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Posted By
Dave Johnsen
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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Posted By
Dave Johnsen
When you are preparing to file bankruptcy, it is best to discuss with your bankruptcy attorney whether you have any judicial liens against your property. These liens, even if the debt is included in your bankruptcy and discharged, can survive the bankruptcy and stay levied against your home. A judicial lien is secured through a legal process of securing a memorandum of judgment. It can be for ...
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Posted By
Dave Johnsen
On Tuesday, Federal Bankruptcy Judge Stephen Rhodes determined that the City of Detroit is eligible for Chapter 9 bankruptcy, ushering in a legal process that could have landmark decision written all over it. The city, with billions of dollars in outstanding debt owed, simply does not have the means to pay its creditors and is for all intents and purposes, insolvent. Judge Rhodes issued this ...
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Posted By
Dave Johnsen
The idea of going to court can bring trepidation to even the calmest individuals. This is especially true in bankruptcy situations, where financial issues are in play for those who might not be accustomed to the legal arena. At the same time, however, most Chapter 7 bankruptcies only involve one court-like proceeding, and that is the 341 meeting. We've covered the 341 meeting at length in previous ...
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Posted By
Dave Johnsen
According to a story published in the Chicago Tribune on November 13, 2013, Chicago-area foreclosure filings rose nearly 30% in October 2013. This number, while lower than this past summer and the past few years of extreme foreclosure rates, signals that the economic recovery is far from complete. A spike in foreclosure filings as winter comes indicates that for some, household income has gone ...
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Posted By
Dave Johnsen
Bankruptcy law is complex and difficult to understand. Attempting to navigate the various rules, laws, and legal framework, not to mention completing and filing the necessary schedules, paperwork, and documents, is a difficult task. For this reason, the first step in filing a bankruptcy is to consult an experienced and competent attorney. When you initially meet with your attorney, it is important ...
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Posted By
Dave Johnsen
In some Chapter 7 bankruptcies, particularly those where assets are found and thus available for distribution to unsecured creditors, and all Chapter 13 bankruptcies, creditors get paid by filing proof of claims. These proof of claims. These claims are governed by Bankruptcy Rule 3001, which states on a basic level that it is "is a written statement setting forth a creditor’s claim." Rule 3001(c) ...
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Bankruptcy Lawyer in Chicago
Unlike Chapter 13 bankruptcy , which is available to everyone, you must be eligible to file under Chapter 7 of the U.S. Bankruptcy Code. Since this process eliminates most, if not all, of your debt in a very short period of time, certain measures have been taken to limit the amount of people that qualify. In fact, this form of bankruptcy has been strictly reserved for those who truly cannot repay ...
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Posted By
Dave Johnsen
The primary role of the Chapter 7 trustee is to administer your bankruptcy case. Once you file your Chapter 7 bankruptcy, a trustee is appointed to your case. This trustee is an impartial administrator appointed by the United States Trustee's office. This trustee is assigned to both administer your case and also liquidate any unexempt assets you have for distribution to your unsecured creditors. ...
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Posted By
Dave Johnsen
If you recall, a major theme of these posts, and bankruptcy in general, is the fact that assets can make a major difference not only in what chapter you file your case in, but the success that the case can have in general. Two major assets, social security cases and personal injury cases, are considered in this same analysis but also treated differently at the same time. Social security has a ...
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Posted By
Dave Johnsen
A common misconception in Chapter 7 bankruptcy is that the debtor's property will be lost when they file their case. For the majority of cases, this is not true for a couple reasons. First, if a person has a lot of assets they probably won't be filing in the first place. Secondly, though, even if a person does have assets when they file a Chapter 7 bankruptcy there are exemptions that can shield ...
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Posted By
Chicago Bankruptcy Attorney
As you may know, it is far too easy to fall behind on your credit card bills. After paying the minimum each month, expecting to slowly chip away at these expenses, you may discover that the debt has started to pile up. It is for this reason that you, and countless others, have been left wondering what you can do to regain control of unruly credit card debt. Depending on the level of debt that you ...
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Posted By
Dave Johnsen
Once a bankruptcy case is filed, a bankruptcy restraining order is automatically issued. This restraining order, which functions much like a typical restraining order, is formally known as the automatic stay. This automatic stay prevents creditors from proceeding in collection actions against you. What this means is that creditors can't call you at home, at work, or on your cell phone; they can't ...
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Posted By
Dave Johnsen
Prior to filing for Chapter 7 Bankruptcy, there are various documents that must be provided to your attorney in order to be able to complete your bankruptcy petition. Above anything else, you must provide your most recent 4 years of tax returns, the previous 6 months of paystubs, and statements from your bill collectors. In addition to these, those filing bankruptcy must complete a credit ...
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Posted By
Dave Johnsen
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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