You don't have to be employed to file Chapter 13 bankruptcy. However, you do need a steady source of income to be able to fund the chapter 13 plan. This income could be Social Security, disability, rental income, investment income, unemployment benefits and other sources of income such as family assistance. There is a misconception out there that you have to be employed to be able to file a chapter 13 bankruptcy. This is simply not true. In fact, I have had many cases confirmed where the person had no income from a job but was only receiving Social Security, unemployment, or other types of benefits. Obviously the success of your chapter 13 case depends upon you making regular, timely + Click Here For Read More
Three Tips For A Successful Chapter 13 Bankruptcy Case
May 15, 2014 by
Chapter 13 Bankruptcy Case Tip 1 There are many tips that I can give you which will help you have a successful chapter 13 case or at least the most success possible under your circumstances. The biggest tip that I can give you however, is to go on payroll control for your chapter 13 trustee payments. Payroll control is where the amount required for your chapter 13 gets deducted directly out of your pay. This means that you do not have the ability to make the payment on your own. You are basically giving up a certain amount of control whereby your chapter 13 plan payment is taken directly out of your pay and transferred over to your chapter 13 trustee. Studies have found to an + Click Here For Read More
Bankruptcy Case Study For Eddie B. From Chicago, Illinois
May 14, 2014 by
Real Estate Property This is the case of Eddie B. who comes to me from Chicago, Illinois, which is located in Cook County, Illinois for a bankruptcy consultation. Eddie has filed a chapter 7 bankruptcy but it's been over 12 years so he is eligible to file again. He owns a single-family home worth approximately $180,000 and his mortgage debt is $170,000. Thus, he does not have significant equity and he will be permitted to keep that house as long as he continues to make his monthly payments. He also has a homeowner’s association fee of $155 per month and he is up to date. Personal Assets He has a 2011 Acura financed through the credit union at the rate of $556 per month with a total + Click Here For Read More
When Is Filing Chapter 7 Bankruptcy A Mistake?
May 13, 2014 by
Filing Is A Mistake If.... Filing chapter 7 bankruptcy is a mistake if you have assets that are going to be taken in exchange for your fresh start. It is one thing if you know that your assets are going to be taken and you're willing to sacrifice them. It's quite another thing to have the trustee demand your assets when you thought that they would be protected. This happens when people either underestimate the value of the property or fail to disclose the existence of particular property. Your attorney will do the best to protect your assets but he or she must know exactly what you possess. Is The Debt Dischargeable? It is also a mistake to file chapter 7 bankruptcy if the type of debt + Click Here For Read More
What Happens To Personally Guaranteed Debt In A Business Bankruptcy?
May 13, 2014 by
When a business files for bankruptcy and closes its doors, it is filing a chapter 7 bankruptcy. This means that the company or corporation will no longer operate under that name and will no longer transact any business whatsoever under that name. Provided the corporation has no assets, creditors are unable to collect on their outstanding debts against the corporation. However, what about a situation where the corporation debt was personally guaranteed by members of the corporation? In this scenario, the personal guarantees are still responsible or liable for the underlying debt. If you personally guarantee a business debt and the business files for bankruptcy, you may have to file for + Click Here For Read More
What Happens Immediately After A Bankruptcy Case Is Filed?
May 12, 2014 by
Everyone typically wants to know how long a bankruptcy case is going to take from start to finish. There is so much uncertainty about the process and about what a client must do to make it work. The transcript from the Video below outlines some of the keys points regarding timing. Please keep in mind that some cases may take longer than others depending upon the complexities of the issues and the diligence of the Trustee assigned to the case. Jesse Barrientes: So what happens then after you file, what -- first, how long does it take from the time that you file your petition for Chapter 7 to the time that you get discharged. Generally, how long is that? David Siegel: Well, a typical + Click Here For Read More
When Debt Has Got You Down…..Consider This!
May 9, 2014 by
If you are struggling financially, please know that help is available. You do not have to go through another spring and another summer with financial problems. Have you looked into filing bankruptcy? Have you looked into reorganizing under chapter 13? Have you explored all of your options to get out of this debt? If not, now is the perfect time. With the start of spring, nature begins again. Just like spring, bankruptcy can be a new beginning financially. This new beginning starts with taking one step forward towards your goal. The very first thing that you should do is to contact a qualified bankruptcy attorney in your city or town. Go ahead and take the time to meet with an attorney and + Click Here For Read More
What Happens To Unsecured Creditors If They Don’t File A Claim?
May 9, 2014 by
One of the many benefits of filing a chapter 13 bankruptcy case is the ability to repay creditors less than what's owed in many cases. Some cases don't require a full payment to unsecured creditors. This all depends upon the income and expenses of the debtor as well as the debtor's ability to repay the entire debt over a three to five-year period. In most cases, however, unsecured creditors are paid less than what is owed and as little as 10%. Once a chapter 13 bankruptcy case is filed, the clerk of U.S. Bankruptcy Court will send out a notice of filing to all the creditors listed on the debtor's petition. There is a timeframe whereby creditors must file a proof of claim. A proof of claim + Click Here For Read More
Credit Card Spending Can Lead To Bankruptcy Filing
May 9, 2014 by
In Chicago and around the country, people are over spending on their credit cards. Maybe it’s the have it now, pay for it later mentality. Maybe it’s the convenience of not having to carry cash. Maybe it’s the enticements of rewards by using the card. Whatever the reason, folks have become too reliant on credit cards in their lives. The video below talks about how using your credit card instead of cash can actually increase to the total dollars that you spend. In many cases, this will lead to an eventual bankruptcy filing. Jesse Barrientes: I find that a lot of folks are simply using the credit card to live. They are paying – they are buying groceries or they are buying things that they + Click Here For Read More
If I Fall Behind On My Chapter 13 Trustee Payments, Will My Case Be Dismissed?
May 8, 2014 by
A successful chapter 13 requires you to make timely, monthly payments to a chapter 13 trustee over the life of your plan. The plan could last anywhere from 36 to 60 months typically. Your plan may run less than that provided you pay off the debt in full. If you fall behind on your trustee payment, the trustee or a creditor can bring a motion to dismiss your case. When you fall behind with the trustee, there are no funds for the trustee to distribute that month. For that reason, creditors who are used to getting a monthly pro-rata payment, get nothing. This fact alerts them that there is a breach in your plan payments. By bringing a motion to dismiss, if they are successful, they will be able + Click Here For Read More
