What Happens Once My Chapter 13 Bankruptcy Is Filed?

The Automatic Stay Once your chapter 13 bankruptcy case is filed, there are a series of processes and events that take place. Each of these events are required and mandated by the United States Bankruptcy Code and assist in the smooth process of chapter 13 for all parties involved. The first thing that happens is the creation of the automatic stay. The automatic stay happens immediately upon the filing of the chapter 13 bankruptcy case. The creation of the automatic stay puts creditors on notice that certain collection activities for certain debts must cease. This is an immediate benefit that you will receive upon the filing of a chapter 13 bankruptcy case. Notice To Creditors Shortly + Read More

Hesitating To File Bankruptcy Can Cost You Thousands Of Dollars

Nobody sets out with the goal of wanting to file for bankruptcy relief. However, things happen in one's financial life which can lead to that eventuality. For many, there is an unwillingness to jump in and do what makes financial sense. Many people put off filing with the hope that somehow, someway, either their ship will come in or their debt will simply disappear. By hesitating in the decision to file, thousands of dollars can be lost by way of garnishments and bank account seizures. Wage Garnishments I have spoken to clients who have been garnished for months and months before coming in for a consultation. Standard garnishment rates for wages for the state of Illinois amount to 15% of + Read More

Simple Chapter 7 Bankruptcy Filing Can Become Difficult Depending Upon The Trustee

Difficult Trustees Nobody likes difficult people. Nobody likes to feel that they have been put through the ringer. Nobody wants to feel that they have been harassed, abused, and given an unnecessarily rough ride in the process. Unfortunately, this is a common occurrence in some Will County chapter 7 bankruptcy cases. Let me cite a recent example: An attorney from my office recently was out in Will County for chapter 7, 341 meeting hearings. He had a few meetings at 9:30 AM, followed by a meeting or two concluding at 1:30 PM per the schedule.  What should've been a very easy day turned out to be an extremely difficult day thanks to the Chapter 7 trustee sitting that particular day. Let's + Read More

A Chicago Bankruptcy Attorney’s Christmas Wish List To Chapter 13 Trustees

At the close of every calendar year, I try and reflect about the year past from a bankruptcy standpoint. What was most rewarding about being a chapter 13 bankruptcy attorney? What would've made the practice of law even more rewarding? What types of rulings or policies would I have liked to have seen go in a different direction? Just a few simple thoughts as we enter the Christmas season. More Uniformity 1)   Wouldn't it be great if there was more uniformity among the chapter 13 trustees? There are three chapter 13 trustees which handle the reorganization cases for the bulk of my clients. There is a fourth trustee that has just a handful of my clients per year. A greater sense of uniformity + Read More

Looking Ahead To Next Year With Optimism

A Better Year Awaits As the year comes to a close, people look to the upcoming year with optimism. What can make next year better than the current year? For some this might mean a better relationship, a better job, a healthier lifestyle, and for some a financial fresh start. For those that have struggled during the current year and past years, they envision a future year either free from debt or on a program to manage the debt. What I am referring to is either a chapter 7 fresh start bankruptcy or a chapter 13 reorganization bankruptcy. Either one of these chapters, depending on the person's particular situation, will provide a great form of relief. Chapter 7 Bankruptcy Chapter 7 is the + Read More

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

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