Chicago Bankruptcy Lawyer

Recent Posts in Secured Creditor Category

  • Property of the Estate & Inherited Property

    11 USC 541(a) dictates that upon the filing of a bankruptcy case, an estate is created. This estate includes all legal and equitable interests of the debtor at the time of filing, and in certain instances, interests in property that arise after the filing of a bankruptcy within a certain period of time. Essentially, once the bankruptcy is filed, the resulting estate is comprised of everything the ...
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  • Cramming Down a Vehicle in Chapter 13 Bankruptcy

    A Chapter 13 bankruptcy affords a debtor the opportunity to cram down certain secured debts to their actual value, not merely the principal balance owed. This concept essentially takes the principal balance owed on a secured debt that is "underwater" and reduces the secured amount of the debt to what the value of the collateral actually is. This concept has its foundation in basic secured ...
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  • Missing Mortgage or Association Payments During Bankruptcy

    The filing of a Chapter 13 has an interesting effect. It consolidates and reorganizes all of your personal debt into one payment to the trustee each month. The analysis that goes into this deals with all of your expenses, income, assets, and debt to determine the payment. The payment can go up if it includes payment for certain secured debt in the plan, like a car of mortgage. This can help ...
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  • Eliminating a Second Mortgage in Bankruptcy

    In today's upside down real estate market, it is quite common for prospective debtors to seek bankruptcy help in an attempt to remove a second mortgage on their property. These mortgages were taken out of the equity when the home still had good value, but with the recession's plummeting home values now sit as fully unsecured liens. A good portion of these prospective debtors are those who normally ...
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  • Saving a Home in Chapter 13 Bankruptcy

    For a home on the brink of or in active foreclosure, the options to the homeowner(s) may seem limited. They can try a loan modification to save the home, but often they feel they have to ditch the home and move on. They try to do this through a short sale, deed in lieu of foreclosure, or perhaps even just abandoning the home altogether. Little do they know, however, that Chapter 13 offers perhaps ...
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  • Car Repossession and Bankruptcy

    A common preceding cause of a bankruptcy filing is a car repossession. On a basic level, a car loan is a secured debt. This means that unlike failure to make your credit card payments, which can result in lawsuits and judgments down the road, failure to make a car payment gives the holder of that secured interest the right to repossess the vehicle in order to pay off the debt. Bankruptcy offers a ...
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  • Amending the Bankruptcy Petition

    One of the more common questions debtors encounter is what to do when they discover a bill that was incurred before they filed their case, but their case has already been filed. Their first instinct is that any efforts at including the bill are moot because the case has been filed, until they discover that they can simply amend the appropriate bankruptcy schedule. Amending a bankruptcy schedule is ...
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  • Selling Real Estate in an Active Bankruptcy

    In any bankruptcy, whether it be a Chapter 7 or Chapter 13, the issue of real estate is nearly always at the forefront. In Chapter 7 liquidations, the amount owed on any liens on the property, together with what the value is of the home, go a long way to determining whether it will be shielded from liquidation. In a Chapter 13, numerous real estate assets can drive up the percentage to be paid to ...
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  • The Fair Debt Collection Practices Act, Part I

    The Fair Debt Collection Practices Act is a federal statute originally signed into law in the late 1970s that is designed to provide protection to consumers from unethical and/or illegal actions by debt collectors. At the time of the promulgation of the act, Congress stated that it had substantial evidence of bad practices by so-called debt collectors, including abuse of consumers, deception, and ...
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  • Common Bankruptcy Questions, Part IV

    Continuing our discussion on common bankruptcy questions, we begin with the age-old question of whether you will ever get credit again. This answer is, of course, always asked in every bankruptcy consultation and subsequent case. The answer is yes. Just by filing the bankruptcy, you are freeing yourself of debt that had been dragging your credit score down to begin with. Because you remove that ...
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  • The Bankruptcy Petition and Schedules, Part II

    Last week we started to address the various schedules that constitute a bankruptcy petition. We addressed Schedule A (covering real property), Schedule B (covering personal property), and Schedule C (detailing the exemptions used to shield assets listed on both Schedules A & B). Now, we turn to schedules that address and detail your debt. Schedule D Schedule D lists all of your secured debts. ...
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  • Secured Property and Bankruptcy

    A common misconception, one routinely brought up by clients when interviewing with their bankruptcy attorney for the first time, is that they think they're going to lose all of their property. Whatever the reason the myth originated, it is simply not true in the majority of cases. Most of the time, a debtor will be able to keep their secured property when filing Chapter 7 bankruptcy. Secured ...
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  • What Does the Chapter 7 Trustee Do?

    We discussed previously that the primary role of the Chapter 7 trustee is to administer your bankruptcy case. The key question, then, is what does that specifically mean? At the onset, the trustee will review your bankruptcy petition and schedules. His primary role in this regard is to review the schedules where you have listed property to see if there is unexempt property that can be distributed ...
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  • Secured Creditors and the Automatic Stay

    We discussed yesterday the basic concepts of the automatic stay in a bankruptcy case. The automatic stay stops all debt collection efforts from the onset of the filing of the bankruptcy case. This also includes any efforts by a secured creditor, such as your mortgage or car company, to collect on their debt with you. In certain situations, including if the debtor is late on payments to their ...
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  • Who Appears at My 341 Meeting of Creditors?

    Although notice of your meeting is creditors is mailed to all of your creditors, in the majority of Chapter 7 bankruptcies, the only people present at your trustee meeting are yourself, the bankruptcy trustee, and your bankruptcy attorney. Most unsecured creditors, like credit card companies, unsecured loan companies, and medical services companies, are so commonly included in Chapter 7 ...
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