Archives for 2013

Chapter 7 Bankruptcy Fresh Start Recommendation

This is the case of Gail Sanders who lives on 60th St. in Chicago, Illinois.  She is interested in filing a Chapter 7 bankruptcy to eliminate credit card debt.  Gail has never filed bankruptcy before.  She is not a homeowner.  She is renting.  Her landlord is St. Edmunds Commons.  She has a yearly lease which expires in December. In terms of a vehicle, she has a paid off 2004 Chevy vehicle with 113,000 miles.  We estimate the vehicle at approximately $1500 and she intends to keep it and keep it running. She has a checking and a savings account at TCF and at PNC Bank.  The approximate balance in both accounts less than $100.  She’s got minor household goods which she is overvaluing at + Read More

Bankruptcy – Chapter 7 Is The Recommendation

This is the case of Kelly Stapick who comes to me from Villa Park, Illinois which is in DuPage County, Illinois.  She is also here with her husband, Joseph Stapick. The couple does own real estate property worth approximately $190,000.  It’s a single-family home.  There is one mortgage on the property and they owe approximately 200,000, thus there is no equity.  They are up-to-date on their real estate and they wish to keep it.  They are not renting from anybody and nobody is renting from them. In terms of personal property, they have a 2011 Honda Civic which is financed by Honda Financial Services.  The vehicle is worth approximately $12,000 and they owe approximately $15,000.  They + Read More

Chapter 13 Bankruptcy Recommended Client

This is the case of Jimmy Brownlow who resides in Chicago, Illinois.  He’s here for a consultation regarding Chapter 7 or Chapter 13.  Mr. Brownlow has never filed for bankruptcy before.  He does have a two flat which is worth approximately $176,000 and he owes $179,000.  He has property tax arrears of $1400.  He is $25,000 behind with his mortgage company Chase and he has indicated that he wants to surrender the two flat.  He’s not renting from anybody and nobody is renting from him so he is not gaining any monetary value for having the two flat. In terms of a vehicle, he has a 2001 Chevrolet Blazer which is paid in full with an approximate value of $25,000.  He has a checking account at + Read More

Preventing Barb’s Foreclosure Through Bankruptcy

This is the case of Barb from Chicago, Illinois.  Barb comes to my office with medical bills, credit card bills and most importantly, a home that she really cannot afford.  She has an equity loan on her home which matures in approximately 2 years.  She is considering Chapter 7 bankruptcy to eliminate her debt but also for some long-term planning.  By that I mean she is thinking of surrendering the house at some point down the road in exchange for her fresh start under Chapter 7.  She has medical issues which she feels might lead her to possibly not surviving in the next 4 to 5 years.  Her thinking is she can stay in her house, make the utility payments, food, clothing, entertainment, gas, + Read More

Bankruptcy – Motion to Extend the Automatic Stay

In a Chapter 13 bankruptcy case, upon filing, there is a creation of the Automatic Stay which protects the debtor against certain actions by creditors.  If the debtor is filing a bankruptcy case where a prior case was dismissed within the last year, then the Automatic Stay unless extended, will expire after 30 days.  This is a critical point because if a debtor files a Chapter 13 bankruptcy after a case has been dismissed within the last year, and the attorney does not bring a Motion to Extend the Automatic Stay, then the Stay will in fact be eliminated after 30 days from filing. What this means to a debtor is that a secured creditor, in many cases a vehicle or a mortgage company, can + Read More

Automatic Stay Imposed In Bankruptcy Case

If you are filing a Chapter 13 bankruptcy case in Chicago and in the prior year you have had two or more cases dismissed, then you are going to want to impose the Automatic Stay in your current filing.  By the fact that you have had two or more bankruptcy cases dismissed within a calendar year, you are basically telling the world that you do not have the ability to reorganize under Chapter 13 successfully.  For this reason, when the law was changed, the Congress stated that upon a third filing where to prior cases were dismissed within the prior year, there is no Stay in effect at the time of filing.  This means that a sheriff’s sale can continue, a repossession can continue, any type of + Read More

Advanced Practitioner Advice From Chicago Bankruptcy Lawyer David Siegel

The automatic stay protects debtors from collection activities after a bankruptcy case has been filed. What about a case where there is insurance coverage available on behalf of the debtor? What I am referring to is a case where the debtor was involved in an auto accident, had insurance coverage and then files for bankruptcy protection under Chapter 7. In that case, the debtor is protected by the automatic stay and the creditor cannot pursue the debtor personally. However, since there was automotive insurance coverage in place at the time of the accident, which was before the case was filed, the creditor has a cause of action. Instead of pursing the debtor, the creditor has the legal right + Read More

Bankruptcy In Chicago & Why People File

Americans are used to handling debt.  Most people carry debt of some sort in their daily lives.  Even ones that are handling or managing the debt still feel the stress that comes with that debt.  Despite this fact, most people carry on and seem to get by.  That is, of course, until a creditor begins to get aggressive.  Now I’m not talking about harassing phone calls from creditors at your home and at your work.  I’m talking about filing suit, obtaining judgments and continuing with post-judgment efforts to collect on the debt.  This could lead to bank seizures, wage garnishments and further court appearances requiring the production of certain documents.  Those documents can include bank + Read More

A Chapter 13 Bankruptcy Takes Discipline

The filing of a Chapter 13 bankruptcy case is a process that takes discipline, attention to detail and a strong effort to succeed.  Chapter 13 involves repaying either all or a portion of your debt over a three to five-year period.  We are talking about a long repayment plan; 36 to 60 months of consistent payments not only to the trustee which takes care of your arrearages, your secured debt enter other miscellaneous debt, but you also need to make regular payments to your utilities, your mortgage company going forward, and your food and your clothing and all the other things that can happen in life that require money.  You have to make sure that you budget properly once your Chapter 13 + Read More

Bankruptcy Case Of Nancy H. From Chicago

Last week, Nancy H. came to my office looking to file a Chapter 7 bankruptcy case.  She had $20,000.00 or so on credit cards and no other unsecured debt.  She had a condominium that had a value of $89,000.00 and a mortgage debt of approximately $80,000.00.  Thus, there was some equity in her condominium, but not an amount that exceeded the amount that she could protect with her Illinois homestead exemption.  The only issue or potential asset problem dealt with her auto.  She had a 2010 vehicle that was paid in full.  A look at the KBB website indicated that the vehicle was worth approximately $8,000.00 as a trade-in value.  At this value, there would be $2,500.00 - $3,500.00 exposed beyond + Read More