Newsletters

Is Chapter 13 Bankruptcy the Best Option to Protect Assets from Creditors?

There may be several solutions available if you are facing collection actions from creditors over past due debts. Depending on the circumstances, you may be able to settle your debts or negotiate new terms with lenders. However, these options may have negative consequences. You could be stuck with a larger principal balance, increased interest, or income tax bills. Alternatively, Chapter 13 bankruptcy can help protect assets from creditors by: Stopping foreclosure: An automatic stay is issued when you file for bankruptcy. This temporarily stops all collection activities. If you are behind on your mortgage, filing for Chapter 13 bankruptcy can stop foreclosure while allowing you to catch up on payments. You could even file an emergency bankruptcy petition before the foreclosure sale takes place to halt it. It may also be possible to strip secondary mortgages if your home is underwater (meaning it is worth less than what is owed…
Read More »

File Bankruptcy with a Lawyer: Cheaper in the Long Run

Why You Will Save Money with a Bankruptcy Attorney in Kansas City You may have considered filing bankruptcy without an attorney. Technically, you can. However, even the US Bankruptcy Courts strongly recommend only filing with a lawyer. Bankruptcy is a powerful financial tool that can change your life and future for the better. People who truly wish to get the most out of bankruptcy and be financially secure on the other side must have a qualified bankruptcy lawyer to ensure they receive the Bankruptcy Code’s maximum benefits. Bankruptcy attorneys in Kansas City do cost money; however, you will actually save money in the long run by having a lawyer guide you through the bankruptcy process. Don’t believe us? Read on to see a few of the many pitfalls you will likely encounter if you file pro se that will end up costing you money, time and possibly result in having…
Read More »

When Are Income Taxes Dischargeable in Bankruptcy?

Many people with high income tax debts feel suffocated and do not know how to fix their problems, and they may have read on the internet or even heard from an inexperienced bankruptcy attorney that they cannot get rid of their income taxes in bankruptcy. Contrary to popular bankruptcy myth, however, you can discharge some income taxes in bankruptcy if you meet certain requirements. A knowledgeable Kansas City bankruptcy lawyer can review your finances and help you determine if you meet the five requirements necessary to discharge your income tax liability. If you fail to meet even one of these requirements, you cannot discharge your taxes. Income Taxes The taxes must be income taxes. Payroll taxes, sales taxes, taxes withheld pursuant to a business, penalties or other types of taxes are nondischargeable. The Three-Year Rule If the tax debt stems from a tax return that was due less than three…
Read More »

Filing for Bankruptcy Can Resolve Serious Consequences of Debt

Some people might be apprehensive about filing for bankruptcy, believing it may harm their credit scores or reflect poorly on their financial futures. However, this is very far from the truth. Filing for bankruptcy can actually stop the worst-case serious consequences of debt from occurring, such as foreclosure or losing a business. Once the bankruptcy has been completed, debtors will receive a fresh start from which they can build a solid financial future. How Does Bankruptcy Resolve Serious Consequences of Debt? Foreclosure: Foreclosure is the worst-case scenario for homeowners behind on mortgage payments. Depending on the situation, filing for Chapter 13 bankruptcy can save homes. Filing for Chapter 13 bankruptcy will put an automatic stay into motion, which will halt all collection attempts, including foreclosure. For homeowners with multiple mortgages and undervalued homes, lien stripping is also a possibility. A lien strip allows some homeowners to eventually discharge second and…
Read More »