Tag Archives: consumer bankruptcy

What is the Automatic Stay in Bankruptcy?

When a debtor files for bankruptcy, an automatic stay begins the moment after filing. What is the automatic stay? The automatic stay in bankruptcy is an automatic injunction that halts and prevents many actions of creditors against the debtor, with certain exceptions. Section 362 of the United States Bankruptcy Code provides that the stay begins immediately upon filing of the bankruptcy. The stay stops or freezes many forms of creditor action against the debtor.B Some of the actions the automatic stay holds in abeyance are: initiating or continuing judicial proceedings against the debtor; actions to obtain the debtor’s property; actions to create, perfect or enforce a lien against the debtor’s property; set-off of indebtedness owed to the debtor before commencement of the bankruptcy proceeding. This includes but is not limited to: filing or continuing civil lawsuits for debts; placing or continuing with a garnishment on wages; garnishing bank accounts; foreclosure…
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Debt Settlement and Credit Repair Scams

Recently, we wrote about the difference between bankruptcy and debt settlement. Included in that post were several warnings about credit repair scams. We’ve all seen the advertisements, which are typically full of empty promises. Far too often we receive phone calls from individuals or families that were taken advantage of by so called “debt settlement companies” because of the difficult situation they were in. The Federal Trade Commission (FTC) recognizes this is a large problem and prepared a list of several “Credit Repair Scam” warning signs that we wanted to pass along. You’re likely encountering credit repair fraud if a debt settlement company: insists you pay them money before they do any work on your behalf; tells you not to contact the credit reporting companies directly; tells you to dispute the information on your credit report – even if you know its accurate; tells you to give false information on…
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How is Bankruptcy Different from Debt Settlement?

You have probably seen the television commercials: Debt settlement or consolidation firms promising to solve your debt problems for pennies on the dollar. Unfortunately, for most consumers, the end result does not match the promises made. At The Sader Law Firm in Kansas City, Missouri, we assist individuals, couples and businesses solve their debt problems and look forward to a brighter financial future. Before you spend hundreds or thousands of dollars on a debt settlement or consolidation program, contact us for a free initial consultation to explain your bankruptcy options. How Does Debt Settlement or Consolidation Work? With typical debt settlement programs, you make payments to the debt settlement company instead of your creditor. After you have paid the company a required amount, it will negotiate with your creditors. Unfortunately, your creditors aren’t required to negotiate with the debt settlement company and many refuse to do so. Your creditors are…
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