Newsletters

Handling Non-Dischargeable Debts During Bankruptcy

When filing for bankruptcy, debts are divided into categories as either dischargeable or non-dischargeable debts.  Assuming you properly file for bankruptcy and comply with all court requirements, at the end of your bankruptcy case, the court will issue an Order discharging your legal obligation to pay the dischargeable debts. Dischargeable debt covers many of the more common forms of debt, including many credit cards and medical bills. Certain debts are non-dischargeable, however, and filing for bankruptcy will not affect them as drastically. Dischargeable debt covers many credit cards and medical bills. Certain debts are non-dischargeable, however, and filing for bankruptcy will not affect them as drastically. A Kansas City bankruptcy lawyer can guide you through the bankruptcy process if you are concerned with what debts you might be able to discharge by filing for bankruptcy. Examples of non-dischargeable debt include: Child and spousal support that you owe In most cases,…
Read More »

Can a Chapter 13 Plan Help This Family?

Emerging from a Downward Spiral of Debt with Bankruptcy Many people who are thinking about filing for bankruptcy have fears about long-term consequences, specifically damage to their credit ratings. However, when a person is in a downward spiral of debt, filing for bankruptcy can repair credit faster than not doing so. For example, let us say Bob, a local Kansas City college professor, has two mortgages and a home valued at $200,000 due to a downward turn in the real estate market. The first mortgage is $225,000 and an equity line of credit he took out to add an addition for his mother to live in was $50,000. In this scenario, Bob is considered “underwater” on the first mortgage. Bob’s wife recently has suffered some medical troubles and lost her job. Due to the loss of this family income and the medical bills piling up, Bob has been having trouble…
Read More »

Rebutting the Presumption of Abuse: Our Kansas City Bankruptcy Attorneys Discuss the Bankruptcy Means Test and Special Circumstances

Since 2005, when the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) went into effect, individuals with primarily consumer debts have had to pass the bankruptcy means test in order to be eligible for Chapter 7. The means test determines whether Chapter 7 filers have the financial ability to pay at least 25 percent of their unsecured debt over a five-year period, in which case they are only eligible for Chapter 13. The means test tends to be a particularly complicated aspect of bankruptcy law, making it important to work with a qualified Kansas City bankruptcy attorney. The first part of the means test looks at the income you received during the six months immediately before you filed for bankruptcy. If your annualized gross income falls below the median income for your applicable family size, you automatically pass the means test and can proceed under Chapter 7. If it exceeds…
Read More »

So You’ve Graduated from a For-Profit Law School—Welcome to the Student Loan Debt Spiral!

For-profit law schools have sparked dozens of online “law school scam blogs” with criticism from former graduates, many of whom are unemployed or underemployed. According to the scam blogs, these law schools are notoriously expensive and offer poor employment prospects after graduation. At some of the schools, such as the Florida Coastal School of Law, graduates have an average student loan debt of $150,000. In an article published last year in The Atlantic, for-profit law schools were criticized for manipulating post-graduation employment and bar passage statistics. The Atlantic article discusses InfiLaw, the company who owns the Florida Coastal School of Law, and how out of 1,191 graduates in 2013, almost 25 percent were unemployed nine months after graduation. Another one in eight allegedly received temporary jobs created by InfiLaw schools so they could count the graduates as “employed” and publish favorable employment statistics to attract more students. The article also…
Read More »