Topeka's Only Consumer Bankruptcy Law Specialists Now Helping Borrowers with Federal Student Loans
Bankruptcy filings increased eight percent in Kansas during 2008, a smaller increase than the 33% national increase seen in most of the country. A total of 8712 cases were filed here, about 69% as chapter 7 cases for individuals or married couples. Nationally, 1,064,927 consumer bankruptcy cases were filed in 2008.
Topeka saw slightly more chapter 13 cases than chapter 7 cases in 2008. Chapter 13 is a reorganization plan for individuals. [Read more…]
Here are five New Year’s resolutions my blogging colleague, Peter Orville of Upstate New York, made for people with debt problems, each highlighting an article found on the pages of Debt Law Network, Credit Law Network or Bankruptcy Law Network.
In a chapter 13 case you file a “plan†showing how you will pay off some of your past-due and current debts over three to five years. The most important thing about a chapter 13 case is that it will allow you to keep valuable property–especially your home and car–which might otherwise be lost, if you can make the payments which the bankruptcy law requires to be made to your creditors.
In most cases, these payments will be at least as much as your regular monthly payments on your mortgage or car loan, with some extra payment to get caught up on the amount you have fallen behind.
You should consider filing a chapter 13 plan if you: [Read more…]
In a bankruptcy case under chapter 7, you file a petition asking the court to discharge your debts. The basic idea in a chapter 7 bankruptcy is to wipe out (discharge) your debts in exchange for your giving up property, except for “exempt†property which the law allows you to keep. In most cases, all of your property will be exempt. But property which is not exempt is sold, with the money distributed to creditors.
If you want to keep property like a home or a car and are behind on the mortgage or car loan payments, a chapter 7 case probably will not be the right choice for you. That is because chapter 7 bankruptcy does not eliminate the right of mortgage holders or car loan creditors to take your property to cover your debt.
If your income is above the median family income in your state, you may have to file a chapter 13 case [Read more…]
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There are four types of bankruptcy cases provided under the law:
