Archives for April 2014

Depending on the budget, you might have to pay back 100% to your unsecured creditors in a chapter 13 bankruptcy case. The trustee appointed for your case is going to interview you at a 341 meeting of creditors. One of the main purposes of this meeting is to determine whether or not you are putting all of your disposable income towards your repayment plan. If the amount of your disposable income is enough to pay off your creditors in full within 36 or 60 months, then you are likely going to have to pay back 100% to your unsecured creditors. Disposable income is determined by IRS standards as well as local standards as to how much you can allocate for housing, transportation, food, and + Click Here For Read More

The typical debts that are eliminated with Chapter 7 bankruptcy include credit cards, medical bills, personal loans and more.  The transcription and video below explain what is eliminated in greater detail. Jesse Barrientes:   What debts are typically eliminated with the Chapter 7? David Siegel: Well, a Chapter 7 is going to eliminate typical unsecured debt such as credit cards, medical bills, personal loans, past due utility bills, auto repossession deficiencies, foreclosure deficiencies.  The majority of someone’s debt under Chapter 7 is going to be eliminated.  Now, there are some exceptions; student loans, recent taxes, parking tickets, child support, maintenance payments, debts + Click Here For Read More

The automatic stay in the most powerful tool when filing bankruptcy. The automatic stay provides a shield of protection against most collection efforts. In the video below, we discuss just how powerful the stay is when filing a bankruptcy case. David Siegel: Let’s talk about what’s created the minute a bankruptcy case under Chapter 7 is filed and that’s the automatic stay. What is the automatic stay and how does it benefit the debtor? Jesse Barrientes: Oh, yes. The automatic stay. It’s a really great tool because when you have all these creditors and I just want to tell our viewers at home. You can’t ignore the problem. If you ignore the problem, it’s not going to go away. It’s just + Click Here For Read More

There are income qualifications for filing Chapter 7 bankruptcy.  If you are over the median for your state then you are subject to a means test.  If it is determined that you have the ability to pay back at least 25% over the next three to five years, then you will not qualify for Chapter 7 relief.  The narration below talks about how it all works.  Jesse Barrientes: Can I make too much money to file a Chapter 7? David Siegel: You can’t make too much money.  If you are over the median for your family size and your locality, then you have to submit to a means test.  The means test is basically a determination as to whether or not you have the ability to pay back a portion of your debt + Click Here For Read More

In order to file for Chapter 7 bankruptcy, you must provide a copy of your most recent Federal tax return.  If you are going to be receiving a sizable refund, then you want to time your bankruptcy filing so that you do not have the refund forthcoming after your filing date.  This way, you are able to protect your refund from the long arm of the Chapter 7 trustee.  This video talks about the importance of timing as it relates to tax refunds.  Jesse Barrientes: Right now we are in the end of January here.  So taxes are kind of going to be fresh, a lot of people have kind of filed because they want to get their money if they are getting a refund and if you have to pay, then people wait till + Click Here For Read More

Chicago Bankruptcy  City violations in Chicago, incurred after filing for a Chicago bankruptcy are not eliminated. One such example is where someone who surrenders a home in foreclosure yet owes city violations and then files chapter 7, the debt to the city is not wiped out. You would think that once you give up a home in foreclosure, that you would no longer be responsible for any debt associated with the property. However, in a case where the city has to demolish the property post-filing, there is a cost to the city for handling the demolition. Since the demolition technically occurs after the case is filed, the debtor is still on the hook for the cost of the demolition. I refer to + Click Here For Read More

Homeowners very often wind up filing for bankruptcy. Before filing, homeowners wonder whether or not they will be able to keep their house through the bankruptcy process. For most homeowners, there is not sufficient equity in the property which would cause them to lose the property. In other words, the property has no administrative value for a chapter 7 trustee to attempt to sell the property and pay creditors a pro rata share.  Now each state is different in terms of how much equity you can have in real estate and still keep that property free and clear when going through the bankruptcy process. In the state of Illinois, you are entitled to a $15,000 exemption in your homestead, real + Click Here For Read More

Jesse Barrientes: What are the requirements for filing a Chapter 7, the pre-filing requirements? David Siegel: Yeah, before a case can be filed, the individual has to go through certain requirements and the first of which is they must take a credit counseling session. Jesse Barrientes: What does that consist of? David Siegel: The credit counseling session is basically a one hour session which can be done on the computer or in person or over the Internet. The cost is approximately $15 these days. And it basically runs you through a series of questions about your income, your assets, and your liabilities and gives you some other ideas of how to get out of debt other than filing a + Click Here For Read More