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Four Common Student Loan Repayment Mistakes to Avoid

More than 44 million Americans are currently paying back $1.44 trillion in federal student loans. More than 1.1 million of those borrowers defaulted for the first time during 2016. Defaults are increasing because borrowers are not being given information that could help them manage payments. As a result, it has become very easy to make mistakes during the repayment process. Fortunately, there are ways you can avoid making some of the most common mistakes while repaying your student loans. When it comes to repaying your federal student loans, knowledge is power. Mistake #1: Not Setting Up Autopay Setting up autopay with your bank and servicer can help you manage your monthly student loan payments. Instead of having to worry about remembering your payment due date each month, the funds would be automatically deducted from your bank account. While autopay is very helpful for many borrowers, there are also ways to…
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The Hazards of Debt Relief Scams

Our Kansas City Bankruptcy Attorneys Want You to Avoid Fraud Some debt relief methods are simply too good to be true. Anyone considering Chapter 7 or Chapter 13 bankruptcy has likely considered the possibility of a debt relief program, with some scammers wanting to take advantage of those in desperate debt situations and abuse their already shaky financial status. Fraudsters make promises they cannot keep and typically provide no assistance, or they may even make the situation drastically worse. Fortunately, learning about some common debt relief scams can allow you to steer clear of them. What Are Debt Relief Scams? A debt relief scam basically offers to alleviate debt or improve your credit situation but does not fulfill that promise. Not all debt settlement, debt consolidation or credit repair companies are fraudulent; some are legitimate businesses. However, it is extremely important that a person fully researches the practices and reputation…
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Mortgages Underwater? You Need a Chapter 13

Lien stripping is an important tool in a Chapter 13 bankruptcy – it allows a person with more than one mortgage to get rid of (strip off) the second and/or third mortgages if the property value is less than the balance due on the first mortgage. For example, if your house is worth $100,000 and the principal balance due on your first mortgage is more than $100,000 (even by just a penny), any other mortgages on your property can potentially be removed through a Chapter 13 bankruptcy plan. These stripped off mortgages are then treated the same ways as other general unsecured debt, like credit cards; they are paid only a percentage of the balance, and upon successful completion of a Chapter 13 case, your house is free of these extra mortgages. Many consumers wonder, however, if lien stripping is available in a Chapter 7 bankruptcy. Chapter 7 bankruptcy, unlike…
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Will My Bankruptcy Affect My Child’s Student Loans?

Kansas City Bankruptcy Attorneys Analyze Alarming Reports Student loans are some of the most common forms of debt facing Americans, and not just by students. Many parents have taken out loans to pay for their children’s college educations, and as some recent reports show, this is causing many parents and grandparents to fall into serious financial trouble. Our Kansas City bankruptcy attorneys explain how a bankruptcy might affect your or your child’s ability to apply for and continue receiving student loans. How are Parents Affected by Student Loan Debt? If you are concerned about the effect your child’s student loans might have on your own financial status, you are not alone. According to the Federal Reserve Bank of New York, two million Americans over the age of 50 have outstanding student loan debt. Debt among older Americans has reached $50 billion nationwide, much higher than past years. Overall, the country…
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