Recent Blog Posts

What happens if I miss a bill when I file for bankruptcy?

Marc Wagman — Thu, 17 May 2012 06:26:00 GMT

If you miss a bill when you file a Chapter 7 or a Chapter 13 bankruptcy it is not the end of the world. As a Chicago bankruptcy attorney I know that clients are worried when they file for bankruptcy. If a creditor is not listed in the initial petition filed with court adding a creditor to the petition only requires an amendment to the schedule.

The court does charge an amendment fee for adding creditors after the initial filing of the bankruptcy petition. Notice must also be sent out by your bankruptcy attorney to the creditor when you add them to the schedules. If you are considering filing for a bankruptcy in Chicago please contact an experienced Chicago bankruptcy lawyer at my office today at 312-489-8182.

Marc

What is the debt limit and how does it affect me filing a Chapter 13 bankruptcy?

Marc Wagman — Wed, 16 May 2012 18:10:00 GMT

Rarely as a Chicago bankruptcy attorney do I have a client who is close to the debt limits for a Chapter 13 bankruptcy in Chicago or the surrounding counties. However, the debt limit is a hard number that prevents a person with too much debt from filing a Chapter 13 consumer bankruptcy and forces them to file a Chapter 11 bankruptcy if they want to reorganize their debts.

Presently the debtor must have unsecured debts of less than $360,475, and/or secured debts of less than $1,081,400. The bankruptcy code prohibits a person over these debt limits from filing a Chapter 13 bankruptcy. There are no limits for a Chapter 7 liquidation bankruptcy. If you are considering bankruptcy with a Chicago bankruptcy lawyer please call my office to set up a consultation at 312-489-8182!

Marc

After a Chapter 7 bankruptcy it is still possible to get a home loan!

Marc Wagman — Wed, 16 May 2012 18:00:00 GMT

As this article on Reuters reports, a person can still get a home loan after a Chapter 7 bankruptcy or a foreclosure. As a Chicago bankruptcy attorney I will routinely get the question when can I get a home loan after filing a Chapter 7 bankruptcy? Well it all depends on what you do after the bankruptcy with rebuilding your credit. Normally, a person will be able to purchase a home approximately 2 years after the discharge. The Federal Housing Authorities purpose is to help people get home loans. Presently, a credit score of 620 or higher is required to get a new home loan.

If a person is considering filing bankruptcy in Chicago or the surrounding area it is important to contact an experienced Chicago bankruptcy lawyer. I have the experience and know how to get through the a bankruptcy filing. Please call my office to set a free intial consultation at 312-489-8182!

Marc

Who is the trustee and what do they do?

Marc Wagman — Wed, 16 May 2012 00:53:00 GMT

When filing Chapter 7 bankruptcy with a Chicago bankruptcy attorney, a trustee is assigned to your case. In a Chapter 7 the trustee administers any non-exempt assets for the benefit of creditors, he or she also reviews your petition schedules, and other documents. In most cases, the trustee will not administer any assets in a Chapter 7 filing. If a person has assets that could be liquidated the trustee has the job of doing that; however, most cases are no asset Chapter 7 cases. The United States Trustee has the job of looking for bankruptcy abuse or fraud and oversees Chapter 7 bankruptcy, and technically oversees all bankruptcy filings. Normally an individual debtor will not have any issues with the US Trustees office as long as they are honest about their assets and liabilities.

In a Chapter 13 filing, the trustee administers payments or sends payments to creditors. When you file Chapter 13 you are repaying debts and making a monthly payment to a trustee. He or she will review any documents in a Chapter 13, recommend a Chapter 13 plan, make sure everything is correct and applies to current law etc. The trustee's job is to disburse monthly payments to any creditor who has a valid claim in a Chapter 13. Out of every dollar paid to the court monthly the trustee gets a fee for paying creditors. The fee for most Chapter 13 trustees is approximately 5-6%.

