Archives for December 2013

How does a Chapter 13 Bankruptcy effect a cosigner?

If you are a cosigner on the debt, then you and the other debtor are technically joint and severally liable for that debt.  One common form of debt that’s jointly owned is that for a vehicle.  If somebody else filed a Chapter 13 bankruptcy on it vehicle that you cosign, you may be protected under that persons Chapter 13 bankruptcy provided they pay the debt in full 100%.  If, on the other hand, they decide to pay less than 100%, then the creditor has the ability to bring a Motion to Modify the Stay and come after you, the non-filing co-debtor for the difference. What we usually see in these types of cases is the debtor filing a 100% Chapter 13 to protect that co-debtor.  But please keep + Read More

The Case Tilts Toward A Chapter 7 Bankruptcy Filing

This is the case of William Forte, who comes to see me from Great Lakes, Illinois which is Lake County, Illinois regarding a Chapter 7 bankruptcy petition.  He did file a bankruptcy back in 1999 under Chapter 7.  It’s been over eight years so he is eligible to file again.  He does not own a home.  He is renting and he is on a yearly lease which expires in December.  He has a vehicle debt, a 2010 Honda Accord financed through Honda Financing.  He owes approximately $18,000 on the vehicle and he pays $480 per month for the vehicle. In terms of personal property, he has a checking and savings account with Armed Forces Bank approximate balance $600.  He has minor household goods worth + Read More

Chapter 7 Bankruptcy Would Provide The Fresh Start Needed

This is the case of Melika Murray who comes to me from North Chicago which is Lake County, Illinois for a bankruptcy consultation.  Ms. Murray has never filed for bankruptcy before, even though she states that she has been struggling for debt for over 20 years.  She owns no real estate.  She is renting and she is paying approximately $525 per month on a month to month lease.  She does not have a vehicle in her name and she uses public transportation.  She has very little in the way of personal property.  Basically her clothing and some minor household goods with approximately $1000.  She does not have a 401(k), she has no life insurance.  She cannot sue anybody.  She does not receive any + Read More

Bankruptcy Filing Will Depend Upon The Means Test

This is the case of Jeffrey and Debra Miller who live in Gilberts, Illinois which is in Kane County Illinois.  They were here for a consultation on either Chapter 7 or Chapter 13 bankruptcy.  As we run through the facts here, they have not filed a bankruptcy before.  They do own a home with a first and a second mortgage on it.  The houses valued at approximately $165,000.  They owe $135,000 to the first mortgage and $63,000 to the second mortgage so there is effectively no equity in the property.  They are not renting from anybody and nobody is renting from them.  They have three vehicles, a 2003 Toyota Siena which is paid in full valued at approximately $2000.  They have a 2006 Hyundai + Read More

Chapter 13 Bankruptcy Helps Pay Off Parking Tickets

This is the case of Willie Banister from Chicago, Illinois who was appearing for a Chapter 13 bankruptcy consultation.  Mr. Banister has never filed a bankruptcy before.  He is not a homeowner.  He is renting on a month to month lease from a landlord in Chicago.  He does not own a motor vehicle.  In terms of personal property, he has household goods worth approximately $300 and clothing worth approximately $300.  He does not have a 401(k), IRA or other pension or profit sharing plan.  He does expect a tax refund of $1100.  He cannot sue anybody for personal injury or workers compensation and he does not expect to inherit any money in the next six months.  He is divorced and he works for the + Read More