Chapter 7 bankruptcy is also referred to as liquidation or simple bankruptcy. Your assets are sold to pay off your debt, which sounds harsh, but it can give you a fresh start and peace of mind. And, you are allowed to keep certain assets – it does not mean losing everything.
Bankruptcy can stop the spiral of debt, stop the harassing phone call from bill collectors, and even protect your home and personal property. To learn more and find out if Chapter 7 bankruptcy is the right solution for you, please call Ray Hodge & Associates today.
You may have heard about the “means test” in bankruptcy. If your income is too high, you cannot use Chapter 7. If your average monthly income is equal to or less than the median income for a household of your size in Kansas, you do not have to worry about the means test. If you make more than the median income, you may still qualify, but you will need to pass the means test which is used to prove that you are not abusing the system by using Chapter 7 to get out of paying off debts that you could, theoretically, afford to pay.
Your income is based on the average of the last six months, so if your income has recently gone down, you may need to wait in order to qualify. Ray Hodge & Associates can help you determine if now is the time for Chapter 7 bankruptcy.
Bankruptcy does not mean losing everything. In fact, it can help you protect certain assets. It is important to understand that bankruptcy laws are different in each state, even though there are federal bankruptcy laws, and the law changes over time. If you have friends or family who have filed for bankruptcy in other states, the exemptions they were able to claim may not be the same as what are available to you now in Kansas. Some states let you choose between the federal or state list of exemptions. Kansas does not. In Kansas you can only use state exemptions. Kansas does not have a wildcard exemption.
Example of the types of exemptions available in Kansas include:
If you are considering Chapter 7 bankruptcy, Ray Hodge & Associates is here to help. Please call us at 316-269-1414 or email us today.
Ray Hodge & Associates proudly represents victims and their families across the state of Kansas, including Wichita, Andover, Derby, Goddard, Haysville, Mulvane, Rose Hill, Newton, El Dorado and Hutchinson. Call today for a free consultation all over the state of Kansas. We have proudly served clients in Sedgwick, Butler, Sumner, Harvey, Kingman and Reno Counties.