Archives for April 2016

Proof Of Income Is Critical To Filing Bankruptcy

Income Whether you are eligible to file under a particular chapter of the bankruptcy code is dependent upon a number of factors. One of the most critical factors is whether or not you qualify based on income. Income is calculated based upon all sources for one part of the bankruptcy petition, yet not necessarily included in the means test. Because income is such a critical factor in qualifying for either chapter 7 or Chapter 13, prospective clients must be able to provide proof of such income. This proof can be in the way of a paycheck stub, Social Security benefits statement, unemployment benefits statement, a bank account showing deposits of other sources of income or any other proof + Read More

Car Impounded? You Still Have Good Options

  Booted, Repossessed, Impounded Other than death, divorce and job loss, there is nothing worse than heading out to your car only to find out that it has been either booted, repossessed or impounded. If you find yourself in such a situation, you still have options to retrieve your car. The remedy is chapter 13 bankruptcy which allows for you to recover your car and repay whomever you owe on that vehicle over a period of 3 to 5 years. This is typically done at a lower monthly rate than what you may currently be under contract to pay. Parking Ticket Debt Let's examine the situation where the car is impounded. If you owe the City of Chicago more than two outstanding parking tickets, + Read More

The Credit Report Does Not Tell All

Credit Report Determines Credit Worthiness In the last week, I have noticed more than one client relying way too heavily on information appearing on a credit report. These clients were under the impression that if something falls off the credit report, that they no longer owe any money to that particular creditor. What these clients are failing to understand is that the credit report is not a full listing of the amount of debt owed. The credit report rather, is a document utilized by lenders to determine credit worthiness. To whom a debtor owes money and in what amount is important to lenders in determining whether or not a person should receive a loan and if so, at what interest rate. The + Read More

Bankruptcy Case Study – April, 2016

Facts: This is the bankruptcy case study for Miss Y., who resides in Lake County, Illinois. We are going to examine whether or not this person qualifies for bankruptcy and whether or not this person should file for bankruptcy relief. Let's look at the specific fact pattern. The first thing to note is that the debtor filed a prior chapter 7 bankruptcy in 2006. Thus, we have an individual who is not only aware of the relief that chapter 7 provides, but is familiar with all of the requirements which have been in place since prior to her initial case filing. With that in mind, let's see what she owns and owes. Property In terms of real estate, she does not own any property. She is currently + Read More