Archives for 2017

Taxes, Refunds & Dismissals During the past several years, there has been a huge increase in Chicago trustees under Chapter 13 demanding taxes and refunds of the debtors. The bankruptcy code requires that a debtor provide to the trustee, annually, a copy of his or her tax return. This statutory requirement was primarily to ensure that a debtor being afforded protection under Chapter 13 of the bankruptcy code concurrently complied with federal tax law. Surprisingly, most debtors proved to be in compliance and simply provided a copy of the return when requested by the trustee. However, as time passed, this simple turnover of the proof of return didn't satisfy the trustees. When reviewing + Click Here For Read More

Initial Facts This is a bankruptcy case study for Ms. F. who resides in Aurora, Illinois. She is in the office to determine whether or not she can qualify for chapter 7, the fresh start bankruptcy. Otherwise, she is potentially interested in a chapter 13 bankruptcy case which is a reorganization of debts. Let's look at the facts of the case. She is a homeowner with a market value of $158,000. She is current on her first mortgage with Everbank and the outstanding balance totals $124,000. When we calculate in her homestead exemption of 15,000, costs of sale, and associated fees for transferring real estate, there does not seem to be significant equity in the property. For this reason, chapter + Click Here For Read More

If you are gainfully employed, the payment will most likely come directly from your wages in the form of a payroll control order. If you are self-employed or do not receive a regular pay check, then you will have to make the payment directly to the Chapter 13 Trustee. If you fall behind on your payments, the Trustee or a creditor can bring a motion to dismiss your case. + Click Here For Read More

Chapter 7 or Chapter 13 For consumers who are thinking about filing for bankruptcy, the advice of which chapter to file from an attorney is the most critical piece of information right from the start. The difference between Chapter 7 and Chapter 13 is significant. Chapter 7 is known as a fresh start which allows for the elimination of miscellaneous, unsecured debt such as credit cards, medical bills, personal loans, utility bills and debts for other types of services. The case typically lasts no longer than four months and most debt will be eliminated with the exception of student loans, parking tickets, recent taxes, child support, maintenance, and other nondischargeable debt. Chapter 13, + Click Here For Read More

While it is possible to change bankruptcy attorneys in the middle of the case, it often will not make a difference in the outcome of the case. The relationship between a client and a bankruptcy attorney is one of trust, confidence, respect, diligence and communication. If there is a breakdown in any one or more of these areas, then it may be wise to make a change as to attorney. However, clients often want to make a change because they are seeking either alternative advice or a different result. In these cases, it may make sense to stick with the attorney that you hired originally. In recent chapter 13 case which was confirmed and well underway for the past two or three years, the thought + Click Here For Read More

New Rules To Recover Impounded Vehicles In recent months, there has been a tidal wave of activity surrounding bankruptcy, the City of Chicago, parking tickets and consumers trying to recover their impounded vehicles. For many years, it was common practice for the City of Chicago to release vehicles back to a debtor upon the filing of a chapter 13 bankruptcy. This was done in most cases as a legitimate way to recover collateral while also proposing a repayment plan for a portion of the parking ticket debt. Some of these cases actually made it through to completion of the plan while others died either a slow death or a quick death. Unfortunately, the system was abused by many individuals, pro + Click Here For Read More

You should complete your Chapter 13 bankruptcy case before you apply for new credit. You should wait the 3-5 years while the case is running since you are holding off your current creditors. In some cases, a vehicle can be purchased and financed after filing, provided a proper motion is brought before the court which gains the approval of the court. Some lenders will contact Chapter 13 debtors for credit opportunities despite the general rule that it should not be done. + Click Here For Read More

For over 11 years, the Legal Action television show has been airing on a weekly basis throughout the suburbs of Chicago on Comcast. Providing exceptional legal advice in the area of bankruptcy is a valuable tool for many people who are either considering bankruptcy or who have already made that decision to file. The information shared with the viewers over the past 11 years has hopefully helped people feel more comfortable about the process, be better prepared for the process and most importantly, wind up with a fantastic end result. Chapter 7 v. Chapter 13 For many people, chapter 7 is the best option. Chapter 7 will eliminate most debts except for student loans, recent taxes, parking + Click Here For Read More

I’m So Afraid To File Bankruptcy There is a very common concern or fear among those that are in debt with regard to filing for bankruptcy relief. They fear what they don't know. They don't know whether they are going to ever get credit again. They fear whether the entire world is going to find out about the bankruptcy filing and whether or not that filing is going to follow them for the rest of their lives. There is also a fear of failure. Some people look at bankruptcy as an absolute failure as a financial endeavor. Others however, look at bankruptcy as the fresh start for which it was really designed to be. Bankruptcy goes all the way back to biblical days. It was also made a part of the + Click Here For Read More