In Kansas, bankruptcy offers assistance for overwhelming debts. It also helps consumers reorganize debts and start a more structured payment plan. The claims are approved by a judge after a full assessment. A Bankruptcy Attorney in Lawrence KS provides clarity and full explanations for claimants.
What is the Prerequisite for Bankruptcy?
Claimants participate in credit counselling programs before they file for bankruptcy. The completion date of the certificate shows that the claimant finished the required program no later than six months prior to the date the claim is filed. The programs show the claimant methods of managing their finances more proactively and lower the chances of more bankruptcy claims in the future.
What are Reasonable Monthly Expenses?
Reasonable monthly expenses are costs such as rent and/or mortgage payments, utilities, gas, and groceries. Entertainment, luxuries, and fine dining costs aren’t included in the expenses. However, installment plans that aren’t included in the bankruptcy claim are included in monthly expenses. The leftover balance defines how much the claimant pays through the new payment plan. The consumer pays debts that weren’t included in the bankruptcy claim with any disposable income available.
Why is the 341 Meeting of Creditors Necessary?
It is a preliminary step to give creditors the chance to present any arguments against inclusion of their accounts. In most cases, the creditors don’t show up for the meeting and allow the inclusion of the debt. In a typical case, the meeting lasts no longer than ten minutes.
Does the Judge Ever Require Modifications to a Chapter 13 Plan?
Yes, the judge requires modifications if the plan isn’t affordable for the claimant or if it doesn’t include provisions for hardships. Any evidence that the claimant’s income fluctuates at any time during the year is cause for provisions. The adjusted plan offers a more affordable option for fluctuating earnings.
In Kansas, bankruptcy presents an opportunity to pay all debts through one plan. The opportunity helps some consumers settle debts without facing serious financial hardships. Provisions in the plan help claimants avoid an early discharge of the case. Claimants who need help contact a Bankruptcy Attorney in Lawrence KS by visiting Joewlaw.com now.
