General Bankruptcy in Kansas City

Kansas City Bankruptcy AttorneyThe United States Congress created a uniform law allowing citizens and business to find relief from unbearable debt, “a fresh start.”  Whether a person is giving back the property or paying it back through a judicially monitored payment plan, our government’s goal is to allow citizens to obtain the freedom of a new financial status.

Should you choose to file bankruptcy in Kansas City, you may be represented by an attorney.  All your Creditors in your case are generally represented by a court appointed Trustee (though some choose to hire an attorney as well).  The trustee will oversee your case to be sure all your creditors’ rights remain intact, and to be sure you are not hiding any property from the courts.  Certain creditors are allowed certain rights based on their class or ranking of creditors.  The following is the class of creditors from the most rights or claims to your case to the least:

Secured- Loans tied to cars, homes, farm equipment, anything you pay for based on your own collateral

Priority Unsecured- unpaid taxes, Alimony, child support, anything the government requires you to pay.

General Unsecured– credit cards, payday loans, medical bills etc.

This discussion is intended only as a brief overview of the types of bankruptcy filings and of what a bankruptcy filing can and cannot do.  Anyone considering this course of action is encouraged to seek the advice and assistance of an attorney specializing in bankruptcy law.

Types of Bankruptcy

The Bankruptcy Code is divided into chapters. The chapters which usually apply to consumer debtors are chapter 7, known as a Liquidation, and chapter 13, known as an Adjustment of the Debts and a 3 to 5 year repayment plan.

An important feature applicable to all types of bankruptcy filings is the automatic stay.  This is the court order that stops harassing phone calls, repossessions, garnishments and all the other nightmares of excessive debt.

Frequently Ask Questions Regarding Bankruptcy