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Can a Chapter 13 Plan Help This Family?

Emerging from a Downward Spiral of Debt with Bankruptcy Many people who are thinking about filing for bankruptcy have fears about long-term consequences, specifically damage to their credit ratings. However, when a person is in a downward spiral of debt, filing for bankruptcy can repair credit faster than not doing so. For example, let us say Bob, a local Kansas City college professor, has two mortgages and a home valued at $200,000 due to a downward turn in the real estate market. The first mortgage is $225,000 and an equity line of credit he took out to add an addition for his mother to live in was $50,000. In this scenario, Bob is considered “underwater” on the first mortgage. Bob’s wife recently has suffered some medical troubles and lost her job. Due to the loss of this family income and the medical bills piling up, Bob has been having trouble…
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What Debts Can Be Discharged Through Chapter 7 Bankruptcy?

Chapter 7 bankruptcy allows debtors to obtain a fresh financial start by discharging most, if not all, of their pre-bankruptcy debts. Discharging a debt through bankruptcy means you are no longer liable for it and the creditor cannot take any collection actions against you. An experienced Kansas City bankruptcy attorney can help you understand the entire bankruptcy process as well as the Chapter 7 discharge. Types of Debt There are generally three types of debt in bankruptcy: secured, priority unsecured, and general unsecured. Depending on the type of debt, when the debt was incurred, and what your intentions are concerning any property securing the debt, you may or may not be able to discharge your liability through Chapter 7 bankruptcy. Secured Debts Secured debts are those for which certain property has been pledged as collateral. The most common examples include: mortgage loans, car loans, property taxes or property tax loans,…
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Tips for How to Stop Living Paycheck to Paycheck

Take Charge of Your Budget Starting Today Whether you work full-time or just graduated college and are entering the job market, you could still fall into the trap of living paycheck to paycheck. This is true for anyone, even people who have high incomes and/or are generally financially responsible. There are several reasons why someone could end up living paycheck to paycheck, including: Salary failing to keep up with rising cost of living Catastrophic injury or illness leading to medical debt Unemployment Divorce Unmanageable debt from student loans Collapse of the financial market leading to investment, retirement fund and savings losses How to Stop Living Paycheck to Paycheck Here are a few tips to help you regain control of your budget to get your finances back on track: Know Exactly Where Your Money is Going The first step is to examine your financial situation in detail, including facing all bills…
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Older Americans Turn to Bankruptcy in Kansas City

Bankruptcy can relieve debtors from liability for some unsecured debts and prevent creditors from taking collection actions. According to a July 2009 Bloomberg report, there were 675,351 consumer bankruptcy filings in the first half of 2009, a 36.5 percent increase over 2008 numbers. Older Americans have experienced the sharpest increase in bankruptcy filings, jumping from 8.2 percent of debtors in 1991 to 22.3 percent in 2007, according to a study by the Consumer Bankruptcy Project, as reported by The Associated Press. The study found that Americans 55 and older accounted for approximately 8 percent of bankruptcies filed in 2001. But by 2007 Americans 55 and older represented 22 percent of bankruptcy filings. The increase was also found by the Public Policy Institute of the AARP (American Association of Retired Persons). Harvard Law Professor Elizabeth Warren, author of the study, also found that the median age for bankruptcy filers had increased…
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