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| September 03, 2010 |
| The Chapter 7 Bankruptcy Dilema |
| Posted By Marc Wagman |
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This article Banks Feast on Bankrupt Consumers, speaks about how the credit card industry and banking lobby pushed through the 2005 bankruptcy reform act. The bankruptcy reforms enacted by Congress, were heavily pushed by the credit card industry in response to the "perception" that consumers should not be able to walk away from their credit card debts in a Chapter 7 liquidation Learn More about Chapter 7. The "trap" that the banks lobbied for was to put more middle class consumers into a Chapter 13 repayment plan over five years ((Learn More About Chapter 13 with an Experienced Chicago Bankruptcy Attorney)). The Chapter 13 that the banks lobbied for was an automatic five year repayment plan based upon the means test which is your "average income in your state for the size of your household (or an average of the person income over the last six months from all sources to come up with the persons "income" if that number is over the median income you are "presumed" to have to do a Chapter 13, but you go through "the full means test" then only deducting hypothetical census bureau standard living expenses in your area and/or "other legitimate expenses" that Congress believed were "appropriate" under the test).
There are some major points that the article makes that I believe are very important and noteworthy.
1) The 2005 bankruptcy reform did slow the rash of filing for bankruptcy for a couple of years. ( you can look at the filings at the ABI and they did in fact decrease significantly)
2) Americans are saddled with more debt than ever and their incomes have dropped significantly in this "downturn" although more people are now saving
3) Chapter 7 Filings have now increased to pre-2005 levels
The last point number three is the most important thing to focus on here. Number three is important because Chapter 7 bankruptcies generally only will increase after the 2005 change of law if two things are true 1) middle class or upper middle class consumers are not making more than the median income in the state and are then eligible for a Chapter 7, and 2) the filer has very little or no assets to protect and then they are then eligible for a Chapter 7. This means that those Chapter 7 filers if they are "middle class" generally are either out of work or have had a reduction of income and have little or no savings to protect. Generally most economists will agree that for our economy to improve consumers must spend money and the middle class consumer must be economically sound. Every day our office sees the "downturns" casualties, from all walks of life. It seems that everyone is struggling at this point and everyone is worried about losing their job.
Our Chicago Bankruptcy Attorneys, are here to help you when you are struggling with insurmountable debt and a potential or actual job loss. We are experienced Chicago bankruptcy attorneys who represent the struggling consumer who are living paycheck to paycheck struggling to pay all of their bills. Whether it is a lose of a job or reduction in income, divorce, medical debt, or just crushing debt we are here to help you navigate through the process of bankruptcy and we are here to answer your questions.
If you have a garnishment we can stop the deduction with the filing of either type of bankruptcy. If you are in foreclosure a Chapter 13 will stop the foreclosure. Our consultation is free, and we will be sure to give you all of your options which include not filing a bankruptcy. We want you to lose your debt and keep your dignity!
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| August 05, 2010 |
| The Foreclosure Process In Illinois |
| Posted By Marc Wagman |
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Foreclosure in Illinois is a judicial foreclosure which means that it is administered by the courts. Specifically, the foreclosure is filed as a chancery case in that division if there is one in the county your property is in. The first step in foreclosure is that the lender will send out a notice of acceleration and a fair debt letter to the borrower, which is usually sent when the borrower is 3-6 months behind on their mortgage. Second, the foreclosure firm will due a title search on the property to make sure all parties are listed properly in the foreclosure such as other lien holders, any other liens on the property, and any other persons in the chain of title who have an interest in the property.
The complaint is filed with the court in the county that the defendant lives in or in Federal Court in some instances. The complaint is the start of the lawsuit, and must list
A) the date of the mortgage
B) the names of the mortgagor and mortgagee
C) the date and place of recording of the mortgage
D) the interest that is subject to the mortgage
E) the amount of the mortgage indebtedness
F) a statement of the default (there must be a default)
G) a legal description of the property
H) and any parties in interest to the property among other things
A copy of the original mortgage will also be attached as well as any assignments or proof that the plaintiff has the capacity to file the foreclosure against the defendant. The Defendant has 30 days to answer the complaint after service and present any defenses to the foreclosure. If the defendant does not answer the complaint then the plaintiff will often move for a default judgment. If the defendant answers the complaint and files an appearance then the foreclosure may go to trial, although most defendants do not file an answer.
For residential property, the redemption period will expire seven months from the date of service of process or the date the Court obtains jurisdiction over the defendant or three months from the date judgment is entered. There is a six-month redemption period for non-residential property. Redemption is your right to bring the mortgage fully current by paying any arrears with any interest and costs that the plaintiff incurred. The right of redemption may be shortened if the property is abandoned by the defendant to 30 days, but the plaintiff must prove this. Once the judgment is entered the borrower has a minimum of a 90 day statutory right of redemption of the property.