When choosing a Chicago bankruptcy lawyer experience counts. If you are considering filing bankruptcy I have over 8 years of experience in representing clients in both Chapter 7 and Chapter 13 bankruptcy filing. Please call my office to set up a free initial consultation with me at 312-489-8182!

Marc Wagman

Attorney at law

Some common misperceptions about bankruptcy!

Marc Wagman — Mon, 14 May 2012 15:46:00 GMT

As a Chicago bankruptcy attorney, I can tell you there are a lot of myths regarding bankruptcy. According to this article in US News and World Report these are common myths that people may believe about bankruptcy.

1) People who file bankruptcy are financially irresponsible

2) Bankruptcy discharges all past debts

3) If you spend money on your credit cards right before filing you won't have to pay that money back

4) Bankruptcy will permanetly ruin your credit and

5) bankruptcy is a cure all

On number 1) that people are financially irresponsible that file bankruptcy. This is just simply not the case for most debtors who file bankruptcy. There are usually one of three triggers that cause a filing 1) job loss 2) medical debt and 3) divorce.

On number 2) that a bankruptcy will discharge all past debts. Certain debts are not dischargeale in a Chapter 7 bankruptcy or a Chapter 13 bankruptcy filing which include student loan debt, money owed to the government in most cases, debts owed for child support or alimony, debts owed due to personal injury of another party driving a motor vehicle under the influence of drugs or alcohol.

On number 3) that if you spend money right before filing you won't have to pay that money back. This is just a recipe for an objection to discharge on the debts incurred prior to the filing. The bankruptcy code presumes that any purchases and cash advances made before the bankruptcy filing are non-dischargeable.

On number 4) that bankruptcy will permanetely ruin your credit. This is the most common misperception out there. A bankruptcy filing will not destroy your credit forevever. Most filers are in better financial shape than before, and will get offers for credit cards and car loans right after the discharge. One can even purchase a home as early as 2 years after filing a Chapter 7 bankruptcy.

On number 5) bankruptcy is a cure all. In most circumstances this is not the case with a bankruptcy filing. If one still spends more than they make after filing a bankruptcy then they can be in trouble even after filing bankruptcy. Further, since some debts are non-dischargeable some people will have trouble repaying that sort of debt.

When considering filing bankruptcy it is important to speak with an experienced Chicago bankruptcy lawyer. I have over eights experience filing bankruptcy for my clients. If you want to set up a free no obligation consultation please call my office at 312-489-8182!

Marc

Debt settlement versus bankruptcy?

Marc Wagman — Fri, 11 May 2012 19:22:00 GMT

As a Chicago bankruptcy attorney, I speak with clients who have tried debt settlement. This article also discusses debt settlement and the problems with it. The way that debt settlement works is that a person pays a monthly fee to their debt settlement company. While they are paying their monthly fee they let their credit cards or debts go into default destroying their credit score. If the company the hired is reputable then they may actually settle some debts for the client. However, if they don't or something goes wrong then they can be sued and garnished and lose money or property. In addition, there may be tax implications on any debt settlement that does take place.

Filing a bankruptcy in Chicago with a Chicago bankruptcy lawyer prevents any creditor from suing or harassing or doing anything to take money from the client or debtor. As an attorney I have an ethical duty to tell a client what their options are, and the ramifications of any options. I am more than happy to speak with you and go through your options, if you are considering bankruptcy please call my office at 312-489-8182.

Marc

Chapter 7 from filing to discharge

Marc Wagman — Thu, 10 May 2012 05:40:00 GMT

A common question I get as a Chicago bankruptcy attorney is what is the process for a Chapter 7 bankruptcy? Upon a client coming in for an initial consultation and payment of the fees required to file a Chapter 7 bankruptcy the process goes as follows. To prepare a petition there is a plethora of documents that a Chicago bankruptcy lawyer such as myself will need and review. Such as paystubs for the last six months or any other proof of income, tax returns, mortgage statements, bills, a divorce decree, and a credit counseling certificate among other documents. It is important to note that the petition and schedules for the average case is approximately 40-50 pages long.

