There are many different kinds of bankruptcy. The different types of bankruptcy are divided into chapters, which are just different statutes. Chapter seven, for example, is a business bankruptcy that allows you to basically liquidate your entire business to pay off your debts. However, if you have a regular income and not a business, you need consumer bankruptcy. The most common type of bankruptcy for someone with a regular income is chapter 13.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is the most common type of consumer bankruptcy in Topeka, KS. It is a fairly simple process. There is a median income that has been set for consumers filing for bankruptcy. If you make less than the median, you can negotiate to repay your debts within three years. The debts are packed, and a repayment plan is devised. If you make more than the median income, your debts are packaged into a five-year plan.
There are some cases in which the plan can be determined for a different amount of time, but there must be a cause. You should learn more about us to determine which kind of bankruptcy is right for you.
How to File
The most effective way to file for consumer bankruptcy is by calling an attorney. The attorney will help you argue your case, and to argue your case, you will need to prove your income levels as well as the amount of debt. You’ll then need to effectively argue that you will never be able to pay off the debts the way they are structured now. Finally, if that’s accepted, you’ll need the help of an attorney to create a new payment plan. The repayment plan needs to be within your means; in some rare cases, consumers can’t even pay off their debts after bankruptcy. Filing with the help of an attorney makes that outcome less likely.
