Top 10 Things to Know About Bankruptcy in Kansas Since the Law Change David S. Adams Attorneys Olathe Kansas

Top 10 Things to Know About Bankruptcy in Kansas Since the Law Change

You can still start over and discharge your unsecured debt (credit cards, medical bills), in a chapter 7 bankruptcy. If your income is much more than an average income, then you may have to make monthly payments over a 3-5 year period in a chapter 13 bankruptcy.
You can keep your house and one car (two, if married) so long as you stay current on the payments. If you are upside down on either, or just want to walk away from either, bankruptcy still allows a fresh start.
If you file bankruptcy before you receive (and spend) your tax refund, you may lose that refund.
You do not lose any of the following property in a bankruptcy: home residence, automobile, household goods, clothing, jewelry (up to $1,000), and retirement accounts. (exception: if the mortgage or car loan is not paid)
You will lose any non-exempt assets that exist on the day you file – examples include the following: money in financial accounts, tax refunds, injury/accident claims against others, an extra car, rental property, time share, boat, collectible, jewelry worth more than $1,000, pending inheritance.
You will only have to go to court one time in most cases – to swear under oath that you have fully disclosed all of your income and assets.
Once you file bankruptcy, creditors are not allowed to have any further contact with you. Any pending lawsuits are frozen, and any pending garnishments must be dismissed. Foreclosures are trickier, but can be delayed by a bankruptcy filing (providing a little time to catch up).
Some debts are not dischargeable in bankruptcy including: most student loans, child support obligations, divorce commitments, taxes (if less than 3 years old), and criminal fines and fees.
A chapter 7 filing fee is $299, and there will be a minimum $70 cost for credit counseling that is now required prior to filing. The attorney fee is dependent on the complexity of the case.
If you have not lived in Kansas for two years prior to filing then you may not get to use the Kansas exemptions above – you may have to use the exemptions from the state in which you recently lived, which may not be as liberal as those identified above.