What You Need to Know Before Filing Bankruptcy in Kansas City, MO

The Basics of Bankruptcy

What Do I Need to Know Before Filing Bankruptcy?

Bankruptcy Attorney in Kansas City, Missouri

What You Need to Know Before Filing Bankruptcy in Kansas City

Filing bankruptcy is a tedious and meticulous process. It often needs a lot of time and consideration. There are multiple ways to file for bankruptcy, such as Chapters 7, and 11, and 13. 

By consulting an experienced bankruptcy attorney in your local area, you may find yourself more equipped in handling the bankruptcy process. 

Schedule an appointment with our Kansas City bankruptcy attorneys at Roach Bankruptcy Center, LLC. We can help you with your bankruptcy needs. 

Our Kansas City bankruptcy attorneys can guide you through the bankruptcy process. We will provide you with plans before filing bankruptcy, and: 

  • Explain the legalities, terms, and other processes of bankruptcy
  • Provide other solutions such as bankruptcy alternatives and debtor’s eligibility.
  • Guide you with how you can keep valuable properties
  • Give aid in filing necessary legal forms
  • Prevent bankruptcy cases from being dismissed in a bankruptcy court.
  • Represent debtors during negotiation with creditors
 
Schedule an appointment with our Kansas City bankruptcy attorneys so we can guide you through the bankruptcy process.

Bankruptcy in Kansas City, MO

Before you file bankruptcy, understanding how bankruptcy works is a big help. Consult with our bankruptcy lawyers at Kansas City, MO so we can provide you with everything you need to know before filing bankruptcy.

What is Bankruptcy?

Bankruptcy is a legal court procedure that a debtor can file for being financially insolvent. This means that when a debtor files for bankruptcy, they cannot pay the credit and needs to file legally so the creditor can stop their debt collection. However, applying for bankruptcy requires a judge and other court trustees to examine all the debtor’s assets and liabilities, their partnerships, and financial income sources such as business. This is for the court to find and believe whether the debtor cannot pay their remaining debts.

Applying for bankruptcy doesn’t automatically mean debtors can wipe off and clean their financial woes. The court will still decide whether to discharge debts or even dismiss the case if it sees the debtor has enough assets to settle their unpaid bills or credit.

Because of how things might work, filing bankruptcy must always be done with the help of a reliable bankruptcy attorney in Kansas City, MO. Applying for bankruptcy is usually the last resort of a debtor. By working with a reliable bankruptcy attorney, you can consider all the pros and cons of filing for bankruptcy, and the different ways you can prepare for it. 

Bankruptcy laws are written so debtors who are incapable of paying unpaid bills can have the opportunity to start all over again – after having financial collapses. Whether the cause of it was a wrong decision or bad luck, a bankruptcy gives second chances for debtors to have a fallback.

Different Bankruptcy Types You Need to Know Before Filing Bankruptcy

Not all bankruptcy is the same, and filing for which one suits the debtor best is the best route to take. These are the types of bankruptcy to know and which one applies to the debtor.

Chapter 7 Bankruptcy: Liquidation Bankruptcy

According to the United States bankruptcy law, Chapter 7 Bankruptcy allows the debtor to discharge or eliminate most debt. However, in this case, selling off valuable assets is necessary. Chapter 7 bankruptcy mandates debtors to provide a copy of their assets and liabilities and schedule current executory contracts and unexpired leases. Filing this bankruptcy will still entail charges such as bankruptcy filing fees, miscellaneous administrative fees, and trustee surcharges.

Chapter 13 Bankruptcy: Debt Reorganization

Unlike Chapter 7, Chapter 13 Bankruptcy allows debtors to keep the most property, but it also requires debtors to create a plan to repay some or most of the debts. Debtors who apply for Chapter 13 Bankruptcy must have a regular source of income to file for this route successfully. 

Most debtors who chose Chapter 13 Bankruptcy want to save their own homes from foreclosure. Because of this, they must make a payment plan on how they’re going to repay the debts – which mostly takes 3-5 years to complete. Under this, debtors will and must have no direct contact with their creditors.

Chapter 11 Bankruptcy: Business Bankruptcy

Chapter 11 Bankruptcy is often considered an option for businesses, partnerships, and corporations. This type of bankruptcy means that the business owes too much debt to qualify for Chapter 13. Mainly, Chapter 11 will allow enterprises or debtors to have a repayment plan and continue conducting business. This kind of bankruptcy often takes a long time to complete and, more likely, is often expensive. 

Our experienced Kansas City bankruptcy attorneys can help you decide the best type of bankruptcy for your case. Bankruptcy may seem intimidating, but we can help get the most out of it so you can recover financially and get a fresh start. 

What's the Difference Between Personal and Business Bankruptcy?

