Debt can quickly take over a person’s life. When this is the case, a person will find he or she has numerous options. One option is to file for chapter 7 in Topeka, KS to discharge the debt. Following are some of the benefits associated with proceeding in this manner.
A Better Financial Future
Individuals who file for chapter 7 bankruptcy find they get a fresh start when it comes to their finances. Certain debts are eliminated when this option is selected. However, not all are, and an attorney who handles chapter 7 in Topeka, KS can explain which fall into each category. For example, child support and student loans may not be erased through bankruptcy, and a person must continue to pay certain liens, such as their mortgage, after the bankruptcy process is complete.
No Debt Limitations
When a person files for bankruptcy the court looks at the total amount of debt owed. A person can file for chapter 7 regardless of the debt level, but chapter 13 bankruptcy comes with limitations. For this reason, many people will find that chapter 7 is the better option for their situation.
No Effect on Future Income
Any income the debtor makes in the future will be safe once the bankruptcy has been finalized. However, there are exceptions when it comes to property. In the event a person acquires property within 180 days of filing for chapter 7 bankruptcy, the court considers it part of the estate. As a result, any property that is obtained through a divorce settlement or decree will be considered. The same is true of life insurance policy proceeds, death benefits, and inherited property.
If a person chooses to file a chapter 13 bankruptcy, he or she will be required to make payments for up to five years to clear the debt. This is not the case when a person files a chapter 7 bankruptcy. There are no payments required because the debt is eliminated when the process is complete.
Anyone considering Chapter 7 in Topeka, KS should obtain legal guidance before moving forward. Contact Joseph I. Wittman (JoeWLaw.com) for a consultation. The firm works with clients looking to file personal bankruptcy as well as those who wish to file bankruptcy for their business. Relief is available if someone knows where to look.