Wage Garnishment Proceedings: An Employer’s Perspective

Creditors Collection Tool As a wage earner, nobody wants to see their wages garnished. Whenever a person is working for wages and they have an outstanding monetary judgment against them, there is always the risk and concern that a wage garnishment summons could be forthcoming. Judgment creditors and their lawyers have access to information which may alert them if and when you are gainfully employed. In some cases, a creditor may be aware of your employment situation based upon a prior application which you completed. In other cases, a Social Security search can be done to determine whether or not current payroll withholdings are being made. In other situations, the creditor can learn vital + Read More

New Bankruptcy Rule, Fee and Form Changes Effective 12-1-16

Beginning December 1, 2016, Proposed Federal Bankruptcy Rule, Fee and Form Changes will take effect.  The bulk of the changes will relate to litigation and notice provisions.  There will not be significant changes to the debtor’s bar.  There will be a $1.00 increase in filing fees for amending the creditor list or notice list.  The former fee of $30.00 is now being increased to $31.00.  Further, there are three forms that are being amended which relate primarily to creditors and noticing.  Below is a listing of the Rules that are being affected: Rule 1010. Service of Involuntary Petition and Summons Rule 1011. Responsive Pleading or Motion in Involuntary Rule 1012. Responsive + Read More

What Does A Bankruptcy Cost?

The filing fee is $335.00 for a Chapter 7 bankruptcy filing.  The filing fee for a Chapter 13 bankruptcy case is $310.00.  Some attorneys will allow for the attorney's fees to be paid over an extended period of time. + Read More

Will Chapter 7 Bankruptcy Help With Parking Tickets?

No Income Option I recently received an interesting call from young lady who was seeking bankruptcy protection to help with outstanding parking tickets. She had no income whatsoever, so she was not a candidate for chapter 13 bankruptcy which is the repayment plan over a 3 to 5 year period. However, she was interested in simply holding off the City of Chicago for at least three months while eliminating other types of debt. Her plan, while not conventional, is actually a good one in her case. By filing chapter 7, she will be able to eliminate plenty of debt while holding the City of Chicago at bay. She can then work out an installment payment plan with the city after her chapter 7 case is + Read More

This Is The Bankruptcy Case Study For Miss L., Living In Chicago

Overview In this bankruptcy case study, we are going to analyze the financial situation for Ms. L., who resides in Chicago. She resides on Woodland Park Avenue of the East side of the city. She filed a chapter 13 bankruptcy back in 2006. Thus, she is eligible for either a chapter 7 bankruptcy case or a chapter 13 bankruptcy case at this time. She does not own a home. She is currently renting. She has a yearly lease which expires in about one month. She owns a 2008 Hyundai Accent, financed by Credit Acceptance. She would like to keep that vehicle and she is current on her monthly payment of $153 per month. She purchased the vehicle approximately six months ago and would very much like to + Read More

Co-Signed Auto Debt In A Chapter 13 Can Get Very Tricky

I just spoke to a young lady this morning who cosigned on a vehicle. The other person on the hook for the vehicle debt has just filed for chapter 13 bankruptcy. The vehicle is not going to be reorganized through the chapter 13. Thus, the auto finance company has the right to modify the automatic stay and pursue the codebtor. However, the codebtor, who possesses and drives the vehicle, intends to continue to pay for the vehicle. The question now has arisen as to what is the status regarding the ownership of the vehicle?  Additionally, the person filing bankruptcy wants to meet with the codebtor at the DMV and transfer ownership of the vehicle. There is no way that actual ownership can + Read More

3 Tips For A Successful Bankruptcy Experience

Be honest Be honest with yourself, your attorney, the trustee, the court and anyone else involved in your bankruptcy case. The first question to ask is do you really need the help? Are you someone who has a small amount of debt that is manageable over the course of six months to a year or are you someone who is drowning with insurmountable debt which cannot be remedied on your own?  Once you come to the realization that you need help, you will want to make full disclosure of your assets and liabilities and your statement of financial affairs with your attorney. Your attorney will then be in the greatest position to advise you as to your rights and obligations under either chapter 7 or + Read More

Converting A Bankruptcy Case From Chapter 13 To Chapter 7

Code Provision There are times when you may need to convert a chapter 13 bankruptcy case to a chapter 7 bankruptcy case. Section 1307 of title 11 USC provides for conversion or dismissal. In essence, under section (a), a debtor may convert a case under Chapter 13 to a case under Chapter 7 at any time. However, there are some restrictions to that general statement. A case may also be converted for cause, including unreasonable delay by the debtor that is prejudicial to creditors, nonpayment of any fees and charges required under Chapter 123 of title 28, failure to file a plan timely under section 1321, failure to commence making timely payments under section 1326, denial of confirmation of a + Read More

New Court Approved Retention Agreement For Chapter 13 Cases Arrives Suddenly

The New Agreement Getting paid as a chapter 13 debtor's attorney has always proven somewhat difficult. Not the least of which is that the debtor typically must make chapter 13 plan payments from which counsel can be paid. Add on top of that the fee application, the fee order and the presentment been before the court and there are plenty of moving parts from which failure is imminent. Which brings me to the new court approved retention agreement to be used by debtor's counsel and their clients in chapter 13 bankruptcy cases. The new agreement was announced on the bankruptcy courts website on September 12, 2016. The new agreement must be utilized in all cases filed on or after September 19, + Read More

Case Study For Mrs. C. From Wheeling, Illinois

  Nature Of The Debtor This is the chapter 7 bankruptcy case study for Mrs. C., who resides in Wheeling, Illinois. She has come to the office with the simple thought in mind to eliminate her outstanding credit card debt and medical debt. She has been struggling for approximately three years. Although she has been able to maintain the minimum monthly payments on her credit cards, she is no longer able to sustain herself based upon her newfound rental obligations. Let's examine the facts of her case. Current Outlook She is currently separated from her spouse and they are living in two separate states. She has no minor children. She is currently working as an instructor and has been + Read More

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