Archives for October 2015

Chapter 7 Bankruptcy Audits Prove Burdensome On Debtors

Numerous Requirements There are numerous requirements that must be met by a debtor in a chapter 7 bankruptcy case. The debtor must complete a credit counseling session within 180 days of filing the petition. The debtor must complete a two hour personal financial management instruction course sometime after the case is filed but prior to the case being discharged. The debtor must provide the most recent federal tax return. The debtor must provide two months’ worth of pay advices immediately preceding the filing of the chapter 7 bankruptcy case. The debtor must appear at a 341 meeting of creditors and provide any additions or corrections that the panel trustee is requiring. In a select number + Read More

Should I Pay My Car Inside Or Outside Of My Chapter 13 Bankruptcy Case?

There are many ways to treat a vehicle when filing chapter 13 bankruptcy. Not one answer fits every case. In fact, the answer is going to vary depending upon whether or not the debtor is current on the vehicle, whether the vehicle was purchased within the last two and half years, and whether or not the debtor needs to restructure that debt in essence. Let's examine the first scenario. If the debtor has a vehicle purchased within the last two and half years and he is current on that vehicle, then I would recommend that he continue to pay for that vehicle outside of the chapter 13. By doing so, he will avoid the interest rate that the trustee charges as an administrative expense on his + Read More

Recovering Your Vehicle From The Pound With Chapter 13

Vehicle Impounded In Record Numbers During the last 10 days, I have seen a huge uptick in the number of Chicago residents who have had their vehicles impounded. This most certainly has to do with the city of Chicago and its effort to bring in revenue from parking ticket debt. When clients don't pay their parking tickets, they find themselves on the boot list. Once they are booted and unable to remove the boot within 24 or 48 hours, the vehicle gets impounded by the city of Chicago. I have noticed a groundswell of clients who are hiring my law firm for chapter 13 to recover their auto from the pound without paying the city anything up front. Why Chapter 13 Bankruptcy? Chapter 13 is a very + Read More

The Right Time To File Chapter 7 Bankruptcy

Seasonal Worker I recently met with a gentleman who was employed by the union as a contractor. He had long stretches of unemployment and other stretches of high employment. He wanted to hear from me as to when was the right time to file chapter 7 bankruptcy. His situation is somewhat unique. He will work for stretches of time ranging from 2 to 6 months where his income is very high. He then has long periods of time when he has no income at all. It is during those months where he receives unemployment insurance benefits. At the time we met, he was in between jobs but expected to start imminently another stretch run which would last 2 to 3 months. It is clear that the right time to file + Read More