Blog

Apr
04
Important Facts About Car Repossession and Bankruptcy

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Filing a personal bankruptcy will affect nearly every area of your life – including the car you drive. Despite what you may have heard, however, bankruptcy does not automatically lead to the repossession of your car and the end of convenient mobility. Consumers do have rights under the law, rights that can help them hold onto their cars even while they work to sort out their financial problems.

If you are facing car repossession, bankruptcy or both, we urge you not to just let things go. Contact our experienced bankruptcy attorneys so we can advise you as to the best course of action. We may be able to utilize certain aspects of the law to help you hold on to your car and successfully complete a chapter 7 or chapter 13 bankruptcy.

R...


Mar
14
California Bitcoin Case Shows Why You Need a Bankruptcy Attorney

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A bankruptcy case currently working through the courts in California is one of the more complicated cases the U.S. Bankruptcy Court has seen in a while. It also serves as a reminder of how necessary it is to utilize a bankruptcy attorney whether you are choosing to file chapter 13 or chapter 7 proceedings. Bankruptcy is a complicated legal matter that could lead to more trouble than it’s worth should you attempt to file by yourself.

The California case involves a bankrupt technology company and one of its former advisers and promoters. The company, known as HashFast Technologies, filed for bankruptcy in 2014. The bankruptcy trustee went on to request that former sponsor and advisor Dr. Marc Lowe return some 3,000 Bitcoin he was ...


Mar
07
Bankruptcy and Retirement Accounts: What You Need to Know

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In a chapter 7 bankruptcy, there are both dischargeable and non-dischargeable debts. Likewise, there are assets that can and cannot be seized to satisfy creditors. An asset that frequently causes consternation among chapter 7 filers is the traditional retirement account. Whether it is a 401(k) or an IRA, people are not sure where their retirement accounts stand should they need to file bankruptcy.

In this post, we will clear up the confusion related to chapter 7 bankruptcy and retirement accounts. As always, if you are facing financial problems that could lead to bankruptcy, we encourage you to contact us. We can discuss your case with you and advise you as to the best course of action.

Retirement Accounts Owned by the Filer

In April to 20...


Feb
22
The Foreclosure Process: What Actually Happens

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The threat of foreclosure can be the last straw that encourages someone to consider bankruptcy. A bankruptcy filing can help in some cases by forestalling the foreclosure and giving the homeowner more time to work things out. Yet bankruptcy is not the ‘silver bullet’ many people are hoping for. In order for bankruptcy to be of any help in preventing foreclosure, timing is everything.

So what actually happens in the foreclosure process? How does the homeowner go from property owner to someone looking for a place to rent? There are different rules depending on the state one lives in, but the process is fairly similar across-the-board. The first thing to know is the difference between the judicial and non-judicial foreclosure:

  • Judicial – The judicial foreclosure is one that can only be approved by a court. Lenders must file official Complaints, borrowers have time to respond, and the court eventually makes a decision regarding enforcement of the bank’s lien.
  • Non-Judicial – A non-judicial foreclosure requires no court intervention. It can be conducted based on deeds of trust that gave the power of sale to trustees in the event of mortgage default.

In ...


Feb
08
4 Things to Know about Bankruptcy and the IRS

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With January comes the start of the new tax year and the requirement to file your personal income taxes no later than April 15. This time of year we handle a larger volume of questions regarding the IRS and bankruptcy proceedings. For example, people wonder whether bankruptcies will eliminate their tax debts. Others want to know if they still have to file tax returns in the midst of a bankruptcy proceeding.

The simple and painful reality is that bankruptcy does not eliminate tax debt. It can make the process of paying back taxes easier, but the only thing that will eliminate what you owe is your death. And even that offers no guarantees. Your estate could still be responsible for paying back taxes.

Should you be considering bankruptcy...


