If you’re considering filing bankruptcy in Kansas City, KS, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Qualifying for bankruptcy in Kansas City, Kansas, or anywhere in the United States is determined by several factors, including your financial situation, income, and the type of bankruptcy you’re considering filing for. Bankruptcy laws are complex, and it’s essential to understand the eligibility criteria before proceeding.

1. Type of Bankruptcy:There are two primary types of consumer bankruptcy in the United States: Chapter 7 and Chapter 13. Each has different eligibility criteria:
   • Chapter 7 Bankruptcy: To qualify for Chapter 7 bankruptcy in Kansas City, you must pass the means test. This test compares your income to the median income in Kansas for a household of your size. If your income is below the median, you generally qualify. If it’s above, you may still qualify if you can demonstrate that you have limited disposable income after covering essential living expenses.
   • Chapter 13 Bankruptcy: Chapter 13 bankruptcy is often chosen by individuals who have a regular income but are struggling with overwhelming debt. You must have enough disposable income to propose a repayment plan that satisfies your creditors over a three- to five-year period. If your income is irregular or insufficient to make these payments, Chapter 13 may not be a viable option.
2. Residency Requirements:To file bankruptcy in Kansas City, you generally need to be a resident of the state of Kansas or have a domicile, place of business, or property in the state for a significant portion of the preceding 180 days before filing.
3. Credit Counseling and Financial Management Course:Before filing for bankruptcy, individuals must complete two mandatory courses: a credit counseling course before filing and a financial management course before receiving a discharge. These courses are designed to provide financial education and help individuals explore alternatives to bankruptcy.
4. Previous Bankruptcy Filings:If you’ve previously filed for bankruptcy and received a discharge, there are time limits on when you can file again. For example, if you received a Chapter 7 discharge, you generally must wait eight years from the filing date to file another Chapter 7 case. If you received a Chapter 13 discharge, the waiting period is typically two years.
5. Honesty and Compliance:It’s crucial to be honest and compliant throughout the bankruptcy process. Falsifying information or attempting to hide assets can result in your case being dismissed or even criminal charges.
6. Legal Representation:While it’s possible to file for bankruptcy pro se (without an attorney), it’s highly recommended to seek legal counsel. An experienced bankruptcy attorney can help you navigate the complex process, ensure you meet all requirements, and protect your rights.
7. Debt Types:Most types of debt can be discharged in bankruptcy, including credit card debt, medical bills, and personal loans. However, certain debts, such as child support, alimony, most tax debts, and student loans (unless you can prove undue hardship), generally cannot be discharged.
8. Priority Debts:Chapter 13 bankruptcy also requires the payment of priority debts, which are typically debts that cannot be discharged and must be repaid in full through the repayment plan.
9. Court Approval:Ultimately, your eligibility for bankruptcy in Kansas City, KS, will be determined by the bankruptcy court. They will review your financial situation, the accuracy of your documentation, and whether you meet all the necessary criteria.

It’s essential to note that bankruptcy is a significant financial decision with long-term consequences, including an impact on your credit score. Before proceeding, consider alternative debt relief options, and consult with a qualified bankruptcy attorney to assess your eligibility, explore the best chapter for your situation, and understand the potential consequences of filing for bankruptcy.

RESOURCES:

Do You Need a Lawyer to File For Bankruptcy in Kansas City, KS?

While it is possible to file for bankruptcy in Kansas City, Kansas, without a lawyer (a process known as filing “pro se”), it is generally not advisable. Bankruptcy is a complex legal procedure with significant long-term implications for your financial future. Having a knowledgeable bankruptcy attorney can greatly improve your chances of a successful outcome and help you avoid potential pitfalls.

Here are some reasons why you should strongly consider hiring a lawyer when filing for bankruptcy in Kansas City, KS:

1. Complexity of Bankruptcy Laws: Bankruptcy laws are intricate and subject to change. An experienced bankruptcy attorney is well-versed in these laws and can navigate their complexities on your behalf. They can ensure that you follow all the necessary procedures and meet the eligibility criteria for the specific chapter of bankruptcy you intend to file, whether it’s Chapter 7 or Chapter 13.
2. Assessment of Your Financial Situation: A qualified attorney can assess your financial situation comprehensively. They can help you understand the best approach to bankruptcy and whether it is indeed the most suitable option for your circumstances. In some cases, they may identify alternatives to bankruptcy, such as debt negotiation or consolidation, that could be more beneficial.
3. Protection of Your Rights: Your attorney will advocate for your rights throughout the bankruptcy process. They can protect you from creditor harassment, ensure that you’re treated fairly by the court, and represent your interests in negotiations with creditors.
4. Prevention of Costly Mistakes: Filing for bankruptcy involves numerous forms, documents, and legal requirements. A single mistake or omission could lead to your case being dismissed, delayed, or even result in legal consequences. Attorneys are experienced in preparing and submitting the necessary paperwork accurately and timely, reducing the risk of costly errors.
5. Evaluation of Property Exemptions: In bankruptcy, certain assets are protected by exemptions, which vary by state. A skilled attorney can help you maximize the use of these exemptions to protect your property. This is especially crucial in Chapter 7 bankruptcy, where non-exempt assets may be sold to repay creditors.
6. Chapter Selection: Determining which chapter of bankruptcy to file under (Chapter 7 or Chapter 13) depends on your financial situation and goals. An attorney can assess your circumstances and advise you on the most appropriate chapter to achieve your objectives, such as discharging debt or creating a manageable repayment plan.
7. Handling Creditors and Negotiations: Your attorney can communicate with creditors on your behalf, reducing the stress and anxiety associated with debt collection efforts. They may also be able to negotiate with creditors to reach more favorable terms.
8. Guidance During Court Proceedings: If your bankruptcy case involves court appearances or hearings, your attorney will represent you and provide guidance throughout the process. They can help you prepare for what to expect, ensuring that you present your case effectively.
9. Long-Term Financial Planning: A bankruptcy attorney can assist you in developing a post-bankruptcy financial plan to help you rebuild your credit and financial stability after the process is complete.
10. Increased Chances of Success: Ultimately, hiring a bankruptcy attorney increases your chances of a successful outcome. They have the knowledge and experience to navigate the system efficiently, helping you achieve your desired financial goals.

