How much is it to file a Chapter 7 or a Chapter 13 bankruptcy?

At the time of this writing, the filing fees for Chapter 7 bankruptcy are $306.  The filing fees for Chapter 13 bankruptcy are $281.  Each law firm differs on how much they require down as well as how much they require in terms of a total fee to file a type of bankruptcy.  In my office, we typically start with a $100 down payment to hire the firm.  It is from that point that the debtor will make payments of at least $100 every two weeks until their case is paid in full.  The typical timeframe to file the case is once the fees are paid in full and once all of the prefiling bankruptcy requirements are satisfied. There are some cases where you want to file the bankruptcy prior to be paid in + Read More

Bankruptcy – How many payments do I have left in my Chapter 13?

Once a Chapter 13 bankruptcy case is filed and a plan is proposed, it’s going to run for a certain number of months, typically between 36 and 60 month.  Now, there are some cases that end much earlier than 36 months and there are no cases that can exceed the 60 months.  So somewhere between a couple months and 60 months, your Chapter 13 bankruptcy case will come to a completion. Every six months or so, the trustee sends a periodic report to the debtor and the debtors attorney basically laying out what has been paid, what still needs to be paid and approximately how much the payoff is on the Chapter 13.  Many times debtors will receive this and they won’t be able to read it or understand + Read More

Why should I file for bankruptcy if I’m using a debt consolidation service right now?

Differences Between Bankruptcy And Debt Consolidation There are huge differences between bankruptcy and debt consolidation services.  If you’re filing a chapter 7, you are going to get a fresh start.  If you are using a debt consolidation service, you are going to wind up paying back to creditors.  It’s quite possible that you really don’t have any legal obligation to repay creditors if you file for a chapter 7 bankruptcy.  If you don’t file for chapter 7 and you want to repay your debts, then debt consolidation may work for you.  However, in my experience, I have seen too many cases where somebody has been in debt consolidation only to wind up filing for chapter 13 or chapter 7 bankruptcy + Read More

When can I buy a house after filing for bankruptcy?

How Soon Can I Buy? You can typically buy a house two years after the filing of a Chapter 7 bankruptcy.  Lenders want to see that you have rehabilitated yourself after a bankruptcy filing.  They want to see that you have not incurred any negative credit since the time of filing.  They want to see that you have the ability to pay on a mortgage and that you have the ability to make a down payment on a house. Old Debts Will Be Forgotten If you qualify for a mortgage and you are able to buy that house, then the debts that were discharged in your bankruptcy are no longer going to bother you.  The trustee has no right to come back to years later and seek to take your property.  You have gotten + Read More

Can I Make Payments To File A Bankruptcy?

Payment Plans Are Available You most certainly can get on a payment plan to file a bankruptcy.  In fact, most people do not have the ability to pay the lump sum which is the court costs and the attorneys’ fees, all at one sitting.  What I like to do is offer a client a reasonable payment plan whereby they can hire the firm for as little as $100 down and then go on a payment plan of $100 every two weeks.  The typical payment plan that I work in my office is called an electronic fund transfer.  The electronic fund transfer is an automatic deduction every other Friday out of a checking account, typically in the amount of $100.  This gives clients the ease of being able to make payments without + Read More

Can I keep one of my credit cards and not put it on my bankruptcy?

All Creditors Must Be Listed If you are filing bankruptcy, then all of your creditors must be listed.  This includes credit cards, personal loans, auto payments, mortgage payments and any other debt, including debts owed to family members.  I understand that many people have lived off credit cards, they love the convenience of credit cards and they want to keep one credit card free and clear and they don’t want to lose it in the bankruptcy.  Now, this is true even if they have a zero balance on that card and even if it’s the card that they’ve had since they turned 18 and they’ve had it forever and they don’t want to lose it. The problem is the Bankruptcy Code mandates that all debts be + Read More

During A Bankruptcy Case, Creditors Should Not Be Calling

Creditors Should Not Call Creditors should not be calling you after your bankruptcy case is filed.  In some cases, creditors just have not received the required notice under the Bankruptcy Code.  In some cases, notice has gone to the proper address, however, there is a collection firm involved now who did not have knowledge of the bankruptcy case and is calling you.  Stopping Creditors There is a real simple way to stop creditors from calling.  Firstly, and this is before your case is even filed, give your creditors your attorney’s name and number.  Let them know that you are filing bankruptcy, you’ve hired an attorney, give the attorney’s name, give the attorneys number and advise them + Read More

What Is The Cost To File Bankruptcy In Illinois?

There are several factors that can affect the cost to file for bankruptcy in Illinois.  The first factor is which Chapter of the bankruptcy code are you filing under?  If you are considering filing a Chapter 7, then you are going to have a fixed cost known as the filing fee.  At the time of this writing, the filing fee for Chapter 7 bankruptcy is $306.00.  This fee gets paid directly to the Clerk of the United States Bankruptcy Court and is mandated unless a waiver is granted.  If you are considering filing under Chapter 13 of the bankruptcy code, then the mandatory filing fee with the court at the time of this writing is $281.00.  Again, there are waivers in particular cases based upon the + Read More

Do I have to list everyone that I owe money to? – Bankruptcy

Under either chapter 7 bankruptcy or chapter 13 bankruptcy, you must list all of the people that you owe money to.  This includes credit cards that you want to keep, friends that lent you money, family members that lent you money and anybody else that you owe.  The one exception to this would be with regard to credit cards that have a zero balance.  If you have a zero balance, then technically you do not owe any money; therefore, that creditor does not have to be listed.  However, I want to cautious you that you are likely to receive a letter from that credit card company terminating your charging privileges going forward.  So don’t plan on being able to keep any type of credit card after + Read More

Filed for Chapter7 bankruptcy recently. Why must I pay back creditors?

Each case is different.  Under Chapter7 bankruptcy, the debtor gets a fresh start.  Under chapter 13 bankruptcy, the creditors get paid a certain percentage on the dollar over a three to five-year payment plan. The reason why one person would have to back a creditor and another would not is based on equity, income, assets and liabilities.  Let’s take the case of someone who has disposable income per month in excess of their expenses.  That person is typically going to be required to file a chapter 13 and put all of his or her disposable income each month towards a chapter 13 repayment plan which could last anywhere from 3 to 5 years.  If, on the other hand, you have someone who does not + Read More

Call 1 (847) 520-8100ORFREE INITIAL CONSULTATION
  • AS SEEN ON:
AS SEEN ON: