Three Reasons Attorneys in Lawrence KS are Important During the Bankruptcy Process

Financial difficulties are not uncommon for any class of people. Even those people that are perceived to be wealthy can have money problems. There are different levels of money issues, however.

Some people live paycheck to paycheck, they pay all of their bills but have nothing left to spare. There are others that can go out from time to time but can’t remember the last time they took a vacation or bought a new car. Those in the worst state, however, are those that can no longer pay their bills for one reason or another and are considering bankruptcy.

For someone who is considering bankruptcy, hiring a lawyer should be considering. Attorneys in Lawrence KS can make a big difference in the success of a bankruptcy petition.

Bankruptcy is not a Given

There was once a time when virtually anyone could file for bankruptcy successfully. However, the laws were significantly changed in 2005 to prevent some of the abuse that was occurring with Chapter 7 filings. Since then, a lot of criteria has to be met, and someone who doesn’t meet that criteria, or doesn’t follow the court’s instructions to the letter, will not be approved for bankruptcy.

Passing a Means Test

Chapter 7 bankruptcy allows an individual to absolve all of their debt and start fresh. While this information is on their credit report for 10 years, it eliminates all of their revolving debt, and allows them to focus on things like their car payment and mortgage and get back on their feet again.

However, in order to qualify for chapter 7, a person has to pass a means test. This test identifies people that, under different circumstances, could repay all of some oft their debt. Those that don’t qualify for chapter 7 can apply for chapter 13, which restructures debt into a five year repayment plan, often at less than the full price of the debt.

How a Lawyer Helps

Attorneys in Lawrence KS will determine which bankruptcy their client’s qualify for. They will help them fill out the paperwork and meet the court’s requirements for credit counseling. They will also communicate with any creditors during the bankruptcy process.

If you’re in financial straits, you may want to consider your options. Joe Wittman can meet with you and help you to determine if bankruptcy is your best option or if other debt reduction methods are better for your situation.


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