Bankruptcy – Page 4 – Bill Busters

What happens during a debtor education class?

If you have recently explored filing for personal bankruptcy, you may have discovered that you will have to take a credit counseling and debtor education course. There is a good reason for doing so, as it can give you the skills you need to ensure that you can maintain your finances following the bankruptcy.

As the U.S. Courts points out, the debtor education class must be taken after you file for bankruptcy. Failing to take it give the courts the right to reject your filing and discharge your debts. Keep in mind that you may only take such a class from a provider of which the U.S. Trustee Program approves. There is a fee to take the course, but it is possible to obtain a reduced rate or even a waived fee if your income falls below a certain level.

The course, which can be done online, in person and even over the phone, will typically only take a few hours to complete. During that time, you can expect to go over the following topics:

How to save money effectively
How to manage your money
How to make and keep a budget
How to set and then reach your financial goals
How to use credit wisely
How to deal with a financial crisis

You may also learn about consumer protection. Often, people who file for bankruptcy can be targets of scams.

If you have filed for Chapter 7, you have 60 days from the date that was set for the meeting of creditors to finish the course. If you filed for Chapter 13, you simply must finish it before you make the last payment according to your plan. Once you complete the course, you will have to file the certificate with the court as proof.

While this information may be useful, it should not be taken as legal advice.

Why seeking mortgage assistance right away is a good idea

Bankruptcy, Chicago

It can be frightening to fall short on just one mortgage payment, let alone fear missing more. At Ledford, Wu & Borges, LLC, we understand the concern you may have as you eye your budget and realize that you may not have enough to pay your house bill this month. If you find yourself in that situation, it is imperative to get help immediately. Doing so can mean saving your credit and even your home.

The sooner you contact your lender, the more likely they may be to work with you on developing a plan so you can make your payments. In some cases, a loan provider could give you more time to make a payment or even negotiate an interest rate.

There are other options as well. For example, you may be able to secure a reinstatement, in which you would pay the lender however much you owe as well as fees or penalties by a set date. You could also establish a repayment schedule through which a past due amount is spread out over future payments.

According to the U.S. Department of the Treasury, more than 7 million people have avoided foreclosure through participating in public and private programs such as the Home Affordable Modification Program. To qualify, you must meet certain requirements, and you will have to provide substantial documentation. This reinforces why starting the process as soon as possible is essential.

At the first hint of trouble, we suggest that you contact someone to get help. Our law firm has a history of helping people stay in their homes. For more information on this topic, please visit our page regarding how to get help to pay your mortgage.

What is the role of a bankruptcy trustee?

Bankruptcy, Chapter 7, Chicago

When you are filing for personal bankruptcy, you will most likely be assigned a trustee. This person will have certain responsibilities based on whether you file for Chapter 7 or Chapter 13 bankruptcy in Illinois. These tasks will all revolve around what is known as the bankruptcy estate, or the property that you own at the time of the filing.

As the U.S. Department of Justice notes, the Bankruptcy Reform Act of 1978 established the U.S. Trustee Program, which is intended to protect the integrity of the bankruptcy process. Through taking charge of the debtor’s bankruptcy estate in a Chapter 7 filing, the trustee commits to doing the following when it is applicable:

Selling the property in the estate
Giving creditors the proceeds of the sale
Objecting to a claim a creditor has made
Challenging a bankruptcy discharge

A trustee’s role in a Chapter 13 case is slightly different because a debtor develops a repayment plan instead of selling off assets. Therefore, the trustee is tasked with reviewing the plan and objecting to certain components if necessary. Once the plan is finalized, the trustee must collect payments from the debtor and distribute those to creditors.

The trustee plays an integral role in individual bankruptcy filings, and he or she may also oversee reorganization proceedings in a Chapter 11 business filing. There is no trustee automatically appointed to these cases, but a debtor can choose to have one. The person will perform tasks such as holding the meeting of creditors, monitor the debtor’s finances, approve reorganization plans and monitor professionals associated with the case.

While this information may be useful, it should not be taken as legal advice.

Bankruptcy concealment lands Illinois woman in hot water

Bankruptcy, Chapter 13, Chicago

Whether people in Illinois are filing for Chapter 7 bankruptcy or Chapter 13, they are legally required to put together a complete list of their assets and debts, according to the Illinois Attorney General. Assets include any bank account balances, family heirlooms, real estate, retirement plans, vehicles, and expensive furnishings. Debts include bank loans, credit cards, mortgages, child support/alimony obligations, and living costs. When people fail to disclose all of their assets, they can find themselves in legal trouble.

