You may be concerned that you will lose all of your assets if you file a Chapter 7 bankruptcy. After all, that chapter is often referred to as “liquidation bankruptcy.” Although you may be required to give up some of your property to the bankruptcy trustee who will then sell it to help pay your creditors, much or all of your property may be exempt. This means you get to keep it. How much of your property you get to keep depends on its value and how much equity you have in it. It is the amount of your equity that is exempt. Common Exemptions Although there are exemptions under both federal and state bankruptcy law, Kansas and Missouri allow the use of only their particular list of exemptions, not the federal list. A bankruptcy attorney will assist you in applying the specific exemption rules of your state. As a…
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Kansas City Bankruptcy Lawyers Discuss Chapter 7 Eligibility Starting November 1, 2014, all new bankruptcy filings will undergo new means test numbers. This will not affect bankruptcies filed before this date. The numbers are based on data from the 2010 US Census concerning the median family income by family size. What is the Bankruptcy Means Test? Congress created the means test in 2005 to assess two things: 1) whether a person is eligible for Chapter 7 bankruptcy and if not 2) what that person’s monthly payment would need to be in a Chapter 13 case. The test was created specifically to prevent those with a high income from filing for Chapter 7 bankruptcy in an effort to get them to file for Chapter 13 instead so that at least a portion of their debts would be paid. There are some exceptions to the means test, such as if you are…
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Between 21 and 40 days after you file your Chapter 7 bankruptcy petition, the bankruptcy trustee will schedule a Meeting of Creditors, also called a 341 meeting. All of your creditors are given notice of the meeting date, time and place. They can choose to attend and question you about your intentions. The very idea of such a meeting sounds intimidating. Your appearance is mandatory, but here are a few things to know that should relieve your stress about the meeting. The meeting is in a room in the courthouse, but not in a courtroom. The judge is not present, only the trustee. Although creditors may attend the meeting, they generally do not. Ones most likely ones to show up are those with secured debts, such as your mortgage lender. Even then, creditor appearances are rare. Credit card debtors rarely attend. The exception may be if you maxed out a…
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*Credit card payments will not be accepted for bankruptcy cases, unless pre-approved by The Sader Law Firm. If you have a question about a credit card payment, please call our Office Manager at (816) 561 1818.
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