During this time the plaintiff will request a judicial supervised sale of the property. The sale may not be held until after the expiration of the redemption period usually six months after the judgment is entered for residential real estate. The foreclosure sale or sheriffs sale is where the bank or investor buys back the property from the borrower. In practical terms this is the last date for the defendant to file a Chapter 13 bankruptcy (Learn More about a Chapter 13) to cure any mortgage arrears pursuant to Colon v. Option One Mortgage (7th Circuit) which is binding in Illinois or bring the mortgage fully current by reinstatement by paying all arrears, interest, attorney fee's, and sending written notice to the mortgage company (i.e. their attorneys). It is important to note that the defendant will normally not get any notice of the sheriff sale or foreclosure sale unless they filed an appearance in the foreclosure, because the foreclosure firm will publish the sale in newspaper circulating in the area for 3 weeks.
The sale is not final until the court approves the sale which is usually 30 days after the sheriff sale. Nevertheless, the sale will be approved unless the court finds that one of requirements was not met, notice was not given or is defective, the terms of the sale were unconscionable, the sale was conducted fraudulently, or that justice was otherwise not done. It is extremely important to note that most sales are approved by the courts and the sheriff sale is extremely difficult to overturn once it has happened.
At that time, the judge will normally approve the sale and may allow for a personal judgment against the defendant for any deficiency. If a personal deficiency is filed against the defendant (borrower) then the person should likely file a Chapter 7 Bankruptcy to eliminate the claim against them. At the confirmation of sale a foreclosure deed will be issued to the mortgage company, and if the mortgage company was the only bidder at the sale then the defendant has a special 30 day right to redeem the property by paying off the entire mortgage plus any fees and costs. At the time of the expiration of the right of redemption (after confirmation of the sale) the mortgage company gets possession of the property; nevertheless, the time period will vary on the lender, and who is in the property.
It is important to realize that hiring an Experienced Chicago Bankruptcy Attorney prior to the sheriff sale is necessary to save your home from foreclosure. Once the sheriff sale happens it is too late. We often hear from potential clients who are too late to save the property and call after the sheriff sale. As long as the person is proactive and calls the foreclosure attorneys for updates then they will know where the mortgage company is in the foreclosure process. We can save your home from foreclosure or you can wipe away the debt with a Chapter 7. If you have any questions please call our office at 312-666-7882.
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| August 04, 2010 |
| What is Debt Consolidation and How Does It Differ From Bankruptcy? |
| Posted By Marc Wagman |
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Debt consolidators are everywhere and their advertisements can be heard on the internet, the radio, and now on TV. A reputable debt consolidator will attempt to negotiate a settlement for debts which are in default for a lower amount than is owed to the original creditor. The debt consolidation company will either negotiate a lump sum settlement amount with each creditor or have you pay a monthly amount in order to build up enough money for the company to settle the amounts with your creditors. So what is the catch?
The problem with debt consolidation is that many of the people cannot afford to pay either a lump sum payment to each one of their creditors and have to do it over time by making monthly payments to the debt consolidation company. An individual or couple may not have enough money to pay the monthly payment and may be using money they need for other household expenses. Also, the person must fall into default in order for the creditor to take a lower amount than is currently due, and interest will accumulate on the debt that is owed and the creditor will report each month to the credit reporting agency decreasing your credit score each month. The debt consolidation company will often take a percentage of any payments that you make each month and usually any money you pay to them is largely non-refundable or they take a large upfront fee.
The most important risk that a person takes when they choose debt consolidation is that they may risk garnishment, a frozen bank account, or a lien on real estate if a creditor sues the person. In sum, there is no protection against a lawsuit from one of the creditors if they decide to sue. The phone calls for collections also generally don't stop. Here is an article See the article detailing debt consolidation and what a person should look for. In the article it says that as many as 21 states have sued unscrupulous debt consolidators and complaints are rampant according to the FTC.
Bankruptcy will differ in the following ways from debt consolidation. Bankruptcy has the force of federal law and the automatic stay is your protection from any creditor coming after you for money or property Read More about the Automatic Stay. Most assets can be protected from your creditors. When a person files a bankruptcy there are set laws which are predictable for both the Debtor and the Creditors. Whether a person files a Chapter 13 Learn More about Chapter 13 there assets are not at risk and the person will repay debt back from 3-5 years without interest at a percentage. A Chapter 7 is a liquidation bankruptcy where the person does not pay any debts back Learn More about Chapter 7 and gets to keep exempt property. When filing with an Experienced Chicago Bankruptcy Attorney like our office we know the bankruptcy laws and we will guide you through the entire process, answer any questions you may have, and treat you with respect and dignity. Filing a bankruptcy is an important financial decision; however, it is a decision that a person should seriously consider if they are facing overwhelming debt, loss of a job, or a divorce. I meet with people almost every week who first try debt consolidation who waste precious money and time and ultimately end up filing a bankruptcy.
