Tag Archives: consumer bankruptcy

Financial Trouble and the Holiday Season

At the Sader Law Firm, we understand that the holidays can bring not only joy, but also additional stress to families. Often times, financial difficulties due to mounting debt or loss of income seem magnified by the holiday season and New Year. If you find yourself reading this article, you may yourself be dealing with uncertainty and concerns related to your family’s financial well-being. We want you to know that you are not alone and have options. If financial difficulties or mounting debt problems seem unmanageable or you are facing a foreclosure or lawsuit for a debt, give us a call. You do not have to face these issues alone. Our bankruptcy lawyers have helped families explore their bankruptcy options in Missouri and Kansas in almost every situation imaginable.B Is your home being foreclosed on? Do you have garnishments on your paycheck? Are medical bills piling up from an illness?…
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Can I Discharge Taxes in Bankruptcy?

There is a myth that income taxes can never be discharged in bankruptcy. For individuals or families facing economic difficulties taxes can be particularly difficult to overcome because of penalties and interest that accrue. In reality, you can discharge your back federal, state, and local income taxes in Chapter 7, Chapter 13, and Chapter 11 bankruptcy. Making a determination on which taxes are capable of being discharged can be complicated. However, it is possible to discharge entire tax debts in bankruptcy, if the taxes fall within three important requirements: 3-Year Requirement. The first requirement is that for taxes to be dischargeable, they must become due at least three years before you file for bankruptcy. Bankruptcy CodeB B’507(a)(8)(A)(i). 2-Year Requirement. Second, your income tax returns must have been filed two years before filing your bankruptcy petition. This means you can discharge income taxes, even if you filed your tax forms late,…
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How does Lien Stripping work?

After the housing debacle of the past few years, home values plummeted. Clients are often concerned that they owe significantly more than their home is now worth. While bankruptcy cannot force a loan modification or refinance, there is a tool available to help. It is commonly referred to as lien stripping. Here’s how it works: Many homeowners have second mortgages for a variety of reasons. Some take out home equity loans to fund major home projects. Some have a second mortgage as a financing tool to avoid a down payment. Others may have a judgment lien. (This is when a creditor files a lawsuit, gets a judgment and then the judgment becomes a lien against your real estate.) Lien stripping through Chapter 13 bankruptcy effectively tells the holder of the second mortgage that it is no longer attached to the property.B It becomes an unsecured debt, sort of like a…
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