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How a Chapter 13 Bankruptcy Trustee Works in Kansas City

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 repayment plan. The trustee is charged with representing a debtor’s…
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Filing Bankruptcy to Stop Foreclosure

In most cases, filing bankruptcy triggers an automatic stay that prevents creditors from proceeding with foreclosure. As long as you file bankruptcy before the foreclosure sale starts, your mortgage lender cannot sell the property out from under you. One exception occurs in cases where the debtor had two prior bankruptcies dismissed within the past year. In those situations, there is no automatic stay, and the debtor must file a motion asking the court to impose the stay. The court must grant that motion before the foreclosure sale, or else the third bankruptcy filing will be powerless in stopping it. If you are facing foreclosure and want to save your home, an experienced Kansas City bankruptcy attorney can help you decide if bankruptcy is the right path for you. How Chapter 13 Can Help You Avoid Foreclosure Many troubled homeowners decide to file Chapter 13 bankruptcy to save their homes from…
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Will Bankruptcy Keep Me from Getting a Job?

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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Modifying a Chapter 13 Plan

Chapter 13 bankruptcy allows consumers to voluntarily participate in a debt repayment plan that typically lasts three to five years. Chapter 13 consolidates the debtor’s debt payments into one affordable plan payment based on the debtor’s disposable income and the total amount of debt. When all goes well, a Chapter 13 debtor completes the repayment plan and emerges from bankruptcy with a fresh financial start. However, a lot can happen in three to five years. Sometimes debtors lose their jobs, get divorced or experience a substantial increase in household expenses, all of which can reduce their disposable income. When a Chapter 13 debtor’s financial circumstances significantly change, it may become necessary to modify the Chapter 13 plan. The debtor can modify a Chapter 13 plan in several different ways. To keep a plan both feasible and affordable, a debtor may need to: Increase or decrease a fixed payment Revise a…
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