Tag Archives: kansas city bankruptcy attorney

New Means Test Number Released

Kansas City Bankruptcy Lawyers Discuss Chapter 7 Eligibility Starting November 1, 2014, all new bankruptcy filings will undergo new means test numbers. This will not affect bankruptcies filed before this date. The numbers are based on data from the 2010 US Census concerning the median family income by family size. What is the Bankruptcy Means Test? Congress created the means test in 2005 to assess two things: 1) whether a person is eligible for Chapter 7 bankruptcy and if not 2) what that person’s monthly payment would need to be in a Chapter 13 case. The test was created specifically to prevent those with a high income from filing for Chapter 7 bankruptcy in an effort to get them to file for Chapter 13 instead so that at least a portion of their debts would be paid. There are some exceptions to the means test, such as if you are…
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A New Hope for Discharging Debt?

Kansas City Bankruptcy Attorneys Analyze a Potential Solution It has been a few years since Occupy Wall Street reached its zenith, and one offshoot of the movement is still working to represent the needs of the 99 percent. Rolling Jubilee, a group formed by former Occupy activists, is paying large portions of students’ unforgiven debt. A recent NPR article describes how one student received a letter in the mail explaining that $790.05 of her debt had been covered by Rolling Jubilee. What Can I Do About my Student Loan Debt? So far, the group has covered $15 million worth of student loan debt across the nation. The group, which has Christian ties, says that the word “jubilee” refers to Biblical times: every 49 years, a “jubilee” occurred that erased everyone’s debt. Considering that Americans owe a total of $1.2 trillion in student loan debt, Rolling Jubilee members have their work…
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What Does a Debt Settlement Company Actually Do?

Kansas City Bankruptcy Attorneys Explain the High Risks and Low Rewards Debt settlement companies claim they will significantly lessen the amount of money owed through negotiation with credit card companies and other creditors. So how does this actually work? To use a settlement company’s services, you stop making payments on the debt itself. Instead, funds are deposited into an account with the debt settlement company. Those funds are in turn used by the settlement company to pay creditors—and the settlement company itself—only after (or if) a settlement amount has been agreed upon. How Do Debt Settlement Companies Make Money? Many companies require substantial up-front fees and/or monthly fees to start the process. Additionally, settlement companies’ fees can include a percentage of the amount of money paid to settle the debt. However, choosing to stop making payments on a debt means additional interest and fees will continue to accumulate on the…
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