Will Filing For Chapter 7 Bankruptcy Save My Life?

The answer depends on what is the situation in your life right now. You may be struggling with credit cards, medical bills, personal loans or any other type of debt. Sometimes you have creditors calling you on the phone, harassing you at work or just sending you letters making your life miserable. At other times, the creditor can actually be taking money out of your pocket in a way of garnishment, bank seizure, or straight payment plan. If the amount being taken out of your pay depletes your resources to the point where you cannot support yourself or your family, then bankruptcy is probably your best option. If you are someone who is struggling financially and need a fresh start, a chapter 7 + Read More

Bankruptcy Filing Will Depend Upon The Means Test

This is the case of Jeffrey and Debra Miller who live in Gilberts, Illinois which is in Kane County Illinois.  They were here for a consultation on either Chapter 7 or Chapter 13 bankruptcy.  As we run through the facts here, they have not filed a bankruptcy before.  They do own a home with a first and a second mortgage on it.  The houses valued at approximately $165,000.  They owe $135,000 to the first mortgage and $63,000 to the second mortgage so there is effectively no equity in the property.  They are not renting from anybody and nobody is renting from them.  They have three vehicles, a 2003 Toyota Siena which is paid in full valued at approximately $2000.  They have a 2006 Hyundai + Read More

I Suggest A Chapter 7 Bankruptcy To Solve The Debt

This is the case of Brian and Lori Shearing who reside in Plainfield, Illinois, Will County, Illinois.  They were in my office today to discuss the possibility of a Chapter 7 fresh start.  Let’s go through the particulars of their case. They had a prior Chapter 13 back almost 20 years ago.  So they are eligible from the standpoint for either Chapter.  They have a single-family home in Plainfield with an approximate value of $165,000.  They owe $165,000 to their first mortgage company Green Tree and they have a second mortgage through Great Lakes Credit Union of approximately $60,000.  They currently are in the process of doing a short sale so if they can eliminate that debt, they don’t + Read More

Bankruptcy Filing Software To Aid In Determining Chapter 7 or Chapter 13

This is the case of Duane Comersky who comes to me for a bankruptcy consultation.  Duane is currently residing on Laura Lai Street in Zion, Illinois, Lake County Illinois.  Duane has never filed for bankruptcy before; this is his first consultation with an attorney.  He does not own any real estate.  He is currently living with his uncle and paying rent, he is on a month to month lease.  In terms of assets, he has a 2007 Dodge Magnum which is financed through Baxter Credit Union.  He owes approximately $5400 to pay off the vehicle, he pays $450 per month and the vehicle is worth a little bit more than $5400 on the market. In terms of property and assets, he has a checking and savings + Read More

Bankruptcy In Chicago & Why People File

Americans are used to handling debt.  Most people carry debt of some sort in their daily lives.  Even ones that are handling or managing the debt still feel the stress that comes with that debt.  Despite this fact, most people carry on and seem to get by.  That is, of course, until a creditor begins to get aggressive.  Now I’m not talking about harassing phone calls from creditors at your home and at your work.  I’m talking about filing suit, obtaining judgments and continuing with post-judgment efforts to collect on the debt.  This could lead to bank seizures, wage garnishments and further court appearances requiring the production of certain documents.  Those documents can include bank + Read More

Bankruptcy Case Of Nancy H. From Chicago

Last week, Nancy H. came to my office looking to file a Chapter 7 bankruptcy case.  She had $20,000.00 or so on credit cards and no other unsecured debt.  She had a condominium that had a value of $89,000.00 and a mortgage debt of approximately $80,000.00.  Thus, there was some equity in her condominium, but not an amount that exceeded the amount that she could protect with her Illinois homestead exemption.  The only issue or potential asset problem dealt with her auto.  She had a 2010 vehicle that was paid in full.  A look at the KBB website indicated that the vehicle was worth approximately $8,000.00 as a trade-in value.  At this value, there would be $2,500.00 - $3,500.00 exposed beyond + Read More

It Seems Everyone Wants A Chapter7

A recent potential client called the office and wanted to get started with a filing.  At the meeting, we talked about a greater likelihood of Chapter 13 based upon the income of the debtor and his spouse.  Today, the talk came up about Chapter7 once again.  Here is what I do in these situations: I will start the document preparation out as a Chapter7.  I will put the client through the means test if necessary to determine if Chapter7 will work.  If not, I will contact the client and advise as to why Chapter7 is not going to work.  In the Northern District of Illinois, the Trustee’s office is very good about reviewing the cases for abuse.  If the Trustee’s office feels that the person + Read More

Anything I should NOT do if I’m filing for bankruptcy?

There are several things that you should not do if you are considering filing for bankruptcy under either Chapter 7 or Chapter 13.  One of the things that people do which is a prohibited act is repaying a family member or a friend within a year of filing for bankruptcy.  This is known as a preferential payment and the court can undo that type of payment or repayment.  Your family member may be required under court order to turn over those funds to a Trustee who will then administer the asset for the benefit of creditors.  Leave Your 401(k) Alone The other thing people do is they borrow from their 401(k) in an effort to repay their creditors only to find that they did not have enough money + Read More