Overview In this bankruptcy case study, we are going to analyze the financial situation for Ms. L., who resides in Chicago. She resides on Woodland Park Avenue of the East side of the city. She filed a chapter 13 bankruptcy back in 2006. Thus, she is eligible for either a chapter 7 bankruptcy case or a chapter 13 bankruptcy case at this time. She does not own a home. She is currently renting. She has a yearly lease which expires in about one month. She owns a 2008 Hyundai Accent, financed by Credit Acceptance. She would like to keep that vehicle and she is current on her monthly payment of $153 per month. She purchased the vehicle approximately six months ago and would very much like to + Click Here For Read More

I just spoke to a young lady this morning who cosigned on a vehicle. The other person on the hook for the vehicle debt has just filed for chapter 13 bankruptcy. The vehicle is not going to be reorganized through the chapter 13. Thus, the auto finance company has the right to modify the automatic stay and pursue the codebtor. However, the codebtor, who possesses and drives the vehicle, intends to continue to pay for the vehicle. The question now has arisen as to what is the status regarding the ownership of the vehicle?  Additionally, the person filing bankruptcy wants to meet with the codebtor at the DMV and transfer ownership of the vehicle. There is no way that actual ownership can + Click Here For Read More

Be honest Be honest with yourself, your attorney, the trustee, the court and anyone else involved in your bankruptcy case. The first question to ask is do you really need the help? Are you someone who has a small amount of debt that is manageable over the course of six months to a year or are you someone who is drowning with insurmountable debt which cannot be remedied on your own?  Once you come to the realization that you need help, you will want to make full disclosure of your assets and liabilities and your statement of financial affairs with your attorney. Your attorney will then be in the greatest position to advise you as to your rights and obligations under either chapter 7 or + Click Here For Read More

Code Provision There are times when you may need to convert a chapter 13 bankruptcy case to a chapter 7 bankruptcy case. Section 1307 of title 11 USC provides for conversion or dismissal. In essence, under section (a), a debtor may convert a case under Chapter 13 to a case under Chapter 7 at any time. However, there are some restrictions to that general statement. A case may also be converted for cause, including unreasonable delay by the debtor that is prejudicial to creditors, nonpayment of any fees and charges required under Chapter 123 of title 28, failure to file a plan timely under section 1321, failure to commence making timely payments under section 1326, denial of confirmation of a + Click Here For Read More

The New Agreement Getting paid as a chapter 13 debtor's attorney has always proven somewhat difficult. Not the least of which is that the debtor typically must make chapter 13 plan payments from which counsel can be paid. Add on top of that the fee application, the fee order and the presentment been before the court and there are plenty of moving parts from which failure is imminent. Which brings me to the new court approved retention agreement to be used by debtor's counsel and their clients in chapter 13 bankruptcy cases. The new agreement was announced on the bankruptcy courts website on September 12, 2016. The new agreement must be utilized in all cases filed on or after September 19, + Click Here For Read More

When someone is looking to file chapter 13 bankruptcy, they obviously want to pay back as little as possible. They also want to gain the greatest amount of relief during the process. There are a number of factors that go into determining whether or not the monthly payment is going to be high, low, or somewhat in between. It is basically based on assets, liabilities, monthly income and monthly expenses. In a recent case, a client who filed five previous chapter 13 bankruptcy cases is seeking to have her chapter 13 plan payment lower than originally filed. Let's examine the facts of the case. Previous Filings As I mentioned previously, the debtor had filed five previous chapter 13 bankruptcy + Click Here For Read More

I came across a woman recently who was considering chapter 7 bankruptcy. She had a home that was underwater by more than $175,000. She had absolutely no intention of keeping the home. Her goal was to stay in the home for as long as possible, surrender it to the lender after a sheriff sale, and eliminate or discharge the underlying debt through chapter 7 bankruptcy. This sounded like a good plan until we examined her assets with a high level of scrutiny. Vehicle Assets The first hurdle that we had to get over in terms of assets was her numerous vehicles. She had two relatively old vehicles which were not going to pose a problem. One was a 1998 Chevy which was worth approximately $500 and + Click Here For Read More

Nobody wants to file for bankruptcy.  However, circumstances can spiral out of control and you can find yourself without any choice.  You were laid off from work or had unexpected medical bills. You had to make a choice between paying the monthly credit card bills or putting food on the table.  The choice is easy.  When you realize that you can’t keep up with your credit card payments, you consult with your bankruptcy attorney. What about income taxes?  Most clients don’t know that unpaid income taxes can be discharged if certain requirements are met.  It’s common that clients don’t list or bring up old income taxes owed as a debt, because they mistakenly believe that income taxes can + Click Here For Read More

Loan modifications come in many different forms and at many different times as they relate to a bankruptcy filing. The most common loan modification is one that avoids bankruptcy entirely. I'm referring to a person or couple that fall behind on their mortgage, reach out to their lender for loss mitigation opportunities and are lucky enough to complete the loan modification process to a successful conclusion. This can result in an interest rate reduction, a deferment of the default to the end of the loan, a change in the length or term of the loan and in the rarest of cases, provide for a principal reduction. If this is able to be accomplished initially, then there should be no interplay + Click Here For Read More