Marc Wagman
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| July 30, 2010 |
| Bankruptcy is for the Honest but Unfortunate Debtor |
| Posted By Marc Wagman |
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Bankruptcy fraud is a serious issue for both the attorney and of course the Debtor who files the bankruptcy petition. My wonderful wife likes to watch the show "The Housewives of New Jersey" and I have become enthralled in watching the reality show with her. One of the cast members and her husband (Teresa & Joseph Giudice) filed a Chapter 7 Learn More about a Chapter 7 bankruptcy last year. A Chapter 7 bankruptcy is a liquidation bankruptcy. Once a person files a Chapter 7 bankruptcy an estate is created of all the persons property they hold or have held in the last four years (or longer). The trustee or appointed court officer who is appointed to the person's case must liquidate any non-exempt assets for the benefit of the Debtor's creditors.
It seems from news reports and public records that the Guidice's lavish homes contents are scheduled for auction by the court appointed trustee. See the Article To make matters worse the trustee is filing an objection to the Giudice's discharge based upon a false oath (perjury) and their failure to explain their loss of assets and financial demise with proof through their books and records. The trustee is seeking to make all of their debts listed in the bankruptcy non-dischargeable under 11 USC 727, which is a very serious matter. If the trustee settles with the Giudices then any creditor may be able to step into the shoes of the trustee to object to the discharge according to current precedent. One creditor already has filed an objection to their discharge according to reports based upon allegations of fraud relating to Mr. Giudice.
The trustee has also alleged that the Giudice's failed to list interests in businesses, revenue from and interests in a book that Teresa Giudice wrote which is a New York Times bestseller, and other items as well as undervaluing property. Ms. Giudice in previous episodes can be seen spending lavishly on expensive clothes, going on shopping sprees, and throwing lavish parties for herself and her children. In the most recent episode, Teresa and her husband can be seen taking a rather lavish anniversary dinner at a nice hotel where they were staying, taking a limo there, and he gives her a purported enormous "yellow diamond ring" for her anniversary gift despite his financial problems and later filing of the bankruptcy (Maybe it was a Fugazi (fake) which was discussed earlier in the same episode), but nevertheless the trustee is likely to inspect that ring to make sure it is fake and if it is not then the trustee will likely liquidate it for the benefit of their creditors. I am sure there will be more news to come with regards to their bankruptcy.
Nevertheless, when filing a bankruptcy it is necessary to list all your assets and liabilities. Failure to do this can and may lead to prosecution by the Department of Justice for bankruptcy fraud (with stiff penalties of up to 5 years in jail and/or a $250,000 fine). Further, the trustee can and likely will object to the discharge of a person who undervalues assets or fails to list them in their petition and schedules. For a person to file a Chapter 7 or any bankruptcy they must fully disclose an accurate picture of their financial situation and explain the loss of income or property etc. In some cases the trustee may ask for proof of bank records, cancelled checks, or credit card statements. The failure to provide those documents can lead to an objection to the persons discharge. Further, if a person undervalues assets then the trustee has the right to get an accurate appraisal or value for the listed properties or even inspect them.
When a client comes into my office and asks what do I need to list? I say everything "ALL ASSETS and LIABILITIES" and I tell them that they cannot pick and choose what they list and do not list. Everyone will sign a disclosure required under federal law 527 (a) (2) which is to be given prior to retaining our office which states the above in no uncertain terms. When filing a bankruptcy with an Experienced Chicago Bankruptcy Attorney we would never put a client in a position to perjure themselves. Further, we have a duty under the bankruptcy code to make all reasonable attempts to do due diligence with regards to the Debtor's assets and liabilities. As court opinions will often say, "bankruptcy is for the unfortunate debtor who cannot afford to pay their creditors back, but want too" almost all of the clients we see seek the protection of bankruptcy because they have no other alternatives other than a bankruptcy.
Marc Wagman
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| July 28, 2010 |
| Chapter 13 Can Help you with your Home and Mortgage |
| Posted By KC Swanson |
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When a person falls behind on their mortgage they may have a few choices of how to fix the loan or save the home. This Chapter 13 article does a good job of discussing the positives and negative aspects of filing a chapter 13 Bankruptcy or a Chapter 7
bankruptcy in Chicago. It states that you can avoid the tax liability associated with a deficiency that survives the sale of your home. The article also discusses how it may be possible to strip liens on homes that have become substantially undervalued. It also discusses that while the bankrupty filing can hurt your score and stay on your record for 10 years, at the same time it can give a realistic manageable timetable to payoff all your debts and come out of the bankruptcy caught up on all your debts and still have possession of your home or car. However, it is urged that you do your homework when selecting your attorney.
