Archives for 2013

Can I Put Condo Associations Fees In A Bankruptcy

The simple answer is yes, the condo associations can be put in a Chapter 13 bankruptcy and be repaid over a 3 to 5 year period.  Much like a mortgage that you fell behind on, the condo association is a secured debt, secured by your property that you need to pay in order to keep that property or in order to keep the right to possess that property.  By filing a Chapter 13, you can take the amount that you owe to your condo association and propose to repay that amount over a 3 to 5 year period.  Now, the catch is that you must continue to make your regular condo Association payment going forward after your case is filed.  Simply reorganizing the part you fell behind and failing to make the + Read More

How does a Chapter13 Bankruptcy plan actually work?

A Chapter13 plan is a very complicated mathematical computation which is why you should always have an attorney when filing Chapter 13.  A Chapter13 plan is determined by three factors, your income, your expenses and your assets.  The court only will approve a Chapter13 bankruptcy if you can afford it which is why it’s such a powerful tool.  For instance, if you bring in $1000 a month in income and have $800 a month in expenses, the court won’t approve a Chapter13 repayment plan of over $200 a month.  This is good for some people and bad for others because your Chapter13 plan has to be something called feasible.  You have to show that you’re able to make the payments.  For instance, if you + Read More

Bankruptcy Case Study For Dante Shorr

This is the case of Dante Shorr who comes to me from North Chicago, Illinois seeking information on bankruptcy.  Mr. Shorr has never filed for bankruptcy before.  He is not a homeowner and he has currently living with family.  He has a paid off vehicle which is a 1985 Lincoln Town Car which is worth approximately $2000 so it’s covered under his Illinois exemption amount. In terms of personal property, he has minor household goods worth approximately $1000 and normal clothing worth approximately $300.  He does receive an annual tax refund of approximately $1200 per year.  He is single and he has no dependent children.  He is currently working as a janitor earning approximately $25,000 per + Read More

Can my tax debt be eliminated in bankruptcy?

Taxes can be eliminated in certain circumstances and in certain circumstances your attorney will be able to advise you.  For example, if you have tax debt that is more than three years old and if you filed a return for those years and if you did not commit any type of fraud, then the debt can be eliminated in a Chapter 7 bankruptcy.  The three-year rule is important because if you applied for and received an extension, you have to wait out three years from the date the tax was due plus any extension.  There are also additional rules and regulations that pertain to tax debt which are very complicated so I want to keep it simple here. If you have tax debt that is more than three years old + Read More

Can I put my student loans in my bankruptcy filing?

Chapter 7 bankruptcy, known as the fresh start bankruptcy, is a way to get out of debt.  However, student loans are not eliminated under a Chapter 7 except in extreme hardship cases.  In my experience, an extreme hardship case is almost impossible to find.  You must be in a position where you can no longer make the payment, you no longer have the ability to make the payment and it is causing an extreme hardship on your ability to survive.  In all the cases that I have seen in the 21 years of practice, there has not been one that has met this standard.  If, in fact, the client does not have the ability to repay a student loan based on their inability to work, then basically the collection + Read More

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