Types of Bankruptcy
There are three main types of bankruptcy cases for individuals, the most common of which are chapter 7 and chapter 13.
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Video: Bankruptcy Basics Overview
Posted on October 11, 2009 Written by
Introduction to Bankruptcy
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Foreclosure Truth: Few Getting Help
Posted on October 10, 2009 Written by
As of 9/1/2009, only 1,711 permanent loan modifications
1.26% trial modifications made permanent
1 in 8 mortgages in default or foreclosure
foreclosure delayed, not avoided
10-12 million foreclosures predicted
50% mortgages will be underwater if problem not solved
Bankruptcy Income Guidelines Changing
Posted on October 9, 2009 Written by
Will you qualify for chapter 7 bankruptcy after Halloween?
Bankruptcy income guidelines will change effective with cases filed on or after November 1, 2009. For one, two and three person households, the amount increases slightly. For four person households the amount decreases.
Here are the new Kansas figures:
- one earner household $41,357 (up $353)
- two person household $57,767 (up $1621)
- three person household $63,438 (up $193)
- four person household $72,610 (down $2016)
- add $6900 for each individual in the household in excess of four.
The figures are updated by the U.S. Trustee Program using data from the U.S. Census Bureau for median income based upon family size.
Means Test Changes Delayed
Posted on September 24, 2009 Written by
The U.S. Census Bureau is delaying release of its updated numbers for family median income which are used to the bankruptcy means test. The new figures are now expected to be released on posted to the U.S. Trustee Program website by October 9, 2009, and will apply to bankruptcy petitions filed on or after November 1, 2009.
Means Test Numbers Changing
Posted on September 23, 2009 Written by
Updated family income figures are scheduled to by posted to the U.S. Trustee program website the week of September 28, 2009. The new figures will apply to bankruptcy petitions filed on or after October 12, 2009. The figures are used on the means test to determine the debtor’s projected disposable income.
We will post the new figures as soon as they are available. There is speculation the numbers might decrease due to the economic downturn. Here are the current Kansas numbers.
Foreclosure Prevention Toolkit
Posted on September 16, 2009 Written by
FDIC has published this online took kit to help homeowners prevent unnecessary foreclosures and stop foreclosure “rescue†scams that promise false hope to consumers at risk of losing their homes.
* Is Foreclosure Knocking at Your Door? This brochure explains how mortgage modification programs can help those at risk of foreclosure save their home.
* Beware of Foreclosure Rescue Scams. This brochure provides information on common scams, tips for detecting fraudulent deals, and resources for reporting criminal activity.
* The Your Own Home module of the FDIC’s Money Smart curriculum encourages homeowners to promptly seek help to avoid foreclosure and avoid scams.
Will I Lose My House If I File Bankruptcy?
Posted on September 13, 2009 Written by
I am frequently asked by people who are thinking of filing bankruptcy, “Will I lose my house if I file bankruptcy?” The fear of losing everything in bankruptcy is very real.
Fortunately, in Kansas the protection our law has for your home is in our state constitution and statutes. That is quite different from other states, Missouri, for example.
If you are entitled to claim the Kansas homestead exemption, it is unlikely you will lose your home for filing bankruptcy. Most of my clients who lose their homes, do so because they can’t afford to pay the mortgage payments and real estate taxes. Bankruptcy is not what causes people to lose their homes in Kansas usually.
There are some situations, which are rare, fortunately, when the bankruptcy trustee might be able to attack your homestead–the reasons are too complicated for a general information blog. Discuss the history of your home ownership with your attorney to put your mind at ease. Your attorney can analyze your circumstances and advise you of your rights so you can quit worrying.
Kansas City Bank Shut Down
Posted on September 5, 2009 Written by
Bank regulators from the Federal Deposit Insurance Corporation (FDIC) shut down five banks Friday including the First Bank of Kansas City. The deposits will be assumed by Great American Bank of DeSoto.
Interpreters for Bankruptcy 341 Hearings
Posted on September 1, 2009 Written by
The United States Trustee’s office is now providing free interpreters by telephone at bankruptcy meetings of creditors (341 hearings) for limited English proficient debtors.
For more information, go to web site for the Executive Office of the U.S. Trustee:Â http://www.usdoj.gov/ust/eo/public_affairs/lep/index.htm
Persons wishing to use the interpreter service should contact the case trustee in advance of the meeting to make arrangements.
Chapter 13 Bankruptcy Interest Rate for August 2009
Posted on August 8, 2009 Written by
The Trustee’s discount rate of interest effective 8/1/09 through 8/31/09 is 4.75% for chapter 13 bankruptcy cases filed in Topeka and Kansas City, Kansas. This is the rate paid on claims secured by collateral by the chapter 13 bankruptcy trustee.
Kansas Woman Chairs FDIC
Posted on July 26, 2009 Written by
Meet Sheila Bair, a woman from Independence, Kansas, and a graduate of the University of Kansas Law School, who now chairs the Federal Deposit Insurance Corporation (FDIC).
Women & Money
Posted on July 23, 2009 Written by
An eight-week series of classes designed for women of all ages, regardless of income or financial education. Learn from the experts about banking and credit, insurance, investing basics, investing for retirement and much more.
September 24 – November 12, 2009
6:00 to 8:30 p.m. on Thursdays
Washburn University – Topeka, Kansas
Registration is due September 15, and space is limited! For more information, contact Marilyn Stanley at HCCI, Inc., 785-234-0217.
What Happens at My Bankruptcy Hearing? (341 Creditors Meeting)
Posted on July 12, 2009 Written by
The chapter 13 bankruptcy trustee listens, plans and helps financially stressed consumers, a reporter concludes after sitting in on recent chapter 13 bankruptcy 341 hearings (meeting of creditors) in Wichita, Kansas, conducted by Laurie Williams, the standing chapter 13 bankruptcy trustee for cases filed in Wichita.
You can see the list of questions typically asked at bankruptcy hearings. Consumer bankruptcy hearings, also called section 341 meetings of creditors, typically last about five to ten minutes in Kansas.
Chapter 13 Bankruptcy Interest Rate
Posted on July 9, 2009 Written by
The Trustee’s discount interest rate effective 7/1/09 through 7/31/09 is 4.75%, William H. Griffin, the standing chapter 13 bankruptcy trustee for cases filed in Kansas City, KS, announced today. This is the interest rate paid on secured claims in chapter 13 bankruptcy cases.
Debt Settlement Company Files Bankruptcy, Leaves Consumers in the Lurch
Posted on June 26, 2009 Written by
The debt settlement company, Debt Relief USA of Addison, TX, which several of my clients have had the unfortunate experience of signing up with, filed for Chapter 11 bankruptcy relief today in Dallas with about $5 million in debts owed to thousands of consumer debtors it was supposed to be helping. They took in payments from consumers and were supposed to be negotiating and settling debts. The company was being investigated by the Federal Trade Commission and Attorneys General in several states.
This illustrates why the Kansas Legislature saw fit to outlaw debt settlement in Kansas except by licensed Kansas attorneys as part of their private law practice. Debt settlement companies you find on the Internet or television advertising are not a viable alternative for resolving your financial problems. Read good advice from my colleagues on the Bankruptcy Law Network, Wendell Sherk‘s “nine questions to ask a debt negotiator” and Steve Otto’s “billed as bankruptcy alternative, but are they really?”