A Chapter 13 reorganization is complicated and you should find a Chicago Bankruptcy Lawyer that has a wealth of regular experience in creating chapter 13 plans and representing Chapter 13 clients so as to make sure you get a plan that best fits your personal financial needs. My partner and I have drafted thousands of Chapter 13 plans and feel confident we can get you into a Bankruptcy plan that fits your personal needs. So call or email us today so we can get you a free consultation so you can Lose your Debt and keep your Dignity! |
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| July 20, 2010 |
| Where are the Bankruptcy Code Amendments needed by Home Owners? |
| Posted By KC Swanson |
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Many home owners have spent the last two years struggling to pay their mortgages when interest rates jumped on their loans and the economy tanked, most were seeking relief with a loan modification. However, when one closely examines these modifications two things become clear. First, that very few modifications are actually successful and this leaves many home owners behind on mortgage payments and in foreclosure, this leaves the person little choice but to file a Chapter 13 bankruptcy to save their home or walk away from the property. Second, even if the modification is accepted it is usually only a temporary fix, many modifications restructure only for a few years and after that the payment will return to the original loan terms and the old payment amount and interest rate.
Therefore, the lenders are guaranteed to never actually lose any of the money owed to them and the Debtor will pay in full. Over a year ago there was a great solution proposed to all these home loans that had variable rates or were substantially upside down on their value. This article discusses how a Chapter 13 Bankruptcy could be filed and the Bankruptcy Code would be amended to allow the Debtor to cram down the value of the home or reduce the interest rate. Either one or both options would allow the Debtor to stay in their home and make the home affordable based on current interest rates. However, the bill died in Congress for many reasons, but most likely because this option would make the banks take some financial hit. So if you have attempted a modification and failed please call our office for a Chicago Bankruptcy Attorney that can try to help you save your home. Or call our Bankruptcy office today, to set an appointment for a free consultation, as it may be possible that a Chapter 7 Bankruptcy may help you in addition to a Chapter 13. Either way we will do our best to make sure we find out if Bankruptcy can help you. So call or email today so you can lose your debt and keep your dignity. |
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| July 09, 2010 |
| Abusive Practices By Debt Collectors |
| Posted By Marc Wagman |
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The Federal Trade Commission reports that complaints about debt collectors have risen 50% in 2009 and this year they expect a 13% increase over last years number of complaints See the Article. In addition, complaints of debt collectors using obscene or abusive language spiked 35% from last year. It is often my experience that when a potential client comes into our office and is behind on their bills they will tell me about the abusive practices of some of the collectors for their debts. Often it will be phone calls at work, phone calls to relatives, abusive language, threats to sue or send the sheriff out to arrest the person, divulging personal information to the person's employer, and constant phone calls at all times of the day and night.
Whether a person files a Chapter 13 Learn More about Chapter 13 or a Chapter 7 Learn More about Chapter 7 with a Chicago Bankruptcy Attorney like us, the creditors phone calls must stop. Once a person files the case an automatic stay goes into place which stops creditors from suing, collecting, or harassing you to pay any debts. The automatic stay is your protection from creditors.
Further, the Fair Debt Collections Practices Act or FDCPA provides a civil remedy for any creditor who uses abusive or deceptive debt collection methods. It provides for damages of $1000 for each violation, compensatory, and sometimes punitive damages, as well as attorney fee's Learn More about Creditor Harassment and the FDCPA from the FTC's website. Common violations of the statute will commonly be one of the following:
1. Threats to use violence to collect the debt, or abusive or profane language
2. Causing the telephone to ring excessively, to annoy or abuse the person, or calling after 9 pm at night or calling the persons employer and divulging personal information or defamatory information to a third party.
3. False or misleading representations by the debt collector (the person saying they are with a state agency or the police department, or an attorney etc).
4. unfair or unconscionable means to collect a debt
5. and the failure to validate the debt after an initial communication
As an Experienced Chicago Bankruptcy Lawyer we often hear from our clients that they want to pay their bills, but the vast majority don't have the ability to do so. We realize that if you had the money to pay your creditors you would not be speaking to us and that bankruptcy is usually your last resort. We will help you lose your debt while still maintaining your dignity!
