Tag Archives: kansas city bankruptcy lawyer

When you take out a short-term loan, the finance company might ask you to pledge property you own as collateral, such as household appliances or electronics. By pledging property you own as collateral, you grant the finance company a security interest in it. That means if you default on the loan, the finance company can demand that you turn over the property. Most finance companies do not actually want the items you pledged as collateral, but that does not stop them from using the threat of taking your property as a means to elicit payment from you. In bankruptcy, consumers have the opportunity to get rid of these security interests through a process known as lien avoidance. If you are struggling with short-term loans, payday loans or other types of debt, an experienced Kansas City bankruptcy attorney can explain how Chapter 7 or Chapter 13 bankruptcy may offer you a…
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Since 2005, when the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) went into effect, individuals with primarily consumer debts have had to pass the bankruptcy means test in order to be eligible for Chapter 7. The means test determines whether Chapter 7 filers have the financial ability to pay at least 25 percent of their unsecured debt over a five-year period, in which case they are only eligible for Chapter 13. The means test tends to be a particularly complicated aspect of bankruptcy law, making it important to work with a qualified Kansas City bankruptcy attorney. The first part of the means test looks at the income you received during the six months immediately before you filed for bankruptcy. If your annualized gross income falls below the median income for your applicable family size, you automatically pass the means test and can proceed under Chapter 7. If it exceeds…
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When the housing bubble burst and home values dropped dramatically around the country, many homeowners found themselves underwater on their homes, owing more on the properties than they were worth. Selling an underwater home can be difficult; the mortgage company must agree to a short sale, which means the sale proceeds will fall short of paying off the mortgage. For homeowners facing foreclosure, a home short sale may be a viable option to avoid it. However, you may need to consider consumer bankruptcy if you are struggling with other debt and/or find the mortgage company unwilling to accept a short sale. People who are underwater on their homes and struggling to keep up with debt payments often want to know whether they can complete a short sale and file for bankruptcy. Yes, you can do both. Often, however, filing bankruptcy renders a short sale unnecessary, although in certain situations, a…
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