How Soon Will I Get Credit After Filing Bankruptcy?

It's amazing to me that people are worried about getting credit before they even completed a bankruptcy case. This is due in fact based upon Americans desire and obsession for credit. After all, credit is what more than likely got the person into financial problems to begin with. Now there are other causes of bankruptcy filings such as medical bills, job loss, illness, divorce, but the main reason why people fall into bankruptcy is due to credit. Credit Score It seems that everyone is obsessed with credit and their credit scores. People want to know how is bankruptcy going to affect my credit score? I have to look at these potential clients in bewilderment. Why on earth are they asking me + Read More

Some Judges Making It Difficult For Bankruptcy Attorneys To Get Their Fees Ordered

Problems Getting Paid In The Past Over the past 20 years, I have been searching for the reason or reasons why bankruptcy judges make it so difficult for bankruptcy attorneys to get paid in Chapter 13 consumer bankruptcy cases. This goes all the way back to the early 1990’s when some judges would simply not sign the order. Perhaps the judges had too much work on their docket. Others created additional work by not granting the fees in a timely manner and instead put the applications on the back burner where they often remained lost. In the 2000's, we argued with the presiding bankruptcy judge to order our fees when the motion was first up to be heard with the original confirmation hearing. + Read More

Co-Debtor Stay In Bankruptcy

The co-debtor stay applies in chapter 13 of the United States Bankruptcy Code and goes into effect immediately upon the filing of the case. The co-debtor stay will prohibit any action or continued action to collect on a consumer debt from an individual who secured such debt or who is liable on such debt with the debtor with the exception being if the co-debtor became liable on such debt in the ordinary course of business. The co-debtor stay will apply provided the following legal requirements are met: 1) The primary debtor must have filed the petition for relief under chapter 13. 2) The debt involved must be a consumer debt which is a debt incurred by an individual primarily for + Read More

Lower Gas Prices May Forestall Some Bankruptcy Filings

Gas Prices Drop As gas prices continue to drop, the yearly benefit to the average consumer can approach $750.00 or more per year.  This precipitous drop in prices may help many that are on the fence about filing for bankruptcy.  For a married couple, the savings can approach $1,500.00 or more.  Here are the details: Six months ago, the average gas price was approximately $2.82 per gallon.  If figure the consumer drove 1000 miles per month with an average mile per gallon of 19, the total cost per year for gas would be $1,781.00.  Now that gas prices are averaging $1.82 per gallon, the total cost per year drops to $1,067.00.  This equates to an average savings of $714.00 which could vary + Read More

What Happens When I File Bankruptcy?

Below is a partial transcript of David M. Siegel as he talks bankruptcy law for the Legal Action television show which airs on Comcast Cable throughout Chicago and its suburbs: Interviewer: Let me ask you this.  I work at a bank so is my employer going to find out if I do a bankruptcy? David Siegel: Your employer’s typically not going to know about your bankruptcy unless he or she needed to be notified.  For example, if a client is being currently garnished and they come in for a Chapter 7 or a Chapter 13 and they want to stop that garnishment. We’re going to have to send proof of the bankruptcy filing over to the payroll department; so in that limited circumstance your job is going to + Read More

New Bankruptcy Forms Causing Some Administrative Headaches

Bankruptcy Form Changes On December 1, 2015, almost all of the bankruptcy forms and schedules were amended. Many clients who had already signed earlier versions of the forms and were awaiting filing, had their filings delayed because they had to re-sign and reread new forms. In certain circumstances, the forms had to be emailed or faxed to expedite an emergency filing. Now as we come to the conclusion of several cases, the official form 423 regarding certification about a financial management course has to be newly signed as well. The court granted a 30 day grace period after the forms were changed to utilize the earlier version of forms. Since we have now exceeded the 30 day grace period, + Read More

Bankruptcy Judges And Bankruptcy Trustees Vary Within The Northern District Of Illinois

Consistency Lacking If you are looking for consistency among the bankruptcy judges and the bankruptcy trustees in the Northern District of Illinois, you will be hard pressed to find it. Let's start by examining the bankruptcy judges in Chicago. Each bankruptcy judge comes from a different background, has a different viewpoint with regard to debtors and creditors and a different method of handling cases in his or her courtroom. The latest judge to enter the fray is Judge Thorne.  She is the most recent addition to the many judges that sit in the Northern District of Illinois. In a recent case under chapter 13, she denied the debtor's attorney’s fees for reasons stated on the record. When + Read More

Make A New Year’s Resolution To Get Out Of Debt

Resolve To Get Out OF Debt If you are struggling financially, you likely have been struggling for a number of years. It is very easy to fall behind on credit cards, get hit with unexpected medical expenses, and experience a job loss or other traumatic event in your life which could lead to debt. For many people, they suffer throughout the years trying to manage the debt, juggling which creditor to pay as well as deciding what necessities to do with or without. The good news is that for many Americans, there is an option to eliminate debt or reorganize debt over a three to five-year repayment plan for less than what is owed. What I'm talking about is chapter 7 and chapter 13 bankruptcy as + Read More

Average Cost Of Bankruptcy

From a recent episode of Legal Action which airs on Comcast Cable in the Chicago area, David M. Siegel discusses two common, but important questions regarding filing for bankruptcy.  The first is the financial management instruction requirement that must be completed post-filing.  The second is the typical range of fees that one could expect to pay for bankruptcy representation. Interviewer: Let me ask you this.  We did the pre-requirements, we filed the petition, and I’m going to go to a meeting. Interviewer: You talked a little bit earlier about the debt management course, which was a precursor before you can actually file your petition for bankruptcy or Chapter 7. David + Read More

City Of Chicago’s Parking Ticket Relief Is Nothing Compared To Chapter 13

Debt Relief Offered By The City of Chicago Every once in a while the City of Chicago will offer a debt relief program or amnesty program with regard to parking tickets and red light tickets. The most recent version of this program is going to last from November 15, 2015 through December 31, 2015. However, the only tickets that are eligible for relief are those issued prior to January 1, 2012 which have not already been enrolled in a repayment plan with the city. This means that any tickets issued within the last three years are not eligible to be repaid through their debt relief program. Let's examine their program: the debt relief that the city is offering will eliminate penalties and + Read More