Have Questions About Filing for Bankruptcy?

Ask a Kansas City Bankruptcy Attorney

Frequently Asked Questions About Bankruptcy

• How can I afford legal fees if I am considering bankruptcy?
• Should I work with a credit counseling service?
• I'm being sued! Can bankruptcy help me?
• I owe the government. Can bankruptcy cancel tax debts?
• Can bankruptcy stop wage garnishments?
• How are Child Support and Alimony affected by bankruptcy?
• How long can I stay in my home if it's in foreclosure?
• Can bankruptcy stop foreclosure?
• Can I convert a Chapter 13 case to Chapter 7 if I change my mind?
• How long does the bankruptcy process take?

How can I afford legal fees if I am considering bankruptcy?

Many people ask us, “How can I be expected to pay a lawyer if I am considering going bankrupt?” The truth is that bankruptcy is not for people with no money or assets; it is for people that want or need to protect part of their lives from financial trouble.

If you have an income, home, personal possessions – bankruptcy can help protect you from losing those items. As we tell our clients, “If you live under a bridge and have no property, there is no point to filing bankruptcy because you have nothing that can be taken.” At The Sader Law Firm we take pride in providing personal attention by a qualified Kansas City bankruptcy lawyer to each client. Our fees are reasonable and fair. Please see our Bankruptcy Fee Schedule for more information.

Should I work with a credit counseling service?

Advertisements for credit counseling companies (both for profit and non-profit) are everywhere. If performed properly and in the right situation, these services can help people work out their financial problems and avoid bankruptcy. However, hiring a credit counseling service is not right for everyone or helpful in all situations.

Credit counseling services can be expensive and, unlike with bankruptcy filings, some creditors will not work with credit counseling services. Often credit counseling services only deal with one creditor at a time. The repayment plans can also last for years.

As part of the bankruptcy process, clients are required to participate in a short credit counseling session by an approved agency prior to filing. At The Sader Law Firm, we work with an approved, reputable credit counseling firm to provide this service to each client. Our clients participate from home by phone or computer to make the session as comfortable and informative as possible. If the debt that was the subject of the lawsuit is a typically unsecured debt (credit card or hospital bill), it will usually be discharged in the bankruptcy and the former case dismissed.

I'm being sued! Can bankruptcy help me?

If you are being sued in any court by a creditor, mortgage company, former landlord, or virtually anyone, the lawsuit is stopped or "stayed" – as it is called in bankruptcy – by filing any type of bankruptcy, Chapter 7 bankruptcy, Chapter 11 bankruptcy or Chapter 13 bankruptcy. The lawsuit cannot go forward without permission of the Bankruptcy Court. If the debt that was the subject of the lawsuit is a typically unsecured debt (credit card or hospital bill), it will usually be discharged in the bankruptcy and the former case dismissed.

Certain types of debts are not dischargeable in bankruptcy and consultation with an experienced Kansas City bankruptcy lawyer is necessary. At The Sader Law Firm, we are familiar with these issues and your attorney will work with you to resolve all questions you may have.

I owe the government. Can bankruptcy discharge tax debts?

Yes, some taxes are dischargeable! Income taxes, property taxes and licensing fees to governments may be dischargeable. In order for taxes to be dischargeable, it is important for all returns to have been filed (even if the money due was not paid). However, withholding taxes, sales taxes and payroll taxes, for example, are not dischargeable. At The Sader Law Firm, your attorney will review your situation to help you obtain the relief you need.

Can bankruptcy stop wage garnishments?

Yes, filing bankruptcy stops most wage garnishments immediately. If an employer withheld money and did not send it to the creditor or court, the moment you file bankruptcy you may be entitled to the return of those funds. While a bankruptcy filing cannot generally recover money already paid to a creditor, it can stop any further deductions from your check. At The Sader Law Firm, we are able to file cases quickly to help you keep the money you earned.

How are Child Support and Alimony affected by bankruptcy?