This happened recently with a woman living in Carterville. The woman stated that she paid for family and personal expenses out of a workers’ compensation claim settlement for $17,500. However, when she filed for bankruptcy, she chose not to disclose that payout to the court. It is uncertain how authorities discovered the hidden money or whether there was anything left. Consequently, the woman was charged with committing bankruptcy fraud. Now, she faces a prison sentence of up to five years after entering a plea of guilty.

There are many rules and guidelines in place when it comes to filing for bankruptcy, Therefore, people may find it worthwhile to enlist the help of an experienced attorney. The attorney can help them understand how bankruptcy works, choose the right bankruptcy filing for their situation, point out what assets they may be able to keep and prepare their paperwork. An attorney can also answer any questions filers may have and assist them in gathering together a complete list of their financial obligations and their monetary assets.

Source: The Southern Illinoisan, “Carterville woman pleads guilty to bankruptcy fraud,” Dustin Duncan, July 13, 2016

What is an automatic stay in a bankruptcy case?

Bankruptcy, Chicago

If you feel overwhelmed by debt and are struggling to make ends meet, you may have considered filing for bankruptcy in Illinois. Not only can bankruptcy give you the opportunity to start fresh with your finances, it can also stop creditors from calling you and using other harassing tactics in an attempt to get their money. Once you have filed all of the proper paperwork in your petition for bankruptcy, the court will place an automatic stay on your case.

According to the U.S. Courts, the clerk who is assigned to your case will contact each creditor listed on your petition in order to inform them that you have filed for bankruptcy. That is why it is crucial that you provide the bankruptcy court with a complete list of creditors.

Once an automatic stay is in place, the creditors will be unable to contact you regarding late payments, fines and other charges you may have been responsible for. Creditors are not able to garnish your wages or initiate a lawsuit against you for failure to pay on your account. Since avoiding creditor calls is common for many people who have extensive debt, it is often a huge relief to finally be free from receiving them.

It is important to keep in mind that the length of the automatic stay can vary depending on the circumstances surrounding your case, including which chapter of bankruptcy you file.

This information should be used for educational purposes only and should not be taken as legal advice.

Credit counseling: What you should know

Bankruptcy, Chicago

If you are thinking about filing for bankruptcy, you are not alone. Many people in Illinois and throughout the country have chosen to file for bankruptcy as a way to help them seek solace from overwhelming financial obligations when they have exhausted all other avenues. While there are several different types of bankruptcy to choose from depending on your personal financial situation, everyone who applies for this form of debt relief must complete an approved credit counseling course prior to submitting the required paperwork.

According to the Federal Trade Commission, credit counseling is designed to help you make the best decisions when it comes to dealing with your debt and improving your financial health. In addition, the program focuses on exposing you to all of your options when it comes to finding debt relief. This course teaches you how to evaluate your finances and develop a budget that could help keep you from getting into creditor turmoil in the future. Credit counseling courses can give you information that will help you recover from bankruptcy and rebuild your credit once the bankruptcy process is complete.

The credit counseling course must be completed at least 180 days prior to filing for bankruptcy. Once you have taken the course, you will be given a certificate of completion, which must be submitted along with your application for bankruptcy. Although there is a fee for taking the class, you may be able to have the fee waived if you are unable to afford the cost.

This information is intended for educational purposes and should not be taken as legal advice.

How to protect yourself from mortgage fraud

Bankruptcy, Chicago

As an Illinois resident, you may be considering purchasing your first home, filing for foreclosure, refinancing or making some other major decision regarding your living situation. Whatever the case may be, dealing with home matters can be stressful and overwhelming. It can be difficult to make important decisions when your emotions are running high. During this time, however, it is important that you do not become the next victim of mortgage fraud. People may intentionally pray upon homeowners who are looking to refinance their homes, file for foreclosure or purchase a new home. In order to avoid these deviant con-artists, you must be aware of scam tactics and take precautions when dealing with financial matters regarding your home.

First, it is crucial that you question everything when making decisions on your home, according to the U.S. Department of Justice. Make sure that you fully understand the process and avoid making decisions without knowing what is going on. If you have questions regarding a process or term in the contract, be sure to ask. You may even speak to several people regarding your situation before making a decision.

People who commit mortgage fraud often advertise through mail, television or internet media. If you choose to use someone that you find through one of these sources, make sure that they are licensed, qualified, reputable and trustworthy. Be wary if loan officers ask you to pay upfront or sign a contract before they will begin working on your case. This is not a normal procedure and is outlawed in many states.

