Category Archives: Bankruptcy Attorney Kansas City

Locations For Filing A Bankruptcy In Kansas City

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For most people living in the Kansas City metro area, bankruptcy cases in Kansas are filed in U.S. Bankruptcy Court at 500 State Avenue, Kansas City, KS.   For people living on the Missouri side, cases in most situations would be filed at the US Courthouse at 400 East 9th Street, Kansas City, MO.  There are some nuances to these general patterns, however.  A person can file either in the place where they have lived the most, or where most of their assets have been located, in the preceding 180 days.

In Kansas, a person can file in any one of the three venues:  Kansas City, Topeka, or Wichita.  A person living in Missouri or having the majority of assets in Missouri will need to file in either Kansas City, Springfield, or St. Louis, depending on some venue factors.  But a person can request to have these venues changed by filing a motion with the bankruptcy court.

To file a bankruptcy case in Kansas, a debtor must have resided in Kansas (or had the majority of his/her assets) the greater part of the 180 days prior to filing their case.  If a debtor has resided in Kansas for a little over three months (or had the majority of their assets in Kansas for a little over three months), they can file their case in Kansas.  To use the Kansas exemptions, there is a time residency requirement in Kansas.  In practice, this is usually not a big deal, because even if someone can’t use the Kansas exemptions, they can use the federal exemptions, which are normally favorable.

To explore these issues further, please contact us at Phillips & Thomas LLC for a free consultation.  These venue issues can become complicated, and it is never a good idea to jump to conclusions without getting specific legal advice for a bankruptcy filing in Kansas or Missouri that is tailored to your specific situation.

Read More:  Surrendering Collateral In Bankruptcy

Bankruptcy Adversary Proceedings Under Section 523: Seeking To Prevent The Discharge Of Certain Debts

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Bankruptcy Attorney In Leawood

Adversary proceedings are litigated matters within a bankruptcy case.  They are not common, but can arise in certain special circumstances.  They are serious matters that deserve your attention.  Some of these situations will be discussed in this post.

When a bankruptcy case is filed, all of the creditors receive notice of the filing.  By law they are provided with a opportunity to file a complaint objecting to the discharge of a debt, or the discharge of the entire case.  A creditor can object to the discharge of its debt if it believes the debt was incurred in certain fraudulent circumstances (fraud, malice, defalcation in a fiduciary capacity, and a few other rare scenarios.).

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Missouri Or Kansas? How The State Line Affects People In Kansas City Who File Bankruptcy

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Kansas City is one of the few major metro areas in the US that is split in half by two different states.  Although bankruptcy is Federal law and is filed in Federal Court, the two state make up of Kansas City has a profound affect on bankruptcy in Kansas City.

The initial effect the state line has in Kansas City is determining where a case is filed.  Bankruptcy cases in the Kansas City metro area are filed either in the Federal District of Kansas or the Federal Western District of Missouri.

The District where a case is filed determines or influences many things in a bankruptcy case.  It determines the basic things like the place where documents will be filed and where a client will go for their Court dates.  It can also have a large effect on the outcome of a case, or the resolution of a particular issue in a case, because the District of Kansas and the Western District of Missouri are in two different Federal Circuits.

The District of Kansas is in the 10th Federal Circuit and the Western District of Missouri is in the 8th Federal Circuit.  These different Federal Circuits can have different interpretations of the bankruptcy law due to the rulings by judges in these Circuits. This differing of opinions on issues can result in different outcomes regarding issues presented in front of the court.

In addition to two different Federal Circuits, we also have two different Federal Courthouses in Kansas City.   We have the District of Kansas Federal Court in Kansas City, Kansas, and the Western District of Missouri Federal Court in Kansas City, Missouri. These Courts each have their own judges, case law, and rules that can also differ between each jurisdiction.

All of this means that the same question in a bankruptcy case can sometimes have different answers, depending on where the case is filed.  This is why you really need to consult with an experienced attorney regarding bankruptcy.

Read More:  About Our Firm

Reasons For Bankruptcy In Missouri And Kansas

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The reality is that there isn’t a “typical” profile of someone considering a debt reorganization, liquidation, or restructuring.  Financial difficulties can happen to anyone at any time.  The typical client spans a very wide spectrum.  There are, however, common situations that lead people to situations where they need help.  These situations often (but not always) involve one or more of the following scenarios:

  • Job loss with extended period of underemployment or non-employment.Extended medical problems which result in unmanageable medical bills and treatment programs.
  • Mortgage payments that keep increasing, especially with variable mortgage rates, with a person being unable to cope with the increases.
  • Business owners who see their core business decline or evaporate, with a large amount of debts from vendors or suppliers.
  • Marital issues leading to divorce, with each party being saddled with large amounts of unanticipated debt.
  • The repossession of an asset that has left a person with a large “deficiency” judgment on something, like a boat, house, furniture, or other piece of collateral.
  • Unforeseen family emergencies of any kind that cause people to drain away their security reserves.
  • Tax issues that have been in hibernation for a long time, and that suddenly become a problem.

Bankruptcy is one of the best, if not the best, ways to manage tax debt.  A person can wipe out tax debt in certain situations, or restructure it with possibly wiping out interest and penalties.

This list is by no means exhaustive.  There are many other situations that can cause problems for people.  Gambling debts, fines and costs in court cases, and various other situations can also act to hurt people.  The list above does show just how common and varied the bankruptcy experience really can be.  You are not alone.  It’s a lot more common than you think.  When you empower yourself by taking action, you will find a great burden released from your shoulders.

 If you would like to schedule a free initial appointment to talk about bankruptcy, please give us a call at 913-385-9900 or send an email to phillipsandthomas@gmail.com.