Jan
25
Medical Expenses Driving Personal Bankruptcies

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Personal bankruptcies are often viewed as being the result of financial irresponsibility. While it may be true that some people spend recklessly and deliberately in a way that will ultimately lead to bankruptcy, there are plenty of other things beyond a consumer’s control that can devastate his or her finances. Health problems are just one example. It turns out that the uncontrolled rise of healthcare costs is driving personal bankruptcies in the U.S.

A 2014 report by FOX Business explained that healthcare costs have been rising at rates considerably higher than inflation for years. In the last seven or eight years, excessive medical expenses have gone from being one factor in personal bankruptcy to being the primary factor in a...


Jan
17
Bankruptcy and Reinstatement of Driver's Licenses

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The state of Illinois can suspend a person’s driver’s license for any number of reasons. Suspensions are often the result of unpaid tickets or fines, unpaid child support, or judgments as a result of being involved in an accident without having proper insurance. Unfortunately, a suspended driver’s license can inhibit one’s ability to go to work and earn a living, creating financial hardships that could eventually lead to bankruptcy.

Over the years, we have assisted clients who have found themselves in this very position. Clients overwhelmed by debt they cannot manage, yet they struggle to pay what they owe because their work ability is severely hampered by not having a valid driver’s license. Bankruptcy m...


Jan
11
Bankruptcy and Credit Cards: 3 Things You Need to Know

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A major cause of chapter 7 bankruptcy is excessive credit card debt. Credit cards, because they are unsecured and open-ended, make it easy for people to spend beyond their means. Chapter 7 bankruptcy is looked at as a way to get relief from overwhelming credit card debt and get one’s life back in order.

Understanding credit card debt in relation to bankruptcy proceedings is an important part of understanding whether or not a chapter 7 bankruptcy is right for you. There are three things you need to know in this regard to make the right decision:

  • The liquidation principle of chapter 7 bankruptcy
  • How nondischargeable credit card debt is dealt with
  • The rights of credit card companies to challenge dischargeable debt.

Chapter 7 Liquidation

Chapter 7 bankruptcy is a liquidation proceeding. It assumes that the consumer does not have sufficient assets to make a restructuring possible, and that there is n...


Jan
04
Appeals Court Order Could Hamper Future Foreclosure Defense

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A recent ruling handed down by the District Court for the Southern District of Florida could have far-reaching effects in U.S. bankruptcy proceedings if other courts follow suit in similar cases. The first-of-its-kind ruling could hamper future attempts to defend against foreclosure in a chapter 7 bankruptcy proceeding.

The case in question, Failla v. Citibank, arose when a Florida couple involved in bankruptcy proceedings attempted to defend themselves against a foreclosure lawsuit filed by their mortgage lender. The couple had originally agreed to surrender their property under the bankruptcy plan but then decided to defend against the foreclosure after the bankruptcy trustee abandoned the property. Attorneys for the couple maintain...


Dec
22
Recent Court Case Strengthens Consolidation Rules

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A recent bankruptcy case decided in central California has strengthened the rules surrounding substantive consolidation in cases filed under Chapter 7 of the federal bankruptcy code. According to the decision, it is completely appropriate for bankruptcy courts to bring other businesses or individuals into a bankruptcy proceeding, even non-debtors, if the evidence suggests that the finances of the parties are heavily intermingled.

Substantive consolidation is the principle of consolidating all of the assets of the businesses and individuals involved in bankruptcy in order to create a fairer outcome for creditors facing substantial financial losses as a result of liquidation. The problem with substantive consolidation is that it has bee...


Convenient Locations

In order to provide convenience for clients throughout Chicago and Northern Illinois, we have offices in the following locations: 

Chicago • Schaumburg  • Oakbrook • St. Charles • Naperville • And More

Locations

We have office locations throughout the Chicago Area:

Chicago (Downtown)

Schaumburg

Oak Brook

Naperville

All calls are routed through our Downtown office for your convenience.

Phone: 312-967-3159

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