Many people hate to think about filing for bankruptcy. However, when bills are piling up, creditors are calling, and you can’t make the money last to the end of the month, bankruptcy may be your last resort. When you are facing a mountain of past due bills, it can be easy to feel lost and out of control. Bankruptcy laws have been designed to give people a fresh start. Statistics show that many bankruptcy filings are caused by unpaid medical bills. Another reason many people are turning to bankruptcy is the downturn in the economy.

In 2006 Congress changed the Federal Bankruptcy Laws. Many people believe they no longer qualify for bankruptcy. This is not true. One of the major changes instituted in 2006 was the introduction of the Means Test. This Test is used to determine if a debtor qualifies for a Chapter 7 Bankruptcy. You cannot file for a Chapter 7 Bankruptcy if you have received a discharge in a Chapter 7 case filed less than 8 years before filing the current case. We will assist you in determining if you qualify for Chapter 7 Bankruptcy.

Chapter 7 Bankruptcy is commonly referred to as a “liquidation” bankruptcy. Upon the filing of a Chapter 7 Bankruptcy, all of your property becomes the property of the bankruptcy estate. When you file your bankruptcy schedules, you will file a list of property you seek to exempt from the bankruptcy estate based on exemptions provided by State or Federal Law. Property that is not exempt may be sold (liquidated) by the Trustee and the proceeds distributed to your unsecured creditors.

Most people own little or no non-exempt property, in which case no liquidation occurs. We will work with you to determine if you own non-exempt property and, if so, what options you have in dealing with that property.

Chapter 7 bankruptcy cases move from start to finish fairly quickly. In most cases, you will receive a discharge of debts within 90 – 120 days after the case is filed. The more complete and accurate your paperwork, the more likely your discharge will be entered by the Court in a timely manner. The sooner you are discharged, the sooner you will be able to enjoy the benefits of your fresh start and begin to rebuild your credit. We will work hand-in-hand with you to prepare bankruptcy documents that are complete and accurate so that your bankruptcy case goes smoothly.

Every debtor must complete a credit counseling consultation from a credit counseling organization approved by the Trustee prior to filing bankruptcy. A certificate of completion of the credit counseling consultation must be filed with your bankruptcy petition and schedules. Failure to file the certificate will result in the automatic dismissal of your bankruptcy case. We will provide you with contact information for these organizations and prepare you for the counseling process.

Approximately 30 days after the date that your case is filed, you are required to attend a meeting of creditors. At this meeting you will give sworn testimony as to the completeness and accuracy of your bankruptcy schedules. We will attend the meeting of creditors with you. We will go through the standard questions asked at these meetings and we will go through your case before the meeting to determine what questions are likely to be asked by the Trustee. Creditors rarely appear at these meetings.

You must complete a financial management course (Debtor Education) similar to the pre-filing credit counseling before you may receive a discharge of your debts in a Chapter 7 bankruptcy. A certificate of completion of the financial management course must be filed within 45 days after your meeting of creditors in order for you to receive a discharge of debts. We will provide you with a list of the approved agencies and prepare you for this counseling.

Helpful links:

United States Bankruptcy Court for the District of Kansas
Consumer Credit Counseling Service, Inc.
Consumer Credit Counseling Service of the Midwest