1512 Artaius Parkway, Suite 300,
Libertyville, IL 60048

Call for a FREE Phone Consultation

847-549-0000

Video Consultations Also Available

Subscribe to this list via RSS Blog posts tagged in Chapter 7 bankruptcy

Lake County bankruptcy lawyerAre you substantially behind on your bills and so far in debt that you are considering bankruptcy? Is a large portion of your debt money that you owe to the IRS in back taxes? If you answered “yes” to both of these questions, you probably have a question of your own: Will bankruptcy help with my tax debt anyway?

Under the United States Bankruptcy code, not all debts can be discharged by filing for bankruptcy. Some debts, such as student loan obligations, will remain your responsibility even if your bankruptcy is successful in wiping out most of your other debt. Tax debt, in most cases, can be discharged, but very specific criteria apply.

Discharging Tax Debt in Chapter 7

For the purposes of this discussion, we will focus on Chapter 7 bankruptcy, sometimes called “straight bankruptcy.” Under Chapter 7, you, as the filer, agree to turn over your assets (with certain exceptions) to the bankruptcy trustee. The trustee will liquidate your assets and use the proceeds to pay off your debts. Remaining debts are discharged, presuming that they are eligible for discharge.

...

Lake County foreclosure defense attorneyIf you have fallen behind on your mortgage payments to the point where you are in default on your loan, you may be facing the possibility of a foreclosure. You probably know that if your lender forecloses on your home loan, the house will be sold and the proceeds of the sale will go to the lender. Meanwhile, you will be left with no place to live and a serious mark on your credit history.

The reality is that many people who are facing foreclosure also have a large amount of other debt as well. Such debts often include credit card balances, medical bills, personal loans, and student loans. In cases like these, it is not uncommon for a person to begin thinking about filing for bankruptcy under Chapter 7 of the United States Bankruptcy Code. Filing for Chapter 7 bankruptcy could help you avoid foreclosure in certain situations, and experienced foreclosure defense attorney can assist you in exploring your available options.

An Automatic Stay

When you file for any type of bankruptcy, the bankruptcy court will immediately put a stay on all debt collections activities being pursued against you. This includes foreclosure proceedings, even if they have already been initiated by your lender. If your lender continues the proceedings once the stay has been enacted, the lender is in violation of federal law. Sanctions are possible in such cases. The stay is not permanent, however, and your lender can request that the bankruptcy court lift the stay and allow the foreclosure proceedings to continue.

...

Posted on in Chapter 7 Bankruptcy
Illinois Bankruptcy: Chapter 7

When your financial situation starts to spiral beyond your control, and your debts pile up faster than you can pay them down, you are left to decide if you are going to file for bankruptcy. What, which kind of bankruptcy is right for you - Chapter 7 or Chapter 13?

Chapter 13

If you want to keep your property, then your best option might be to file for Chapter 13 bankruptcy. You can create a payment schedule to catch up on your debt payments, and you should be able to keep your original mortgage for your home or business. You may also choose to file this chapter if your income is too high to file Chapter 7.

...
Understanding The Bankruptcy Feedback Loop

A recent piece published in The Atlantic describes a phenomenon it dubs “the bankruptcy feedback loop.” This is the cycle of impoverished individuals filing for bankruptcy to eliminate their debts only to find themselves back in debt not long after, considering filing for bankruptcy again. For many of these individuals, debt is a generational problem and the goal of being comfortable financially appears to be too far away to actually achieve.

The piece illustrated the story of one Memphis woman who filed for Chapter 13 after one of her creditors won a judgment against her and wage garnishment was set to begin. The piece reported that Memphis is the bankruptcy capital of the United States and that black filers, who comprise most of the bankruptcy filers in Memphis, are less likely to achieve debt relief through bankruptcy than white filers. In 2015, half of the black individuals who filed for Chapter 13 in the United States Bankruptcy Court for the Western District of Tennessee had filed for Chapter 13 at least once more in the previous five years. Although Chapter 13 is an attractive option for many because it often does not require the filer to put down any money up front, it is often more expensive than filing for Chapter 7 in the long run.

Chapters 7 and 13 are More than Just a Different Set of Requirements

...
Alfred Angelo Bankruptcy Disrupts Brides' Plans

In July of 2017, dressmaker Alfred Angelo filed for Chapter 7 bankruptcy after more than 75 years in the bridal dress business. The 60 Alfred Angelo shops were shuttered immediately. This came as a surprise to dress retailers and the brides who had ordered Alfred Angelo gowns through them, some of whom are now scrambling to find out if they will receive their dresses or if they will have to get new gowns at the last minute.

In most stories about businesses filing for bankruptcy, the business filed for Chapter 11, or reorganization, bankruptcy. Chapter 11 is designed to help a company rework itself into a profitable business. In contrast, Chapter 7 bankruptcy is a way for a company to liquidate its assets and fulfill its debt obligations before going out of business. The process makes the liquidation and repayment of a company's debts smoother by bringing in a bankruptcy trustee to facilitate these processes.

Brides Do Not Know if Their Dresses Will Ship

...
AFDA BBB IRELA Illinois State Bar Association Illinois Trial Lawyers Asscociation Manta Member NACBA North western suburban bar association Top One
Back to Top