Car Impounded? You Still Have Good Options

  Booted, Repossessed, Impounded Other than death, divorce and job loss, there is nothing worse than heading out to your car only to find out that it has been either booted, repossessed or impounded. If you find yourself in such a situation, you still have options to retrieve your car. The remedy is chapter 13 bankruptcy which allows for you to recover your car and repay whomever you owe on that vehicle over a period of 3 to 5 years. This is typically done at a lower monthly rate than what you may currently be under contract to pay. Parking Ticket Debt Let's examine the situation where the car is impounded. If you owe the City of Chicago more than two outstanding parking tickets, + Read More

The Credit Report Does Not Tell All

Credit Report Determines Credit Worthiness In the last week, I have noticed more than one client relying way too heavily on information appearing on a credit report. These clients were under the impression that if something falls off the credit report, that they no longer owe any money to that particular creditor. What these clients are failing to understand is that the credit report is not a full listing of the amount of debt owed. The credit report rather, is a document utilized by lenders to determine credit worthiness. To whom a debtor owes money and in what amount is important to lenders in determining whether or not a person should receive a loan and if so, at what interest rate. The + Read More

Bankruptcy Case Study – April, 2016

Facts: This is the bankruptcy case study for Miss Y., who resides in Lake County, Illinois. We are going to examine whether or not this person qualifies for bankruptcy and whether or not this person should file for bankruptcy relief. Let's look at the specific fact pattern. The first thing to note is that the debtor filed a prior chapter 7 bankruptcy in 2006. Thus, we have an individual who is not only aware of the relief that chapter 7 provides, but is familiar with all of the requirements which have been in place since prior to her initial case filing. With that in mind, let's see what she owns and owes. Property In terms of real estate, she does not own any property. She is currently + Read More

You May Be Closer To Having Your Car Booted Then You Think

If you live in the City of Chicago, you have no doubt seen the boot installed all over your neighborhood. This is especially true around tax time when the city knows that the residents typically have access to some sort of tax refund from which to pay off city debts. In years past, to be eligible for the boot, a registered owner of the vehicle had to have a fairly significant amount of either tickets and/or debt owed to the city. However, things are much different today. Boot Eligibility Vehicles can become boot eligible into basic ways: 1) If the vehicle accrues three or more unpaid parking, red light, and/or automated speed enforcement tickets in final determination status. 2) If + Read More

There Is Only One Absolute Requirement Prior To Filing Bankruptcy

Code Requirements The bankruptcy code enumerates several items that need to be provided in terms of bankruptcy filing. These include, but are not limited to, credit counseling, production of tax returns, production of pay advices and other items that may be requested by the panel trustee or Chapter 13 trustee. If your bankruptcy attorney is requiring that all of the items be provided prior to filing, then you are receiving some misinformation about what is actually required to file for bankruptcy. One Absolute Requirement The only absolute requirement which must be satisfied before a bankruptcy case can be filed under either Chapter 7 or Chapter 13 of the bankruptcy code is the completion + Read More

What A Difference A Bankruptcy Chapter Makes: What A Relief!

Two Common Chapters Most people are aware that there are two common chapters of bankruptcy for individuals and families. The two chapters are chapter 7 and Chapter 13 of the United States Bankruptcy Code. Nearly 75% of all bankruptcy cases are of the chapter 7 variety. Chapter 7 provides for a fresh start for someone who has very little in the way of assets. However, there are exceptions to the fresh start under Chapter 7. These exceptions include student loans, recent taxes, parking tickets, child support, maintenance, and debts incurred by fraud. The remaining 25% or so of bankruptcy cases are of the chapter 13 variety. Chapter 13 allows for the reorganization of debt over a 3 to 5 year + Read More

Chapter 7 Bankruptcy Case Study For March, 2016

This is the chapter 7 bankruptcy case study for Ms. G., who resides in Chicago, Illinois. We are here to examine whether or not Ms. G. can qualify and benefit from a chapter 7 bankruptcy filing. Let's examine the facts of her case: she is currently residing in Chicago and she is renting. Her rental arrangement is month-to-month and her landlord lives in the very same building. She owns a 2007 Dodge Nitro which is financed by Honor Finance. The monthly payment on the vehicle is $342, her outstanding balance is $6,090 and she is current on the payment and would like to keep it. She also has a second vehicle, a 2004 Ford Explorer which is paid in full. We value that vehicle at approximately + Read More

Don’t Let Your Bankruptcy Case Close Without A Discharge

Your bankruptcy case should never close without a discharge. To prevent this from happening, you must complete a two hour financial management course at some time after your case is filed and prior to discharge. This gives you a window of approximately three months to complete the financial management course. If you fail to do so, your case will close without a discharge. At that point, creditors are free to pursue collection efforts against you until such time that you bring a motion to reopen the case, to allow for the filing of a financial management certificate and subsequent case closing. This motion to reopen is accompanied by a filing fee of $260 as well as a typical attorney fee + Read More

Your Tax Refund May Not Be Safe In A Chapter 7 Nor In A Chapter 13 Bankruptcy Case

Tax Refunds Time It's that time of year again. This is the time when many debtors look forward to receiving their federal and state income tax refunds. Debtors rely on these refunds all year long to get them through this period of time. Throw in the bankruptcy wrinkle. A debtor who is struggling financially seeks the protection of the bankruptcy court only to realize that the tax refund is potentially at risk. This is true in both the chapter 7 and the chapter 13 bankruptcy case situations. Chapter 7 & Your Refund Let's examine the chapter 7 scenario. Under Illinois exemption laws which apply to a chapter 7 bankruptcy case, an individual is allowed to protect up to $4000 worth of + Read More

When Your Chapter 13 Plan Payment Is Not Written In Stone?

In most chapter 13 bankruptcy cases, upon confirmation, a monthly payment is set in place and it will not vary. However, there is always an exception to this rule. In some circumstances, the debtor can bring a motion to modify the plan such as a case where there is a significant decrease in income. Well what is good for the goose is good for the gander. Thus, the Chapter 13 trustee has the ability to bring a motion to increase the plan payment should there be a significant increase in income. This is provided for under section 1329 of the United States Bankruptcy Code which is entitled “modification of plan after confirmation.” One of my recent debtors just incurred this event. In our + Read More

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