Tag Archives: Bankruptcy

Bankruptcy vs. Debt Settlement: Which Should I Choose?

Kansas City Bankruptcy Attorneys Explain Your Options Defaulting on debts can lead to multiple negative consequences. Your wages could be garnished. Creditors could repossess your secured debts. In other cases, you could enter a debt spiral that affects your finances for years to come. If you are experiencing a debt crisis, then you should explore options for resolving your situation as soon as possible. The longer you wait to resolve your debts, the longer it will take to get your finances back on track. Debt settlement and bankruptcy are two debt relief options you could consider. However, these are two very different options. You should consider the differences between bankruptcy and debt settlement before making your decision and very closely look at any and all fees Debt Settlement companies charge. What Is Debt Settlement? Debt settlement is where you hire a company to work with your creditor to pay less…
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Chapter 11 Bankruptcy Could Help Sears Survive

Sears was recently granted a $5.2 billion reorganization plan. Under the plan, Sears can continue operating 425 department stores. The plan also allows 45,000 workers to keep their jobs. Chairman Eddie Lampert entered Sears into Chapter 11 bankruptcy in October. Lampert’s bid fought opposition from several unsecured creditors, including mall suppliers and owners. These creditors tried to stop the sale and requested for liquidation of the company. U.S. Bankruptcy Judge Robert Drain for the Southern District of New York rejected the creditors’ claims. He disagreed that the sale would shut out other parties who wanted to purchase the company, and he rejected the idea that Sears has more value to creditors if it failed. Sears argued that the sale was the best solution, and they explained the need to save thousands of jobs. Although Sears’ long-term fate is murky, Chapter 11 bankruptcy will help provide the retailer a lifeline while…
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Can I File for Bankruptcy If I am Behind on My Taxes?

If you’re behind on taxes, you’re not alone. Millions of Americans incur tax debts each year. Fortunately, bankruptcy can discharge certain non-priority income tax debts. Many people turn to bankruptcy if they are swamped with tax debt, as it can get rid of eligible back tax debts. In other cases, it may allow you to pay back tax debts over a long period of time. But, if you haven’t filed your taxes, you can’t file for bankruptcy. Copies of your previous tax returns are required during the bankruptcy filing process. Just keep in mind that filing taxes isn’t the same as paying them. Not filing taxes is the only setback when filing for bankruptcy. Can Filing for Bankruptcy Clear My Tax Debts? Depending on the circumstances, filing for bankruptcy can potentially clear your tax debts. The bankruptcy court can look at several factors and criteria before deciding if you can…
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