Presentation on theme: "An Overview of Bankruptcy For a more detailed discussion of the pros and cons, terminology, options, and legal process of bankruptcy, please see our blog."— Presentation transcript:
An Overview of Bankruptcy For a more detailed discussion of the pros and cons, terminology, options, and legal process of bankruptcy, please see our blog at http://kansasjustice.com/blog/ http://kansasjustice.com/blog/
Reasons Debtors Consider Bankruptcy End Harassment from creditors End garnishments Avoid foreclosure Avoid repossession End lawsuits Stop the downward spiral of fees from financial institutions and lenders
Factors that Drive Bankruptcy Disability. Unexpected medical emergencies. Job loss. Divorce. Home loss or other major loss (from fire, etc.). Graduates with student loans who are unable to find employment within their field. Unexpected personal or family emergencies. Incurring more debt than is sustainable.
Background and Statistics Bankruptcy is specifically addressed in the Constitution (Article 1, Section 8). In 2012 alone, more than 1,200,000 US citizens filed bankruptcy. (Source: http://www.uscourts.gov/uscourts/Statistics/BankruptcyStatistics/BankruptcyFilings/2012/1212_f2.pdf) In 2012 alone, more than 9000 Kansas residents filed bankruptcy. (source: http://www.uscourts.gov/Statistics/BankruptcyStatistics/interactive-map.aspx)
Whats Involved: Preparing to File Retain a qualified attorney Gather the necessary paperwork, including (but not limited to): – Financial statements, – Pay stubs, – Personal identification, – Tax returns for the last two years, and – Information about assets Take the Credit Counseling course mandated by the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCP). Pay the necessary filing fees and file the Bankruptcy Petition.
Whats Involved: After Filing Attend a Section 341 hearing (a brief meeting between the debtor, his or her attorney, a judge, and the bankruptcy trustee). Take the Debtors Education course mandated by the BACPC. Provide any additional documentation the bankruptcy trustee requests. Follow any orders of the court.