About 10 to 20 years ago, I would see the same typical creditors in a bankruptcy case. I would likely see credit card debt, outstanding medical bills, parking tickets, tax debt, and an occasional unsecured, personal loan. These are the majority of creditors that made up bankruptcy cases 10 to 20 years ago. My how things have changed. Yes, all of the above listed creditors still exist and still dominate the bankruptcy schedules. However, there is a new crop of creditors who have arrived on the scene and in full force. The examples in the paragraph above are basically extensions of credit. The new crop of creditors are extensions of credit but not to buy something. They are extensions of + Click Here For Read More

Most people thinking about filing for bankruptcy are understandably concerned about paying for the service. They wonder how in the world they going to pay the attorney’s fees and the court costs in an effort to get out of debt. After all, they have very little available per month after they are paying all of their necessary bills. The good news is that most attorneys will offer some form of payment plan and provide a debtor with an opportunity to get some relief. Let me explain the traditional format. The traditional format is where a client makes payments over time to a bankruptcy attorney who then files the case officially with the bankruptcy clerk once those fees are paid in full. + Click Here For Read More

When you file a chapter 7 bankruptcy, you are basically telling creditors that you have no significant assets from which to pay them. To prove this, on your bankruptcy petition you must list all of your property of every nature. You are then allowed to protect or exempt a specific amount of property depending upon which state you live in. Each state has a different dollar amount that can be protected. In the state of Illinois, the amount that you can protect is much less than most other states. Tax Refund Is Personal Property Now you might not think that your income tax refund is personal property. But I guarantee you that your chapter 7 trustee will view it as personal property. For this + Click Here For Read More

I recently had a client who was reorganizing student loan debt over a five-year period. He was willing to pay back 10% of the student loans knowing full well that the other 90% would be due and owing plus interest after his bankruptcy case was over. He did have some minor credit card debt and minor medical bills that were also going to be paying back 10%. When it turns out, at the end of his bankruptcy, he receives a letter from his trustee indicating that he needs to take a two hour financial management class in order to obtain a discharge. He then contacts my office to determine whether or not he should take the class or not. The answer may surprise you.  Solution: Chapter 13 + Click Here For Read More

Most people do not wish to file for bankruptcy. They know there's a psychological aspect. They know there's a monetary fee. They know that there is a process. In fact, most clients wind up filing for bankruptcy after some catastrophic event triggers the necessity to file. Wouldn't it be wise if on certain occasions people filed bankruptcy preemptively before such a catastrophic event. Let me give you a few examples of where this would be wise. Bankruptcy & Outstanding Tickets 1) If you have tickets with the city of Chicago and you know that you are approaching the number required to make the boot list, then filing bankruptcy preemptively would be wise. By doing so, you can avoid the + Click Here For Read More

This is the bankruptcy case study for E.A. from Montgomery, Kendall County, Illinois. He is here to see whether chapter 13 bankruptcy will provide debt relief for him. Let's look at the facts of his case: he is currently a homeowner with a market value of $149,000. (www.zillow.com)He has two outstanding loans on the property. The first mortgage is with Seterus with an outstanding balance of $136,000. He also has a second mortgage with BMO Harris with an outstanding balance of $52,000. He is up to date on the first mortgage and is behind on the second mortgage by $14,000. In terms of vehicles, he has a 2008 Nissan which is paid in full with a value of $8000. He also has a 1998 Volkswagen + Click Here For Read More

I have had bankruptcy clients who have been overly concerned with their credit score before, during, and after they have filed for bankruptcy. The credit industry, including the credit bureaus and the credit protectors, have done a great job of marketing to Americans the importance of having a good credit score. What they fail to do is to advise you that the amount of debt you are caring in relation to your score is also very important. I would much rather have a lower credit score and zero debt than to have a great credit score with overwhelming, outstanding debt. It is also amazing that most bankruptcy clients feel the need to share with their bankruptcy attorney the fact that they had + Click Here For Read More

I know it's tempting to utilize the value of your car to obtain money. I also know you're inundated with TV commercials, radio commercials, signs on the expressway and stores popping up in your local neighborhood offering you money for your title. I also know that desperate times often lead to desperate measures. The problem with the title loan is that you are really paying excessive interest when obtaining the money you desire Have you thought about other ways that you can possibly acquire funds? Have you explored other avenues such as retirement savings, pay advances, and other ways to gather funds without incurring a huge interest charge?  You should be aware of exactly the high + Click Here For Read More

If you want to get the best result for your bankruptcy case, then you need to listen really closely to your bankruptcy attorney when he's giving out his advice. If you fail to follow the advice, you may find yourself owing people money after your bankruptcy case is over. The most common example of this is when clients incur credit and debt within 60 to 90 days of filing for bankruptcy. Below is the perfect example. A client comes to me with $50,000 or more in credit card debt, is feeling the pain of that debt and wants bankruptcy relief. I inquired as to whether or not the client has used the cards in the last three months and he tells me yes. I then advise him that he needs to stop using + Click Here For Read More

Filing Bankruptcy with too much property? If you or someone you know is thinking of filing bankruptcy, the value of the property that one has must be ascertained. If you have very little property and if the market value is low, you will more likely than not be eligible for a chapter 7 fresh start bankruptcy filing. If, on the other hand, you have assets that exceed the state of Illinois exemption amount, then you will likely file a chapter 13 to protect your property as opposed to losing it to a chapter 7 trustee's liquidation. I recently met with a man in my office who was married but his wife was not present at the consultation. There were two particular items of property that + Click Here For Read More