The financial strain has been going on for too long and the debtor sees no end in sight. At this juncture, a good move is to consider the possibility of filing for bankruptcy. In order to learn more about the process, it makes sense to set up a meeting with an Attorney in Topeka KS. Here is what the attorney can do to help.
Qualifying the Debtor
Before any action can be taken, the Attorney in Topeka KS will determine if the client meets the criteria for bankruptcy protection. Factors such as the amount of monthly and annual income, the total amount owed to creditors, and the value of any assets the debtor owns outright will be taken into consideration. All these elements are involved in what is known as a means test. If the results indicate that the client does not have a sufficient amount of income and eligible assets to honor the debts, then some form of personal bankruptcy is possible.
Explaining the Different Types of Personal Bankruptcy
The attorney will help the client understand how each form of personal bankruptcy works. For many, filing a Chapter 7 is the most practical approach. This kind of bankruptcy involves the liquidation of any eligible assets under the direction of a court trustee. Those funds are allocated to the debtors according to a plan approved by the court. Any remaining balances are discharged, leaving the debtor free to start with a clean slate. Typically, this approach takes a few months to complete.
Another option is to file a Chapter 13 bankruptcy. Designed for people with debts that cannot be discharged in a Chapter 7 action, the debtor is placed under the protection of the court and will make payments directly to the court for a period of three to five years. During that time, the money collected is forwarded to creditors according to a court-approved plan. Debts considered by the court to be a priority are paid first. If any balances on non-priority debts remain at the end of five years, those are discharged.
For anyone who thinks bankruptcy may be the right solution, talk with Joseph I. Wittman Attorney at Law today. Doing so could be the first step in moving on to a more secure financial future.
