Many people don’t like the idea of having to consider bankruptcy, and there does seems to be something of a stigma for some people about the idea of declaring bankruptcy. However in many cases this really is the best option to writing off debts and getting the new start that you need. A good attorney isn’t just encouraging this action to get them another client, they are doing it because for many individuals this is simply the best way to turn things around. Whether you need Chapter 7 or Chapter 13 is an entirely different matter, but that’s part of the reason you need a Kansas City bankruptcy attorney to help you understand what your real options are.
Chapter 7 Versus Chapter 13
These are the two main types of bankruptcy that you will run into in the far majority of cases. Chapter 7 is probably the most well known version. This is referred to as a full liquidation bankruptcy and results in the individual losing most of their assets in order to settle as much of their debt as possible before getting the rest discharged. Every state has a few basic items that are exempt, or a certain amount of personal possessions that the person declaring bankruptcy is allowed to keep, but most possessions will be sold off. This is where having an attorney can let you know how that exact balance works out. Chapter 13 bankruptcy is more of a re-organization that doesn’t completely liquidate all your assets, but forces creditors to the table to figure out a payment plan and reorganize. This often discharges part of a debt from each creditor, but also works out a court-enforced payment plan for the rest. This is often an option for people with a lot of assets and income but too much debt, or business owners who need to readjust to work out a better situation. A qualified and experienced Kansas City bankruptcy attorney will be able to take a look at your case and figure out which of these two options is best for your specific needs.
There Are Debts That Can’t Be Discharged
There are certain debts that normally cannot be discharged through bankruptcy. The first type to look at are student loans. These can very rarely be discharged in bankruptcy and require an additional filing in order to even get a hearing on it. Debts owed to government agencies like the IRS or even State Treasury for states with income taxes are also often impossible to discharge through bankruptcy. A good attorney will guide you through all your debts that can be discharged and those that can’t.
When it comes to finding the perfect Kansas City bankruptcy attorney, a little bit of research goes a long way to finding the attorney that you want. Look for experienced attorneys who have tried your type of cases and have the experience and talent in order to help guide you through the often challenging legal waters of declaring bankruptcy.