Tag Archives: KansasCity

Wage Orders Can Help You Complete Your Bankruptcy

Chapter 13 bankruptcy allows debtors with a source of income to discharge many types of debts. In a Chapter 13 bankruptcy, your debts are consolidated into a repayment program that is paid back over three to five years. The Trustee then distributes these payments to your creditors. However, it is crucial that you make your payments to the Trustee on time to reap the advantages of a Chapter 13 bankruptcy. One way to do this is with a wage order. There are multiple benefits to a Chapter 13 bankruptcy. For instance, you could stop the foreclosure process on your home and become current on delinquent mortgage payments. You might also be able to strip a second mortgage. How Your Wage Order is Helping You Complete Your Bankruptcy With a wage order, the bankruptcy court requires your employer to submit your Chapter 13 payments from your pay check. Wage orders make Chapter…
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If You Have Student Loans, You Could be Eligible for Income-Based Repayment Options

Americans owe more than $1.4 trillion in student loans. Federal loans account for a majority of the student loan debt in the US. However, there are multiple types of federal student loans that are or were available to borrowers. Many people who borrowed after July 2010 have federal student loans that originated from the Department of Education’s Direct Loan Program. Borrowers with Direct Loans may be able to access most of the helpful income-driven repayment programs offered by the Department of Education. Borrowers may also have Federal Family Education Loans (FFEL Loans), Parent PLUS Loans and Perkins Loans. The options for income-driven repayment programs are different for these borrowers. Income-Driven Options for Borrowers with FFEL Loans If you have FFEL loans, then your only income-driven repayment plan option is the Income-Based Repayment Program (also called IBR). With this program, your monthly payments are capped to 15 percent of your discretionary…
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If You Lose Your Job, Filing for Bankruptcy Can Help

Most of us have monthly payments on credit cards, rent, mortgages, student loans or vehicles. When you lose your job, you may be suddenly unable to afford these payments. This is especially true if you cannot access unemployment benefits or lack an emergency savings fund. You could face consequences for defaulting on your debt obligations. Lower credit scores, property seizures and wage garnishments are three possible outcomes of a debt default. Depending on your individual circumstances, you may benefit by filing for bankruptcy after a job loss. Bankruptcy can help with the following: 1. Stopping creditor collection actions. Bankruptcy’s automatic stay can stop most creditor collection actions. For instance, the automatic stay may stop wage garnishments or property seizures. The automatic stay may stop new lawsuits from being filed against you 2. Discharging certain debts. You may discharge certain debts after filing for bankruptcy. Bankruptcy could allow you to discharge…
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