Marc
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| June 28, 2010 |
| It Is Okay to File Bankruptcy |
| Posted By KC Swanson |
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| Many of our clients come int our Chicago Bankruptcy offices and state that they feel bad or morally wrong for wanting to file a Chicago Bankruptcy Case. However, as evidenced in this business bankruptcy article, businesses file Bankruptcies everyday. In fact, some of the richest business moguls in America have filed multiple bankruptcies throughout their lives. When a business files it is considered by society to be a savvy business move, however when a consumer files this is considered morally wrong? This is quite hypocritcal and you SHOULD NOT feel bad. If you qualify for a Chapter 7 or Chapter 13 Chicago Bankruptcy then there is nothing wrong with using one of the few federal laws created to protect a consumer against creditors when they get into trouble. If you are having financial problems and creditors are harassing please do not hesitate to call a chicago bankruptcy lawyer today. Check out our Bankruptcy website to see you may qualify or fill out a contact form and we will contact you asap so we can talk to you and let you know that there is nothing morally wrong with filing a bankruptcy. So stop delaying your relief from all those harassing creditor calls to your home or your work. |
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| June 21, 2010 |
| How a Bankrutpcy Can Actually Help Your Credit Score. |
| Posted By Marc Wagman |
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Whether you file a Chapter 7 Learn More about Chapter 7 or a Chapter 13 Learn More about Chapter 13 either type of bankruptcy will stay on your credit report for 10 years. Nevertheless, filing either type of bankruptcy with a Chicago Bankruptcy attorney like us may help your credit score more than not filing a bankruptcy. One of the biggest reasons most people wait to file a bankruptcy is that they perceive that their credit will be destroyed forever and that they will not gain access to new credit. See Common Bankruptcy Myths However, with either type of bankruptcy if you are in default on your bills prior to filing your credit score is hurt each month by the defaults. Your credit score will drop each month by any negative or derogatory reporting by a creditor on your credit report. If you have missed a payment on a mortgage or missed payments or been late on bills your credit score will drop each month.
Further, if you have a high debt to income ratio then your credit score will be impacted and any creditor will take that into consideration on whether to grant any new credit to you. However, by filing a bankruptcy and eliminating any future negative reporting and eliminating debt creditors will view any new extensions of credit as a new foundation to build upon. See Our Credit Restoration Page Often a potential client or client will ask how long before I get credit card offers or a home loan. Generally speaking a credit card can be had after the time of discharge or a few months after, same thing goes for a car loan. Purchasing a home usually takes around two years after the discharge. What matters most is what you do after the discharge. It is good to keep in mind that if your bills are in collections or you are behind on your bills your credit score is being hurt every month that you wait. If you are considering bankruptcy contact one our Chicago Bankruptcy Attorneys today Swanson & Wagman LLC Home Page
Marc Wagman
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| June 15, 2010 |
| Small Business owners still suffering from Banks non lending practices |
| Posted By KC Swanson |
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| After all the big bailouts in the last year most banks survived, yet many refuse to begin lending to potential property purchasers or small businesses. This latter issue has caused many small business owners to have to file a Chapter 7 or Chapter 13 bankruptcy in the Chicago area. This is a unfortunate situation as small businesses are one of the main drivers of our economy. If you are a small business owner in the chicagoland area you may need a Chicago bankruptcy attorney. If you still have income coming into the business we may be able to file a Chapter 13 consolidation plan that will allow you to keep all your property and keep your business running all the while consolidating all your creditors into one affordable payment. If you do not believe your small business will hang on then you should seriously consider a Chicago Chapter 7 bankruptcy because most of your debts may also be tied to you personally so it is important to find a good Chicago Bankruptcy Lawyer that will determine the best course in order to file Bankruptcy that protects your personally and your business professionally. So please call or email us today or check out our website and fill out an evaluation form so we can contact you ASAP and relieve you of some of that stress that your creditors are causing you. Lose your debt, Keep your dignity!!! |
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| June 14, 2010 |
| How the Automatic Stay protects you when you file a bankruptcy. |
| Posted By Marc Wagman |
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The automatic stay is a provision in the bankruptcy code under 11 USC 362. Whether a person files a Chapter 7 Learn More about Chapter 7 or a Chapter 13 Learn more about Chapter 13 an automatic stay goes into place upon the filing of the bankruptcy. The automatic stay is your protection from creditors. In essence, the easiest way to describe it is that it is an injunction which will stop creditors phone calls, collection activities, the repossession of a vehicle, and stop a foreclosure. It is a very powerful tool which keeps any creditor from taking any action against any money or property you may have. Learn More about Creditor Harrassment
The automatic stay also will stop any act to perfect or enforce any liens against real estate or any acts to collect or assess any claims that arose prior to the bankruptcy. The automatic stay also allows for damages if a creditor violates the stay with notice of the bankruptcy and may allow for punitive damages. At Swanson & Wagman LLC, we are here to help you navigate through the complexities of filing a Chicago Bankruptcy. We are Chicago Bankruptcy Attorneys who know how to use the protection offered by the automatic stay for your benefit. See Our Website for More Information and schedule a free consultation today!