Once a debtors petition is prepared and they have reviewed their petition and signed off on and corrections are made it will be filed with the bankruptcy court. Upon filing the automatic stay goes into place which is a court order stopping creditors from doing anything to take money or property from the Debtor or client.

The clerk of the court will assign a meeting of creditors or a 341 meeting and send out notice of the meeting to each creditor listed in the petition. The meeting of creditors is where the trustee assigned to the bankruptcy case will ask primarily about assets in a Chapter 7.

The meeting of creditors is normally held approximately 30 days from the filing date, but it can be longer for it to be held due to the number of cases filed with bankruptcy court at that particular time. The meeting is rather informal and most debtors are nervous about the meeting, but in most cases there is no reason to be nervous at the meeting. The trustee will normally say that there are no assets to distribute to creditors or if there are any assets then they may continue the meeting or file an asset report. The vast majority of Chapter 7 cases are no asset cases. The trustee will normally file the no asset report or an asset report within a couple of days of the meeting.

Approximately 60-90 days from the meeting of creditors the debtor will receive a discharge in the mail as long as they complete their debtor education course and the certificate is filed with the bankruptcy court. The discharge is a court order that prevents any creditor from ever collecting any debts listed in the bankruptcy as long as they are dischargeable. Dischargeable debts include medical bills, secured or unsecured loans, medical bills, payday loans, personal loans, and other types of debt. Debts that are non-dischargeable include student loans, child support or domestic support obligations, money owed to the government in most circumstances, debts due to personal injury under the influence of drugs or alcohol while driving a motor vehicle, and debts owed to a person who was maliciously injured by the debtor among others.

The process from filing to discharge is normally 4-6 months depending on when the 341 meeting is held. If you are considering filing a Chapter 7 bankruptcy in Chicago please contact an experienced Chicago bankruptcy attorney today at 312-489-8182!

Marc

Chicago bankruptcy attorney explain who will find out about my bankruptcy filing!

Marc Wagman — Thu, 10 May 2012 01:24:00 GMT

A common question or concern I get from a potential client as a Chicago bankruptcy attorney is who is going to find out about my bankruptcy? Bankruptcy is a matter of public record; however, in most circumstances unless the person is famous or has public notoriety then a bankruptcy filing will never find its way into the a newspaper. The reason for this is that the sheer volume of bankruptcy filings prevents the newspaper from publishing a regular consumers bankruptcy.

Further, it is rare that an employer would find out about a bankruptcy filing unless you are filing a Chapter 13 bankruptcy and a payroll control order is entered with the court; nevertheless, federal law prevents an employer from discriminating against an employee for filing for bankruptcy. Or another way an employer may find out is if you have a garnishment order which needs to be stopped. A Chicago bankruptcy attorney like myself will fax the notice of the bankruptcy filing to stop a garnishment. While a bankruptcy filing prevents an employer from discriminating against you, some employers have policies that will get rid of a person who gets several garnishments. Other employers will look much less favorably upon a person who has a lot of debt and has done nothing about it versus a bankruptcy filing.

In most cases, the persons creditors are the only parties who find out about a bankruptcy filing since they are required to be listed in the bankruptcy schedules. All creditors receive a notice of the bankruptcy filing to prevent any action against the debtor. The typical bankruptcy case is usually fast and confidential. Certainly if you have questions regarding a bankruptcy with a Chicago bankruptcy lawyer please give my office a call to set up a consultation. I am more than happy to answer a potential clients questions or concerns. Please call me today if you are considering filing bankruptcy in Chicago at 312-489-8182.

Marc

Chicago bankruptcy attorney explains an adversary proceeding!

