Liberty Bankruptcy Lawyer
Financial distress and crushing debt can occur for many reasons. It could be that you lost your job or experienced unexpected medical expenses. If it seems like debt is taking over your life, you should know that you are not alone. There were 413,616 bankruptcy filings in the U.S. in the year 2021.
If you or your small business face insurmountable debt, you need to speak with an experienced Liberty bankruptcy lawyer from House Packard McElderry, LLC. Call us today at (816) 381-9105. We are ready to help you understand your options so you can move forward from this difficult time.
What Is Bankruptcy?
Bankruptcy is a legal process that a person may initiate when they are unable to repay their outstanding debts or obligations. Filing for bankruptcy allows an individual to achieve freedom from most existing debts. Bankruptcy also provides an opportunity for creditors to receive repayment. Bankruptcy cases are handled in federal courts.
The two most common types of bankruptcy are Chapter 7 and Chapter 13. These differ in key ways, and there are requirements to qualify for each type. Generally, these types of bankruptcy can be summarized as:
- Chapter 7 — This is entitled “Liquidation.” Chapter 7 bankruptcy eliminates debts such as credit cards, signature loans, and medical bills. A trustee liquidates all non-exempt assets and makes distributions to creditors. For a debtor to qualify for a Chapter 7 bankruptcy, their income must be below certain thresholds. Chapter 7 is often chosen by qualifying individuals with insufficient income to repay their debts. Small businesses that operate as sole proprietorships are also eligible to file for Chapter 7. A debtor may receive a discharge within months after filing the petition.
- Chapter 13 — This is entitled “Individual Debt Adjustment.” Chapter 13 bankruptcy is available for individuals and for the self-employed or people operating a business that is not incorporated. Chapter 13 involves creating a repayment plan to pay creditors over time. This period is typically between three and five years. In contrast to Chapter 7, assets are usually not liquidated. A debtor does not receive a discharge of debts until all the planned payments have been made. Chapter 13 is often chosen by individuals with income that is too high to qualify for Chapter 7.
An experienced bankruptcy attorney can evaluate your situation to determine whether you may qualify to file for Chapter 7 or Chapter 13 bankruptcy.
What Are the Benefits of Filing for Bankruptcy?
The benefits of filing for bankruptcy may be different in each case and will depend on your unique situation. However, the following benefits may generally apply:
- Discharging most of your debts that are unsecured
- Preventing losing your home to foreclosure
- Stopping wage garnishment and vehicle repossession
- Preventing harassing phone calls and debt collection letters
- When you file for Chapter 13 bankruptcy, your repayment plan could amount to less than the current value or your debts
Considering filing for bankruptcy can be emotional. However, the benefits can provide significant relief as you move forward with your life. The intent of federal bankruptcy laws is to provide “a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.”
What Steps Are Involved in Filing for Bankruptcy?
Each case is unique, and there is no one-size-fits-all solution. However, filing for bankruptcy typically involves similar steps in most cases. These include:
- Meeting with an attorney for an initial consultation
- Determining which debt relief option to pursue based on factors such as eligibility
- Creating financial schedules and supporting documentation
- Completing a credit counseling course
- Filing the bankruptcy petition with the federal court
- Attending a meeting of creditors
After the meeting of creditors, the court will handle your debts depending on the type of bankruptcy you are requesting. In Chapter 7 bankruptcy, the trustee of your case may sell some non-exempt assets in order to make repayments to your creditors. In Chapter 13 bankruptcy, you will make payments according to the proposed payment plan. You will receive a discharge once you have fulfilled all your obligations under either Chapter 7 or Chapter 13 bankruptcy.
Do I Need an Attorney?
The goal of filing for bankruptcy is to provide you with a financial fresh start. This means that you want to get through this process smoothly. To do this effectively, you need someone who has been through the bankruptcy process many times before.
Filing for bankruptcy can be complex and lengthy. During an initial consultation, a bankruptcy attorney can review your situation to determine whether bankruptcy may be a beneficial option for you. They can also discuss alternatives to bankruptcy on a case-by-case basis.
There will be a significant amount of paperwork that needs to be completed and filed. This includes financial schedules that provide details regarding your assets, debts, income, expenses, and recent financial transactions. These must all be accurate and truthful under penalty of perjury. An experienced attorney can handle all paperwork for you and make sure that it is complete and correct. This will allow you to focus on moving forward with your life without your prior financial worries.
Why Choose House Packard McElderry, LLC?
When you choose us to represent you, you can trust that we have your best interests in mind. We understand that this is an overwhelming time. You will receive personalized attention each step of the way, so you know what to expect.
Our goal is to pursue the most favorable outcome in your case. You need a fresh start, and our compassionate Liberty attorneys are ready to help you achieve this. We will bring our years of experience to your case as we guide you through this unnerving experience.
It’s important to choose an attorney that you can trust. You need to have some way of knowing what your experience working with them may be like. For this reason, we gladly share the testimonials of our prior clients. We will bring the same level of tenacity and care to your case.
Contact House Packard McElderry, LLC Today
If you are considering filing for bankruptcy in Kansas or Missouri, you need to speak with an experienced attorney about your situation as soon as possible. Call (816) 381-9105 now to discuss your case with a compassionate House Packard McElderry, LLC bankruptcy attorney. You can also submit a contact form, and we will be in touch as soon as possible.