Kansas Bankruptcy

Most people in Kansas file under either Chapter 7 or Chapter 13. Only businesses and those with an extreme amount of assets and debt file Chap 11 BK. Like in most states, a bankruptcy in Kansas enables debtors to realize a fresh start because bankruptcy protects consumers against lawsuit from creditors. The protection starts after you attend the mandatory pre-bankruptcy counseling session and file your case with the Court. Until that time, creditors can still try to collect on your credit card debt. And, you are not protected from Kansas foreclosure proceedings.

Bankruptcy Income Guidelines Change October 1
Jill Michaux, Kansas Bankruptcy Attorney created a post on the Bankruptcy Law Network blog, which indicates that the income guidelines for bankruptcy eligibility are changing for cases filed October 1, 2008. The census bureau has announced updated median income figures, which are expected to be adopted by the U.S. Trustee for the bankruptcy means test.

If Kansas is typical, the income guidelines increase slightly. For example, the guideline for one Kansas earner goes up $894 from $38,594 to $39,488 annually. The guideline for a four-person family increases from $69, 831 to $71,867. Debtors filing bankruptcy fill out a "means test" form to determine their ability to pay their debts. They use the "applicable median family income" for their state and family size. The U.S. Census Bureau publishes the income figures annually. In addition, the numbers are adjusted for changes in the consumer price index.

Avoiding Bankruptcy
Kansas chapter 7 bankruptcy laws and Kansas chapter 13 bankruptcy laws have changed the landscape of filing for bankruptcy. It is now more complicated and expensive to file for chapter 7 and chapter 13 bankruptcy. But, there are two aggressive, but effective ways of avoiding bankruptcy: loan modification and debt settlement. A debt settlement involves getting your creditors to agree to take less than what you owe as full payment for the debt. A loan modification involves negotiating with your mortgage lender for rates and terms that allow you to stay in the loan. Topeka bankruptcy lawyers and other Kansas bankruptcy attorneys can explain your options to you and help you select the best one for your situation.