This information is intended to educate and should not be taken as legal advice.

Not all debt can be discharged in a Chapter 7 bankruptcy

Bankruptcy, Chicago

Liquidation bankruptcy offers a way for people to climb out of an overwhelming pile of debt and expenses. Otherwise known as Chapter 7, this form of bankruptcy gives people the opportunity to wipe their financial slate clean and gain a fresh start. Despite what some people may think, however, not all debt may be eligible for discharge through a Chapter 7 bankruptcy in Illinois. According to the U.S. Courts, there are certain expenses that may remain on a debtors list of financial obligations, even after the bankruptcy becomes finalized.

People who have incurred student loans or government loans may still be required to make payments on those loans until they are paid off. In addition to these types of loans, debts that cannot be discharged in a Chapter 7 bankruptcy include the following:

DUI penalties
Court-ordered child support and alimony payments
Penalties that debtors are ordered to pay in a personal injury case
Federal and/or state taxes

In some cases, people who file for bankruptcy may choose to continue paying on a debt or loan in order to retain possession of the property. The lender may agree to extend the terms of the loan to the debtor even though he or she has filed for bankruptcy. Unlike the other types of debt that cannot be discharged, reaffirmation agreements are completely voluntary.

Creditors who are involved in the bankruptcy are also able to object to the bankruptcy at the meeting of creditors. At this meeting, creditors are able to ask the debtor questions and display their concerns regarding the bankruptcy.

Short sale 101: What you need to know

Bankruptcy, Chicago

Whether you are having trouble making your monthly mortgage payment or you are already at a point where you have missed several payments and are at risk of losing your home, you may want to consider a short sale. If your lender approves you for a short sale, you may be able to get out from underneath your home loan and start fresh by either purchasing a new home or simply leasing while rebuilding your credit. What is a short sale and how can it help you avoid foreclosure on your Illinois home? At Ledford, Wu, and Borges, LLC., we understand how stressful it can be to face foreclosure on your home.

Rather than have a home go into foreclosure, the bank may approve a short sale. This allows the home to be sold for an amount that is less than what is left on the mortgage loan. For example, if the home is sold for $150K but there is still $175K left on the mortgage loan, the lender agrees to take a $25K loss. In some cases, the homeowner may be partially responsible for a portion of the loss. However, in certain situations of hardship, this amount may be forgiven and the homeowner can be discharged from the loan.

In order to qualify for a short sale, you must meet certain criteria, such as being delinquent on your mortgage payments and not having the ability to refinance your mortgage. To learn more information about alternatives to foreclosure, visit our short sale page.

Stop foreclosure with a Chapter 13 bankruptcy

Bankruptcy, Chicago

People who fall on hard times in Illinois may find it difficult to keep up with extensive medical bills, credit card debt and other expenses. When homeowners fall too far behind on making their monthly mortgage payments, however, they could run the risk of losing their homes. Not only is it overwhelming to have a home taken away while in the midst of severe debt, but it can be extremely difficult for people to find a new place to live once they have a foreclosure on their record. After a number of mortgage payments are missed, the bank may try to foreclose on the home or repossess it. While there are several options for people who are worried about losing their home, filing for Chapter 13 offers one possible solution.

Chapter 13 bankruptcy is designed to organize a homeowner’s debts into a simple repayment plan, according to NBC News. This allows homeowners to continue making payments on and ultimately keep their homes. In some cases, lenders will no longer accept mortgage payments from the homeowner once they become delinquent on their mortgage. After filing for Chapter 13, however, lenders must accept any mortgage payments that are given to them.

Once the bankruptcy documents are filed with the court, any foreclosure proceedings that have started are immediately stopped, as reported by the United States Courts. Not only does this give the debtor relief from the stress of an impending foreclosure, but it also stops any harassing creditors from calling regarding other unpaid expenses or bills.

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312-853-0200

312-853-0200

What happens during a debtor education class?

Why seeking mortgage assistance right away is a good idea

What is the role of a bankruptcy trustee?

Bankruptcy concealment lands Illinois woman in hot water

What is an automatic stay in a bankruptcy case?

Credit counseling: What you should know

How to protect yourself from mortgage fraud

Not all debt can be discharged in a Chapter 7 bankruptcy

Short sale 101: What you need to know

Stop foreclosure with a Chapter 13 bankruptcy

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