Is Chapter 7 in Lawrence KS an Option for You?

Posted By : Aubrey Mead , on Aug, 2017


With the cooling of the economy, more and more individuals find themselves considering their bankruptcy options. There are a couple of different options for consumers: Chapter 7 and Chapter 13. Keeping each person’s circumstances in mind, a Chapter 7 in Lawrence KS lawyer will determine which option is best suited for each client.

A new beginning

Chapter 7 bankruptcy is considered a “new start” because it allows most debts to be discharged – that is to say, people can eliminate their debts within a relatively short period of time. It is also known as “liquidation” bankruptcy since the assets of any consumer, that is not exempt or protected by law, can be removed by a bankruptcy trustee (the individual who administers bankruptcy) and used to pay a percentage of other debts. There are some restrictions to keep in mind, however.

The consumer must complete and pass a “means” test to be able to opt for Chapter 7 bankruptcy. This usually means that the consumer must fall within certain parameters within an income bracket to be eligible to file for this type of bankruptcy. A Chapter 7 in Lawrence KS attorney is there to help people decide if this is a viable option.


For bankruptcies filed after a certain date, the filing party should be aware of income requirements. In addition to these income requirements, the means test calculates several factors for consumer suitability, such as transportation, food, health, and clothing costs. To be fit, one should consult someone not only familiar with the test but also well versed in handling some nuances that could arise.

The process

Starting a Chapter 7 process requires several steps. The consumer must pay a filing fee with the help of a Chapter 7 in Lawrence KS lawyer and present certain documents. Only then will the bankruptcy process begin.

Once the bankruptcy process has begun, a “deadline suspension” goes into effect. This means that all harassment by creditors and collections against the consumer must cease. However, lenders with secured property levies, such as a bank that finances a car, can file a motion for a suspension if you are late with your payments.

If authorized, this allows the creditor to recover the vehicle. Contact Joe Wittman for more information.

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