Because of certain similarities and differences from the other Chapters of Bankruptcy, businesses usually do not apply for Chapter 7. This means that the business will undergo liquidation of assets. On the other hand, individual debtors typically do not file for Chapter 11 because of the tedious and often complicated process. Choosing which type of bankruptcy to file is crucial, and our bankruptcy attorneys are help to help. Consult with us today to 

When Should You Apply for Bankruptcy?

“When should I apply for bankruptcy?” is a question most debtors ask themselves. Whether they can realistically pay the debts in less than five years, or if declaring insolvent and filing bankruptcy is the only solution they have for debt relief. 

Even if a debtor decides to apply for bankruptcy, there are eligibility requirements before being considered bankrupt or insolvent, just like any legal court proceedings. If the financial situation for the debtor will or may not change for the next 3-5 years, maybe the only solution is to take it.

However, applying for bankruptcy doesn’t guarantee that the debtor will wipe off clean from all their debts. Some still need to pay portions of their debts, and some may not even be qualified for bankruptcy.

If you’re at risk of losing your homegetting your car repossessed, or losing your wages, then bankruptcy might help you prevent these things from happening. Connect with a reliable bankruptcy attorney today!

Things to Consider Before Filing Bankruptcy

Because of the impacts of filing bankruptcy, considering the filing in the first place is an essential step of the process. Although there might be a way for debt relief, sometimes the impacts and even the effects of bankruptcy might be felt or be seen for a very long time. There are few considerations a debtor must put into mind.

Type of Bankruptcy

As mentioned earlier, knowing which type of Bankruptcy is applicable for the debtor or petitioner should always be the top priority. Both Chapter 7 and 13 bankruptcy have their disadvantages and advantages as well. Taking a closer look at the debt or financial situation is crucial. Do you have the capacity to repay the credit for 3-5 years? Do you have a monthly salary or another source of income? Do you understand the consequences of filing for bankruptcy?

Bankruptcy Alternatives

Many bankruptcy alternatives are waiting for the debtor that may provide a little bit of financial remedy. Take a closer look at these bankruptcy alternatives and what are the pros and cons of each. Often, creditors are willing to negotiate and put up a settlement program for the debtor to follow. Working with an experienced bankruptcy attorney will provide the necessary insights if this can be considered an option.

Eligibility

Not all who have financial dilemmas can file for bankruptcy. The U.S Court of Law has its standard to determine whether a debtor is eligible for bankruptcy. For individuals, a means test is used to determine your eligibility. To qualify for Chapter 13 Bankruptcy, your debts must not exceed a certain amount. The company or debtor must also have disposable income to pay off debts through the repayment plan. Otherwise, they are not eligible for this type of bankruptcy. 

Possible Consequences of Filing Bankruptcy

Credit Score Impact

One of the things that bankruptcy will severely hit is your credit score. A prior good standing credit score might be affected by bankruptcy and even restricts other financial support or activity. Moreover, filing for bankruptcy can stay on the credit report for almost seven to ten years. This means that the bankruptcy will be shown on your credit score status and which will limit your financial engagements for a few years.

However, it most likely that you’re already suffering from a bad credit score if you’re struggling financially. Your credit score might take a dip after filing bankruptcy, but it will be easier to rebuild your credit once you’re free of financial debts. Consult with our Kansas City bankruptcy attorneys to know how we can help.

Asset Liquidation

One of the long-lasting effects of bankruptcy is losing their valuable assets. Selling your valuable assets to pay your debts is one method of repayment under Chapter 7. The proceeds from the sold-off property will go to the creditors. Consult with our reliable bankruptcy attorneys to know how we can help you keep your home and other properties when filing Chapter 7 bankruptcy.

Got Debt? Talk to a Kansas City Bankruptcy Attorney!

The best takeaway from this is that filing for bankruptcy is a meticulous court proceeding. It can be complicated, and filing for bankruptcy alone can be pretty intimidating as well. By working with the best bankruptcy attorney in Kansas City, Missouri, you will indeed have more options to choose from.

Our bankruptcy attorneys will help you understand the bankruptcy process and everything you need to know before filing bankruptcy.

Always remember that different circumstances happen to each individual. Filing for bankruptcy doesn’t always necessarily mean that you’re financially irresponsible. Sometimes being insolvent is also a result of bad luck. 

Schedule a consultation with our Kansas City bankruptcy attorneys today so we can help you get started on your journey towards financial wellness.

kansas city bankruptcy attorney

Filing Bankruptcy? Saving
Your Home? We Can Help!

What do you need help with?

kansas city bankruptcy attorney

Need Help Filing Bankruptcy in Missouri?

We help stop foreclosures, repossession, garnishments, and lawsuits!
Ask our bankruptcy attorney!

Please be aware that submission of this no-obligation form does not establish an attorney-client relationship. By filling out the form, you agree to receiving emails from our firm regarding your case evaluation and other helpful resources. 

What debt problems are you having?