Overland Park Bankruptcy FAQs: Does Filing for Bankruptcy Mean I Lose All My Property?

Will I Lose My Home?

A home is more than bricks and mortar. It's the heart of a family; a place for you to feel happy and safe. Good news! Bankruptcy in Kansas very rarely results in someone losing their home, providing they aren't behind on mortgage payments or other home loans. Your equity in the home is exempt, assuming it is your residence or you intend to make it your residence you'll be able to keep continue living within it. The fear of losing a home and being out on the streets is one of the biggest reasons that people fear bankruptcy and are reluctant to consider it for themselves. But the process isn't designed to see you out on the street and in rags, so you can rest assured your personal home will remain your own. It's one of the main benefits of the generous state bankruptcy laws in Kansas.

What About Rental/Investment Properties I Own?

Unfortunately, if you own properties other than your home, it's very likely that you'll lose them in a bankruptcy agreement. These count as assets and are not subject to any state exemptions. A rental or investment property is likely to be a high-value, saleable asset, so it's likely to be first on the list of things to go when you declare bankruptcy.It's likely that any pending income from these properties would also be included in a bankruptcy claim. So, if you have pending rent payments or other windfalls from these properties you're expecting, it's important to declare them and understand they'll most likely be taken in the bankruptcy agreement.

Kansas Bankruptcy Exemptions

The state of Kansas offers several important exemptions for properties belonging to bankrupt individuals. This includes any property you occupy or intend to occupy. While there's no limit on the value of your home, there is an upper limit on the amount of land it can occupy, with exemptions only applying to properties no larger than an acre.There are plenty of other exemptions in the state of Kansas which are important to know about. Many forms of insurance benefits and proceeds are yours to keep, while pensions for a variety of public workers, including firefighters, police officers, and state school employees, are also exempt. When you work with us, we'll be able to help you understand which of your income streams and assets you'll be able to keep your hands on.

Keeping Non-Exempt Properties

It can be really disappointing to realize some of your property doesn't fit any of the exemption criteria. If you're dead set on keeping hold of a property that doesn't fit any of the exemption criteria, there might be a chance for you. If you can pay the full value of the property, it's very likely you will be allowed to retain it.Although this is unlikely to be an option for most people declaring bankruptcy, it's the only way you'll be able to keep non-exempt property. If there's a property you think you have good reason to hold onto, you can discuss the matter with us and we'll help you explore your options.

Will I Lose My Business?

If you've spent years building up a business, seeing it taken away because of bankruptcy is likely to be heartbreaking. For many people. A business isn't just a form of livelihood, it's often something with great sentimental value, perhaps a small store which has benefited from the hard work and dedication of friends and family over the years, as well as becoming an important pillar of the community.But declaring bankruptcy doesn't necessarily mean you'll lose your small business. Although it's likely that you wouldn't be able to serve as a company director for a large business, continuing to operate your corner store or deli is certainly a possibility.

Will My Utilities Be Cut Off After Bankruptcy?

Many people wonder how they'll get the necessary utilities for their home after bankruptcy. After all, if you've declared bankruptcy, utility companies could leave you high and dry without water, electricity, internet, or other services.Don't worry! Utility companies are not legally allowed to discriminate against you on the basis of your bankruptcy declaration. You can rest easy, knowing whatever happens the utility companies can't refuse to deal with you. However, they are allowed to request an upfront deposit. On a similar note, utility companies aren't the only entities banned from discriminating against bankrupt individuals. Private employers and government organizations are also bound by this law.

Will I Be Allowed to Keep My Vehicles?

In most cases, the answer to this question is a firm yes. Bankruptcy administrators aren't unreasonable people for the most part, and they aren't going out of their way to make your life miserable. It's likely they'll understand you need a vehicle for work, family commitments, and other necessary tasks, like attending medical, financial, or legal appointments.That said, if you happen to have a fleet of vehicles or a top-of-the-line luxury sportscar, you might be required to downgrade to something economical. But most households will be permitted to keep one vehicle per adult, and you should be allowed to keep any separate work-related vehicles too, like a taxi or truck.

What Can I Own After Bankruptcy?

Some folks are under the misapprehension that life under bankruptcy means living with the bare minimum, never allowed to own any kind of property. In reality, this simply isn't the case. You'll be able to keep the majority of your personal property, as bankruptcy allows for keeping clothes, appliances, and other personal appliances. Generally, only assets with a worth of over $500 are documented in a bankruptcy agreement.You may even be able to receive certain cash payments received after bankruptcy. These include workers' compensation, criminal compensation, and certain pension payments. However, other common windfalls, including inheritance or insurance payouts, may well be claimed.

How Long Will It Take Me to Complete the Bankruptcy Process?

Bankruptcy might be a worrying time for you and your family, but it's important to remember there's light at the end of the tunnel. Bankruptcy isn't forever, and as long as you keep pushing forward and doing your best to keep up with your agreement, you'll soon be in a better place financially.The length of time you spend in bankruptcy will vary, depending on the nature of your debts and your individual case. It could take many years, but we'll help you understand the best way to stay on track and put bankruptcy behind you. It's important to keep looking forward and focus on the things you can control as you look to get your finances back on track.Facing bankruptcy is a tough time in anyone's life, but you don't have to go through it alone. We have the know-how and experience to help you get the best possible outcome from this process and come out with hope on the other side.The sooner you get professionals on your side, the better chance you'll have of making bankruptcy a smooth and painless process. Contact Stockton & Kandt, LLC today for a helping hand to guide you through the process.