The Kansas bankruptcy court is open for business even if the federal government shuts down. Cases may still be filed. Automatic stays still go into effect stopping collection. Help is still available. See how a government shutdown will affect bankruptcy courts.

Announcement from the Court

The Kansas Bankruptcy Court issued the following statement today, September 30, 2013:

If the government shuts down because of a lapse in appropriations, the Judiciary would use available funding balances to maintain operations for approximately 10 business days.  If the lapse in funding extends beyond the 10 business day period, the Judiciary plans to reassess its situation and provide further guidance.  See
http://news.uscourts.gov/judiciary-remain-open-if-government-shuts-down.

The District of Kansas Bankruptcy Court will continue those operations that are part of the exercise of its judicial powers. Accordingly, until further notice, the Court will continue to adjudicatebankruptcy matters.  For example, it will continue to accept new case filings, receive and process pdings and fees, and hear matters.

The Case Management/Electronic Case Files (CM/ECF) system will remain operational to accept electronic filing of documents with the court. Accordingly, parties and their representatives should be prepared to appear for all matters that have been and will be scheduled for hearing (unless continued or cancelled by subsequent order of the Court).  In the short term, the counter and telephone lines for the Bankruptcy Court will remain open for business according to its normal schedule.

Hugh N. Zavadil
Chief Deputy Clerk
U.S. Bankruptcy Court
401 North Market
Wichita, KS 67202

Only One Door Open to Public

Only one entrance at each of the Kansas bankruptcy courts is now open to the public. All other doors at the courthouses are closed and locked to save money on security staffing because of budget cuts as of June 3, 2013.

Kansas Bankruptcy Court – Topeka

Frank Carlson Federal Building, Topeka, KS

All public access to the Frank Carlson Federal Building and U.S. Courthouse will be through the west doors at 444 SE Quincy Street. The PL-2 entrance off Monroe Street will be closed and locked.

Frank Carlson Federal Building
444 S.E. Quincy Topeka, Kansas 66683
(785) 338-5910
Map it [Read more…]

The best way to pay your bankruptcy payment to the Topeka chapter 13 trustee is online or by wage order. Carl Davis Trustee uses TFS Bill Pay for you to send money to the trustee electronically.

This is a service through a third party. It involves a fee for handling the money and there is a short delay for payments to transfer from your account to TFS Bill Pay and on to the trustee.

TFS Bill Pay costs 99 cents for a payment up to $100, which is cheaper than a money order at the local grocery store plus a stamp, not counting your time or gas money. The cost for a payment $101 to $250 is $1.99.

This service is voluntary. You may still pay by wage order or by money order mailed to Carl Davis, PO Box 2818, Wichita, KS 67201-2818. The Topeka drop box has been closed. There is no drop box in Wichita. No payments are accepted in person at the trustee’s office in Wichita. No cash is accepted.

TFS Bill Pay may only be used to pay Carl Dais and trustees in other states who have contacted with the service. The chapter 13 trustees in Kansas City, KS, and Wichita use this service also.

New median income data for bankruptcy cases filed on or after April 1, 2013, has been released by the U.S. Trustee Program.

KANSAS

• 1 earner  $42,577
• 2 people $56,851
• 3 people $65,907
• 4 people $76,402

For cases filed on or after April 1, 2013, add $8,100 for each individual in excess of 4.

Click here to see the median income table.

Click here for information on means testing from the Executive Office of the U.S. Trustee.

The new Kansas exemption law allowing a person to keep one year of earned income tax credit in bankruptcy is constitutional, a third court has ruled. This is good news for lower income working families with children who received EITC and who are struggling to make ends meet.

The Bankruptcy Appellate Panel for the Tenth Circuit affirmed the opinion of Judge Janice Miller Karlin of the Topeka Bankruptcy Court in Williamson v. Westby (In re Westby), BAP No. KS 12-027 (10^th Cir. BAP, Feb. 4, 2013).

Judge Robert E. Nugent also has found the Kansas statute to be constitutional.  His decision in the Wichita Bankruptcy Court has been appealed to the Kansas District Court. Those appeals are pending.

