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What Does The Bible Say About Bankruptcy?

Kansas City Attorneys Offer Insight into Modern Law’s Roots Those who adhere to Judeo-Christian beliefs may be surprised to learn that modern bankruptcy laws actually have roots in the Bible. Bankruptcy, even in the aftermath of our recent recession, still has certain stigmas in the minds of individuals who are struggling to pay household bills and debt. However, the idea that people should not be imprisoned for debt and allowed fresh starts is much older than US Bankruptcy law. An article from “The Kingdom Economy” sparked our interest in the Bible and bankruptcy, and we wish to explore these ideas from a legal perspective. Are the Bankruptcy Time Limitations from the Old Testament? In the Old Testament, there is much discussion about laws regarding borrowers, lenders, and the poor. For instance, in Deuteronomy it says, “At the end of every seven years you shall grant a release. And this is…
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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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Our Kansas City Bankruptcy Lawyers Explain the Process of Avoiding Liens on Household Goods

When you take out a short-term loan, the finance company might ask you to pledge property you own as collateral, such as household appliances or electronics. By pledging property you own as collateral, you grant the finance company a security interest in it. That means if you default on the loan, the finance company can demand that you turn over the property. Most finance companies do not actually want the items you pledged as collateral, but that does not stop them from using the threat of taking your property as a means to elicit payment from you. In bankruptcy, consumers have the opportunity to get rid of these security interests through a process known as lien avoidance. If you are struggling with short-term loans, payday loans or other types of debt, an experienced Kansas City bankruptcy attorney can explain how Chapter 7 or Chapter 13 bankruptcy may offer you a…
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Stripping a Second Mortgage in Chapter 13 Bankruptcy

Explained by a Kansas City Bankruptcy Attorney In the early 2000s, many homeowners took advantage of low interest rates and increased value in their home by taking out a second mortgage on their residence. The homeowners used the funds in the second mortgage to do household improvements, make long-needed purchases, or to simply pay down some other debt. However, after the housing bubble burst, these same homeowners now find themselves with a first and second mortgage that, combined, have a larger balance than the value of their home. Through a Chapter 13 bankruptcy, homeowners can get significant relief. The Bankruptcy Code allows for a debtor to file a lawsuit within the bankruptcy asking the Court to modify the rights of the second mortgage. The Code states that a second mortgage is only secured against the property if the value of the property is more than the first mortgage. For example,…
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