People who are drowning in debt often believe that there is no way out. They mistakenly believe that bankruptcy will only make matters worse. This is not the case. Bankruptcy will help them restore their financial stability. A Bankruptcy lawyer in Wichita can evaluate their situation and recommend the best path through the bankruptcy process. He will ask the debtor to make a list of all of their debts and income sources. He will also ask them to list any major assets such as cars, houses or art collections. This will help him determine if the debtor should use Chapter 7 or Chapter 13 of the bankruptcy code.
Chapter 7 is the fastest way to complete the bankruptcy process. The bankruptcy court appoints a trustee to sell off all of the debtor’s non-protected assets. The profits from the sale are then divided among the creditors. Any remaining debt is forgiven. The entire process can usually be completed within three months. Recent changes in the bankruptcy laws limit who can file for bankruptcy under Chapter 7. Only people who have made less than the median income in their state for the past six months are allowed to automatically use Chapter 7.
People who have more income are required to file for Bankruptcy under Chapter 13. This is a repayment plan that is administered by a court-appointed trustee. It permits the debtor to keep their assets while paying off their debts. The trustee will review the debtor’s income and expenses and craft a budget for them to live on. The Bankruptcy lawyer in Wichita will carefully review the plan to make sure that it is fair and livable. Once the debtor has agreed to the budget, he will not be allowed to use credit cards to make up any shortfall in his income. He could be required to live on the budget for up to five years. After he has completed the repayment plan, any remaining debt will be forgiven.
The Law Offices of Todd Allison and Sarah Newell are one of the law firms in Wichita that can help a person declare bankuptcy. People who feel overwhelmed by their debts should not hesitate to call them. For more information you can visit them on Bing Local
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