In Kansas, bankruptcy claims give consumers an opportunity to settle debts. The claimants must follow the guidelines of the chapter they select. Once they complete the chapter, the claimant could become entirely debt-free. Joseph I Wittman Attorney at Law in Topeka KS offers assistance for all claimants filing for bankruptcy.
How is the Means Test Conducted for Chapter 7?
The claimant qualifies for the chapter of bankruptcy based on their income. The means test for chapter 7 determines if the claimant’s income is below the current median income for their household. The current median income starts at $42,924. A claimant with a monthly income that doesn’t exceed $11,725 after all expenses for at least five years, the claimant qualifies.
How are Exemptions for Chapter 7 Determined?
The total exempted value is based on the equity the claimant has built up in the asset. The equity is the value they have paid so far and not the value of the asset itself. The value determines the total value of the exemption. Essentially, the exemption is higher if equity is lower.
How is the Means Test Conducted in Chapter 13?
The claimant’s income must be greater than the median income for their household size. As illustrated above the base median for Kansas is $42,924. So, the claimant’s income must be higher than this value. The monthly income for a claimant filing for chapter 13 can exceed $11,725, and they qualify for the bankruptcy claim.
What are the Differences Between the Chapters?
The major differences are that chapter 7 is a liquidation, and chapter 13 is a structured repayment plan. Claimants who file for chapter 7 sell assets through the court, and claimants who file for chapter 13 submit payments to the court.
In Kansas, bankruptcy claims are filed according to the chapter chosen by the claimant. All consumers who want to file for bankruptcy must qualify based on their income. An attorney conducts a means test to establish eligibility and guides consumers through the process. Claimants who are ready to start a claim contact Joseph I Wittman Attorney at Law in Topeka KS or Visit the website for more details right now.