An individual who has filed Chapter 13 bankruptcy may not be able to make the required payments because of unforeseen financial difficulties. Many who find themselves in this situation may wonder if they can convert a Chapter 13 bankruptcy to a Chapter 7. First it’s important to look at the differences between Chapter 7 and 13 Bankruptcy protections. Chapter 7 bankruptcy is a good option for someone who has limited income and few assets. With the exception of a handful of exemptions, the few … [Read more...]
How is Property Subject to a Lien Handled Under Bankruptcy?
Those considering bankruptcy protection often wonder what happens to property that is subject to a lien. In some cases, a bankruptcy court may set aside or reduce the lien on the property, allowing more flexibility in bankruptcy process. If individuals (or spouse's filing jointly) wish to keep the property secured by a lien, they can also agree to a reaffirmation plan with secured creditors. A reaffirmation agreement is a promise to continue to pay the amount owed despite the bankruptcy, … [Read more...]
Human Resource Decisions During Chapter 11 Bankruptcy
Given the economic challenges of late, many business owners may consider Chapter 11 bankruptcy protection in order to turn things around financially, restructuring debt and the overall organization of the business so that they can remain open. Soon as they file a petition for bankruptcy, an automatic stay is triggered, providing some needed breathing room from creditor actions while they figure things out. Of course, when a business owner declares Chapter 11 bankruptcy, there are many … [Read more...]
Preparing for Your Bankruptcy Consultation
If you have scheduled an initial consultation with a bankruptcy attorney, you will want to prepare by gathering documentation and other information needed to determine your eligibility for bankruptcy. You will want to provide your bankruptcy attorney with proof of income; recent tax returns; a list of debts including loans, credit cards, medical bills; and a list of household expenses that you make every month which may include rent, food, or insurance. It is also helpful to anticipate … [Read more...]
Credit Counseling Versus Bankruptcy Protection
Many have seen the commercials for credit counseling services and ask, what is the difference between credit counseling and bankruptcy protection? Credit Counseling Services With so many struggling to pay their bills, credit counseling services have popped up across the nation offering to help people consolidate their debt into one or more affordable payments. This approach involves paying a credit counselor to reach out to your creditors to reach a new repayment plan - something an … [Read more...]
Student Loan Repayment Pause Extended
The student loan repayment pause which was set to end February 1st is now been extended until May 2022. The pause on the repayment of federal student loans in response to the Covid-19 pandemic has provided many Americans with needed financial relief with the extension giving those who have fallen behind financially a few more months to come up with a plan to tackle their financial difficulties. For some, chapter 7 or 13 bankruptcy is a good strategy to recover from the economic downturn that … [Read more...]
Foreclosure and Repossession Stopped with an Automatic Stay in Bankruptcy
When an individual files a chapter 7, 11 or 13 bankruptcy, collection efforts stop under an automatic stay. Any collection activity against the debtor and the debtor's bankruptcy estate is off limits as the process moves forward. The bankruptcy estate is comprised of interests of the debtor including, but certainly not limited to, tangible property such as a home, car and cash, or in cases where a bankruptcy filer owns a business, may also include inventory, accounts receivable, unpaid … [Read more...]
Homestead and Wildcard Exemptions in an Illinois Bankruptcy
In an Illinois bankruptcy you may keep an exempt amount of equity in your home. An individual filer can protect up to $15k of equity in their homestead. If married, filing jointly, a couple may combine their homestead exemption up to $30k. If your equity does not exceed the exemption and you are current on your mortgage and are able to continue your payments, you may be able to keep the home in a bankruptcy. Can I use the wildcard exemption in to increase my homestead exemption? The wildcard … [Read more...]
How Can I Stop Creditor Harassment?
Sometimes creditors go too far to collect a debt, crossing the line into harassment. If a creditor is calling you at all hours, making threats, or refuses to provide you with more information, they are in violation of the Fair Debt Collection Practices Act (FDCPA). At a glance, your rights under the FDCPA prohibits a creditor from: Calling before 8 a.m. or after 9 p.m. Contacting you at your place of employment if your employer does not allow it Making misleading, deceitful or … [Read more...]
Credit Card Debt Leads Many to Seek Bankruptcy Protection
There are many forms of debt that can land individuals and families in trouble, but insurmountable credit card debt is among the most common reasons people seek bankruptcy protection. For many, credit card payments take a back seat as they try to make ends meet; affording the basics of food, shelter and transportation to get back and forth to work often leaves little left over to pay for other expenses. Credit card holders not only get behind on payments, but are assessed late fees and higher … [Read more...]