No matter how good a person you are or how honest or hardworking, there is always the possibility that a financial setback can occur. A failed business, job loss, divorce, illness or injury can put you in a hole that can be hard to climb out of without help.
If you find yourself unable to pay your debt, it is important to know your legal rights and responsibilities. The Mathews Group, LC, is here to help. Our lawyers guide individuals and families through the Chapter 7 bankruptcy process. For a no-cost consultation, call 913-660-0664 or complete the simple contact form on this website. From our law office in Leawood, KS, we represent clients throughout the Kansas City metro area in Kansas and Missouri.
Filing Chapter 7 Bankruptcy in Kansas and Missouri
Under a Chapter 7 bankruptcy, an individual or couple is allowed to modify their debt situation with the assistance of the United States Bankruptcy Court. Chapter 7 bankruptcy is sometimes referred to as a liquidation, because the bankruptcy trustee has the power to liquidate certain assets in order to cover debts. Most Chapter 7 bankruptcies, however, are considered "non-asset liquidations," in that there are no assets to liquidate. That's because many of your assets are protected and exempt from liquidation. The bankruptcy law exemption rules are different in Kansas and Missouri, but you are generally allowed to keep some amount of equity in a vehicle, a home, home furnishings, tools, clothing, furniture and other household goods.
Nonexempt assets may not be subject to liquidation because they don't have liquidation equity. For example, if you own a second car with a wholesale value of $10,000, but you owe $10,000 on it, there is no equity in the vehicle. Therefore, the trustee would have no reason to liquidate it.
Chapter 7 bankruptcy is a complicated process. You must meet certain income criteria and be able to demonstrate that the Chapter 7 bankruptcy would actually relieve your financial crisis. Additionally, if you have enough income to continue paying some or all of your debts, then you may be required to file Chapter 13 bankruptcy or not be allowed to file at all.
The benefit of a Chapter 7 bankruptcy is that it changes your debt load. You may be able to discharge all of your unsecured debts, and you may have the option of "walking away" from secured debts like home mortgages and auto loans, if you are willing to give up the property.
The Mathews Group, LC is a debt relief agency. We help people file for relief under the Bankruptcy Code. We can assist you in determining whether you qualify for bankruptcy relief and what the ramifications of that decision would be.
Across America, foreclosures continue in epidemic numbers. Families find themselves unable to continue paying mortgages due to lost income or adjustments in their interest rates. Our lawyers can help.
We assist parties who are facing foreclosure by helping them navigate the process or by keeping banks at bay while we pursue loan modifications or refinance options. Our lawyers can explain government-regulated programs like the Homeowners Affordability Modification Program to help you determine if you qualify and work with the bank on your behalf to assist you in modifying a loan.
How to File Chapter 7 Bankruptcy in Kansas or Missouri
You will never be charged for your initial consultation with a Kansas City bankruptcy attorney at our firm. To schedule a consultation, call 913-660-0664 or complete our contact form.