Child Support and Alimony obligations are not dischargeable in bankruptcy. However, payment of past due amounts can be scheduled through a Chapter 13 bankruptcy. Enforcing child support and alimony orders against one who files bankruptcy can be technically complex and the filing of certain actions may be required to ensure that any amounts due are not discharged. At The Sader Law Firm we are familiar with these issues and your attorney can counsel you, whether you are a debtor or a creditor, as to your rights and responsibilities in this important area.

How long can I stay in my home if it's in foreclosure?

The answer depends on which state you live in and whether you are in bankruptcy.

If you are not in bankruptcy and live in Missouri, you generally have 30 days to leave after the foreclosure takes place. In Kansas, you may stay for 90 days after the foreclosure (or possibly longer depending on your situation).

If you are in bankruptcy, it will generally extend the time you can stay in the home for at least 90 days in addition to the time periods mentioned above.

If you have decided to surrender your home through the bankruptcy process, during the period of time and up to the foreclosure, you can generally stay without making further payments to the mortgage company. Essentially, you may live there without making payments until required to leave. At The Sader Law Firm, your Kansas City foreclosure attorney can counsel you on your rights in this important area.

Can bankruptcy stop foreclosure?

If you are behind on a home mortgage and facing foreclosure, Chapter 13 bankruptcy can be used to force the mortgage company to stop the foreclosure and accept a payment plan on the missed payments. It is important to remember, that while those missed payments can be paid over a period of up to five (5) years, you are required, while in Chapter 13, to make your full mortgage payment each month going forward. This is why those in Chapter 13 must have regular income – Chapter 13 is for those who can pay their current expenses and have enough income left over to pay the back-owed amount over time. At The Sader Law Firm, your attorney can work with you to develop a plan that will allow you to keep your home and develop a payment schedule you can afford.

Can I convert a Chapter 13 case to Chapter 7 if I change my mind?

Those in Chapter 13, under the right circumstances, may convert their case to a Chapter 7. This usually occurs if clients decide they no longer want to keep a home that was being protected in Chapter 13. Perhaps the ongoing mortgage payment was too high, a debtor lost a job or a couple decided to separate. At The Sader Law Firm, we are familiar with these issues and your attorney will help you make the decision that is best for you.

How long does the bankruptcy process take?

At The Sader Law Firm, we can prepare and file a bankruptcy as quickly as you can provide us the necessary information. We can even file a case on the same day you contact us in certain circumstances.

Typically, once a client contacts us, we forward a set of forms to the client by email or regular mail. Once the client has completed the forms, we ask the client to set an appointment with us to visit with an attorney.

If all the information is provided, and the necessary fees are paid, we can usually have the papers ready for review and signature within a couple of days. Cases are filed by computer.

Once the case is filed, the first important date is the meeting of creditors, which usually takes place about 30 days after the filing. It is required that every debtor, and their attorney, attend that meeting which takes place at the courthouse. At that meeting, the appointed trustee reviews the paperwork, lets us know if additional information is needed, and creditors have an opportunity to ask questions. Creditors usually do not show up. This meeting usually takes less than one hour.

If the case is a Chapter 7 and the process goes smoothly, the discharge is entered by the court 90 to 120 days later and the case is over. All creditors receive the notification by mail.

If the case is a Chapter 13, it is expected that the Chapter 13 Plan proposed by the debtor will be confirmed shortly after the meeting of creditors. Once the Plan is confirmed and the required Plan payments are completed, a discharge will be entered by the court.

At The Sader Law Firm, your attorney will work with you to make sure your case stays on track and completes as quickly as possible. Please contact our Kansas City bankruptcy attorneys now to get things in motion.

Serving: Kansas City Missouri, Kansas City Kansas, Overland Park, Blue Springs, Lee’s Summit, Grandview, Raytown, Independence, St. Joseph, Warrensburg, Harrisonville, Belton, Louisburg, Leawood, Olathe, Paola, Lenexa, Shawnee, Shawnee Mission, Bonner Springs, Leavenworth and Atchison.

NEITHER THE SUPREME COURT OF MISSOURI NOR THE MISSOURI BAR REVIEWS OR APPROVES CERTIFYING ORGANIZATIONS OR SPECIALISTS DESIGNATIONS.