Chicago Bankruptcy Lawyer

Blog Posts in May, 2013

  • Five Things to Avoid When Preparing for Bankruptcy

    Although most people assume that the bankruptcy process begins when they file their petition with the court, it is important to understand that preparation is crucial to the success of your case. For this reason, our Chicago bankruptcy attorney encourages you to plan ahead as early as 180 days before filing. Not only will this help the process to move along as smoothly as possible, but it is an ...
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  • Extending or Imposing the Automatic Stay

    Pursuant to 11 USC 362, the filing of a bankruptcy petition serves to automatically stay certain activities against the debtor. These activities, outlined in 362(a), include any judicial action that can be taken against the debtor in terms of debt collection, the enforcement of a pre-petition judgment, or any action to collect property of the bankruptcy estate or things along those lines. The stay ...
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  • Is Pre-Bankruptcy Credit Counseling Mandatory?

    As of 2005, pre-bankruptcy credit counseling is a mandatory requirement when filing for bankruptcy in Illinois. This means that you will need to enroll in a counseling program that has been approved by the Department of Justice's U.S. Trustee Program before you can file your petition with the court. Should you fail to do so within the 180 days leading up to your personal bankruptcy, your case ...
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  • Will Bankruptcy Significantly Affect My Credit?

    If you have considered filing for bankruptcy in Chicago, IL, you have probably heard someone say that it could permanently ruin your credit. While this is no more than an exaggerated misconception, it is important to understand that bankruptcy will have somewhat of an impact on your credit score. Since the bankruptcy will appear on your credit report for seven to ten years after filing, it could ...
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  • Chapter 13 Basics

    When most people think of bankruptcy , they think of Chapter 7's. Bankruptcies filed under that chapter are far more common than any other, as it involves discharging unsecured debt and liquidating assets. Chapter 13, however, is also available to consumer debtors. This form of bankruptcy is a debt consolidation/repayment plan. People may choose to file this chapter if they cannot qualify for a ...
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  • Filing a Second Bankruptcy

    Obviously, the goal in any bankruptcy filing is to make it the only one you file. That's the reason that filing for bankruptcy can also be referred to as obtaining a fresh start. You file either a Chapter 7 or Chapter 13 bankruptcy, discharge all of your debt in either, and move on to begin your financial life with a fresh start. Of course, though, life can still get in the way even after a ...
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  • The Chapter 7 Discharge

    The primary goal in any bankruptcy, including a Chapter 7, is to obtain a discharge. The discharge is the order by the court that eliminates the liabilities of that particular debtor. In Chapter 7 cases , this is governed by 11 USC 727. The way that this statutory provision is structured is such to favor a discharge unless certain things exist in the case that can hinder them. The language of the ...
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  • Issues that Could Delay Bankruptcy

    There's a big difference between preparing for bankruptcy and fraudulent activity prior to filing bankruptcy. Preparing for bankruptcy may entail waiting until the appropriate time to file, spending down certain funds that could possibly be liquidated, or generally deciding through cooperation with your attorney when the best time for filing is. On the other hand, if you engage in fraudulent ...
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  • Key Differences Between Chapter 7 and Chapter 13

    One question that is asked, at nearly every single 341 Meeting of Creditors, is whether the debtor has reviewed the bankruptcy information sheet. This document, included in the bankruptcy petition, in large part explains some of the differences between the various chapters of the bankruptcy code. It briefly mentions what a Chapter 11 is (large-scale reorganization) and a Chapter 12 (bankruptcy for ...
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  • Bankruptcy and a Second Mortgage

    During the years leading up to the mortgage crisis and collapse of late 2008, second mortgages borrowed against the equity of a home were common. People felt comfortable taking them out because home values continued to soar, meaning that there was a low perceived risk at the time of using that extra equity to pay for college, home remodeling, or other various expenses. Only after the bottom ...
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