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Our Kansas City Bankruptcy Attorneys Discuss the Chapter 11 Process

Chapter 11 bankruptcy allows businesses and individuals to reorganize their debts similar to how consumers can reorganize their debts through Chapter 13 bankruptcy. Businesses of all sizes can seek relief under Chapter 11, and in most cases, can continue operations as a debtor in possession while the bankruptcy case is pending. While  a Chapter 7 business filing typically involves closing and liquidating the business, Chapter 11 allows those filing to either liquidate in a similar fashion to the Chapter 7 process, or provides a troubled businesses an opportunity to reorganize  its finances and move forward without burdensome debt payments. Additionally, for individuals and married couples who cannot or should not file Chapter 7 or Chapter 13, Chapter 11 may prove the best option for obtaining debt relief. If you are considering bankruptcy for yourself or for your business, an experienced Kansas City bankruptcy attorney can explain all of your bankruptcy…
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Want A Total and Permanent Disability Discharge for Student Loans?

Earlier this year, the Department of Education took steps to identify federal student loan borrowers with permanent disabilities by using Social Security data. According to the Department of Education, it identified 387,000 borrowers who are permanently disabled. Nearly half of the 387,000 were in default on their loans. Many disabled borrowers who have defaulted were at risk for having their Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) garnished. The Department of Education’s move was an attempt to identify permanently disabled borrowers who were eligible to discharge their student loans. Although prior attempts had been made to identify borrowers, many were unaware they qualified for a discharge or had trouble submitting paperwork. The Department of Education now sends paperwork to eligible borrowers to guide them through the steps of a total and permanent disability discharge. If you are permanently disabled and have not heard from the Department of…
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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…
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Tough Times Cause an Increase in Bankruptcy Filings in Kansas City

These tough economic times have seen an increase in the numbers of individuals, families, consumers and businesses filing for bankruptcy. Bankruptcy can relieve individuals and those with business debts from liability for most unsecured debts and prevent the creditors owed those debts from taking collection actions against the debtor. While the level of protection varies, businesses are also eligible to file for bankruptcy protection. During the current recession, the amount of debt for many has become unmanageable. Those who have contacted The Sader Law Firm, a Kansas City bankruptcy attorney firm, and filed for bankruptcy in the past year include medical professionals, lawyers, teachers, business owners and a wide range of professionals and active community members. According to a July 2, 2009 Bloomberg report, there were 675,351 consumer bankruptcy filings in the first half of 2009, a 36.5 percent increase over 2008 numbers. More than 30,000 businesses filed for bankruptcy…
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