In Kansas, consumers find beneficial debt relief through bankruptcy, which is an opportunity to help the them settle their debts permanently. The type of bankruptcy chosen defines how the consumer proceeds and the guidelines for the case. The first step to acquiring debt help in Topeka, KS is to follow the eligibility requirements for these cases.
Qualifying for Bankruptcy
All claimants who wish to file for bankruptcy must present evidence of all income sources. This documentation helps to determine for which chapter they qualify. According to federal law, the claimant must have an income of more than the median for their area to qualify for chapter 13 and the median income of Topeka, KS is $35,928. If the claimant isn’t eligible for chapter 13, they could be eligible for chapter 7, which’s requirements are defined by the assets and properties owned by the consumer.
For chapter 7, the claimant must own property which they could sell and generate money to settle their debts. The bankruptcy court evaluates the titles and deeds for these properties and they also assess the market value to determine if the sell could produce enough money. If these properties and assets qualify under federal bankruptcy laws, the claim proceeds to the next step.
Credit Counseling Requirements
All claimants, regardless of the chapter, are required to complete a credit-counseling course which must be state-approved. The claimants must provide evidence of completion to the bankruptcy court before their case goes to court.
Meeting of Creditors
The meeting of creditors is a process in which all creditors may attend and discuss the debts. The creditor has the right to approve or deny the inclusion of their debt into the case. If they deny entry, the consumer remains responsible for these debts and must settle them through alternative measures.
Debt help in Topeka, KS consists of choosing the right bankruptcy chapter. These opportunities help the consumer to choose a path that is most beneficial to their financial needs. Consumers who wish to begin the process must provide evidence of eligibility for their chosen chapter and should contact Business Name for more info.