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Can I Save My Business from Financial Trouble Without Chapter 11?

Kansas City Bankruptcy Lawyers Explain an Alternative Option Chapter 11 bankruptcy is a great way to maintain a business and keep it afloat while restructuring debt; however, there is an alternative to bankruptcy. This is known as a “business workout” and it involves making a plan to settle your debts with creditors. Unlike bankruptcy, there is no court proceeding involved, only negotiation between your attorney and the creditors. Would My Business Benefit from a Workout? A business workout will not be for everyone. Businesses have the best chance of a successful workout if they only have one or two large creditors knocking at their door. This might be an outstanding IRS bill, a line of credit from a bank or a secured creditor who financed a piece of machinery. Do not ignore falling behind on payments or try to “borrow from Peter to pay Paul.” The sooner you act to…
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Will Bankruptcy Keep Me from Getting a Job?

Our Attorneys Dispel the Myths of Bankruptcy Some people shy away from filing for bankruptcy because they feel there is a stigma associated with it. However, living with bad credit can impact your finances and professional life significantly more than filing for bankruptcy and fixing the problem. For many, the first step towards improving your credit when you are overextended and defaulting on debt is to file for bankruptcy. A common concern for many is whether a bankruptcy filing will affect their employment or future prospects. Will Prospective Employers Know About My Bankruptcy? Bankruptcy should have little to no bearing on your candidacy for a potential job; however, when applying for jobs in the private sector, you may have to submit to a credit check. A private sector employer cannot issue a credit check without your permission. It does not have to be a bad thing for a private employer…
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The 2005 Rule Change to Chapter 7 Filings in Kansas City

Under the 2005 changes to the bankruptcy rules, the first step in figuring out whether you can file under Chapter 7 is to measure your “current monthly income” against the median income for a family of your size in your state. This is called the “means test.” A qualified Kansas City bankruptcy lawyer will be aware of the requirements and can help you. If your income is less than or equal to the median, you can file for Chapter 7. Importantly, if your debts are primarily business related, the means test may not apply to your ability to file Chapter 7. If your income is more than the median, you must pass the “means test” in order to file for Chapter 7. The purpose of the means test is to ascertain whether you have enough disposable income, after subtracting certain allowed expenses and required debt payments, to repay at least…
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How Can You Lower Student Loan Payments?

The Consumer Financial Protection Bureau (CFPB) has accused student loan servicers of failing to enroll borrowers into income-based repayment programs. As a result, borrowers are paying more than they have to and defaults have increased. You may have multiple options to lower student loan payments. Income-driven repayment programs tie monthly payments to a percentage of your discretionary income. Your options for participating in these programs vary depending on the types of loans you have and when they were dispersed. The first step to seeking lower payments is to use the Department of Education’s National Student Loan Data System (also known as the NSLDS). After logging in, you should see the types of loans you carry and information on your loan servicers. More details may be available on the top portion of your Master Promissory Note (MPN) for your loans. What Are the Eligibility Requirements for the IBR Program? There are…
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