Marc Wagman — Tue, 08 May 2012 17:18:00 GMT

In my career as a Chicago bankruptcy attorney I have in the past represented clients in adversary proceedings. An adversary proceeding is a seperate lawsuit in a bankruptcy case. If it is filed against the debtor it is usually filed by a creditor who wants to except a debt based upon fraud. An example of this would be, when a debtor uses credit cards for large amounts or cash advances right before filing of a bankruptcy. It is a good faith issue. If the trustee files an adversary against the debtor then it is based upon something in the bankruptcy code such as fraud. An example of this would the transfer or hiding of an asset from the bankruptcy estate. Adversary proceedings are rare in the average bankruptcy case and bankruptcy is for the honest but unfortunate debtor.

There are instances where a Debtor files an adversary against creditors such as to strip a second mortgage. As a Chicago bankruptcy lawyer, I usually can spot when a client may have an issue with their bankruptcy filing. As your attorney you need to tell the truth to me so I can properly advise you. If you are considering filing bankruptcy at 312-489-8182.

Marc Wagman

Attorney at Law

Too broke for bankruptcy?

Marc Wagman — Tue, 08 May 2012 15:30:00 GMT

As a Chicago bankruptcy attorney, I speak to clients every week who really don't have enough money to pay for a bankruptcy. This article says that approximately 200,000 Americans will be shut out of filing for bankruptcy due to the high cost of the filing fee, credit counseling requirements, and the attorney fee's. The average cost of a Chapter 7 according to the article is approximately $1500. My office normally charges less than that for a routine Chapter 7 case. However, the filing fee is presently $306 for a Chapter 7 and that is a significant cost for the filing of a bankruptcy. Chapter 13's filing fee is presently $281.

I agree with the article's premise that many debtors have been shut out of the system because of the high fee's to file bankruptcy. Another difficulty is that there is a document hurdle in filing a bankruptcy. A Chicago bankruptcy lawyer, will need six months of paystubs, at least two years of tax returns, among other documents to actually build a case. It is just much more work than it used to be for the attorney and the debtor. I also agree that filing bankruptcy pro se is a minefield where a debtor has a good chance of having there case dismissed and a bankruptcy on their credit even if it doesn't get discharged. There is just to much work for the average person to file for a bankruptcy without an attorney.

Most of my clients who have little or no means to pay me take a lot of time to do so which is not an issue. I understand that living expenses and other priorities make it difficult some months to make a payment. However, a Debtor can use their tax refunds at the begining of the year to pay attorney fees which is the best way to protect that asset. If you are considering bankruptcy please call my office for a free initial consultation at 312-489-8182!

Marc

Am I a failure if I file for bankruptcy?

Marc Wagman — Thu, 03 May 2012 02:30:00 GMT

One question I will get from time to time as a Chicago bankruptcy lawyer, is if I file bankruptcy isn't that just admitting that I am a failure? The answer is absolutely not. Filing bankruptcy is a responsible and reasonable choice for a person or a business who is in financial peril. Most bankruptcy filings are caused by one of four things. 1) Loss of job or income 2) illness or medical debt 3) divorce 4) or too much debt based upon your income.

Famous people file for bankruptcy, as well as businesses who go through a downturn in business. There is nothing to feel ashamed of when you need to get rid of your debt and start fresh by filing a Chapter 7 in Chicago. I know from my clients experiences that most feel guilty by filing a bankruptcy or ashamed. Most of the clients have gone through all other possible options and call me as a last resort. Waiting too long can be a mistake if you have one of the four above causes of bankruptcy please call a Chicago bankruptcy attorney today at 312-489-8182!

Marc

Chicago bankruptcy attorney explains the statute of limitations defense!

Marc Wagman — Thu, 03 May 2012 02:13:00 GMT

As a Chicago bankruptcy attorney, I have clients who have debt and sometimes their debt is rather old. The statute of limitations prevents a creditor from delaying filing a lawsuit against. In sum, it prevents a creditor from taking to long to pursue actions against a debtor.