Marc
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| June 12, 2010 |
| Watch Out For Debt Consolidators v. filing a Bankruptcy with an Experienced Chicago Bankruptcy Attorney |
| Posted By Marc Wagman |
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When I am sitting in my car in traffic on the radio there is someone selling the idea of Debt Consolidation. I think to myself are people really falling for this v. filing a bankruptcy. The Wall Street Journal has an excellent article on Debt Relief offers Beware of 'Debt-Relief' Offers Click here to read the article. In the article it speaks about how much it can hurt your credit score more than a bankruptcy and it doesn't stop collections calls. A Bankruptcy is the only way to eliminate your debt with a Chapter 7 Learn More about Chapter 7 or a Chapter 13Learn More about Chapter 13 and Chicago Bankruptcy Attorneys Swanson & Wagman LLC.
A bankruptcy will eliminate collections calls, stop a foreclosure, and eliminate credit cards and medical bills, and other types of debts. The automatic stay prevents any collection efforts through the power of a federal bankruptcy court. At Swanson & Wagman, licensed Chicago Bankruptcy attorneys we are experienced bankruptcy lawyers who will represent you through the entire process. Swanson & Wagman LLC Click here
Our office isn't one of the mills who processes you just like another customer. At our office we will guide you through the process from start to finish. We will happily assist you and answer any questions you may have. We are one of the pre-eminent boutique firms in Chicago and the surrounding areas. We are experienced and affordable. We will treat you with respect through the entire process and we want you to lose your debt and still maintain your dignity. At our office you will never speak with a paralegal or a secretary who will answer questions that a lawyer only should answer. You can speak with us day or night regarding your concerns. We are affordable and we have Saturday appointments. Chicago Bankruptcy Attorney Contact Page Click Here to Contact Us Now
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| June 11, 2010 |
| When to file bankruptcy? |
| Posted By Marc Wagman |
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Potential bankruptcy clients typically find a lawyer’s office when they are one step from financial Armageddon: Swanson & Wagman LLC are licensed Chicago Bankruptcy Attorneys who help people file Chapter 7 and Chapter 13 Bankruptcy
Chicago Bankruptcy Attorney Website.
Major Warning signs: There is a foreclosure sale of the debtor’s home the next day or a foreclosure filed and proceeding; the debtor’s only car was mysteriously repossessed in the dark of lastnight (car repo); a garnishment has reduced the debtor’s take-home pay below the ordinary requirementsof food and rent. Instantaneous relief is need in the above examples. Foreclosure and Bankruptcy.
The problem sometimes becomes that clients will wait too long and waste precious time and precious and limited resources prior speaking with an experienced Chicago Bankruptcy Attorney at Swanson & Wagman Chicago Bankruptcy Lawyers. Waiting to long can and may lead to loss of income or loss of property that can be protected in the bankruptcy. That's why it is important to speak with us at the start of significant financial problems such as a loss of job, loss of income, garnishments, and collectors calls. Don't wait speak to one of our attorneys today as 312-666-7882.
Marc
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| June 10, 2010 |
| Projected Monthly Income for Chapter 13 Purposes the New Supreme Court Opinion |
| Posted By Marc Wagman |
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When filing a bankruptcy either a Chapter 7 Learn More About Chapter 7or Chapter 13 Learn More about Chapter 13 a Debtor goes through the "Means Test" Learn More about the Means Test a provision changed by Congress in 2005 to determine under 11 USC 707 B 2 of the Bankruptcy Code whether the Debtor needs to file a Chapter 13 or a Chapter 7. In sum, the means test was written into the Bankruptcy Code by Congress based upon the perception that there are many people who should be filing a Chapter 13 instead of filing a Chapter 7. Congress perceived that some were abusing the relief provided under the bankruptcy code. No longer would your actual income and expenses determine your ability to file a bankruptcy.
The Means Test
The Means Test is a six month average of the Debtor's & Joint Debtor's household income derived from all sources for the six months prior to filing. An average of the money received from all sources in the last six months is calculated divided by six then multiplied by 12 and you have the Median Income of the Debtor (the mathmatical formula) (6 months income derived from all sources prior to the filing for six months divided by the six months and multiplied by 12) you come up with Median Income of the Debtor and his or her household. If that amount of money is below the income for the size of household in your state then you can file a Chapter 7. If the money is higher than the average size per your household in the state you are "presumed" to do a Chapter 13 paying in any "projected disposable income" over the next five years minus any legitimate deductions. After legitimate deductions (only deductions Congress prescribed in 707) the number determines the payment in Chapter 13 for a sixty month repayment plan.
Whats the problem with that?
The problem is what happens if the Debtors six month pre-filing average is either very high or very low. The end number to determine the payment may abnormally high or low. So Some people who cannot pay their debts end up being forced into an unrealistic Chapter 13 payment due to loss of Income that they no longer receive or they are paying to little to the creditors.
