A successful chapter 13 requires you to make timely, monthly payments to a chapter 13 trustee over the life of your plan. The plan could last anywhere from 36 to 60 months typically. Your plan may run less than that provided you pay off the debt in full. If you fall behind on your trustee payment, the trustee or a creditor can bring a motion to dismiss your case. When you fall behind with the trustee, there are no funds for the trustee to distribute that month. For that reason, creditors who are used to getting a monthly pro-rata payment, get nothing. This fact alerts them that there is a breach in your plan payments. By bringing a motion to dismiss, if they are successful, they will be able + Click Here For Read More
Archives for 2014
Gambling Debts And Bankruptcy
May 8, 2014 by
If you're struggling from debts that arose from gambling, chapter 7 very well may be your answer. There has been an increase over the last 25 years in the state of Illinois with gambling institutions. These so-called boats have led many addicted people to lose their life savings, their families, their jobs, and their dignity by owing these corporate institution tons of money. The good news is that if you're someone who has incurred debts by way of gambling, chapter 7 bankruptcy should provide you with the fresh start that you need. It's important to note that gambling is much like any other type of addiction. There is an inability to stop the conduct which is causing harm and it's very + Click Here For Read More
Is There Any Bankruptcy Help For Student Loans?
May 7, 2014 by
Student loans are generally an unsecured debt that is non-dischargeable in a bankruptcy case. This means that under chapter 7 fresh start bankruptcy, a student loan must be listed however it is not eliminated. There are some circumstances where a student loan may be discharged however that involves an extreme hardship case and I've never seen that happen in 23 years of practice. If you want to get some breathing room with regard to your student loans, you can file a chapter 13 and pay less than what's owed over a 60 month period. Please keep in mind that you're going to owe the remainder of what has not been paid plus interest at the completion of your 60 month case. Now, at first this + Click Here For Read More
What Debts Are Typically Non-Dischargeable?
May 6, 2014 by
When you file Chapter 7 bankruptcy, not all of your debts may be eliminated. For example, student loans, recent taxes, parking tickets, child support and debts incurred through fraud are not eliminated. The video below talks about how some people will run up the balance on a credit card in anticipation of filing Chapter 7 bankruptcy. This is a huge mistake as credit card issuers can bring a complaint within the bankruptcy case to have that particular debt held non-dischargeable. The best advice is to see an attorney as soon as you are experiencing financial problems. By do so, the attorney can advise you as to what is proper and what is improper under the bankruptcy code. Jesse + Click Here For Read More
Chicago Bankruptcy Timeframe: From Start To Finish
May 2, 2014 by
A Chicago Bankruptcy Timeframe for a case can last anywhere from 3 to 4 months from filing until discharge. This assumes that there is no objection to your discharge or no adversarial complaint in your case. Let's start at the beginning. You need to meet with a bankruptcy attorney to go over your income, your expenses, your assets, your liabilities and of course, your financial situation in total. From that point, if you hire the attorney, a bankruptcy petition will be prepared for you to sign. This petition is a 40 to 60 page document that contains all the information about your finances. Before your case can be officially filed, you will need to complete a few pre-filing + Click Here For Read More
Divorce and Chapter 7 Bankruptcy
May 1, 2014 by
The interplay between divorce and bankruptcy is confusing. There are also important decisions to make when deciding whether to file bankruptcy and when to end a marriage. Divorcing is generally easier on all parties when the divorcing couple can agree on as many issues as possible. This is especially true for division of debt in divorce. Example For our example we will look at a married couple with debt in both names (also known as co-signed debt) where only one spouse files chapter 7 bankruptcy. Spouse A chooses not to file bankruptcy and Spouse B chooses to file bankruptcy. Spouse A is solely responsible for paying the co-signed debt. The creditor may collect against Spouse A who did + Click Here For Read More
Getting Out Of Debt Just Got A Little Tougher
April 30, 2014 by
New Filing Fees Starting June 1, 2014, bankruptcy filing fees are going to increase. The filing fee for a chapter 7 bankruptcy case is increasing to $335.00. The filing fee for a chapter 13 bankruptcy case is increasing to $310. 00. So if you're already struggling to pay your debts and are seeking bankruptcy protection, you're going to have to save up some money just for the filing fee. I haven't even mentioned the attorneys’ fees that are required on top of that. See Fee Schedule Increase Notice. Fees Should Decrease It's ironic that in this new age of electronic filing, fees would actually increase. It would make more sense that fees would actually remain the same or go down based on + Click Here For Read More
Do I Need A Chicago Bankruptcy Lawyer If I Live In Cook County?
April 30, 2014 by
You are not required to use a Chicago bankruptcy lawyer if you live in cook County and wish to file for bankruptcy relief. Much more important than where the attorney is located, is what type of qualifications does the attorney have to handle your case. You might find a bankruptcy attorney within six blocks of where you live. You may later realize that the person is not the right attorney to handle your particular matter. Bankruptcy law has become quite complex since the law was amended in 2005. For that reason, the location of the bankruptcy attorney is not nearly as important as the qualifications of the bankruptcy attorney. Cook County Is Larger Than Chicago As you probably know, Cook + Click Here For Read More
How Much Equity Is Too Much For Chapter 7 Bankruptcy?
April 29, 2014 by
Most clients who call seeking chapter 7 bankruptcy relief do not have significant equity in their real estate. In fact, most clients who call today have no equity in their real estate. Since the real estate market plummeted several years ago, most clients are in a situation where they owe more on the property than what it's worth. For this reason, chapter 7 is readily available since there is no equity in the real estate property. Equity Exists However, there are some people that do have equity in real estate and it does become an issue as to whether or not they will be able to complete a chapter 7 bankruptcy case without giving up any interest in the property. In the state of Illinois, + Click Here For Read More
Secured Creditors In Bankruptcy
April 29, 2014 by
There are secured creditors that must be treated a certain way in a bankruptcy case. The transcription below touches the surface on what a secured creditor is and what types of decisions have to be made with regard to those secured creditors. Jesse Barrientes: You said there were secured and unsecured creditors. So then unsecured creditor would be like the gas company or utility company or a credit card bill, right? And then what are secured creditors? David Siegel: Well, a secured creditor is someone who is secured by property. And what I mean by that, if you don’t make a mortgage payment, you can be foreclosed upon. If you don’t make an auto payment, your vehicle can be + Click Here For Read More
