Bankruptcy could provide you with debt relief in dire circumstances. It is among the most beneficial option for avoiding foreclosure. Consumers who file for chapter 13 bankruptcy receive an automatic stay that prevents this action for the full duration of their case. However, all consumers in the Hutchinson area must have an income that is greater than $39,017.
What You Need to File
Before you hire Attorneys in Hutchinson KS to file for bankruptcy, you should gather documentation that provides clear evidence of your income. This includes all sources, including child or spousal support. You’ll need documentation for at least the last six months.
If you are self-employed, you’ll need to bring your tax returns for at least two years. This allows your attorney to compare your income and determine the possibility of variations. These adjustments are necessary for these claims.
After You Qualify
After you establish eligibility for chapter 13, your attorney reviews your documentation for all properties and assets you own. Through your claim, you’ll receive an exempted value for each of these items based on the Kansas bankruptcy laws. Your attorney makes these assessments to give you a clear picture of what to expect after your claim is approved. However, you’re required to complete a credit counseling program before the claim is submitted to the court.
What is in the Claim
Essentially, a chapter 13 claim is a structured repayment plan. It identifies the value in which you’ll pay each month, which is distributed among your debts. In addition, you’re required to utilize all expendable income to repay debts that weren’t included in the bankruptcy. Your expendable income is identified after the court calculates your monthly obligations.
A chapter 13 bankruptcy case lasts up to five years. What most consumers don’t realize is that it remains on their credit for up to ten years. This could present an issue when they begin to establish further lines of credit. However, it reduces their debts and could render them debt-free completely. If you wish to review this possibility, you should contact Attorneys in Hutchinson KS at Oswalt Henry, Oswald and Roberts today.