This is exactly what happened in the Supreme Court Case Hamilton v. Lanning, just decided a few days ago. The Debtor lost her jobs in the previous six months prior to filing and received a one time severance package just prior to filing. That income was a one-time occurence, but according to the means test that amount is calculated into your monthly average. She had a job paying lower than the median income post filing and that the previous amount of money pushed the Debtor into Chapter 13.
It fictionally made it appear that she had more money to pay her creditors. The Chapter 13 Trustee objected to her proposed repayment plan and said that she must pay her creditors based upon the income received in the last six months including her severance package without looking forward for her future income.
The Supreme Court said no, and
Held: when a bankruptcy court calculates a debtor’s projected disposable income, the court may account for changes in the debtor’s income or expenses that are known or virtually certain at the time of confirmation.
This means a great deal for Debtors who file bankruptcy. The process of filing of bankruptcy Learn more about the process became more difficult with the change of the laws. Courts all over the country mainly used the mechanical approach toward calculating future income (mechanical meaning in essence that a math formula was used to calculate the Debtor projected payments). Now with an experienced bankruptcy attorney who files bankruptcy in Chicago Experienced Chicago Bankruptcy Attorney the Debtor can argue that something either in the past or future should be considered by the court. I.E. a loss of income a one time withdraw from a pension, IRA, or a severance package etc. that should be taken out of the equation for calculating whether you should file a Chapter 7 or a Chapter 13. How to Choose a Lawyer Choosing the right lawyer is important now more than ever. At Swanson & Wagman LLC all we do is bankruptcy.
My partner and I are Experienced Chicago Bankruptcy Attorneys. We keep up to date with current case law and are aware of the requirements of the Bankruptcy Code for either Chapter 13 or Chapter 7. We will make the most of Chicago Bankruptcy filing whether Chapter 7 or Chapter 13 and help you navigate through this process as painlessly as possible. We want you to lose your debt and keep your dignity!
Marc
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| June 03, 2010 |
| How Much Does a Bankruptcy Cost? |
| Posted By Marc Wagman |
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Often, a potential client will call our office and ask "How much do you charge for a bankruptcy?" The question is almost impossible to answer without some questions of our own. Imagine if you will that you call a mechanic and say my car isn't running what will you charge to fix it? The mechanic will not know what is wrong by speaking with you over the phone or know if you need a new engine or your water pump is out etc. Or imagine, if you will you call a Doctor and say my back hurts what do you charge for back surgery. A Doctor cannot answer that question without you coming in and doing further tests and taking x-rays etc. The Doctor won't know if it is minor back pain or you need a disc replacement etc. The same analogies apply when a a potential client calls and says what do you charge for a bankruptcy? Generally, we can give a range of fee's; however, without asking some questions of our own, our office or any attorney cannot really answer the question without asking numerous questions and ideally to speak with you in person.
We will not know if you need a Chapter 7 liquidation bankruptcy Learn More about Chapter 7. Or if you need a Chapter 13 reorganization Learn more about Chapter 13 Reorganization. We will often answer the question of how much we will charge with numerous questions. Some of the questions we will ask are, Are you working?, Do you own real estate?, how much debt do you have?, What kind of Debt is it that you have? Do you own a business? Etc. Etc. A Chapter 7 or a Chapter 13 fee will vary on how complicated a case is and what the debts are. Numerous attorneys who dabble in bankruptcy advertise with a "flat fee" for bankruptcy and then add attorney fee's on a a la carte basis for any complexities in the case. Most of the time the person who uses them will be charged much more than the advertised "flat fee", and or they will be using an attorney who only dabbles in bankruptcy. Although any attorney can legally file a bankruptcy we often meet clients who used an inexperienced attorney to file their bankruptcy at their own peril. Bankruptcy is not a specialty practice; however, if the attorney does not regularly practice bankruptcy law then there are extreme perils for both the attorney and the Debtor. See Our Link on how to Choose a Lawyer
Using a "cut rate" attorney may lead to a client paying much more in the end. Also imagine that you hire the "cheapest doctor" for a surgery and not the "best". Do you really want to take a risk like that with you health? Should you take this risk with your financial health? At Swanson & Wagman LLC, you will only speak with an attorney, and never a paralegal or a secretary See Our Website. We only practice bankruptcy and a little real estate work. Often times I will speak with a client and tell them call different attorneys and see what they say to you and see a few before coming to see us, because you should compare attorneys on a big decision such as filing a bankruptcy. We will go through your options other than filing a bankruptcy Alternatives to a Bankruptcy.
Marc Wagman
Attorney at Law
Swanson & Wagman LLC Our Main Page
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| June 03, 2010 |
| Personal bankruptcy filings rise fast |
| Posted By Marc Wagman |
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| The number of Americans filing for personal bankruptcy rose by nearly a third in 2009, a surge driven largely by foreclosures and job losses. And more people are filing for Chapter 7 Chapter 7 bankruptcy, which liquidates assets to pay off some debts and absolves the filers of others. That is significant because a 2005 overhaul of federal bankruptcy laws aimed to encourage Chapter 13 filingsLearn More on Chapter 13, which force consumers to sign onto debt-repayment plans in exchange for keeping certain assets.
