When Your First Chapter 13 Bankruptcy Case Fails, Don’t Give Up

Chapter 13 bankruptcy is complicated. They are difficult cases from the standpoint of debtors, creditors, bankruptcy attorneys and at times the bench. For this reason, things don't always proceed smoothly the first time through the process. Like anything else, there is a learning curve to doing things. For debtors, the learning curve can be drastic. For example, the debtor needs to commence making timely payments to the chapter 13 trustee as well as to certain creditors in certain cases. Debtors have found this to be difficult in that they were struggling to make payments to creditors prior to filing. In a chapter 13, we are asking the debtor to all of a sudden be perfect. In some cases, + Read More

A Fourth Option To Deal With Your Car In Bankruptcy

While it is typically true that there are generally three options available to debtors in a chapter 7 bankruptcy with regard to their autos, there may in fact be a fourth option. In a chapter 7 bankruptcy case the debtor has the ability to reaffirm, redeem or surrender and auto. A fourth option which seems to be making a comeback is the good old retain and pay or ride-through option. Let's examine these options. Reaffirmation of Auto The most common option for a debtor is to reaffirm the debt on a vehicle. This option allows the debtor to retain the vehicle through the bankruptcy and be obligated for the outstanding balance after the bankruptcy. Provided the debtor is current on his or her + Read More

Bankruptcy & The Automatic Stay

In this excerpt from Legal Action, Attorney David M. Siegel talks about the creation of the automatic stay in bankruptcy.  Some debts are eliminated whereas others are not.  It all depends upon the type of debt and the type of bankruptcy. Interviewer: What happens if I’ve got a garnishment or a threat of garnishment or maybe a creditor is suing me and I have to go to court in two weeks for the small claims case or whatever for the credit card.  What is filing a Chapter 7 going to do for me initially?  David Siegel: Chapter 7, once a case is filed, there’s something called an automatic stay which is created.  It basically states that the case is filed, there’s a case number, there’s a + Read More

David Siegel Talks On Legal Action Television Show

In this excerpt from the Legal Action television show, Attorney David Siegel talks about the types of debts that can be eliminated in a Chapter 7 case.  He also covers the fact that student loans are not typically eliminated in bankruptcy. What type of debts can be eliminated through a Chapter 7 Bankruptcy? A: David Siegel - Any kind of credit card, medical bill, personal loan, past due utility, auto repossession deficiency, money that was lent to you by a family member or a friend or a payday loan store.  Those are the typical debts that get eliminated in the Chapter 7 without much of a problem.  A problem could come in a case where someone runs up their credit cards in anticipation of + Read More

Completing All Of The Pre-Filing Bankruptcy Requirements

This excerpt from the Legal Action television show highlights the fact that there are pre-filing requirements that must be satisfied prior to filing for bankruptcy.   Long gone are the days where a person could simply fill out some papers from an office supply store, head down to the Clerk of the U.S. Bankruptcy Court and obtain relief from creditors.  In fact, the law has become so complex that many attorneys have decided to not practice in the bankruptcy arena anymore.  However, there are still plenty of dedicated professionals that have made helping people get out of debt their life’s work.   When you come across such an attorney, you will see the passion his eyes.  The passage below is + Read More

Chapter 7 Bankruptcy Answers

Chicago bankruptcy attorney David M. Siegel answers a few important questions pertaining to Chapter 7 bankruptcy.  The questions were made a part of the Legal Action television show which airs in the Chicago market. Whats a Chapter 7 Bankruptcy?  Interviewer: What’s a Chapter 7? David Siegel: Chapter 7 is the most common form of bankruptcy.  About 75 percent of the cases that are filed are of the Chapter 7 variety, and that’s known as the fresh start bankruptcy.  Chapter 7 is where someone has very little in the way of assets, and a lot of debt. Whether it be credit cards, medical bills, personal loans, past due utilities, auto repossessions, foreclosures. Whatever it might be Chapter 7 + Read More

No Directive From Chicago Area Chapter 13 Bankruptcy Trustees Yet

You may have heard that effective June 12, 2015 there is a proposed order to employer to pay the trustee for chapter 13 cases in the Northern District of Illinois, Eastern Division, bankruptcy court. The proposed order can be submitted by the attorney for the debtor or the trustee. However, we have not heard any directive from any of the three Chicago area chapter 13 trustees as to how they plan on implementing or dealing with this new order. Specifically, is the trustee going to be submitting orders as they have in the past? Are the chapter 13 trustees going to rely on the debtor's attorney exclusively to submit the payroll control orders? Will the trustees forward the executed order to the + Read More

Final Review Of Your Chapter 13 Bankruptcy Petition

Before your bankruptcy attorney pulls the trigger on an actual filing, you should undergo a thorough final review of your petition. You may discover that your monthly plan payment can change based upon your current circumstances. You may have assets that have shifted or otherwise transferred in the ordinary course of business. You also may have additional creditors which must be added to your bankruptcy case prior to actual filing. For these reasons and more, you should sit down with your attorney to conduct a final review prior to filing your case. Recent Example In a recent example, a woman came to the office who was in the process of filing. She had already completed the credit + Read More

Getting Out Of Your Mortgage Debt With Bankruptcy

With so many Americans underwater with their homes, it should not be surprising that many people have elected to walk away from their homes and file for bankruptcy. Chapter 7 bankruptcy allows for the liquidation of property, real and personal. The debtor has the opportunity in a chapter 7 bankruptcy case to surrender items that are secured by a lien. This often falls within the nature of a vehicle. However, it's becoming more and more common to see it be in the nature of a home. This option is available provided the debtor qualifies for chapter 7 bankruptcy relief. If the debtor does not qualify for chapter 7, he may qualify for chapter 13 bankruptcy. A debtor in chapter 13 can also + Read More

Chapter 13 Plan In Bankruptcy Can Be Modified

It is basically true that a chapter 13 plan typically will have a monthly dollar amount which will last for the duration of the case. However, there are certain circumstances were a chapter 13 plan in bankruptcy can be modified. One such case would be where the debtor has fallen behind on his monthly plan payments and the trustee has brought a motion to dismiss. Depending upon how much room is available during the 60 month plan, the arrearage portion can be moved to the end of the plan in certain circumstances. In a recent case, I'm dealing with a debtor who has been struggling with his chapter 13 plan payments for the past two and half years. He has gone through several job changes, + Read More