Archive for June, 2011

Bankruptcy and Future Credit

Saturday, June 25th, 2011

Will bankruptcy affect my future credit? How long does it stay on my credit? How do I know if bankruptcy is the right decision? Will I ever be able to finance another car or house? Can I get new credit cards? Will I lose my job?  Questioning things is normal when troubled times are on the forefront.  Our law firm is available to help you answer these very questions, analyze your individual situation, and help you reach a financial goal or solution. An experienced Liberal bankruptcy attorney is able to provide advice and guidance throughout the difficult times and help prepare the debtor for a brighter more financially stable future.

Bankruptcy will remain on your credit report for up to 10 years. It does stay on your court records as public record for 20 years. Though there is nothing the debtor can do to remove the bankruptcy from your record there are things that will possible help. Many creditors allow the debtor to file an explanation of circumstances resulting in bankruptcies with reporting agencies. If the account is record incorrectly you can request a corrected update. Credit reports are often full of inaccurate information. It is the debtor’s responsibility to continually check credit reports, dispute inaccurate or outdated information as well as request bankruptcy removal at the end of the 10 year period. Bankruptcy does not carry the same burden it did not so many years ago. Creditors are aware of some unavoidable situations causing bankruptcies. Whether illness, unemployment, medical bills, death or divorce, once drastically behind on financial obligations it is often impossible to catch up.

Once you have filed for chapter 7 bankrupcty and you have received some relief from debt it is very tempting not to accept the new flood of credit cards. There are no laws requiring creditors to extend credit to individuals with bankruptcy records yet there are also no laws preventing it. Each company makes their own decisions. I guide clients to be extremely cautious obtaining new credit cards which most likely come with excessively high interest. Though it is not necessary to wait years to begin rebuilding credit debtors need to enjoy a more relaxing debt free or affordable financial life style for a while after bankruptcy has been filed and settled. In the greater scheme of credit filing bankruptcy can at times actually improve your credit over time. Old debt is wiped out with chapter 7 and fresh start leads to new beginning. Over the course of a few years individual credit may be better than it ever has been.

Legal counsel is the best solution to questions concerning bankruptcy. We offer a free initial debt relief consultation. Call our law firm for personal attention to your debt relief needs.

If I File Bankruptcy in Kansas, Can I Keep My Car?

Monday, June 6th, 2011

In most cases you may be able to keep your car when filing for bankruptcy protection and debt relief.   In a Chapter 7 bankruptcy in order for you to be able to keep your car, you must understand the whether or not if there is non-exempt equity in the car.  If your car has no equity,  a bankruptcy trustee will not take the car.  To determine the equity of your car, subtract any car loan and exemption from the car’s present sale value.  If the number you calculate is a negative number, than there is no equity in the auto.

If your car does have equity or the current value of the car is above the loan amount or the value of any exemptions, a debtor pursue any unprotected equity from the Chapter 7 trustee.

What if you still owe money on the car and want to keep it after the bankruptcy?  If  you still owe money on your car, you may opt to “reaffirm” the debt to the secured lender.  This enable you to keep the car and continue paying under the existing terms.  You may also buy the car from the secured creditor in a single payment for its present value which is called redemption.

Lastly, you are allowed to surrender the vehicle and eliminate the obligation to pay for the auto.

For answers to all of your Kansas bankruptcy questions, call Koehn & Tahirkheli Law Firm, L.L.C. for a free initial bankruptcy consultation with a Liberal Kansas bankruptcy attorney at (620) 624-8158.  Our attorneys serve the cities of Liberal, Garden City, Sublet and all other communities located with Seward County, Finney County, and Ford County, KS