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Kansas Bankruptcy Laws

Kansas Bankruptcy Laws should be known by every resident of the state of Kansas. Every US citizen has the right to avail of bankruptcy protection if debts are too much to bear; this also holds true for Kansas citizens. Since this is your right, it is important to know the basic Kansas bankruptcy laws especially when the Bankruptcy Abuse Prevention and Consumer Protection Act became a law in 2005 intensifying the requirements of applying for bankruptcy.

The procedure in applying for bankruptcy is complicated and hiring a lawyer is a sound decision. However, if you do not want the services of a lawyer you have to familiarize yourself with the whole process. Some of the things you should consider before filing for bankruptcy are weigh the advantages and disadvantages, check what bankruptcy protection program is best suited for your financial situation, what are the necessary papers to fill out and submit, and how much you’re going to need for the fees.

Knowing the difference between the Chapter 7 and Chapter 13 program is essential. For those who want to avail of this bankruptcy protection, you should pass any of the two criteria: the first evaluation is called means test. Your income should be proven to be less than the median income level of the state of Kansas. The median income data will be based on the current census data of the US Census Bureau. Another way to claim eligibility for the Chapter 7 protection is to undergo another evaluation of 6 months worth of income minus living expenses including bill payments and debts. Should the debtor not reach a dispensable amount of $100 per month, he will qualify for the said program. Contrary to the belief that Chapter 7 will eliminate all your debts, there are some items that won’t be liquidated. Plus, there is also the tendency to lose precious possessions.

Chapter 13 bankruptcy protection is another option open for debtors who have been denied eligibility in the Chapter 7 program. For Chapter 13, there is no easy way out of your debts. Under the supervision of a federal bankruptcy court you are to go through a financial reorganization. Instead of handing over your non-exempt assets for debt payments, you will pay the creditors through your income in a 3 to 5-year period. This is done by proposing a repayment plan to be supervised by the court-appointed trustee. It is up to the debtor to prove to the court that you can meet your financial obligations. Should your income become irregular or too low to meet all your monthly dues, your application will be declined.

Kansas bankruptcy laws have classified your assets into two categories: the non-exempt assets and the exemptions. The former assets are liquidated and will be given to your creditors to pay off your debts, while the latter is under the court’s protection. For Kansas, there are state-specific exemptions you can opt to avail. These exemptions are:

• Your home with an equity up to $125,000;
• A vehicle for up to $20,000;
• 75% of your disposable earnings;
• One year supply of food, clothing, fuel, supplies;
• Jewelry amounting to $1,000; and
• Public assistance, retirement pension, and trust funds.

Before starting your application to declare for bankruptcy, it is mandatory to undergo a credit counseling program. The agency conducting the said counseling will have to be recognized by the United States Trustees Office. This is to ensure that you really are in dire need of bankruptcy protection.