While hiring a bankruptcy attorney involves legal fees, it is often a wise investment considering the potential consequences of not having professional guidance. The benefits of having an attorney on your side throughout the bankruptcy process, including protecting your assets, ensuring a smooth filing, and maximizing your debt relief, can far outweigh the costs.

Cost to File Chapter 7 Bankruptcy in Kansas City, KS

The cost to file Chapter 7 bankruptcy in Kansas City, Kansas, includes several fees and expenses, and it’s essential to budget for these costs as part of the bankruptcy process. Here’s a breakdown of the typical expenses associated with filing for Chapter 7 bankruptcy:

1. Attorney Fees: The largest portion of your expenses will likely be attorney fees. While the exact cost can vary depending on the complexity of your case and the attorney’s experience, you can expect to pay anywhere from $1,170 to $2,950 or more for legal representation in a Chapter 7 bankruptcy case. Some attorneys offer payment plans to make their services more accessible.
2. Filing Fee: The United States Bankruptcy Court charges a filing fee to initiate your Chapter 7 bankruptcy case. However, these fees can change over time, so it’s essential to check the current fee schedule on the court’s website or by contacting the court directly.
3. Credit Counseling and Financial Management Courses: Before and after filing for bankruptcy, you are required to complete two credit counseling courses and a financial management course. The costs for these courses can vary, but they typically range from $35 to $68 each, totaling around $85 to $170 for all three courses.
4. Bankruptcy Trustee Fees: In a Chapter 7 bankruptcy, a bankruptcy trustee is appointed to oversee your case. The trustee may charge a fee for their services, which is typically deducted from the proceeds if any non-exempt assets are sold to repay creditors. This fee varies depending on the specific case but is generally not a significant expense for most filers.
5. Miscellaneous Costs: There may be additional costs associated with your Chapter 7 bankruptcy, such as notary fees, postage, and document copying expenses. These costs are usually relatively modest and can vary depending on your circumstances.
6. Exemption Costs: In some cases, you may need to spend money to protect specific assets by using exemptions provided under Kansas bankruptcy laws. These costs can include appraisals or valuations of property and may vary depending on your circumstances.

It’s essential to note that if you cannot afford to pay the filing fee upfront, you may be eligible for a fee waiver or installment plan. You would need to submit a formal application to the court to request these options. Additionally, while it’s possible to file for Chapter 7 bankruptcy without an attorney (pro se), it is highly recommended to seek legal representation due to the complexity of the process and the potential consequences of errors or omissions.

Before proceeding with Chapter 7 bankruptcy in Kansas City, KS, it’s advisable to consult with an experienced bankruptcy attorney who can provide a more accurate estimate of the total costs involved in your specific case and help you understand your options for managing these expenses while seeking debt relief.

Cost to File Chapter 11 Bankruptcy in Kansas City, KS

The cost to file Chapter 11 bankruptcy in Kansas City, Kansas, can be significantly higher than the costs associated with other bankruptcy chapters due to the complexity and scope of Chapter 11 cases. Chapter 11 bankruptcy is primarily designed for businesses, although it can also be used by individuals with substantial debts or complex financial situations. Here’s a breakdown of the typical expenses and fees involved in a Chapter 11 bankruptcy filing:

