Category Archives: Business Bankruptcy in Kansas City

Garnishments in Missouri And Kansas City

Posted on by

Overland Park Bankruptcy Attorney

How does a wage garnishment come about in Missouri or Kansas?  The process begins with the filing of a collection suit against a debtor.  You will get served papers, which puts you on notice of the civil action against you.  If you don’t respond within the required time frame, you will get a default judgment against you.  Even if you do respond, usually people owe the money that is claimed to be owed.  You will eventually get a judgment against you, Once a creditor has a judgment against you, they can then proceed with other collection techniques.  They can try to debit your bank account, put a lien on assets, or even haul you into court for something called a “debtor’s exam”.

A debtor’s exam in Kansas or Missouri is a court proceeding where a debtor must appear to answer questions about his or her assets.  Another collection technique is a wage garnishment.  The creditor will send a copy of the judgment against you to your employer, and the employer will deduct a portion of your wages and send it to the creditor.

Filing a bankruptcy case at any stage of this process will stop the collection process.  So, it is important to meet with an attorney and find out how you can do this.  Some people who are retirees think that since their social security income is protected from being garnished, they don’t need to solve their financial problems.  This is not a good way to go. You can still be hauled into court for debtor’s exams, the creditors can still put liens on things, and they can harass and hound you on the phone.  In addition, you may be setting yourself up for additional estate or probate problems down the road by allowing your estate to be encumbered with debt.

So,  the important thing is to deal with the problem.  Hoping it will go away is not a real option.  Give us a call and we can discuss your options.

Read More:  Redemption of Secured Collateral In Bankruptcy

Locations For Filing A Bankruptcy In Kansas City

Posted on by

For most people living in the Kansas City metro area, bankruptcy cases in Kansas are filed in U.S. Bankruptcy Court at 500 State Avenue, Kansas City, KS.   For people living on the Missouri side, cases in most situations would be filed at the US Courthouse at 400 East 9th Street, Kansas City, MO.  There are some nuances to these general patterns, however.  A person can file either in the place where they have lived the most, or where most of their assets have been located, in the preceding 180 days.

In Kansas, a person can file in any one of the three venues:  Kansas City, Topeka, or Wichita.  A person living in Missouri or having the majority of assets in Missouri will need to file in either Kansas City, Springfield, or St. Louis, depending on some venue factors.  But a person can request to have these venues changed by filing a motion with the bankruptcy court.

To file a bankruptcy case in Kansas, a debtor must have resided in Kansas (or had the majority of his/her assets) the greater part of the 180 days prior to filing their case.  If a debtor has resided in Kansas for a little over three months (or had the majority of their assets in Kansas for a little over three months), they can file their case in Kansas.  To use the Kansas exemptions, there is a time residency requirement in Kansas.  In practice, this is usually not a big deal, because even if someone can’t use the Kansas exemptions, they can use the federal exemptions, which are normally favorable.

To explore these issues further, please contact us at Phillips & Thomas LLC for a free consultation.  These venue issues can become complicated, and it is never a good idea to jump to conclusions without getting specific legal advice for a bankruptcy filing in Kansas or Missouri that is tailored to your specific situation.

Read More:  Surrendering Collateral In Bankruptcy

Bankruptcy Adversary Proceedings Under Section 523: Seeking To Prevent The Discharge Of Certain Debts

Posted on by

Bankruptcy Attorney In Leawood

Adversary proceedings are litigated matters within a bankruptcy case.  They are not common, but can arise in certain special circumstances.  They are serious matters that deserve your attention.  Some of these situations will be discussed in this post.

When a bankruptcy case is filed, all of the creditors receive notice of the filing.  By law they are provided with a opportunity to file a complaint objecting to the discharge of a debt, or the discharge of the entire case.  A creditor can object to the discharge of its debt if it believes the debt was incurred in certain fraudulent circumstances (fraud, malice, defalcation in a fiduciary capacity, and a few other rare scenarios.).

Continue reading →

Reasons For Bankruptcy In Missouri And Kansas

Posted on by

The reality is that there isn’t a “typical” profile of someone considering a debt reorganization, liquidation, or restructuring.  Financial difficulties can happen to anyone at any time.  The typical client spans a very wide spectrum.  There are, however, common situations that lead people to situations where they need help.  These situations often (but not always) involve one or more of the following scenarios:

  • Job loss with extended period of underemployment or non-employment.Extended medical problems which result in unmanageable medical bills and treatment programs.
  • Mortgage payments that keep increasing, especially with variable mortgage rates, with a person being unable to cope with the increases.
  • Business owners who see their core business decline or evaporate, with a large amount of debts from vendors or suppliers.
  • Marital issues leading to divorce, with each party being saddled with large amounts of unanticipated debt.
  • The repossession of an asset that has left a person with a large “deficiency” judgment on something, like a boat, house, furniture, or other piece of collateral.
  • Unforeseen family emergencies of any kind that cause people to drain away their security reserves.
  • Tax issues that have been in hibernation for a long time, and that suddenly become a problem.

Bankruptcy is one of the best, if not the best, ways to manage tax debt.  A person can wipe out tax debt in certain situations, or restructure it with possibly wiping out interest and penalties.

This list is by no means exhaustive.  There are many other situations that can cause problems for people.  Gambling debts, fines and costs in court cases, and various other situations can also act to hurt people.  The list above does show just how common and varied the bankruptcy experience really can be.  You are not alone.  It’s a lot more common than you think.  When you empower yourself by taking action, you will find a great burden released from your shoulders.

 If you would like to schedule a free initial appointment to talk about bankruptcy, please give us a call at 913-385-9900 or send an email to phillipsandthomas@gmail.com.