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Is Chapter 13 Bankruptcy the Best Option to Protect Assets from Creditors?

There may be several solutions available if you are facing collection actions from creditors over past due debts. Depending on the circumstances, you may be able to settle your debts or negotiate new terms with lenders. However, these options may have negative consequences. You could be stuck with a larger principal balance, increased interest, or income tax bills. Alternatively, Chapter 13 bankruptcy can help protect assets from creditors by: Stopping foreclosure: An automatic stay is issued when you file for bankruptcy. This temporarily stops all collection activities. If you are behind on your mortgage, filing for Chapter 13 bankruptcy can stop foreclosure while allowing you to catch up on payments. You could even file an emergency bankruptcy petition before the foreclosure sale takes place to halt it. It may also be possible to strip secondary mortgages if your home is underwater (meaning it is worth less than what is owed…
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Can I Save My Business from Financial Trouble Without Chapter 11?

Kansas City Bankruptcy Lawyers Explain an Alternative Option Chapter 11 bankruptcy is a great way to maintain a business and keep it afloat while restructuring debt; however, there is an alternative to bankruptcy. This is known as a “business workout” and it involves making a plan to settle your debts with creditors. Unlike bankruptcy, there is no court proceeding involved, only negotiation between your attorney and the creditors. Would My Business Benefit from a Workout? A business workout will not be for everyone. Businesses have the best chance of a successful workout if they only have one or two large creditors knocking at their door. This might be an outstanding IRS bill, a line of credit from a bank or a secured creditor who financed a piece of machinery. Do not ignore falling behind on payments or try to “borrow from Peter to pay Paul.” The sooner you act to…
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What Will Happen to My Credit After Bankruptcy?

Answers from a Kansas City Bankruptcy Lawyer Bankruptcy is an extremely useful tool for erasing the hard times you may have encountered in the past. Whether your struggles stem from overwhelming credit card bills or medical expenses that you did not expect, a Kansas City bankruptcy can help you move forward from a very difficult period in your family’s life. However, many individuals who are considering filing for Chapter 7 or Chapter 13 often wonder what will happen to their credit in the aftermath of bankruptcy. Though it is easy to think that you will never get credit again, the truth is quite different. What Will Happen to My Future Credit? A person’s credit rating is determined by a number of factors, so there is no way to know the exact effect on it by filing for bankruptcy. If your credit rating is high, then it will typically take a…
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A New Hope for Discharging Debt?

Kansas City Bankruptcy Attorneys Analyze a Potential Solution It has been a few years since Occupy Wall Street reached its zenith, and one offshoot of the movement is still working to represent the needs of the 99 percent. Rolling Jubilee, a group formed by former Occupy activists, is paying large portions of students’ unforgiven debt. A recent NPR article describes how one student received a letter in the mail explaining that $790.05 of her debt had been covered by Rolling Jubilee. What Can I Do About my Student Loan Debt? So far, the group has covered $15 million worth of student loan debt across the nation. The group, which has Christian ties, says that the word “jubilee” refers to Biblical times: every 49 years, a “jubilee” occurred that erased everyone’s debt. Considering that Americans owe a total of $1.2 trillion in student loan debt, Rolling Jubilee members have their work…
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