Archives for 2014

Towing Company Cannot Withhold Debtor’s Auto In Chapter 13 Bankruptcy

It seems that just about every month or so a lender or a towing company is withholding the debtor's vehicle despite the fact that a chapter 13 bankruptcy case had been filed. Most lenders are now up to speed on the Thompson case which governs cases in the state of Illinois with regard to repossessed autos and chapter 13 bankruptcy law. However, it seems that certain towing companies and repossession companies are still getting up to speed. This is true in a most recent case where the towing company actually had the advice of counsel. The towing company was claiming that they had a possessory interest or possessory lien in the debtor's vehicle. The towing company also claimed that the + Read More

New Means Test Figures For Illinois Bankruptcy Filers

This Friday will mark nine years since the bankruptcy laws were last changed. That law known as BAPCPA which stands for Bankruptcy Abuse Prevention and Consumer Protection Act was really designed to prevent those who have the ability to pay from getting out of their obligations under chapter 7 bankruptcy. The credit card companies lobbied Congress for years to get some reform in place. Congress was basically fooled into thinking that bankruptcy was actually being abused. Unfortunately, the Congress was really only hearing one side and that was the credit card lobby. They really didn't take the time to learn all that was going on in the trenches or at least give as much weight on what they + Read More

Chapter 13: There Are Times When Not To Pay Off Your Case

Chapter 13 Question: The question arose recently as to whether or not a person should pay off their chapter 13 with inherited money that was received after the case was filed. The answer to that really depends upon whether or not the person is in a 100% paid back or whether or not the person is in a less than 100% pay back. If you are paying back less than 100%, then your case needs to last at least 36 months. If you make the mistake of prepaying or overpaying in a 10% case, you will be forced to pay in additional funds which were not actually required. If, on the other hand, you are in a 100% repayment plan, then you can pay off the case at any time with inherited funds at no detriment to + Read More

If You Want To Get Out Of Debt, You Have To Make The First Step

There are so many people that claim that they want to get out of debt, yet they don't make the first step. They lament over their financial situation. They complain that they're being held back and there's nothing that they can do about it. They've heard about bankruptcy, but they really don't want to go down that road. Many will do research online. Others will actually come in for an appointment and gain a ton of useful information about the process. Regrettably, only a small percentage of those people actually get the help that they need. Unfortunately, there are many reasons for this reluctance. First, many people think that their financial situation will somehow change without taking + Read More

Chapter 13 Bankruptcy Lawyer Reveals Pitfalls For Debtors

As a chapter 13 bankruptcy lawyer in Chicago, my goal is to help people reorganize their debt or to eliminate their debt so that they can improve their financial situation. This often means saving a home from foreclosure. It also may mean saving a vehicle from repossession. It also could mean stopping a wage garnishment and agreeing to repay a small portion of a debt over a three to five-year period. To make all of this happen, many things have to line up in place perfectly. One of the things that I found most helpful, yet not without its difficulties, is to have my clients be set up on payroll control. This means, in theory, that the chapter 13 plan payment will be deducted from the + Read More

Chapter 13 Bankruptcy: How To Handle Your Finances Through Your Case

Chapter 13 Bankruptcy The amount that you pay back in a chapter 13 per month is dictated by your income and your expenses. The trustee is going to scrutinize your budget to make sure that you are putting all of your disposable income towards the repayment of creditors in your chapter 13 case. This means that you are limited to IRS standard allowances for things like food, clothing, transportation, and other necessary expenses. There is some leeway if you can prove that you have a reason for a higher-than-expected expense for let's say medical or housing or utilities. Reasons To Budget The reason why you have to budget and pay all that you can in a chapter 13 is that you are asking the + Read More

Can You Be Too Broke To File Bankruptcy?

Believe it or not, there are certain circumstances where you are too broke to file. You simply don't have the means to even come up with the filing fee which is $335. Just yesterday, a potential client walked 45 minutes to see me in my office. Not only was he unemployed, but he had his driver’s license suspended due to dui.  Worse yet, he had an upcoming court date whereby he had to pay the court $4000 for his fine. Of course, he does not have the $4000 and will be begging and pleading for additional time to come up with the money. The judge may not grant his request. In that case, he will likely be incarcerated. Another gentleman recently came to see me and he is also unemployed. He is a + Read More

Bankruptcy Case Study For Darius From Chicago

Case Set-Up This is the bankruptcy case study for Darius from Chicago, Illinois who was in my office to determine whether or not chapter 7 or chapter 13 will help him. He currently resides in Chicago and he has a spouse who will not be filing with him. He has filed a chapter 13 bankruptcy in the past which was not successful. In terms of real estate, he owns a single-family home which he wishes to surrender. The house is worth $150,000 and he owes $210,000 on the home. He has not made a mortgage payment in several months and realizes that the best thing to do would be to let the house go into foreclosure and eliminate that debt through bankruptcy. In terms of vehicles, he has a 2013 Chevy + Read More

Can I Switch Bankruptcy Attorneys After My Case Is Filed?

You always have the ability to switch bankruptcy attorneys if you are not satisfied with your current attorney. Depending upon which type of bankruptcy case you have filed will determine whether or not it makes good sense to make the switch. For example, if you have already filed a chapter 7, fresh start bankruptcy, then there probably is not going to be a significant benefit to switching attorneys. First, you've already paid your first attorney and you have to pay a second attorney to jump in on your existing chapter 7 case. Second, absent an adversarial complaint, there should be nothing that the first attorney can't take care of under the original contract with him or her. Switching + Read More

Joliet Bankruptcy Lawyer States “You Need Not Struggle Anymore”

According to Joliet Bankruptcy Lawyer, David Siegel, Joliet has always been a tough, blue-collar, hard-working town in Will County, Illinois. When times are tough in the state of Illinois, they are especially tough in Joliet. And times have been really tough lately. The housing market has not recovered in this area. The job market certainly has not recovered in this area. People are paying more for food, clothing, gas and they are taking home less. This type of climate leads one to explore other avenues of credit. These include credit cards, payday loans, title loans, unsecured loans and borrowing from friends and family. What we are looking at is a perfect storm leading to + Read More