1. Attorney Fees: Legal representation is crucial in Chapter 11 bankruptcy due to its complexity. Attorney fees for Chapter 11 cases can vary widely depending on the size and complexity of the business or individual’s financial situation. Costs may range from several thousand dollars to tens of thousands of dollars or more. Attorneys often charge both hourly rates and retainers for their services.
2. Filing Fee: The filing fee for a Chapter 11 bankruptcy case is significantly higher than for other chapters. This fee can change over time, so it’s essential to check the current fee schedule on the court’s website or by contacting the court directly.
3. U.S. Trustee Fees: In Chapter 11 cases, the U.S. Trustee’s Office assesses quarterly fees based on the debtor’s disbursements or quarterly fees based on disbursements. These fees are calculated according to a sliding scale and can be substantial for larger businesses. The U.S. Trustee monitors the case to ensure compliance with bankruptcy laws.
4. Court Costs: There may be additional court-related costs associated with your Chapter 11 case, including fees for filing certain motions, notices, and other documents with the bankruptcy court.
5. Financial and Operational Advisors: In complex Chapter 11 cases, businesses may need to hire financial or operational advisors to assist with restructuring and reorganizing their operations. The costs of these professionals can vary widely and depend on the complexity of the case.
6. Creditor Committee Costs: In some cases, a committee of unsecured creditors may be appointed to represent the interests of creditors during the bankruptcy process. The debtor may be responsible for paying the reasonable fees and expenses of this committee.
7. Chapter 11 Plan Confirmation Expenses: As part of the Chapter 11 process, a reorganization plan must be developed and approved by the court. This may involve additional legal and consulting fees related to plan formulation, negotiations with creditors, and hearings to confirm the plan.
8. Administrative Expenses: Throughout the Chapter 11 process, various administrative expenses may accrue, including legal fees for necessary litigation, appraisals, and other professional services.

Given the substantial costs and complexities involved in Chapter 11 bankruptcy, it is highly recommended to consult with an experienced bankruptcy attorney who specializes in Chapter 11 cases. They can provide a more accurate estimate of the total costs specific to your situation and guide you through the reorganization process to maximize your chances of a successful outcome.

Cost to File Chapter 13 Bankruptcy in Kansas City, KS

The cost to file Chapter 13 bankruptcy in Kansas City, Kansas, consists of various fees and expenses, and understanding these costs is crucial when considering this type of bankruptcy. Chapter 13 bankruptcy is designed to help individuals reorganize their debts and create a manageable repayment plan over a specified period. Here’s a breakdown of the typical expenses associated with filing for Chapter 13 bankruptcy:

1. Attorney Fees: Hiring an experienced bankruptcy attorney is highly advisable when filing for Chapter 13 bankruptcy, as legal representation is essential to navigate the complex process. Attorney fees for Chapter 13 cases vary depending on the complexity of your financial situation and the attorney’s rates. Generally, you can expect to pay between $2,920 and $4,780 or more for legal representation in a Chapter 13 case. Some attorneys offer payment plans to help manage these costs.
2. Filing Fee: The filing fee for a Chapter 13 bankruptcy case is $380. However, fees can change over time, so it’s essential to check the current fee schedule on the court’s website or by contacting the court directly.
3. Credit Counseling and Financial Management Courses: Before and after filing for Chapter 13 bankruptcy, you are required to complete two credit counseling courses and a financial management course. These courses typically cost around $30 to $65 each, totaling approximately $88 to $170 for all three courses.
4. Chapter 13 Trustee Fee: In a Chapter 13 bankruptcy, a bankruptcy trustee is appointed to oversee your case and administer your repayment plan. The trustee’s fee is a percentage of the payments made through the plan and is generally included in your monthly payment.
5. Miscellaneous Costs: There may be additional costs associated with your Chapter 13 bankruptcy, such as notary fees, postage, and document copying expenses. These costs are usually relatively modest and can vary depending on your circumstances.
6. Plan Confirmation Expenses: As part of the Chapter 13 process, a repayment plan must be developed and approved by the court. This may involve additional legal and consulting fees related to plan formulation, negotiations with creditors, and hearings to confirm the plan.
7. Modification and Amendments: If changes are needed to your Chapter 13 plan during the course of the bankruptcy, there may be associated costs, including attorney fees for plan modifications.
8. Priority Debts and Arrears: Chapter 13 allows you to include certain priority debts, such as tax arrears and domestic support obligations, in your repayment plan. You will need to pay these debts in full through your plan.

While Chapter 13 bankruptcy involves several costs, it can provide individuals with an opportunity to restructure their debts, protect assets, and achieve financial stability. It’s important to work closely with an experienced bankruptcy attorney who can help you understand the costs specific to your situation, develop a feasible repayment plan, and navigate the Chapter 13 process effectively.

Reliable Bankruptcy Attorneys in Kansas City, KS

Below is a list of reputable bankruptcy attorneys in Kansas City, KS. They can help you with both personal and business bankruptcy information.

Joseph I. Wittman, Attorney at Law
3103 N 118th Terrace, Kansas City, KS 66109, United States

Richman Law Office LLC
753 State Ave #101, Kansas City, KS 66101, United States

The Probst Law Firm, PA
827 Armstrong Ave Ste 302, Kansas City, KS 66101, United States

The Alexander Law Firm, LLC
753 State Ave Ste 101, Kansas City, KS 66101, United States

Stone Law Office
753 State Ave Ste 388, Kansas City, KS 66101, United States

Kansas City, KS Zip Codes We Proudly Serve:

66012, 66101, 66102, 66103, 66104, 66105, 66106, 66109, 66111, 66112, 66115, 66118, 66217

---