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General information about bankruptcy and debts matters from attorneys for Kansas, Missouri and national bankruptcy cases.

How Cash Advance Lenders Are Impacting Small Businesses

Recent bankruptcy cases are highlighting the harsh impact that merchant cash advance (MCA) lenders are having on small businesses and their owners. Lenders of these MCAs are being cast as usurious short-term loans that are negatively affecting small businesses that are desperate to make ends meet. Debtors and trustees have been fighting the lenders who are behind MCAs that small businesses are receiving, claiming them to be short-term loans at illegal and unreasonably high interest rates. Since these businesses are often trying to stay afloat, they are likely to do whatever it takes to remain in business, even if it means taking on loans with unreasonably high interest rates, which are often illegal. MCA lenders are now getting attention from the U.S. Securities and Exchange Commission for their practices as well as from various state attorneys general for their high interest rates. However, in a report from Law360, Joe Luzinski…
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How Rising Hospital Prices are Impacting Inflation

As most Americans experience the impacts of inflation on their daily lives by means of increased grocery and gas prices, many might not realize the impact of medical care at hospitals on inflation rates in the United States. Hospitals were not as quick to increase prices during the pandemic compared to supermarkets, retailers and restaurants. However, costs are beginning to significantly increase, with patient costs jumping nearly 8% in April 2024 compared to the same month in 2023, according to the Department of Labor, marking the highest increase in any month in almost 14 years. Several hospital procedures are seeing price increases of as much as $700, which translates to a 4.5% increase. These price escalations are impacting patients and employers as well, with higher health insurance premiums and limited wage hikes. For the first waves of inflation in the economy, hospitals held prices steady due to contractual obligations with…
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Small Business Bankruptcy Filings Rise Due to Struggle with Higher Costs

With the rising costs of running a business, from raw materials to loans and insurance, has also come the rise in small businesses filing for bankruptcy. Business owners are struggling to reconcile the impacts of inflation while preparing for the potential end of bankruptcy provisions brought on by the COVID-19 pandemic. Subchapter V bankruptcy filings increased by 60% in a year, from 146 filings in April 2023 to 233 in April 2024, according to a report from Law360. Most types of bankruptcy filings are rising, with Chapter 11 filings increasing by 40% year over year and total bankruptcy filings rising by 28%. As inflation and increasing interest rates continue to weigh heavily on consumers and business owners, many are having difficulty meeting their debt obligations and are seeking out options that can ease their financial burdens. “These increases reflect the increased cost and expense pressures both individuals and businesses are…
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