Newsletters

Explained by a Kansas City Bankruptcy Attorney In the early 2000s, many homeowners took advantage of low interest rates and increased value in their home by taking out a second mortgage on their residence. The homeowners used the funds in the second mortgage to do household improvements, make long-needed purchases, or to simply pay down some other debt. However, after the housing bubble burst, these same homeowners now find themselves with a first and second mortgage that, combined, have a larger balance than the value of their home. Through a Chapter 13 bankruptcy, homeowners can get significant relief. The Bankruptcy Code allows for a debtor to file a lawsuit within the bankruptcy asking the Court to modify the rights of the second mortgage. The Code states that a second mortgage is only secured against the property if the value of the property is more than the first mortgage. For example,…
Read More »

Americans owe $1.26 trillion in student loan debt, with the average monthly student loan payment being $351, according to The Center for Microeconomic Data. These payments are even tough for people with well-paying jobs, and the loans can become particularly overwhelming in the event of unemployment, divorce, illness or injury. However, there are a number of professions that offer student loan forgiveness. There are two main programs that offer loan forgiveness for many types of jobs that fall into the public-service sector. Keep reading to learn more about these main programs, as well as some additional specialty positions that have help available. What are the Main Student Loan Forgiveness Programs? Federal Perkins Loan Cancellation: This program is available to a number of occupations with additional eligibility requirements for each. Eligible professions include firefighters, law enforcement, corrections officers, nurses, medical technicians, VISTA or Peace Corps volunteers, librarians for certain schools and…
Read More »

People file for bankruptcy for any number of reasons. They may have used credit cards a bit too often. A recent divorce or death in the family may have made times difficult. Or, a string of bad luck involving unemployment and unexpected medical bills may have led to financial problems. Bankruptcy may be the best opportunity for someone to reorganize their finances so that their future earnings are going toward upcoming expenses instead of past mistakes. Even though filing for bankruptcy is a major decision, the financial improvements you see should start immediately. However, those who file should also be concerned with overcoming the negatives associated with it. A recent study showed that, over time, people who file for bankruptcy match non-filers in important measures like home ownership, savings, and credit card use. If you are considering filing for bankruptcy, a Kansas City bankruptcy attorney can explain the effects of…
Read More »

Lien stripping is an important tool in a Chapter 13 bankruptcy – it allows a person with more than one mortgage to get rid of (strip off) the second and/or third mortgages if the property value is less than the balance due on the first mortgage. For example, if your house is worth $100,000 and the principal balance due on your first mortgage is more than $100,000 (even by just a penny), any other mortgages on your property can potentially be removed through a Chapter 13 bankruptcy plan. These stripped off mortgages are then treated the same ways as other general unsecured debt, like credit cards; they are paid only a percentage of the balance, and upon successful completion of a Chapter 13 case, your house is free of these extra mortgages. Many consumers wonder, however, if lien stripping is available in a Chapter 7 bankruptcy. Chapter 7 bankruptcy, unlike…
Read More »