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These tough economic times have seen an increase in the numbers of individuals, families, consumers and businesses filing for bankruptcy. Bankruptcy can relieve individuals and those with business debts from liability for most unsecured debts and prevent the creditors owed those debts from taking collection actions against the debtor. While the level of protection varies, businesses are also eligible to file for bankruptcy protection. During the current recession, the amount of debt for many has become unmanageable. Those who have contacted The Sader Law Firm, a Kansas City bankruptcy attorney firm, and filed for bankruptcy in the past year include medical professionals, lawyers, teachers, business owners and a wide range of professionals and active community members.

According to a July 2, 2009 Bloomberg report, there were 675,351 consumer bankruptcy filings in the first half of 2009, a 36.5 percent increase over 2008 numbers. More than 30,000 businesses filed for...

Many people don't know that during these tough economic times, filing for bankruptcy may not only release individuals from liability for most unsecured debts and prevent creditors from taking collection actions, but it can save your home from foreclosure as well. While Chapter 7 bankruptcy discharges your legal obligation to pay most unsecured debts, Chapter 13 bankruptcy allows repayment of past due debts over time, preventing creditors from repossessing secured property on which payments are being made.

Under the present laws, filing either a Chapter 7 or a Chapter 13 bankruptcy can stop a foreclosure, in order to allow the homeowner to cure the mortgage. An experienced Kansas City bankruptcy attorney can explain how, under the current law, bankruptcy can help save homes from foreclosure in a few ways.

Chapter 7 is a temporary stop to the foreclosure, but might give the individual or family a short time to cure the past due balance, sell or refinance the property....

Bankruptcy can relieve debtors from liability for some unsecured debts and prevent creditors from taking collection actions. According to a July 2009 Bloomberg report, there were 675,351 consumer bankruptcy filings in the first half of 2009, a 36.5 percent increase over 2008 numbers.

Older Americans have experienced the sharpest increase in bankruptcy filings, jumping from 8.2 percent of debtors in 1991 to 22.3 percent in 2007, according to a study by the Consumer Bankruptcy Project, as reported by The Associated Press. The study found that Americans 55 and older accounted for approximately 8 percent of bankruptcies filed in 2001. But by 2007 Americans 55 and older represented 22 percent of bankruptcy filings.

The increase was also found by the Public Policy Institute of the AARP (American Association of Retired Persons). Harvard Law Professor Elizabeth Warren, author of the study, also found that the median age for bankruptcy filers had increased from 36.5 years old...

Under the 2005 changes to the bankruptcy rules, the first step in figuring out whether you can file under Chapter 7 is to measure your "current monthly income" against the median income for a family of your size in your state. This is called the “means test.” A qualified Kansas City bankruptcy lawyer will be aware of the requirements and can help you. If your income is less than or equal to the median, you can file for Chapter 7. Importantly, if your debts are primarily business related, the means test may not apply to your ability to file Chapter 7.

If your income is more than the median, you must pass the “means test" in order to file for Chapter 7. The purpose of the means test is to ascertain whether you have enough disposable income, after subtracting certain allowed expenses and required debt payments, to repay at least a portion of your unsecured debts over a five-year repayment period.

Since October 17, 2005, credit counseling...

Bankruptcy releases individuals with consumer and business debts from liability for most unsecured debts and prevent the creditors owed those debts from taking collection actions against the debtor. Individuals can file a Chapter 7 “straight liquidation” bankruptcy, or a Chapter 13 “debt repayment plan” bankruptcy. Anyone contemplating bankruptcy should speak to an experienced Kansas City bankruptcy lawyer to evaluate the options appropriate for their particular situation.

When someone files a petition for bankruptcy under Chapter 13, a “trustee” is appointed to administer the case. The Chapter 13 trustee both evaluates the case and serves as a disbursing agent, collecting payments from the debtor and making distributions to creditors. The trustee oversees the administration of the case, conducts a meeting of creditors, examines the debtors about the information that they have submitted to the court, and, in Chapter 13, administers the...