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Most of the time the answer is NO! Before considering bankruptcy, many of my clients have considered using a debt negotiation service that advertised on the radio or TV. These ads claimed to be able to give creditor relief for a fraction of the amount owed. Well, if it looks too good to be true,…
DetailsPaying off a credit card with a small balance before a bankruptcy filing may be advisable for post-bankruptcy credit building. Debtors must list all of their creditors in their bankruptcy schedules (all debts). The Court then notifies these creditors of the bankruptcy filing. If an individual has a credit card with a balance of less…
DetailsIt is generally not a good idea to put property you own into someone else’s name in the time leading up to a bankruptcy filing. Transferring assets to another individual or entity prior to filing bankruptcy to protect the assets from being taken by a bankruptcy trustee is fraud. In addition to asking the court…
DetailsIf considering bankruptcy, do not borrow money against your home to pay off or consolidate debt. The homestead exemption laws in Missouri and Kansas both protect some equity in a bankruptcy debtor’s house. As a general rule, incurring additional debt against a home often results in higher payments which may place consumers at risk of losing their…
DetailsIt is usually not advisable to withdraw or take out a loan against a 401K,IRA or other qualified retirement account to pay off or consolidate debt. Under Missouri and Kansas law, an individual’s interest in their retirement plan such as a 401(k), IRA, or other similar tax-deferred retirement plan is typically protected from creditors in…
DetailsClients often ask me about the different types of bankruptcy, including Chapter 11 bankruptcy. A Chapter 11 bankruptcy serves two specific purposes: 1) restructuring business debt and 2) restructuring consumer debt for individuals that have too much debt to qualify for Chapter 13 bankruptcy. Chapter 11 bankruptcy can be a good option for businesses, but…
DetailsI often get this question, as do most Missouri bankruptcy attorneys, “How does bankruptcy effect my retirement?” I’ve heard this question from my clients because they are concerned about the possibility of bankruptcy depleting their retirement accounts. I’ve also been asked this question by several financial planners because they are interested on how to advise…
DetailsThe answer is typically no. Over the past year I have received various questions about this subject. People, especially those who surrender a house in connection with a bankruptcy filing, often look forward to a foreclosure date. This is because until foreclosure, the homeowner continues to be the owner of the property, unless the agreement…
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