Bankruptcy can be a scary word for an individual who does not have the legal guidance they need. A bankruptcy attorney in Lawrence, KS can explain the different bankruptcies available and offer sound legal solutions for an individual to make an educated decision. When bankruptcy is mentioned, many people think they will lose everything in a bankruptcy case, but this is not the truth: a number of assets, income and debt will determine what items can be kept in a bankruptcy and which ones must be sold. One type of bankruptcy does require the individual to sell any of their assets and gives them an opportunity to pay back their debt in a newly reorganized fashion.
During a chapter 7 bankruptcy, a trustee is appointed and he or she can sell any items that are nonexempt from the proceedings. There is not a way to catch up on bills or pay off the debt. The debt is erased, but the assets are also gone, which permits a debtor to discharge their accumulated bills and begin a fresh financial start. This type of bankruptcy does not stop a foreclosure on a home or a repossession of a car, and it takes about 3-5 months for a bankruptcy attorney in Lawrence, KS to complete it.
Chapter 13 bankruptcy is much different than chapter 7. There are financial guidelines of how much debt an individual is permitted to have both secured and unsecured. This type of bankruptcy takes longer to complete: a repayment plan is structured to pay off the debt within 3-5 years after application. In this type of bankruptcy, debtors are able to keep all of their assets since it can stop foreclosure on a home and repossession of a car. The money that has to be paid back is based on a formula that an experienced attorney can discuss with the individual, and monthly payments must be paid back on a regular basis.
Bankruptcy cannot be filed for at least 6 years after discharge for chapter 7 or chapter 13 bankruptcy. For more information, please feel free to visit the website.
