Discussing Bankruptcy With A Lawyer In Topeka, KS
For Kansas consumers, bankruptcy provides ample breathing room. The process allows them to approach debt settlement in a whole new way. Instead of struggling to make payments each month, the consumer has further options to pay off outstanding balances.
Where to Start
The first requirement for filing bankruptcy is to establish eligibility. The attorney starts this process by evaluating all sources of income. This includes the consumer’s wages, dividends from stocks or savings accounts, and support they may receive through a former spouse.
To qualify for chapter 13, the consumer’s income is higher than the median income for their local area. Residents of Topeka must have an income that is higher than the average for Shawnee County. Currently, the median for the county is $40,988. Any income value that is lower than this average qualifies for chapter 7 only. However, consumers that have a higher than average income could qualify for both chapters. To establish eligibility contact a Lawyer in Topeka KS now.
Credit Counseling Programs
After an attorney establishes eligibility, the next step is to find a credit-counseling program. Federal bankruptcy laws require consumers to attend a state-approved credit-counseling program after filing an initial claim for bankruptcy. The case won’t go to court until this requirement is fulfilled. The consumer pays all associated costs for the program.
Evaluating the Consumer’s Income
Before starting a bankruptcy claim, an attorney explains how each chapter works. The point is to help the consumer settle their debts. However, in chapter 13, they pay monthly payments to the court. The payment plan cultivated for these purposes shouldn’t present a further financial hardship. The attorney evaluates their income to ensure that they could afford the bankruptcy. This includes the fees to start the claim in the first place.
Bankruptcy offers enough breathing room for consumers to settle their debts. For consumers who are facing foreclosure or repossession, it provides an automatic stay. This benefit prevents the lender from seizing the property. The duration of the automatic stay depends on the chapter chosen. To learn more about automatic stays or how bankruptcy works contact a Lawyer in Topeka KS by visiting Joewlaw.com today.