Archives for August 2016

When Assets Are At Risk, Consider Chapter 13

I came across a woman recently who was considering chapter 7 bankruptcy. She had a home that was underwater by more than $175,000. She had absolutely no intention of keeping the home. Her goal was to stay in the home for as long as possible, surrender it to the lender after a sheriff sale, and eliminate or discharge the underlying debt through chapter 7 bankruptcy. This sounded like a good plan until we examined her assets with a high level of scrutiny. Vehicle Assets The first hurdle that we had to get over in terms of assets was her numerous vehicles. She had two relatively old vehicles which were not going to pose a problem. One was a 1998 Chevy which was worth approximately $500 and + Read More

Taxes Owed To The IRS Could Be Discharged In A Chapter 7 Bankruptcy

Nobody wants to file for bankruptcy.  However, circumstances can spiral out of control and you can find yourself without any choice.  You were laid off from work or had unexpected medical bills. You had to make a choice between paying the monthly credit card bills or putting food on the table.  The choice is easy.  When you realize that you can’t keep up with your credit card payments, you consult with your bankruptcy attorney. What about income taxes?  Most clients don’t know that unpaid income taxes can be discharged if certain requirements are met.  It’s common that clients don’t list or bring up old income taxes owed as a debt, because they mistakenly believe that income taxes can + Read More

Filing Bankruptcy Should Not Kill A Loan Modification

Loan modifications come in many different forms and at many different times as they relate to a bankruptcy filing. The most common loan modification is one that avoids bankruptcy entirely. I'm referring to a person or couple that fall behind on their mortgage, reach out to their lender for loss mitigation opportunities and are lucky enough to complete the loan modification process to a successful conclusion. This can result in an interest rate reduction, a deferment of the default to the end of the loan, a change in the length or term of the loan and in the rarest of cases, provide for a principal reduction. If this is able to be accomplished initially, then there should be no interplay + Read More

Bankruptcy Case Study For Ms. Jones

This is the bankruptcy case study for Ms. Jones who resides in Joliet, Illinois. Ms. Jones was in the office today to determine whether or not Chapter 7 or Chapter 13 bankruptcy will provide some needed relief. Let's go through the facts and details of her case. Ms. Jones is not a homeowner. She is currently renting on a month-to-month basis. She is current with her landlord and wants to keep making those payments. In terms of personal property, she has a 2014 Nissan Altima, financed by Nissan Motor Acceptance. She owes approximately $15,000 on the vehicle and she feels it's worth less than that. Her current monthly payment is $360 per month, she is current on the payment and she wishes to + Read More

Filing Without Full Payment, Ok. Filing Without Full Documents, Problemati

It is very true that a Chapter 7 bankruptcy case can be filed without having the full attorney fees paid up front. In fact, there are some attorneys that are willing to advance even the filing fees in certain circumstances.  However, for a valid Chapter 7 bankruptcy case to be filed, there are certain documents and prerequisites that must be satisfied. Credit Counseling Requirement For example, before any Chapter 7 bankruptcy case can be filed, absent exigent circumstances, the debtor must complete a credit counseling session from an office or agency approved by the executive office of United States Trustees. This session could last anywhere from one to two hours, with a cost of + Read More