Overland Park Chapter 7 Bankruptcy Lawyer
Many different lifechanging events, such as a job loss, divorce, or a serious illness, can lead to a devastating financial crisis. In this type of situation, many individuals find financial relief through a bankruptcy filing.
Sarah has been serving the area since 2005 and will advise and represent you in all aspects of bankruptcy. She understands the various complications of filing for bankruptcy and will help to guide you through this process.
Understanding Chapter 7 Bankruptcy
Filing for Chapter 7 bankruptcy helps to reduce or eliminate an individual’s debt burden and can even allow for the retention of personal property, such as a house or vehicle, under certain circumstances. It is one of the most common forms of bankruptcy filed in the United States.
How Chapter 7 Can Eliminate Your Debt
A Chapter 7 bankruptcy filing allows for the elimination of unsecured debts, such as credit cards and medical bills. It is possible to keep your house, vehicles, and other personal property if you have loan against them, as long as you can afford to continue to pay those loans. If you cannot afford to pay the secured debt, you can also surrender any property and discharge your personal obligation on those loans. At Law Office of Sarah Sypher LLC, we understand the bankruptcy laws and how to use them to our clients’ favor. We will work to help you keep as much property as possible while eliminating all the debts that we can. When we file a Chapter 7 bankruptcy for you, all collection activity by your creditors must stop. This includes the threat of foreclosure, repossession, lawsuits, and garnishments.
Qualifying for Chapter 7 Bankruptcy
Eligibility for a Chapter 7 bankruptcy filing is generally based on income and is determined by a mathematical calculation using a form known as a “means test.” The means test is based on your income, expenses, property owned, and ability to pay your debts. Even at high income levels, some individuals qualify for debt relief under Chapter 7. Those who are not eligible for a Chapter 7 bankruptcy may still qualify for debt relief under a Chapter 13 bankruptcy. Sarah will review your situation and find the bankruptcy option that is right for you.
Understanding the Means Test in Kansas
The means test is an essential component of the bankruptcy process in Kansas and is used to determine an individual's eligibility for Chapter 7 bankruptcy. The means test evaluates a debtor's income and compares it to the median income in Kansas for a household of the same size. It helps determine whether the debtor's income is below or above the state's median income, which impacts their eligibility for Chapter 7 bankruptcy.
- If your income is less than the median, you are immediately eligible for Chapter 7 bankruptcy. This means you can seek a debt discharge without having to follow a repayment plan.
- If your income is above the median income, further calculations are performed to assess your ability to repay your debts. This involves deducting specific allowed expenses from your monthly income to determine your disposable income.
- If your disposable income is below a certain threshold, you may still be eligible for Chapter 7. If your disposable income exceeds the threshold, you may be required to file for Chapter 13 bankruptcy, which involves repaying a portion of your debts over a specified period.
Determining your eligibility and navigating the means test can be complex, which is why it's crucial to consult with an experienced bankruptcy attorney at Law Office of Sarah Sypher LLC. An attorney can guide you through the process, assess your income and expenses, and help you understand your options based on your unique financial situation.
Steps to File for Chapter 7 Bankruptcy in Kansas
Filing for bankruptcy Chapter 7 is a quick and simple way to eliminate your debts completely without needing to repay your creditors.
Basic steps to filing Chapter 7 bankruptcy:
- Determine if you qualify to file for Chapter 7. There are other options available if you do not qualify, such as Chapter 13.
- Complete a credit counseling course.
- File for Chapter 7. A trustee will be assigned to your case.
- Mail any documents to the bankruptcy trustee when they request them.
- Attend the 341 creditors meeting or Chapter 7 hearing
- Complete a budget counseling course
After this, your debts will be discharged and the trustee will liquidate your nonexempt assets.
Preparing for Chapter 7 Bankruptcy in Kansas
Before filing for Chapter 7, make sure to collect some important financial documents so you can complete the packet of documents for filing for bankruptcy. It is made up of 70 pages and contains at least 23 forms that will ask for information about your income, how much you spend, and how much you owe.
Below are some forms that will help you with this:
- Bank statements
- Credit Report
- Tax returns for the last 2 years
- Pay stubs for the last 6 months
- Statements from retirement or brokerage accounts
Do you think you need to file for bankruptcy? Speak with a Chapter 7 lawyer in Overland Park at Law Office of Sarah Sypher LLC for a consultation. Contact us online or call (913) 372-3556.
There Is Life After Bankruptcy
Sarah has helped many people just like you — good people who have found themselves overwhelmed by debt and struggling to pay their bills. Your future may seem uncertain now, but a new financial future may be within your reach. There is life after bankruptcy.
Rebuilding Your Finances After Chapter 7 Bankruptcy
While Chapter 7 bankruptcy can provide a fresh start by eliminating your debts, it's important to have a plan for rebuilding your finances and securing a stable financial future. At Law Office of Sarah Sypher LLC, we are committed to helping our clients not only navigate the bankruptcy process but also provide guidance on how to rebuild their credit and regain financial stability.
Here are some steps you can take to rebuild your finances after Chapter 7 bankruptcy:
- Create a Budget: Start by evaluating your income and expenses to create a realistic budget. This will help you prioritize your spending, save money, and avoid falling into debt again.
- Establish an Emergency Fund: Set aside some money each month to build an emergency fund. Having savings can help you handle unexpected expenses without resorting to credit cards or loans.
- Rebuild Your Credit: While bankruptcy may have a negative impact on your credit score, it's not permanent. Start rebuilding your credit by obtaining a secured credit card or a credit-builder loan. Make sure to make timely payments and keep your credit utilization low.
- Monitor Your Credit: Regularly check your credit reports to ensure they are accurate. Dispute any errors or discrepancies immediately to prevent any negative impact on your credit.
- Seek Professional Advice: Consider working with a financial advisor or credit counseling agency to get expert guidance on managing your finances and rebuilding your credit.
Remember, rebuilding your finances after bankruptcy takes time and patience. By following these steps and making smart financial decisions, you can lay the foundation for a brighter financial future.
Call Sarah today at (913) 372-3556 for more information.
