It’s easy to be confused when talking about the different types of bankruptcy. Most people are aware that bankruptcy is a way to eliminate debt. What they are not sure of, is whether it’s really in their best interest to file at all. There are some cases where it’s a tough decision. The person may be getting by, but struggling. The person might feel that there is no relief in sight if they continue down the same path month after month making minimum payments on credit cards. For others, they have no choice but to file bankruptcy. They may be garnished and a creditor is taking 15% of their net take-home pay. In other cases, a bank account might be frozen prohibiting that person from making + Read More
Archives for March 2014
Bankruptcy & The Right Time To File
March 26, 2014 by
Chapter 7: Time To File? David Siegel: When would somebody want to file a Chapter 7 bankruptcy as opposed to not filing at all? What is the reason why someone would file a Chapter 7? Jesse Barrientes: I guess there are a lot of different reasons. One would be for example if somebody filed a lawsuit against you and what somebody gets a judgment, and I think we talked about that at one of our programs. We have gone through the small claims process and some other processes. But once a creditor obtains a judgment, than they do what they call supplementary proceedings that include the possibility of attaching of lean to your wages, wage garnishment or of attaching to your bank account or any + Read More
Protecting Your Assets In A Chapter 7 Bankruptcy Filing
March 19, 2014 by
Protecting Your Assets In A Chapter 7 Bankruptcy Filing There are two main goals in filing a chapter 7 bankruptcy. The first goal is to eliminate as much debt as possible in order to get a fresh start. The second goal is to protect either all or as much of your personal property as possible while going through the process. The state of Illinois provides for specific property exemptions. These exemptions allow you to protect equity in real estate, equity in personal property, and otherwise protect assets from creditors. The bankruptcy trustee, who is assigned to your case, has the duty of examining all of your assets to determine whether or not there is anything available for + Read More
What Is Chapter 7 Bankruptcy In A Nut Shell?
March 18, 2014 by
Chapter 7 bankruptcy can be confusing for many people. There are different scenarios where Chapter 7 comes into play to change lives. In the latest Legal Action show, we discuss the basics of Chapter 7 and how it can be used. A partial transcription of the show is listed below. You can also view the Chapter 7 video that accompanies the transcription. You will learn that Chapter 7 bankruptcy provides a fresh start and a discharge for all of one's dischargeable debt. For more information, please contact the office to learn your rights. David Siegel: Hello, welcome. My name is David Siegel. Thanks for joining me. Today were going to be talking about Chapter 7 bankruptcy. Once + Read More
What Is The Automatic Stay In Bankruptcy?
March 13, 2014 by
The automatic stay in bankruptcy is the notice that puts creditors on notice that they cannot take certain actions against you in terms of collecting the debt. The automatic stay is created immediately upon filing of the bankruptcy case whether or not official notice has been received by that creditor or not. The automatic stay is exactly what you are the bankruptcy case. It is the protection that tells creditors you have to stop calling, to stop trying to collect the debt, to stop most court appearances and you must obey the bankruptcy rules and filed the bankruptcy process with regard to this individual debtor. When someone files in my office, we obtain a case number. The case + Read More
Can I protect My Property And Still File Bankruptcy?
March 3, 2014 by
You Can Protect Most Property You can file bankruptcy and protect a certain amount of personal property. If you are filing a chapter 7 bankruptcy, then you have certain exemption amounts under Illinois law that allows you to protect a certain amount of property. For example, you can protect up to $15,000 worth of equity in real estate. You can also protect up to $2400 worth of equity in a motor vehicle. You can also protect $4000 of miscellaneous personal property that can be put over any type of personal property that you may have. If you are above and beyond the exemption amount, your attorney will advise you that some of your property might be at risk in exchange for your fresh start. If + Read More
