Occasionally, debtors that have filed for Chapter 13 bankruptcy find it difficult to meet the terms of their Chapter 13 repayment plan. When a major life event occurs such as the loss of a job or death of a spouse, it can make making the required plan payments difficult or impossible. In these instances, converting the Chapter 13 to a Chapter 7 bankruptcy may be the most appropriate action. If you think you may want to convert your Chapter 13 to a Chapter 7 bankruptcy, call one of our experienced Kansas City bankruptcy attorneys, so we can discuss your options. There are some benefits to converting a Chapter 13 to a Chapter 7 bankruptcy. A Chapter 7 bankruptcy has no plan payments. Once converted, you will no longer make any of the repayment plan payments that were required under Chapter 13. Even if there was no major life event, a…
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This is the time of the year when many people are waiting for their tax refund from the IRS with anticipation and plans of how to spend the funds. If you are also thinking about filing for bankruptcy, you need to know that your tax refund is considered an asset that the trustee may take and use to pay off your debtors. The timing of the filing of the bankruptcy may make a difference in whether or not you can keep and spend your refund or lose it to the bankruptcy trustee. Chapter 7 bankruptcy in Kansas If you have filed for bankruptcy and then receive your tax refund, the entire amount of the refund may go to the bankruptcy trustee to be used to pay your creditors. Kansas has had an exemption that has been previously used to exempt a portion of the refund (Earned Income Credit exemption). The…
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Creditors sometimes go to court and get a judgment against the debtor. If this happens to you, your creditor can then take the judgment order to the bank, garnish your account and take your money. According to federal law under 42 U.S.C. section 407 (a), your Social Security income is exempt from garnishment. This protection is not automatic and there are steps you need to take to be sure that you do not lose your money to the creditor. If you do one of the following, you should be able to save three months of your Social Security income from garnishment. Filing an affidavit with the court If you receive a notice of a hearing requested by your creditor, attend the hearing and provide the court and your creditor with information verifying that your income is exempt from garnishment. If you did not attend the hearing, you can still take…
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*Credit card payments will not be accepted for bankruptcy cases, unless pre-approved by The Sader Law Firm. If you have a question about a credit card payment, please call our Office Manager at (816) 561 1818.
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