Kansas City Chapter 7 Bankruptcy Solutions

Only certain people can qualify to file for Chapter 7 bankruptcy. Generally, you must meet a legal “means test” by demonstrating that your income and assets are below a particular ceiling. This determination can be complex. Therefore, it is crucial to speak with an attorney about your bankruptcy options and whether Chapter 7 is the right approach.

• Related: Protecting Your Property in a Chapter 7 or Chapter 13 Bankruptcy in Missouri

Finding the Right Type of Bankruptcy for You

Filing for Chapter 7 is generally the preferred option for people who don’t have significant assets or income. However, for those with underwater mortgages, valuable assets, or a steady income, Chapter 13 might be a better fit.

At Patton & Dean, LLC, our Chapter 7 lawyers in Kansas City have no hidden agenda to push you toward a particular approach. Instead, we will walk you through your options, discuss the pros and cons of each, answer any questions you may have, and ultimately provide the guidance you need to make an informed decision. We want you to feel comfortable and confident in the road ahead.

How Much Does it Cost to File Chapter 7 Bankruptcy?  

In general, most individuals will pay a$245 filer fee to the court, $15 trustee fee, plus a $78 miscellaneous administrative fee – a total of $338. The court may also require the completion of a credit counseling course at an additional cost (typically between $20 - $50). In addition to filing fees, individuals may need to pay for legal representation if they do not feel comfortable completing the process themselves. The cost of working with a professional Kansas City Chapter 7 lawyer can vary depending on the complexity and number of assets involved in filing for bankruptcy.

It is also worth noting that individuals who cannot afford the filing fees may qualify for fee waivers through the court. 

How a Bankruptcy Attorney Can Help With Your Case

By consulting an experienced bankruptcy attorney, individuals can explore their options and find a solution that fits both their financial situation and goals. 

Furthermore, discussing your case with a qualified bankruptcy lawyer will involve assessing your: 

• Assets
• Liabilities
• Income
• Expenses

A lawyer can also provide advice on the viability of various strategies for debt relief as well as represent you throughout the bankruptcy process. 

Chapter 7 Process

Considering filing for Chapter 7 bankruptcy? If so, below is a timeline of the Chapter 7 process. Generally, there are 6 steps:

1. Before you file, you must attend a mandatory credit counseling course. You can do this online or by phone.
2. File for bankruptcy. Forms are available online. Make sure to include information about your property, creditors, and any financial transactions you have had over the last 2 years.
3. Mail a copy of your most recent tax return to the bankruptcy trustee. This person handles the bankruptcy cases for the court. If they request additional documentation from you, provide it.
4. 30 days after you file, attend a creditor’s meeting. It is conducted by the trustee, and it is rare for the creditors to appear. Here, you must answer (under oath) questions from the trustee regarding your documentation or anything else they may find relevant to your case. These meetings usually last 5 minutes.
5. No later than 60 days after the creditor’s meeting, attend a mandatory budget counseling via phone or online. File a form and a copy of your certificate of completion with the court to confirm the counseling was completed.
6. Do not sell or give away any property. 60–75 days after the creditors’ meeting, you should receive a letter from the court that discharges your debts. The trustee will arrange with you to liquidate your nonexempt property, if you have any. Be aware that during this period, creditors are still able to object to you discharging your debt.

Benefits of Filing for Chapter 7 Bankruptcy

If you are overwhelmed by debt and struggling to make ends meet, filing for Chapter 7 bankruptcy can provide you with a fresh start and help you rebuild your financial future.

Here are some of the benefits of choosing Chapter 7 bankruptcy:

• Debt Discharge: Chapter 7 bankruptcy allows for the discharge of most unsecured debts, such as credit card debt, medical bills, and personal loans. This means that you will no longer be legally obligated to repay these debts.
• Immediate Relief: Once you file for Chapter 7 bankruptcy, an automatic stay halts all collection actions, including wage garnishments, foreclosure proceedings, and creditor harassment.
• Quick Process: Unlike other bankruptcy chapters, Chapter 7 bankruptcy is typically a faster process, with most cases being resolved within a few months.
• Exemption Protections: Kansas bankruptcy laws provide exemptions that allow you to protect certain assets, such as your home, car, and personal belongings, from being liquidated to repay your debts.
• Improved Credit Score: While filing for bankruptcy will initially have a negative impact on your credit score, it also provides an opportunity for a fresh start. By eliminating your debts, you can begin rebuilding your credit and working towards a healthier financial future.

At Patton & Dean, LLC, our experienced Chapter 7 bankruptcy lawyers in Kansas City can guide you through the entire bankruptcy process and help you understand your options. Contact us today for a free consultation to discuss whether Chapter 7 bankruptcy is the right solution for your financial situation.