Archives for January 2014

I Am Considering Filing Bankruptcy, When Should I Take The Pre-Filing Credit Counseling?

A credit counseling session must be taken prior to a bankruptcy case being filed. You want to make sure that you do not take the credit counseling too far in advance of your bankruptcy filing. The bankruptcy code mandates that the credit counseling session must be completed within 180 days prior to your actual filing. I have come across clients who jump on the credit counseling early only to find out that they have to take it a second time. The typical scenario is that someone will come to me for chapter 7 or chapter 13 bankruptcy relief.  I will inform them and advise them about the pre-filing credit counseling requirement. I will also advise them to not take the pre-filing credit + Read More

Case Study For Santana From Chicago, Illinois

This is a case of Santana Magentey who comes to me from South Ellis Ave., Chicago, IL. Santana is coming to me for a free, initial consultation regarding bankruptcy. She basically wants to know if she can re-file a chapter 7 bankruptcy case to obtain a new start. Let's take a look at the facts of her case. She did file a chapter 7 bankruptcy back in 2011.  However, she did not receive a discharge. She did not receive a discharge because she never completed the two hour financial management class. Plus, she is eligible for a discharge because she has not received one in the past. Assets In terms of real estate property, she has no real estate. She is currently renting an apartment and + Read More

Should I Be Reaffirming On My Car If I’m Upside Down?

When you file for chapter 7 bankruptcy and you have a secured vehicle, you have three choices which you can make. You can either reaffirm on the debt, you can redeem on the debt or you can surrender the property in full satisfaction of the debt. If you decide to reaffirm the debt on your vehicle, then you are basically agreeing to be bound by the terms of the agreement going forward. This means that if you fall behind on that vehicle in the future, the lender can repossessed the vehicle, sell it at auction, and come after you for the deficiency even though you filed the chapter 7 bankruptcy. Thus, you want to make certain that if you reaffirm your vehicle debt, that you are making a wise + Read More

Do I have to go on payroll control for Chapter 13?

Chapter 13 Bankruptcy - Payroll Control In some jurisdictions, payroll control is mandatory.  This is where the money to pay your Chapter 13 trustee is deducted by court order out of your pay.  Now, payroll control can only work if you have a job.  If you are self-employed, or if you are on unemployment, if you are on Social Security disability or if you have rental income or other types of income when you are not employed, payroll control cannot kick in.  However, if you are someone who gets a paycheck, whether it’s weekly, biweekly or any other frequency, then payroll control can help you and I recommend it. Payroll Control Upsides The great thing about payroll control is that as long + Read More

In My Bankruptcy Case, Why Do I Need To Reaffirm On A Car But Not On My House?

The Code Dictates The bankruptcy code is what governs every issue of a bankruptcy filing. Under chapter 7 bankruptcy law, the bankruptcy code dictates as to what must be done with regard to particular, secured property. For example, if you have a financed vehicle in a chapter 7 bankruptcy case, the bankruptcy code mandates that you make an election. You can either reaffirm the debt on that vehicle, redeem the debt on that vehicle or surrender the vehicle in satisfaction of the debt. You simply only have those three choices with regard to a secured vehicle debt in a chapter 7 bankruptcy case. You no longer have the ability to simply continue to make monthly payments without a valid + Read More

What Are The Advantages Of Filing Bankruptcy With An Attorney?

If you file bankruptcy with an attorney, you're going to get assistance throughout the process. Your attorney is going to know exactly what needs to be done with your case. This all starts with the very first consultation. The attorney is going to be able to interview you, advise you, and notify you of potential issues with your case. If you are trying to file bankruptcy on your own, you are not even going to be aware of specific issues that you need to be aware of. For example, your attorney is going to be looking for assets much in the same way that the chapter 7 trustee is going to be looking for assets. Your attorney wants to make sure that you have a smooth and efficient chapter 7 case. + Read More

Why Do People Hesitate To File Bankruptcy?

Reasons To File Bankruptcy People hesitate to file bankruptcy for a variety of reasons.  The first is the name bankruptcy has a negative connotation which has been around for centuries.  The truth is bankruptcy was put in place to help people who are struggling financially.  Bankruptcy is not a scarlet letter that someone has to wear around town notifying everybody in the city that they filed for bankruptcy.  There should not be the shame associated with bankruptcy that some people have.  Fear Of the Unknown The second reason people are afraid of bankruptcy is they really don’t know what around the corner.  Many people think that if you file bankruptcy, you will never get credit again.  + Read More

My Sheriff Sale Date Has Passed. Will Chapter 13 Bankruptcy Help Me?

If you're looking to save a home from foreclosure, chapter 13 will help you provided you file your bankruptcy case before a Sheriff sale has taken place. Chapter 13 will allow for you to pay back your mortgage arrearages over a three to five-year period. You also have to make your regular mortgage payment each month while your case is progressing through the court system. However, if you wait until after the Sheriff sale has occurred, then you are too late to reorganize to save a home under Chapter 13. This issue has been litigated extensively through the courts as to whether or not it's the Sheriff Sale date or the confirmation of that sale which dictates. The rulings here in Illinois have + Read More

Do I Have To Go To Court In Chicago If I File Bankruptcy?

Court Is In Chicago If you live in Chicago or any part of Cook County, Illinois and file bankruptcy, then your court date is going to be in downtown Chicago. The court will take place at the Dirksen Federal building which is located at 219 South Dearborn Street in Chicago. The court date is in reality a 341 meeting of creditors. The meeting of creditors is the opportunity for a chapter 7 panel trustee to examine you under oath with regard to the petition and schedules that you filed. The role of the chapter 7 bankruptcy trustee is to make sure that you do not have any assets that can be administered for the benefit of creditors. You are able to protect a certain amount of personal property + Read More

Chapter 13 Bankruptcy Attorney States “You Get More Than One Shot”

Filing chapter 13 bankruptcy is not a one-shot deal. You do have the ability to file another chapter 13 bankruptcy case should your first case fail states Chapter 13 bankruptcy attorney David Siegel. No one sets out to fail in bankruptcy. Debtor's and their counsel wish to file a perfect chapter 13 petition and to have the debtor make all of the required payments under their repayment plan. Unfortunately, life throws different obstacles into the mix. One could lose a job halfway through a bankruptcy case under chapter 13. One can become ill and miss some much needed hours at work. One could get a divorce and lose that dual income that they had at the start of the chapter 13 case. Interest + Read More