Bankruptcy Matters For The Collar Counties To Be Heard In Chicago

A new announcement has just been submitted by the Clerk of the United States bankruptcy Court for the Northern District of Illinois. Going forward in the post-Covid future, the outlying collar county court calls will no longer be heard in those collar counties. The matters will be heard via Zoom for Government or a party may appear at the Dirksen Federal Building in Chicago. Importantly, the Judges will be hearing the collar county matters from his or her bench in Chicago. This will eliminate the need to travel to the collar counties and will eliminate the need to acquire court space in those counties. Everything will be taking place in Chicago with regard to court for the Northern + Read More

Finding a Trustworthy Bankruptcy Attorney in Illinois

The decision to file for bankruptcy is one that may take a lot of time and thought.  It often comes at a very difficult time in one’s life.  The stress and uncertainty about the anticipated results as well as the fear of what the future will look like only adds to the difficulty.  Without the right attorney, your case can turn into a nightmare.  Do not make that mistake. Find the right bankruptcy attorney in Illinois. A firm specializing in bankruptcy law is the best bet to fight for one’s legal rights aggressively.  The right firm can help eliminate debt while maintaining one’s property and dignity. + Read More

American Bankruptcy Institute’s Recommendation For Student Loans In Bankruptcy

  Dischargeability of Student Loans The American Bankruptcy Institute recently released their final report on consumer bankruptcy. This report took place from 2017-2019 and analyzed dozens of issues as they relate to Chapter seven and Chapter 13 bankruptcy. The first issue that I would like to address is the non-dischargeability in general of student loans. As the law currently stands, student loans or any loans for an educational purpose are deemed to be non-dischargeable.  This is the case unless a debtor can successfully bring an adversarial complaint proving that the student loan imposes an undue hardship on the debtor and thus should be dischargeable. Because those + Read More

Bankruptcy Filings Are Up In 2019

As the new year has begun, it is time to look at the bankruptcy filing statistics from the first part of 2019 as compared to the first part of 2018. This fact will dictate where we may be heading for the rest of 2019. As expected, total bankruptcy filings in January 2019 increased 5 percent from January 2018’s total of 54,650 filings. Importantly to consumer bankruptcy attorneys as well as to the general public, consumer filings increased 6 percent in January 2019 to 54,711 from the January 2018 consumer filing total of 51,758. Although we see a significant increase by way of percentage, this actually shows that lending has loosened up and people are gainfully employed to a + Read More

City of Chicago’s New Ordinance Regarding Parking Tickets

When: Effective January 1st, there is new help for Chapter 7 debtors who owe money to the City of Chicago for  parking tickets and related fines.  A new Ordinance, sponsored by Mayor Emanuel provides in part that: Payment Plan: An eligible bankruptcy debtor may establish a payment plan to repay fines that were incurred within three years of the Chapter 7 bankruptcy filing.  These fines will be reduced to the principal only and can be paid over a series of 6-12 months. Waiver of Fines & Penalites: If the debtor completes the payment plan and receives a discharge in bankruptcy, the City of Chicago will waive any fines, penalties and fees that were incurred more than three years prior + Read More

Chicago Chapter 13 Trustee’s Squeezing Debtors Into Dismissal

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 + Read More

Bankruptcy Case Study For Ms. F., From Aurora, Illinois

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 + Read More

Paying The Chapter 13 Bankruptcy Trustee

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. + Read More

Filing The Right Bankruptcy Case Under The Proper Chapter

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, + Read More

Changing Bankruptcy Attorneys Mid-Case: Does It Ever Make Sense?

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 + Read More