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 + Click Here For Read More

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 + Click Here For Read More

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 + Click Here For Read More

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 + Click Here For Read More

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 + Click Here For Read More

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 + Click Here For Read More

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 + Click Here For Read More

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 + Click Here For Read More

Not every married couple files a joint chapter 13 bankruptcy case. However, the income and expenses of the non-filing party is critical in determining how much the filer has to pay per month to a Chapter 13 trustee and for how long. This relatively new concept stems back to the bankruptcy reform of October 17, 2005. Prior to that date, a person filing for Chapter 13 bankruptcy was only required to submit his or her income and expenses as well as all of the debts. After the law change, the non-filing spouse or the total household income of the parties became the standard by which chapter 13 cases were governed. Let's take a look at a recent example: A woman came in the office recently + Click Here For Read More