Bankruptcy Filing Guidance in Kansas City: Find Relief Today
Trusted Bankruptcy Attorneys in Kansas City Ready to Help
When a person’s amount of debt becomes too much for them to pay back, filing bankruptcy can be a cheap and efficient way back to financial independence. There are two basic types of personal bankruptcy: Chapter 7 and Chapter 13. Either Chapter can resolve issues with credit cards, medical bills, and payday loans and stop lawsuits, garnishments, and other types of debt.
Often, the first step in determining whether or not bankruptcy is a debt-relief option is determining which chapter of bankruptcy you are eligible to file. A lot of individuals will qualify for both chapters, some may only qualify for one, and, in very rare situations, it can be possible to fail to qualify for either.
Do I Qualify for Chapter 7 Bankruptcy?
The first step in determining whether or not you qualify for Chapter 7 bankruptcy is to calculate your gross household income. This calculation is generated from your last six months of income. For example, if you want to file in September, you will use the household income from the months of February through August. Double the income made through those months to give yourself a yearly projection of your total household income.
Every county has a standard they refer to as the median income level. This median income level is calculated based on the number of individuals living in your household. If the yearly income projection is less than your county’s median income level, you automatically qualify to file Chapter 7 bankruptcy.
Even if your income is too high, you still might have a chance at qualifying. Your attorney will calculate the means test. In short, this is a calculation that starts with your monthly gross income and then starts deducting expenses. These deductions will include taxes; insurance; certain IRS standards for housing, food, and utilities; and many other expenses. At the end of the means test, there will be a disposable income number listed. If your number is low enough, you qualify.
If you are unsure whether or not you make too much money, our knowledgeable Kansas City bankruptcy attorneys at Patton & Dean, LLC will run a means test for you free of charge.
Do I Qualify for Chapter 13 Bankruptcy?
Unlike Chapter 7 bankruptcy, you can qualify for Chapter 13 bankruptcy no matter how much money you make. However, unlike Chapter 7, there are limits to how much debt one can have and still be eligible to file a Chapter 13. As of April 1, 2016, the debt limits for Chapter 13 are $394,725 in unsecured debt and $1,184,200 in secured debt. Remember, a secured debt is a debt that attaches to property, like a car or home loan. Most debts, like hospital bills, payday loans, and the majority of credit cards, are unsecured. If you are above the debt limits, you will not be able to file a Chapter 13.
If you are unsure how much debt you may have, a good place to start your investigation is a credit report. Two places you can go to get free credit reports are www.annualcreditreport.com and www.creditkarma.com.
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Past Clients Tell Their Stories
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“Ryan and David both were very personable as well as professional.”Deana
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This team of attorneys has gone out of their way to help me. I am impressed and thankful for all they have done for me.Jeffery B.
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Very grateful. Ryan and his team were very helpful. Thanks to them I was able to keep everything I needed. Very knowledgeable and professional. Thanks Thanks ThanksCarlos I.
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Great service! Ryan Patton was very professional and helpful! Very responsive on my questions! Would definitely refer their firm!Traci V.
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Ryan Patton represented me in my Chapter 13 submission. Given the results, which were far better than I had hoped, his feedback, guidance, recommendations and ultimate submission were outstanding.. His professionalism and value added exceeded my expectations! Do not try a bankruptcy submission without a top notch attorney like Ryan!Larry H.
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I had a hard time coming to the decision to file bankruptcy, Ryan made it painless and was very patient with all of my questions. Very professional.Debra B.
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Ryan was recommended by my parents and has made this process as easy as it can be and has made sure I understood everything every step of the way. This is the second time I have dealt with Ryan and would definitely recommend him to anyone!Terri O.
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Ryan P. was amazing to work with, he was always available every time I needed him. Any question I needed answered or explained more, he was always there. I would highly recommend him to anyone needing his service. I couldn't ask for a better person to help me through this process.Amber M.
When Can I File Bankruptcy Again?
If you received a discharge in a prior bankruptcy, there are certain time restrictions that prevent you from seeking a discharge in a new bankruptcy.
The following time restrictions are from the filing date of the previous bankruptcy:
- Chapter 13 to Chapter 7 – six years (certain exceptions)
- Chapter 7 to Chapter 7 – eight years
- Chapter 7 to Chapter 13 – four years
- Chapter 13 to Chapter 13 – two years
If you have questions about filing for bankruptcy, contact Patton & Dean, LLC at (913) 203-4786 for a free consultation. Our experienced Kansas City attorneys can help you understand your options.