“The issue presented on appeal is whether a recently enacted Kansas statute exempting tax refunds attributable to the earned income credit for bankruptcy debtors is constitutional. The Chapter 7 trustee objected to the debtors’ claimed exemption, arguing the Kansas bankruptcy-only exemption statute violates the Uniformity and Supremacy Clauses of the United States Constitution. The bankruptcy court concluded the exemption statute did not violate these constitutional provisions and overruled the Trustee’s objection. Having reviewed the record and the applicable law, we agree that the Kansas bankruptcy-only exemption statute passes constitutional muster, and therefore AFFIRM the bankruptcy court’s order.” [Read more…]

Hon. Cynthia A. Norton

Congratulations to our friend and colleague, Cynthia Norton, who was sworn in today as U.S. Bankruptcy Judge for the Western District of Missouri. She is pictured here with U.S. District Court Chief Judge Fernando J. Gaitan, Jr., who administered the oath of office to her, and her husband, George Norton.

She will preside over bankruptcy proceedings in Kansas City, St. Joseph, Jefferson City and Springfield, MO. She was appointed to the position by the U.S. Court of Appeals for the Eighth Circuit following the retirement of the Hon. Jerry W. Venters. A public investiture ceremony is planned for April.

After graduating from the University of Kansas Law School in 1984, Judge Norton clerked for Kansas Court of Appeals Judge John E. Rees. Her career in bankruptcy law began as law clerk for the Hon. James A. Pusateri for the Kansas Bankruptcy Court in Topeka 1986-1989. She worked in several Kansas City bankruptcy firms, then formed a boutique bankruptcy firm, Grimes and Rebein, LC, of Lenexa, with her partner, Steve Rebein, in 1996. She practiced law under her professional name, Cynthia Frogley Grimes.

She is a fellow in the American College of Bankruptcy and a recipient of the 2002 Michael R. Roser Award for Excellence in Bankruptcy. She is the 2012 recipient of the Robert L. Gernon Award for Outstanding Service to Continuing Legal Education in Kansas, recognizing her for her frequent presentations to lawyers, law students, clerks and others on bankruptcy law.

We will miss our friend and colleague in the Kansas bankruptcy bar. Congratulations Judge Norton!

Here is a list of where you can go in Topeka for free tax return preparation help.

If you are a debtors in a bankruptcy case, take a copy of the 2012 tax returns, both federal and state, to your bankruptcy attorney.

Refunds should not be spent unless the trustee approves. Talk to your attorney about the tax refunds and who gets what portions of the refunds. Spending tax refunds that are supposed to go to the bankruptcy trustee will get you into serious trouble.

If your refunds get offset by the IRS or the state for taxes, child support, student loans or other government debt, you should get a letter explaining the offset. Take that letter to you bankruptcy attorney.

We are still fighting to keep one year of the earned income tax credit exempt in Kansas. Two Kansas bankruptcy judges have ruled that the new statute is constitutional. Three chapter 7 trustees in Topeka and Wichita have appealed those rulings to higher courts. The appeals are pending. A ruling is expected soon from the Bankruptcy Appellate Panel for the Tenth Circuit U.S. Court of Appeals. Oral argument was December 6, 2012, in Denver.

It will be a little easier for the debtor in bankruptcy when an adjustment in limits and formulas occurs on April 1.  There will be modest increases in the chapter 13 debt limits, in means test formulas and federal exemptions when the once-every-three-year adjustments for inflation go into effect.

These numbers are not an issue for most Kansas debtors.  But a debtor on the margins of these limits and formulas may benefit from waiting to file bankruptcy after April 1.  Your bankruptcy attorney can make sense of these complicated numbers for you.

Erich Fabricius is predicting a 6.3% increase which is slightly less than the increase three years ago when the figures last changed.  Closer to April 1, the government will announce the actual figures that will go into effect.

The unsecured debt limit for chapter 13 bankruptcy is estimated by Fabricius to be $383,175. The current limit is $360,475. A person with debts with no collateral in excess of the limit is ineligible for chapter 13 relief.

The debt limitation for family farmers in Chapter 12 increases from $3,702,650 to $4,031,575.

The homestead equity limit increases from $146,450 to $155,675 though many Kansans have higher homestead limits under state law. Federal exemptions increase but most Kansans do not use the federal exemptions.

