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Car leases in Chapter 7 bankruptcy can either be assumed or rejected. If you assume the car lease, you remain legally liable for the original lease contract. When you reject your lease, you surrender the vehicle and have no further liability for lease payments or fees. If you are considering bankruptcy and are currently leasing a vehicle, an experienced Kansas City bankruptcy attorney can explain all of your bankruptcy options, including what will happen to your car lease in Chapter 7 or Chapter 13 bankruptcy. Assuming a Car Lease Depending on the lease terms and your overall financial situation, assuming a car lease in Chapter 7 bankruptcy may benefit you in the long run. Below are some reasons to consider assuming a car lease: Lease payments are low — if you reject the lease, you will have to give back the vehicle, and getting another vehicle right after bankruptcy might…
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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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Student loans have become one of the most widely held forms of debt in the United States, now standing at $1.2 trillion total. In most cases, student loans are not treated like other types of debt and can be more difficult, but not impossible, to discharge. Fortunately, recent court rulings have made the process of discharging student loans easier. Before 1976, federal student loans were treated like most other forms of debt. However, US Bankruptcy Code (11 USC 101 et seq) placed restrictions on discharging government backed debt, which included federal student loans. Additional restrictions were placed on private student loans in 2005, when Congress amended the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. What Does Undue Hardship Mean? In 1987, the New York State Higher Education Services Corp. appealed an earlier court decision to discharge the student loans of Marie Brunner, a recent graduate of a master’s…
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When filing for bankruptcy, debts are divided into categories as either dischargeable or non-dischargeable debts.  Assuming you properly file for bankruptcy and comply with all court requirements, at the end of your bankruptcy case, the court will issue an Order discharging your legal obligation to pay the dischargeable debts. Dischargeable debt covers many of the more common forms of debt, including many credit cards and medical bills. Certain debts are non-dischargeable, however, and filing for bankruptcy will not affect them as drastically. Dischargeable debt covers many credit cards and medical bills. Certain debts are non-dischargeable, however, and filing for bankruptcy will not affect them as drastically. A Kansas City bankruptcy lawyer can guide you through the bankruptcy process if you are concerned with what debts you might be able to discharge by filing for bankruptcy. Examples of non-dischargeable debt include: Child and spousal support that you owe In most cases,…
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