In Kansas, consumers file for chapter 13 to reorganize their debts. This chapter of bankruptcy provides them with a period of up to five years to settle their debts. However, they must comply with all bankruptcy laws that apply to these cases. The following is what consumers should know about Chapter 13 in Topeka KS.
What are the Eligibility Requirements?
To acquire a chapter 13 bankruptcy case, the consumer must have an income of more than $41,412. This value is the median income for this area. They must provide six months of income statements that prove their eligibility based on their annual income. If they don’t possess the right income value, they must attempt to file a chapter 7 bankruptcy based on the value of their estate.
Are There Limitations Imposed on the Consumer?
Yes, they must pay their payments as directed by the bankruptcy court by the deadline. They must also refrain from attempting to open any new lines of credit while their case is active. They must also use all disposable income to settle debts that were not included in their bankruptcy claim. The court will monitor the consumer and ensure that they comply with these requirements.
Are Their Wages Garnished?
Some courts will require wage garnishment to collect the monthly payments. This process is beneficial for consumers in that the value is deducted from the pre-tax wages. By allowing the garnishment, the consumer will pay fewer taxes overall. They will also guarantee on-time payment of their bankruptcy payments.
What are the Repercussions of an Early Discharge?
If the consumer doesn’t comply with all the requirements of the bankruptcy claim, they can face an early discharge. A discharge leads to immediate responsibility for all debts included in the claim. The consumer could face legal action by their creditors once the discharge takes effect.
In Kansas, consumers have the option to file for chapter 13 if they qualify. They must provide income statements for these purposes. If they qualify, they can lower the payments of their monthly debts and arrive at a more affordable rate. Consumers who want to file for Chapter 13 in Topeka KS contact Business Name today.