Archives for September 2014

What Percentage Gets Paid Back In A Chapter 13 Bankruptcy?

People often wonder what percentage creditors are going to be paid back in a chapter 13 bankruptcy. As a bankruptcy attorney in Chicago, I can only estimate what the approximate amount may be. The reason why I cannot provide a definitive answer is because I do not know what type and amount of claims are going to be filed in the case. I can tell the debtor that based upon their income, their expenses, their assets and liabilities, the approximate monthly payment to the chapter 13 trustee. This video talks about the different scenarios and the different types of questions that debtors ask with regard to percentage pay back on debt. + Read More

How To Stop A Wage Garnishment?

There are several ways to stop a wage garnishment. One of the ways that I deal with on a daily basis is by filing chapter 7 or chapter 13 bankruptcy for individuals and families struggling with debt. Chapter 7 bankruptcy filing involves the creation of an automatic stay. The automatic stay prohibits collection activities after your case is filed. There are some exceptions to the automatic stay, however most collection efforts have to cease. Once you file a chapter 7 bankruptcy, your attorney will send a notice to your employer advising them or instructing them to stop taking deductions out. Your bankruptcy attorney may also fax proof of filing to the creditor so that they are aware that + Read More

I Provide Solutions, But I Can’t Make You Follow Through

I just got a recent call from a woman who has been a client for approximately 9 months. She was set up on a payment plan, however has not made a payment in over five months. It turns out that one of the creditors has obtained a judgment and has now served her employer with a wage garnishment. She is obviously concerned because she feels that her wages are going to be garnished and she will not have enough funds to make her rent payment. She wanted to know what I could do about it. So,  I checked her file. I found out that she has not taken the credit counseling session as of yet. Until she takes the credit counseling session, there is no possible way to file her case and get an automatic + Read More

How To Build Credit After Bankruptcy

One of the things most people want to know when considering bankruptcy is how soon after filing bankruptcy can they obtain credit. The answer to this will vary from case to case but there is a relatively simple formula to follow. After your case is filed, you can apply immediately for a secured credit card. A secured credit card is where you put a certain dollar amount on account at a bank in exchange for charging privileges up to that amount. The advantage of secured credit card is that it will start to report positively to the credit bureaus. It also gets you to focus on exactly how much you can spend because your credit limit is going to be relatively small at the outset. Another good + Read More

Interesting Development in Some Chapter 13 Bankruptcy Cases

When the bankruptcy laws were changed on October 17, 2005, there was an effort to curb abusive filings. To do so, a means test was authored utilizing IRS standards for acceptable expenses. In addition to the means test, there were requirements such as having completed a credit counseling session before a case can be filed and financial management instruction completion before a case can be discharged. There were also measures aimed at curbing repetitive filings. This all centered around the creation of and the existence of the automatic stay. If someone was filing a chapter 13 bankruptcy within one year after a prior case was dismissed, then the automatic stay would only last in the new + Read More

Can I Dismiss My Bankruptcy & Refile?

Dismissing and Re-filing a Chapter 13 There are certain circumstances where you may want to dismiss your chapter 13 case and refile. You do have the ability to do this. There are certain circumstances where you may have to wait six months to refile. This would be the case where you want to dismiss the case on your own and there has already been a motion to modify the automatic stay filed in your case. If you bring a motion to dismiss in that type of case, then you must wait out the six-month filing waiting period On the other hand, if the trustee brings a motion to dismiss, you have the ability to refile at any time unless you are barred from refiling. We typically only see a bar to + Read More

Can We Save Our Home With Bankruptcy?

    This is the bankruptcy case study for Todd, from Steger, Illinois, and his wife Emily. The couple is considering chapter 7 or chapter 13 bankruptcy, but is not sure which chapter is best for them. Let's explore the details. The couple owns a home in Steger, Illinois with a market value of approximately $110,000. The debt owed on the property to pay it off in full is $103,000. The problem is that they are $27,000 behind on their mortgage payment and close to losing the property to a foreclosure sale. The couple owns one vehicle, a 2003 Nissan Frontier which has 114,000 miles on it.  The vehicle is paid in full with a value of approximately $3000. The couple has a + Read More

Bankruptcy Case Study For J.W. From Chicago, Illinois

Bankruptcy Case This is the bankruptcy case study for JW from Chicago Illinois who is seeking bankruptcy protection. There is no real estate involved in this case. There is no rental situation in this case. The client owns a 2014 Nissan Versa which is financed through Nissan Acceptance Corporation. The vehicle is worth $17,000 and the outstanding balance on the vehicle is $16,000. Thus, there is very little equity in that vehicle and if the debtor wishes to keep paying for that vehicle at $327 per month, he will be allowed to do so. In terms of personal property, he has a checking account and a savings account with an approximate balance of $100. He has minor household goods which include + Read More

Bankruptcy And Your Credit Report

Many people who are considering filing bankruptcy are interested in knowing how long the fact that they file bankruptcy will stay on a credit report. The answer is that proof of bankruptcy filing can last up to 10 years on a credit report. However, this fact should not dissuade one from filing for bankruptcy if overwhelming debt is a major concern.  Most clients are surprised at just how fast they receive offers for credit after they file for bankruptcy relief. For example, they can apply for credit cards immediately after a bankruptcy case filed under chapter 7. They will get offers for credit cards typically within six months to one year after filing. Now these cards may have high interest + Read More

How Waiting To File Bankruptcy Can Hurt You

Waiting To File Bankruptcy There are so many people that I talk to over the course of a month who contemplate whether to file bankruptcy yet take no action. Many of these people feel that the problem will simply go away. Some people feel that their financial situation is going to somehow change on its own. Others feel that the creditors will simply give up on their collection efforts. Others take affirmative steps which actually create more of a financial burden and stress then if they did nothing at all.  Group One Let's look at the first group. These are the types of people that believe that if they just ignore the situation, everything will magically go away. Obviously, this is what we + Read More