Bankruptcy is a legal process that provides individuals and businesses in Overland Park, Kansas, with a means to manage overwhelming debt and obtain a fresh financial start. However, before embarking on this path, it’s crucial to understand the qualifications, the need for legal representation, and the associated costs for different bankruptcy chapters. In this comprehensive guide, we will delve into these aspects to help you make informed decisions about bankruptcy in Overland Park.

Am I Qualified for Bankruptcy?

When considering bankruptcy in Overland Park, it’s essential to determine if you meet the eligibility criteria. Bankruptcy isn’t a one-size-fits-all solution, and there are specific requirements for each chapter. Let’s explore who qualifies for bankruptcy in Overland Park, KS.

Chapter 7 Bankruptcy Eligibility: Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is designed for individuals and businesses seeking a fresh start by liquidating non-exempt assets to pay off debts. To qualify for Chapter 7 in Overland Park, you must pass the means test. This test evaluates your income, expenses, and family size to determine if you have enough disposable income to repay your debts. If your income is below the state’s median income for your household size, you’re generally eligible for Chapter 7.

Chapter 11 Bankruptcy Eligibility: Chapter 11 bankruptcy is primarily for businesses and individuals with substantial assets and debts who wish to reorganize their financial affairs while continuing their operations. There are no specific income restrictions for Chapter 11, making it accessible to a broader range of debtors.

Chapter 13 Bankruptcy Eligibility: Chapter 13 bankruptcy, often called the “wage earner’s plan,” is for individuals with a regular income who want to develop a manageable repayment plan to pay off their debts over three to five years. To qualify for Chapter 13 in Overland Park, you need to have a steady income that allows you to meet your living expenses while adhering to the repayment plan.

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Do You Need a Lawyer to File For Bankruptcy in Overland Park, KS?

The decision to hire a bankruptcy attorney in Overland Park, KS, is a crucial one. While you have the option to file for bankruptcy pro se (without an attorney), it’s often advisable to seek legal representation due to the complexity of bankruptcy laws and the potential consequences of mistakes.

Reasons to Consider Hiring a Bankruptcy Attorney:

1. Legal Expertise: Bankruptcy laws are intricate, and an experienced attorney can help you navigate the complexities, ensuring you follow the correct procedures and meet all legal requirements.
2. Asset Protection: An attorney can help you understand exemptions and protect your assets from liquidation or foreclosure, depending on the bankruptcy chapter you file.
3. Debt Assessment: A bankruptcy attorney can assess your financial situation, advise on the most suitable chapter for your needs, and guide you through the process.
4. Debt Negotiation: Attorneys can negotiate with creditors on your behalf, potentially reducing the amount you owe or extending repayment terms.
5. Court Representation: In case of disputes or challenges during bankruptcy proceedings, having an attorney can provide invaluable representation in court.

While hiring an attorney involves additional costs, the peace of mind and potential savings they can provide make it a wise investment for many individuals and businesses in Overland Park, KS, considering bankruptcy.

Cost to File Chapter 7 Bankruptcy in Overland Park, KS

The cost of filing for bankruptcy in Overland Park, Kansas, varies depending on the chapter you choose and whether you hire an attorney. Let’s delve into the expenses associated with filing Chapter 7 bankruptcy.

1. Filing Fee: The filing fee for Chapter 7 bankruptcy in Overland Park, KS, was $395. However, it’s crucial to verify the current fee with the bankruptcy court, as fees can change over time.
2. Attorney Fees: If you choose to hire an attorney, their fees will be an additional cost. Attorney fees can vary widely based on factors like the complexity of your case, the attorney’s experience, and the geographical location. In Overland Park, attorney fees for a Chapter 7 bankruptcy typically range from $1,200 to $2,800 or more.
3. Credit Counseling and Debtor Education: Before and after filing for bankruptcy, you are required to complete credit counseling and debtor education courses. These courses usually cost around $60 to $110 each.
4. Miscellaneous Costs: You may incur additional costs for items like obtaining credit reports, notary fees, and mailing expenses, which can add up to a few hundred dollars.

It’s essential to budget for these expenses and consult with an attorney to get a clear estimate of the overall costs associated with filing for Chapter 7 bankruptcy in Overland Park, KS.

Cost to File Chapter 11 Bankruptcy in Overland Park, KS

Chapter 11 bankruptcy, often used by businesses, is a more complex and costly process than Chapter 7. The expenses associated with filing Chapter 11 bankruptcy in Overland Park, KS, can be substantial, and they include:

1. Filing Fee: The filing fee for Chapter 11 bankruptcy in Overland Park was $1,717. Again, it’s essential to verify the current fee with the bankruptcy court.
2. Attorney Fees: Given the intricacies of Chapter 11, attorney fees can be significantly higher than those for Chapter 7. The cost will depend on the complexity of your case and the attorney’s hourly rates. Expect attorney fees to range from several thousand to tens of thousands of dollars.
3. U.S. Trustee Fees: In Chapter 11 bankruptcy, you may be required to pay quarterly fees to the U.S. Trustee’s office based on the amount of your disbursements.
4. Administrative Costs: Chapter 11 often involves substantial administrative costs, such as hiring financial advisors, appraisers, and other professionals to help with the reorganization process.
5. Ongoing Legal and Professional Fees: Throughout the Chapter 11 process, you’ll continue to incur legal and professional fees as your case progresses.
6. Credit Counseling and Debtor Education: Similar to Chapter 7, you’ll need to complete credit counseling and debtor education courses, incurring additional costs.

Due to the complexity and costs associated with Chapter 11 bankruptcy, it’s essential to work closely with an experienced bankruptcy attorney in Overland Park, KS, who can provide guidance and help you manage these expenses effectively.

Cost to File Chapter 13 Bankruptcy in Overland Park, KS

Chapter 13 bankruptcy offers a structured repayment plan for individuals with a regular income. The costs associated with filing Chapter 13 bankruptcy in Overland Park, KS, include:

1. Filing Fee: The filing fee for Chapter 13 bankruptcy in Overland Park was $390. Verify the current fee with the bankruptcy court when you plan to file.
2. Attorney Fees: Chapter 13 bankruptcy attorney fees vary depending on the complexity of your case and the attorney’s rates. Typically, attorney fees for Chapter 13 range from $2,800 to $4,700 or more.
3. Court-Approved Credit Counseling and Debtor Education Courses: Similar to other bankruptcy chapters, you’ll need to complete these courses, which usually cost around $50 to $100 each.
4. Trustee Fees: In a Chapter 13 case, a bankruptcy trustee is appointed to oversee your repayment plan. You’ll be required to pay a portion of your monthly plan payment as a trustee fee.
5. Miscellaneous Costs: Additional expenses may include notary fees, document copying, and postage.

It’s essential to consult with a bankruptcy attorney in Overland Park, KS, to get a precise estimate of the costs associated with filing Chapter 13 bankruptcy and to ensure that you develop a feasible repayment plan that aligns with your financial situation.

Reliable Bankruptcy Attorneys in Overland Park, KS

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

Steinwart Law Office, LLC

8000 Foster St, Overland Park, KS 66204, United States

Wiesner & Frackowiak, LC

6750 93rd St #220, Overland Park, KS 66212, United States

Coons & Crump, LLC

7285 W 132nd St Suite 160, Overland Park, KS 66213, United States

Wellman Law LLC

8000 Foster St, Overland Park, KS 66204, United States

Overland Park, KS Zip Codes We Proudly Serve:

66013, 66062, 66083, 66085, 66202, 66203, 66204, 66206, 66207, 66209, 66210, 66211, 66212, 66213, 66214, 66215, 66221, 66223, 66224

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