New Student Loan Interest Rates May Double

The interest rates on new subsidized Federal Direct Stafford Loans for undergraduate students may be doubling in the near future.  Congress passed a law in 2007 that cut student loan interest rates to 3.4%.  If Congress does not act, the interest rates will double to 6.8% this July 1st.  Today the House of Representatives passed a bill to extend the low interest rates.

However, the White House has threatened to veto the bill if the final version includes a repeal of the Prevention and Public Health Fund-a fund that would provide for hundreds of thousands of screenings for breast and cervical cancer, which is what the current proposal uses to fund the $6 billion dollar price tag of the bill.  Democrats say they want to pay for the bill by eliminating some of the subsidies on the oil industries.  The Senate is expected to take up its version of the bill the week of May 8th.

In spite of their differences over how to pay for the measure, most Democrats and Republicans (along with the President) agree that they should extend the lower student loan interest rates.  Stay tuned.  For information regarding the discharge of student loans in bankruptcy please call me, Kansas City bankruptcy attorney Cary Smalley of The Smalley Law Firm, at (913) 601-3549 for a free Kansas City bankruptcy consultation or visit my website at http://www.thesmalleylawfirm.com

Debt Collection

The Smalley Law Firm is not only a Kansas City bankruptcy law firm, but is also available to handle debtor/creditor matters.  If you are being sued by a creditor or are merely in collections I would be happy to represent you in defending your lawsuit and/or negotiating a debt settlement on your behalf.  As an experienced debtors' attorney I may be able to have the lawsuit against you dismissed or to reach a settlement for a fraction of the money you may owe.

Additionally, if you are owed money by someone I am able to represent you in collecting the money owed to you either through a formal settlement or through a lawsuit.  If a judgment is entered on your behalf I am often able to collect the debt through wage and/or bank account garnishment.  Whether you owe money to a creditor or are attempting to collect a debt owed to you, please contact me, Kansas City attorney Cary Smalley, at The Smalley Law Firm for a free initial consultation.  I can be reached at (913) 601-3549 or at http://www.thesmalleylawfirm.com

Can I File Bankruptcy On My Own?

Debtors often inquire if they can file bankruptcy without hiring an attorney.  Yes, you can file bankruptcy "pro se" without attorney representation.  However, I do not ever recommend this approach for numerous reasons.  Yes, by filing pro se you will save the expense of paying for a lawyer but you could wind up losing much more than the cost of an attorney's fees if you choose to file bankruptcy without an attorney.

An experienced bankruptcy attorney such as myself, Cary Smalley, knows the ins and outs of the bankruptcy filing process and procedure.  An experienced bankruptcy attorney will be able to advise you if filing bankruptcy is the right choice for you and under what Chapter you should file.  Additionally, an experienced bankruptcy lawyer knows how to properly fill out and file the complicated bankruptcy forms, which are often over 50 pages, to ensure that all of your creditors, assets, income and expenses are properly listed.  An experienced Kansas City bankruptcy law firm, such as The Smalley Law Firm, will also ensure that all property that you are entitled to keep is properly exempted from the bankruptcy estate, among other things.

If you choose to file bankruptcy on your own you risk that some of your debts may not be discharged, that property that is entitled to be kept is not properly exempted, or even worse, that your case is dismissed without discharge.  For more information about bankruptcy and to schedule a free consultation with an experienced Kansas City bankruptcy attorney please visit my firm's webiste at http://www.thesmalleylawfirm.com

Can I Keep My Car If I File For Bankruptcy?

Most debtors are obviously concerned if they are able to keep their vehicle if they file for bankruptcy.  Generally, the answer is yes.  In Kansas each debtor is entitled to protect up to $20,000 in equity in a vehicle.  For example, if your vehicle is currently worth $25,000 and you owe $18,000 on the vehicle, then you would have $7,000 in equity, all of which would be exempt.  The exemption is unlimited if you are handicapped.

In Missouri each debtor is entitled to protect up to $3,000 in equity in a vehicle.  Missouri also has a "wild card" exemption that you could apply toward additional equity in your vehicle.  The Missouri "wild card" exemption is $600 for individuals and $1,250 for a head of household, with an additional $350 per child.  For example, if your vehicle is worth $10,000 and you owe $6,000 on your vehicle then you would have $4,000 in equity in your vehicle. You could then use the $3,000 vehicle exemption and the $1,250 head of household exemption if you are the head of your household, and all of the equity in your vehicle would be exempt.

Equity is calculated by subtracting the amount of any car loan from the appraised value of the vehicle.  However, if you are making car payments, you must continue to make your car payments after filing bankruptcy in order to keep the vehicle.  If the equity in your vehicle is significantly more than the exemption amount then the trustee is likely to sell it to repay your unsecured creditors.  For more information about bankruptcy please visit my website at http://www.thesmalleylawfirm.com or contact me, a Kansas City bankruptcy attorney at (913) 601-3549 for a free initial bankruptcy consultation.

Redesigned Website

Paul Wamser at Z3Technologies http://www.z3technologies.com/ recently redesigned my firm's website.  If you have a moment please take a look around my redesigned website.  It contains quite a bit of new information if you click on the tabs on the left side of the page.  I would love any feedback you may have about the redesigned site.  The redesigned website can still be found at http://www.thesmalleylawfirm.com/index.htm  Thanks!

Will Everyone Find Out About My Bankruptcy?

One of the first things potential clients want to know is if everyone will find out about their bankruptcy.  Generally, the answer is "no".  Your bankruptcy filing will not be news in your local paper.  In fact, it is highly unlikely that anyone will find out about your bankruptcy.  Bankruptcies are public record and anyone could find out about a bankruptcy filing but they would really have to want to know.

It is unlikely anyone would take the time to search for your bankruptcy unless you owe them money.  Bankruptcy filings can be accessed through the federal courts' electronic databasse (PACER).  However, I use this database all the time but I have never bothered to try and find out if a friend or neighbor has filed bankruptcy.  If I haven't as a lawyer, what are the odds that someone you know has the knowledge to know how to search for bankruptcy filings and would then take the time to do so.

Potential bankruptcy filers may also be concerned that they may be seen at their bankruptcy hearing (also known as the 341 Meeting of Creditors) at the federal courthouse.  In all likelihood the only people that you will see at your bankruptcy hearing are other bankruptcy lawyers, other people filing for bankruptcy and the trustee.  In fact, filing bankruptcy in Kansas City is a lot more private than litigation, judgments, foreclosures and other consequences of financial problems that you would likely be faced with should you decide to not file for bankruptcy in Kansas City.

For more information on bankruptcy please contact me, Kansas City bankruptcy attorney Cary S. Smalley of The Smalley Law Firm at (913) 601-3549 to schedule a free initial consultation and/or visit my website at http://www.thesmalleylawfirm.com