review the court’s Pro Se Debtor Handout to learn all the specific requirements imposed by the Kansas bankruptcy laws and procedures. It is also important to note that the court will not allow you to bring your cell phone into the courthouse. Whether you are at the courthouse to file your Kansas bankruptcy case, attend your 341 meeting, or for any other reason, you will have to return your phone to your car or leave it with building security on your way in.
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File Your Petition In Bankruptcy Court
After youve got your petition and supporting paperwork in order, you must file it in the correct Kansas district court. You can visit our bankruptcy court page for Topeka, Kansas to find your local court and other important information, like local rules and requirements that you might have to meet when you file.
When you file your petition, you must pay the filing fee by cash or money order, unless you apply for a fee waiver or payment in installments.
Secured Debt Vs Unsecured Debt: What’s The Difference
Secured debt. A secured debt is backed up by property — like your home or a car — which is also known as “collateral.” The creditor can take back the collateral if you don’t repay the debt.
Secured debt can be voluntary — for example, when you get a mortgage to buy real estate or a loan to buy a car. It can also be involuntary — say, if the government puts a lien on your property for back taxes.
Unsecured debt. Unsecured debt isn’t backed up by collateral. Lenders give you credit without “security,” relying on your credit history and your promise to repay. Unsecured debt can include everything from your credit cards to your gym membership, your medical bills to a loan from a friend.
In bankruptcy, unsecured debt is divided into priority and non-priority claims. If there’s any money available to pay your creditors, priority claims come first. Non-priority unsecured debts are rarely paid in bankruptcy.
Common priority unsecured debts include:
- legal fees related to the bankruptcy filing
- child support and alimony
- federal or state income taxes
- a certain amount of wages and benefits owed to employees, and
- claims against you for operating a vehicle under the influence of alcohol or drugs.
To learn more, see our articles on How to File for Bankruptcy.
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What Is Chapter 7 Bankruptcy In Kansas
Chapter 7 bankruptcy in Kansas allows debtors to liquidate their assets and properties to pay off their debts. The liquidated properties and assets are those not covered by exemptions. Another name for Chapter 7 is the liquidation bankruptcy. A trustee is appointed by the bankruptcy court in the District of Kansas to oversee the bankruptcy case proceedings. The trustee handles the sales of the debtorâs property and assets and ensures the proceeds are distributed to the creditors.
Under Chapter 7, individuals, partnerships, and organizations are examples of those eligible to file for bankruptcy petitions. However, they are expected to take a Mean Test to decide their eligibility. The test is to ensure debtors who wish to file for Chapter are not earning above the state of Kansasâ median income. Only those whose income is below the medianâs income can file. Some of the things considered during the test include the debtorâs family size, secured and unsecured debts, expenses, and income.
In Chapter 7 bankruptcy, debtors with discharged debts have an opportunity for a new beginning. Examples of such dischargeable debts include automobile loans, personal loans, income tax debts, medical bills, and mortgage loans. However, debts that may not be discharged include court fees and penalties, student loans, and personal injury debts.