Abuse in chapter 7 for excess disposable income will be more difficult for the U.S. Trustee to prove with the new, higher limits on the means test.

Credit: Microsoft Office Clipart

Getting out of debt competes with losing weight for the most common New Year resolutions.

Here is some advice for making your New Year resolution stick. One secret is to create a goal and a sub-goal.

If your resolution is to get out of debt, you can skip eating lunch out each day and start sending that money in to pay off credit card debt. Then, voila…in six months that credit card might be paid off. As you’ll begin to see, your daily goals help you fulfill your larger goal. Sub-goals are very, very important.

But if you are drowning in debt with bills you can never pay, it is time to consider starting over and getting the fresh start that only the federal bankruptcy law provides.  Bankruptcy can stop the garnishment of your paychecks and bank accounts. Bankruptcy can end the trips to collection court. Bankruptcy can make the phone stop ringing. Yes, it is true.

You have good company if you find yourself in financial trouble. Businesses file bankruptcy regularly. The rich and famous shed their debt and move on with their lives. About 4500 bankruptcy cases are filed every day. You can, too! In fact, forgiveness of debt has been part of our culture for centuries.  It is in the Bible.

No one wants to file bankruptcy, at least I have never met anyone who does. You will feel a tremendous relief by getting out of debt. Financial freedom is the brass ring bankruptcy provides.  Call Mark or Jill today.  We understand.  We can help. 785-354-1471.

Ring out the old, ring in the new,

Ring, happy bells, across the snow:

The year is going, let him go;

Ring out the false, ring in the true.
                Alfred Lord Tennyson

Ring out the old bills and your financial troubles once and for all by filing bankruptcy in the New Year.  It’s time to leave your worries behind and get the fresh start you deserve.  We understand. We can help.

Harassing Phone Calls, Garnishments, Collection Letters, Utility Shut-offs, Bill Collectors, Credit Card Interest and Late Fees, Foreclosure, Frozen Bank Accounts, Missed Work for Court Dates, Car Repossessions, Lawsuits, Judgments

Are you drowning in debt? Were you recently laid off? Facing unexpected medical bills? Or even worse, did a recent divorce put a strain on your financial life?

Have your debts snowballed? Have your credit cards raised your interest rate to 30%? Doubled your monthly payments? Are you about to lose your home in foreclosure? Is your paycheck being garnished? Is your car being repossessed?

At Bankruptcy Law Office, our attorneys, Mark Neis and Jill Michaux, understand that life can be stressful at times and we all go through hard times every so often. We understand that when you are dealing with financial hardship, it may not be your fault. Mark and Jill are Topeka’s consumer bankruptcy specialists ready to help you get back on your feet with a fresh start.

Peace of mind, sleep better, answer your phone again, stop looking over your shoulder, lift that heavy burden off your back, feel better about yourself, stop borrowing from friends and family and your retirement fund.

Stop being stressed out by bills you can’t pay! Get the fresh start only the federal bankruptcy laws can give you. Call us today! 785-354-1471

 

10th Circuit Courtroom 1

Our attorneys continue to fight for Kansas debtors to keep one year of federal and state earned income tax credits (EITC) exempt  from bankruptcy trustees and creditors. We traveled to Denver for oral argument  before the Bankruptcy Appellate Panel of the 10th Circuit. Bruce Barry of Manhattan argued in favor of the law for his clients, Dustin and Brandi Westby.

The Kansas Legislature adopted a new exemption for EITC in bankruptcy cases.  The law went into effect April 14, 2011. Chapter 7 bankruptcy trustees in Topeka and Wichita have challenged the law, and the debtors’ right to retain one year of EITC in their bankruptcy cases, since.

K.S.A. 60-2315 – Section 1. An individual debtor under the federal
bankruptcy reform act of 1978 (11 U.S.C. §101 et seq.), may
exempt the debtor’s right to receive tax credits allowed
pursuant to section 32 of the federal internal revenue code of
of 1986, as amended, and K.S.A. 2010 Supp. 79-32,205,  and
amendments thereto. An exemption pursuant to this section
shall not exceed the maximum credit allowed to the debtor
under section 32 of the federal internal revenue code of 1986,
as amended, for one tax year. Nothing in this section shall be
construed to limit the right of offset, attachment or other
process with respect to the earned income tax credit for the
payment of child support or spousal maintenance.
Sec. 2. This act shall take effect and be in force from
and after its publication in the Kansas register.