The changes were designed to make it more difficult for people to shed their debt, particularly in a Chapter 7 filing. A "means" test, Learn More about the Means Test for example, was introduced to separate those who could afford to repay their debt from those who couldn't. A Chapter 7 filing is off the table if the means test determines a person is able to pay back at least a portion of the debt after it is restructured.
The worst U.S. recession in a generation is testing the effectiveness of these laws. The economic downturn also has prompted more middle-class Americans to file for bankruptcy protection
Overall, personal filings hit 1.41 million last year, up 32% from 2008, according to the National Bankruptcy Research Center, which compiles and analyzes bankruptcy data. It is the highest level of consumer-bankruptcy filings since 2005. Consumers rushed to file in 2005 before the new bankruptcy laws took effect in October of that year.
Chapter 7 filings were up more than 42% as of November 2009, compared with the same period a year earlier, according to the research center. November is the most recent month with analyzed data available. Chapter 13 filings rose by 12% and made up less than a third of 2009 filings as of November.
"That suggests it was largely ineffective," Ronald Mann, a law professor at Columbia University, said of the 2005 overhaul. "I don't think anybody who's knowledgeable about the bankruptcy system thought the statute was well crafted."See Our Website to Learn More Swanson & Wagman Website.
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| May 25, 2010 |
| President Obama Declares National Bankruptcy Issue |
| Posted By KC Swanson |
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| President Obama declares in this article, that when analyzing the US Budget that nationally the debt will double and this WILL lead to long term increased unemployment. If you are someone who is facing unemployment a Chicago Bankruptcy may be beneficial to you. To determine the benefits of a Chicago Bankruptcy click here. There are two types of Bankruptcy that can be filed if unemployment has caused you to lose control of your bills and debt. The two choices of Bankruptcy are Chapter 13 and Chapter 7. The Bankruptcy laws changed in 2005 and now there is a more complex calculation to determine your Chicago Bankruptcy eligibility, click here to better understand this calculation called the Means Test. It is important to select a Chicago Bankruptcy attorney that understands this complex calculation and how to apply to your personal financial to this calculation to get you the very best results for your Chapter 7 or Chapter 13 Chicago Bankruptcy case, read the following page to gain information on what you need to look for when selecting your Chicago Bankruptcy Attorney or Chicago Bankruptcy lawyer. Please call or fill out a Free case evaluation to contact us today as we are a firm that specializes in creating successful Chicago Bankruptcy cases and getting them filed in a fast and affordable manner thanks in part to our personalized fees and payments plans. |
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| October 01, 2009 |
| Mortgage delinquencies are at a record high. |
| Posted By Marc Wagman |
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Mortgage delinquencies are continuing to increase despite assurances of an economic recovery around the corner SEE ARTICLE. If your mortgage is in default a Chapter 13 will consolidate any payments that you have and you can repay any mortgage arrears over five years. Filing a Chapter 13 will stop the foreclosure and allow you to catch up on your payments. At Swanson & Wagman LLC, we are experienced Chicago bankruptcy attorneys who will discuss your options under either type of bankruptcy. Please call us or visit our website.
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| September 23, 2009 |
| Congress still not ready to address Mortgage Crisis with Bankruptcy Reform Laws |
| Posted By KC Swanson |
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| While this is not the current law in Bankruptcy law it is a hope of most Chicago Based Bankruptcy Attorneys that in the future their clients may be able to negotiate the mortgage on their home when the file a Chapter 13 Bankruptcy. As this article outlines, this type of law has helped farmers when enacted in prior Bankruptcy law reforms. This so called cram down law has also greatly helped Chicago Bankruptcy filers with their upside vehicles. Basically, when a Chicago consumer files a Chapter 13 Bankruptcy they are able to only have to pay back the value of the car, in full with interest, instead of what is owed on the contract. This ability was diminished some by the Bankruptcy reforms of 2005, the contract for the purchase of the car must be older than 910 days to qualify, but it still exits and provides great relief for the Chicago Bankuptcy Consumer. Until Congress makes such a change home owners are left on their own to modify their home loans. However, if not successful please call our office today so we can help you protect your home from foreclosure through a Chapter 13 Bankruptcy filing. We are Chicago Bankruptcy attorneys that specialize in getting your Chicago Bankruptcy filed as fast as possible to protect your car or home. We also examine the possibility of a Chapter 7 Chicago Bankruptcy in order to assure you have all the legal choices at hand to make sure you make the best decision for your financial future. Please visit our website today! |
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