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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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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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Do I Still Owe Home Improvement Loans if My House is in Foreclosure?

Foreclosure is a serious concern for many homeowners behind on their mortgage payments and at risk of default. This concern is even greater for people who took out home improvement loans or equity lines of credit and struggle to pay the bills on time. Although the real estate market in Kansas City has been improving since 2008, many people’s homes are still “underwater,” meaning the fair market value of the home is worth less than the primary mortgage. Underwater homes where the owners took out secondary mortgages, home improvement loans or equity lines and who are facing foreclosure have opportunities to greatly improve their situations. Know that if your home is foreclosed upon and you do not file bankruptcy, you will still be responsible for the secondary loans, even if you no longer own the house. The most beneficial path in such a situation may be to file Chapter 13…
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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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