In Illinois, each type of debt has a statute of limitations that bars the creditor from taking action past a certain point. For example, open accounts such as a credit card has a 5 year statute of limitations, as well as oral contracts. A breach of a promissory note has a statute of limitations of 6 years. Written contracts have a statute of limitations of 10 years. If a creditor sues you in court, and the debt was incurred after the statute of limitations for that type of debt has run the defendant (debtor) must raise the defense in their answer as an affirmative defense.

In bankruptcy, especially in a Chapter 13 bankruptcy the statute of limitations is important. When a person files a Chapter 13 bankruptcy in Chicago, a meeting of creditors is held approximately 30 days after the filing of the case. Creditors have to file a claim within a certain amount of time. That period of time is 3 months after the meeting of creditors for a general creditor and 6 months for the government to file a claim with the court.

An experienced Chicago bankruptcy lawyer such as myself looks at each claim that comes in and sees if there is a reason for an objection to that claim. One objection that can be common is that the statute of limitations has expired. Experience matters when choosing a bankruptcy attorney in Chicago. I have over eight years of experience representing debtors and getting them out of debt. If you are struggling with overwhelming debt please call my office for a no obligation consultation at 312-489-8182!

Marc Wagman

Octomom files for bankruptcy!

Marc Wagman — Tue, 01 May 2012 22:24:00 GMT

In this article with the Chicago Tribune, the so called "Octomom" Nadya Suleman filed for bankruptcy protection in California. According to the filing she has less than $50,000 in assets and more than $500K in debt. She became famous for undergoing fertility treatments and had eight children in a single birth becoming only the second person to do it and have all the children survive their birth.

As a Chicago bankruptcy lawyer, I can tell you that raising children is very expensive and puts a large strain on most peoples finances. If you have overwhelming debt please call an experienced Chicago bankruptcy attorney at 312-489-8182!

Marc

Chicago bankruptcy attorney explains a bankruptcy mill!

Marc Wagman — Tue, 01 May 2012 22:13:00 GMT

As a Chicago bankruptcy lawyer, I often get questions about why should I choose you as my attorney. Why not go to a large law firm? The large law firms who practice bankruptcy on volume. There are reasons to be cautious of the large bankruptcy mill.

First, they tend to treat each client like a simple case and your case will be broken down to the its most basic stops and treated like a factory process. The original attorney you meet with you likely will not see again and different people will represent you throughout the process. In addition, you will spend little time with an experienced Chicago bankruptcy attorney in most cases, and generally the large firm charge much more than I do for filing a bankruptcy.

I believe from years of practice and having worked for a large firm that no case or client is the same each individual is unique and no case is straightforward. Since I am the only attorney working at my firm I give personal attention to each clients needs and questions. When you call my office you will notice that you speak with me and I answer the phone. If you are considering filing bankruptcy and want personal attention and care throughout the process please call my office to set up a free initial consultation at 312-489-8182.

Marc Wagman

Bankruptcy attorney in Chicago

Federal Judge files for bankruptcy!

Marc Wagman — Thu, 26 Apr 2012 16:08:00 GMT

A federal judge filed for bankruptcy according to this article. Judge Otis Wright, recently filed a Chapter 7 bankruptcy which is a rare thing for a federal judge. The federal bankruptcy judges have a salary of $174,000 which is tad bit more than a first year associate at a large law firm. Federal judges have argued that their salaries should be increased for years due to the private pay of large law firms. As a Chicago bankruptcy attorney, I can tell that even if you have a reasonably high income you are not immune from debt.

Like most of my clients this judge was significantly underwater on his home, and had a lot of credit card debt. He even drained his retirement accounts in an attempt to pay back creditors prior to his Chapter 7 filing. One thing I can tell is that the last place you generally should take money from to pay creditors is from a protected retirement account. If you have a retirement account that account is exempt from creditors in a bankruptcy or from the trustee administering the asset in a Chapter 7 no matter how much money you have in the account. If you have a large amount of debt, or a reduction in income it is better to speak with an experienced Chicago bankruptcy lawyer sooner than later. Please call me at 312-489-8182 to set up a free initial consultation.

Marc