By BRADLEY D. McCORMACK A common question many people ask when contemplating bankruptcy is: “Do I have too much or too little of debt to file?” As a general rule, there are no debt limits that prevent a filing; you can always file for bankruptcy. The question is which type of bankruptcy do you qualify for because there are limits for specific versions of bankruptcy. As it stands now, the limits are: Chapter 7 (individual/company liquidation) – No limits Chapter 13 (personal reorganization) – $1,257,850 in secured debt, $419,275 in unsecured debt Chapter 11 (corporate reorganization) – No limits Subchapter V Chapter 11 (Small Business Reorganization Act – $7.5 million) The only recent change to the limits affected the Subchapter V Small Business cases. When first addressing bankruptcy and the COVID-19 Pandemic in March of 2020, Congress increased the Subchapter V debt limit from $2.7 million to $7.5 million through… Read More »
KSHB 41 News in Kansas City recently conducted an on-camera interview with Sader Law Firm attorney Stephan Skepnek, who provided legal insight into President Biden’s recent decision to extend the pause in payments for individuals with federal student loans. Skepnek’s student loan practice focuses on successfully solving student loan problems for clients, helping them to consolidate federal student loans and apply for Income-Based Repayment Plans, defend student loan lawsuits on private student loan debt or, when necessary, reduce or eliminate student loan debt through the bankruptcy process. According to the U.S. Department of Education, there is about $1.6 trillion in federal student loans nationwide, and borrowers can face wage garnishments, tax refund garnishments, harassment by creditors, lowered credit scores, an inability to save for retirement and difficulty obtaining financing for mortgages, car loans and businesses. While private student loans don’t offer the ability to get out of default, Skepnek believes… Read More »
A new partnership between the city of Kansas City, Missouri, and the Missouri Housing Development Commission (MHDC) will continue to aid those facing housing insecurity through the distribution of $25 million in additional emergency rental assistance funding for residents facing financial difficulties. Through late December, the city distributed nearly $16 million of allocated Missouri Emergency Rental Arrears Program (ERAP) funding to about 3,600 households. The additional $25 million will be distributed as quickly as possible through the city’s service partner provider agencies, according to a press release from the city of Kansas City. Those needing assistance can visit the city’s website to find out more or to apply for assistance in paying rent and/or utility bills. ERAP funding represents just one option to address the houseless crisis and housing insecurity issue millions face, with the ongoing COVID-19 pandemic only exasperating the issues. If you are behind on payments or fear… Read More »
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