The Percentage Will Depend Many clients want to know what percentage is going to get paid back to creditors if they file chapter 13 bankruptcy. The answer to this question depends on a number of different factors. First, the debtor's income is factored into the equation right from the start. Second, we have to take a look at the debtor's monthly expenses or budget items. The difference between the income and expenses is typically what is paid back through a chapter 13 repayment plan. That difference is known as disposable monthly income or DMI. How The Percentage Is Calculated Now the amount that needs to get paid is the disposable monthly income over a period of anywhere from 3 to 5 + Click Here For Read More

A Chapter 7 bankruptcy case can take can take anywhere from 3 to 4 months if someone moves very quickly.  Allow me to explain.  Chapter 7 involves the filing of a bankruptcy petition.  The bankruptcy petition has to be prepared, signed by the client; the client must then take credit counseling and provide the most recent federal tax return and the most recent two months of paycheck stubs.  If the client is able to do all of this relatively quickly, then we can file the case within a matter of a few days or a week.  From that filing date, the statutory timeframe is approximately 110 days.  So if somebody really wants to get the process going and they are really prepared, we can file quickly + Click Here For Read More

Immediately after filing a bankruptcy case you have the ability to apply for credit. Most lenders are going to want to have you wait approximately 6 months to two years before extending you any kind of unsecured credit. You can apply for auto financing immediately after a bankruptcy filing. This is known as open bankruptcy financing and it could happen immediately upon filing. The more common approach is to wait until your discharge, and then apply for an auto loan. My recommendation is to apply for a secured credit card after your bankruptcy case is filed. A secured credit card is issued by a bank utilizing money that you put on account at that bank. Thus, you have the convenience of + Click Here For Read More

The bankruptcy petition is the document that gets filed with the clerk of the United States bankruptcy court. The petition is basically everything about you financially. It encompasses all of your assets, your liabilities, your income, your expenses and your statement of financial affairs. The bankruptcy petition is what the chapter 7 trustee is going to examine to determine whether or not you are entitled to a bankruptcy and whether or not you are going to have to give up any assets as part of your liquidation, fresh start. The petition starts with general information such as your name, your address, your Social Security number, the county that you live in, and whether or not you have + Click Here For Read More

When Chapter 13 Bankruptcy Is Used Chapter 13 is a reorganization under the United States Bankruptcy Code.  Chapter 13 allows you to repay debt over a three to five-year period.  It’s most commonly used to save a home that’s been in foreclosure or to save a vehicle that’s been repossessed or to stop collection activity on non-dischargeable debt such as parking tickets, child support, tollway violations, IRS debt and more.  Debtor Has Income To Fund Plan Chapter 13 bankruptcy works the best when someone has the income to pay where they didn’t have the income before.  For example, if someone was off of work due to an illness, and injury and all of a sudden got back to work and now has the + Click Here For Read More

A credit counseling session must be taken prior to a bankruptcy case being filed. You want to make sure that you do not take the credit counseling too far in advance of your bankruptcy filing. The bankruptcy code mandates that the credit counseling session must be completed within 180 days prior to your actual filing. I have come across clients who jump on the credit counseling early only to find out that they have to take it a second time. The typical scenario is that someone will come to me for chapter 7 or chapter 13 bankruptcy relief.  I will inform them and advise them about the pre-filing credit counseling requirement. I will also advise them to not take the pre-filing credit + Click Here For Read More

This is a case of Santana Magentey who comes to me from South Ellis Ave., Chicago, IL. Santana is coming to me for a free, initial consultation regarding bankruptcy. She basically wants to know if she can re-file a chapter 7 bankruptcy case to obtain a new start. Let's take a look at the facts of her case. She did file a chapter 7 bankruptcy back in 2011.  However, she did not receive a discharge. She did not receive a discharge because she never completed the two hour financial management class. Plus, she is eligible for a discharge because she has not received one in the past. Assets In terms of real estate property, she has no real estate. She is currently renting an apartment and + Click Here For Read More

When you file for chapter 7 bankruptcy and you have a secured vehicle, you have three choices which you can make. You can either reaffirm on the debt, you can redeem on the debt or you can surrender the property in full satisfaction of the debt. If you decide to reaffirm the debt on your vehicle, then you are basically agreeing to be bound by the terms of the agreement going forward. This means that if you fall behind on that vehicle in the future, the lender can repossessed the vehicle, sell it at auction, and come after you for the deficiency even though you filed the chapter 7 bankruptcy. Thus, you want to make certain that if you reaffirm your vehicle debt, that you are making a wise + Click Here For Read More

Chapter 13 Bankruptcy - Payroll Control In some jurisdictions, payroll control is mandatory.  This is where the money to pay your Chapter 13 trustee is deducted by court order out of your pay.  Now, payroll control can only work if you have a job.  If you are self-employed, or if you are on unemployment, if you are on Social Security disability or if you have rental income or other types of income when you are not employed, payroll control cannot kick in.  However, if you are someone who gets a paycheck, whether it’s weekly, biweekly or any other frequency, then payroll control can help you and I recommend it. Payroll Control Upsides The great thing about payroll control is that as long + Click Here For Read More

The Code Dictates The bankruptcy code is what governs every issue of a bankruptcy filing. Under chapter 7 bankruptcy law, the bankruptcy code dictates as to what must be done with regard to particular, secured property. For example, if you have a financed vehicle in a chapter 7 bankruptcy case, the bankruptcy code mandates that you make an election. You can either reaffirm the debt on that vehicle, redeem the debt on that vehicle or surrender the vehicle in satisfaction of the debt. You simply only have those three choices with regard to a secured vehicle debt in a chapter 7 bankruptcy case. You no longer have the ability to simply continue to make monthly payments without a valid + Click Here For Read More