The bankruptcy judges in both divisions ruled against the trustees.  Three trustees have appealed to higher courts.

• Judge Janice Miller Karlin’s ruling in the Westby case in Topeka
• Judge Nugent’s ruling in the Hudson and Lea cases in Wichita

The Kansas Attorney General also is defending the constitutionality of the EITC exemption statute.

Here is the motion and proposed brief Jill Michaux filed last week in the Hudson appeal to the Kansas District Court for permission to file a friend of the court brief in support of debtors by the National Association of Consumer Bankruptcy Attorneys (NACBA). Thanks go to Tara Twomey and Lisa Sharon of the National Consumer Bankruptcy Rights Center for writing the brief.

Jill Michaux

Chief Justice John G. Roberts, Jr., appointed Jill Michaux to a three year term on the Advisory Committee on Bankruptcy Rules to the U.S. Supreme Court.  She is one of four practicing lawyers on the 17 member committee. Other members are federal judges from the bankruptcy, district and circuit courts, two law professors who serve as committee reporters, and a lawyer for the U.S. Department of Justice.

She succeeds John Rao of the National Consumer Law Center who served six years. Prior to Rao, the position was filled by Eric L. Frank who later was appointed Bankruptcy Judge for the Eastern District of Pennsylvania, and Henry L. Sommer, president of National Consumer Bankruptcy Rights Center, and Editor-in-Chief of Collier on Bankruptcy.

The rules committee is reviewing mortgage claim forms, a proposal for national chapter 13 plan form, and the modernization of bankruptcy forms, and accompanying rules changes on its agenda.

Jill has represented consumer debtors in bankruptcy for 30 years.  She is a founding member and one of the first directors of the National Association of Consumer Bankruptcy Attorneys (NACBA). She is a founder and past president of the Topeka Area Bankruptcy Council and the Kansas Bar Association Bankruptcy and Insolvency Section.

She is contributor to the Bankruptcy Law Network, the premier website for consumer bankruptcy information, and writes Kansas Bankruptcy blog. She runs the BK-Kansas listserv for 452 members of the bankruptcy bar in Kansas. She is one of two Topeka attorneys and seven Kansas attorneys who are board certified in consumer bankruptcy law by the American Board of Certification. She practices law with Neis & Michaux, P.A., of Topeka.

See the article in the Topeka Capital-Journal.

Leave It All Behind –  “If banks are “too big to fail” does that mean the rest of us are just the right size? Bankruptcy is all about a fresh start.  Learn to live without massive amounts of credit and dependency on the big banks.  Kick the habit of charging on the plastic.  Cash is king.  in the long run, much of what we own is merely stuff and totally unnecessary.  There is certain freedom in living free of credit and debt.”

Thanks to my friend, Gene Melchionne at Consumer Bankruptcy Tips for posting this video by a musician who filed bankruptcy through a New York bankruptcy attorney he knows.  “It says it all,” as Gene says.

Bankruptcy court fees increase 11/21/2012:

• Chapter 9 Petition $1046, increases to $1213
• Chapter 11 Petition $1046, increases to $1213
• Chapter 15 Petition $1046, increases to $1213
• Motion to Convert Chapter 7 to Chapter 11 (filed by the debtor) $755, increases to $922
• Motion to Convert Chapter 13 to Chapter 11 (filed by the debtor) $765, increases to $932
• Motions to Divide a Joint Case Chapter 11 case $1046, increases to $1213
• Motions to Reopen a Case Chapter 11 $1000, increases $1167

License Some rights reserved by adria.richards

Here are posts by my colleagues at Bankruptcy Law Network telling us the advantages of filing chapter 13 bankruptcy.

Top 5 Reasons to File Chapter 13 Bankruptcy

Advantages of Chapter 13 Bankruptcy

Why File Chapter 13

13 Reasons to File a Chapter 13 Bankruptcy

Photo Credit: License Some rights reserved by walknboston