Courts in all states have procedures set to allow creditors to get judgments against the debtors who owe them money.  Then there are steps to allow those creditors to find out what the debtors owe and let the creditors take anything that is not exempted (or protected). In Wisconsin, creditors mail an Order for Financial Disclosure form to the debtors and insist on getting the form filled out and returned in about two weeks.  If they don’t receive it, they can order the debtor to appear at a hearing in front of a court commissioner.  If the debtor skips the meeting, they can be held in contempt and even jailed for not showing and answering! In Illinois, the process is called a Citation to Discover Assets.  It involves the same steps – paperwork and sometimes a hearing where a debtor has to testify about what they owe and what they believe is protected. This process allows creditors to take what they can and it’s hard to stop or delay.  But filing for bankruptcy can put an end to the process.  We’ve helped multiple couples and individuals recently in Illinois and Wisconsin by filing bankruptcies to propose eliminating or repaying the debt that caused the citation or financial disclosures.  By not going to these hearings, our clients can focus on their businesses or jobs and proceeding through bankruptcy to get a discharge instead of taking time off to show up and submit paperwork they’d have to give to us to prepare their bankruptcies. Bankruptcy allows creditors to be paid or eliminated in an orderly fashion.  Citation hearings and post-judgment paperwork are meant to help judgment creditors cut to the front of the line and take money and property faster than what most people can comfortably pay. Let us talk about using bankruptcy as a way to stop these creditors and put yourself back in control of your debts.  Call Lakelaw at 847-249-9100 or 262-694-7300 in Wisconsin to set up a free consultation for a better financial future.

In this next post we will be discussing the issue surrounding dismissal or conversion of bankruptcy and the role and mechanism of the means test and presumption of abuseThe post Bankruptcy Dismissal, Conversion, and the Means Test appeared first on Tucson Bankruptcy Attorney.

  Traffic fines fall under 11 U.S.C. 523(a)(7), and is hence not dischargeable in chapter 7 bankruptcy.  However, the standard chapter 13 discharge under 11 U.S.C. 1328(a) does discharge debts of the type described in 11 U.S.C. 523(a)(7).  There is a distinction between civil infractions, which are discharged, and criminal fines, which would generally not be eliminated in either chapter 7 or chapter 13.  In Florida, if the debtor's drivers license is suspended, they would need to contact the clerk of the court in each county where a citation is issued to get a release in order for the Florida Department of Motor Vehicles to reinstate the license.  The DMV does recognize the distinction between chapter 7 and chapter 13 discharges, and recognizes that civil infractions are dischargeable in chapter 13.  I have also had no problem with Pinellas County doing the same, though Hillsborough County currently appears to be under a misapprehension that such debts are not dischargeable in either chapter 7 or chapter 13.  This should be corrected very soon.   If there are any criminal infractions, the debtor would need to pay those before the license is reinstated, and well as paying fees for the reinstatement itself.

There are times when a person may be found to owe another person money.  Usually one party sues another over a promissory note or a charge card. After a court proceeding, if the Court finds that the debt is valid, the Court grants a judgment in favor of the creditor. One way the Judgment Creditor can try to collect is by filing a Citation to Discover Assets with the Court and serving the Judgment Debtor. The Judgment Debtor can be taken to court and asked about any and all assets that he has that can be used to satisfy the judgment. Once a Judgment Debtor is served with the Citation, he cannot sell, transfer, or dispose of his property until the Judgment Creditor has a chance to inquire about the assets.  The Citation acts to freeze the assets of the Judgment Debtor. The Judgment Creditor may issue a similar Citation to Discover Assets upon a third party not part of the original dispute, in order to determine if the third party has assets of the Judgment Debtor. If, for example, a bank has the Judgment Debtor’s money in an account, the bank can be prevented from releasing any funds out of that account. The Judgment Debtor will know when the Judgment Creditor contacts the third party as a copy of the Third Party Citation to Discover Assets is mailed to Judgment Debtor. Depending on what  is discovered in the post-judgment Citation hearing(s), the Judgment Creditor may be able to reach the Judgment Debtor’s bank account, seize non-exempt assets, and even garnish wages in order to satisfy the amount of the judgment that remains due and owed. The Judgment Debtor may be able to work out a payment arrangement with the Judgment Creditor. Obtaining legal assistance is advisable as soon as possible. Some Judgment Creditors may be willing to compromise on the amount owed, because the Judgment Debtor may have the option of seeking bankruptcy protection.  If the Judgment Debtor qualifies for a Chapter 7 discharge, the Judgment Creditor could receive nothing.

The first thing someone researching chapter 13 learns is that, fundamentally, it’s a payment plan. Someone seeking chapter 13 is required to pay in their “projected disposable income” for the “applicable commitment period,” at the end of which, the remaining unpaid balance of debt is discharged. Put succinctly, you pay the right amount for the right amount of time, and then you’re free. There are a few different ways to pay. In Chicago, for all the obvious reasons, the Trustees never accept personal checks, walk-in payments, or cash. You, in chapter 13, may make your payments the bad way or the good way. The bad way is to go to a bank or a currency exchange and buy a certified instrument, like a cashier’s check or a money order. Then you need to mail the funds to lockbox at the Trustee’s bank, in Memphis. And you need to do that, over and over, until the plan completes. Hundreds of dollars in costs – to say nothing of your time. The good way is via payroll deduction. Just like how you may have taxes and insurance coming out of your paycheck, you have the right to request that your employer withhold the plan payments on your behalf. Your employer is tasked with the responsibility of sending them. You, in that event, have absolutely nothing to worry about. In the event that your employer fails to make the payments, it’s your attorney’s responsibility to coordinate with the employer to ensure the success of your plan. Sometimes people get nervous. They’re afraid that their employer will resent the administrative hassle, they’re afraid that their bankruptcy filing will be considered a “negative” in their personnel file. But it just doesn’t work like that – it’s a matter of minutes for a payroll professional to send a check to your Trustee – they’re already cutting checks to the government, insurance providers, domestic support recipients, retirement plan administrators, and so forth. You, odds are, wouldn’t even be the first at your job to have a chapter 13 plan payment made through payroll deduction; you’re just the first one you know of. And someone’s current employer is absolutely forbidden from discriminating against someone because that person filed a bankruptcy (even if that person discharges debt that they owe to their employer!). The statistics bear out that payroll deduction works. At the outset, it shows the Court that you’re trying to make your plan work – it just looks good. For two, it’s easier for you: You can set it and forget it, and sleep easy knowing that your payments are going to get made. And finally, it just gets you into good habits. Once your plan succeeds, that’s bonus money for you. You’ll have years of budgeting under your belt, and so every paycheck will be a bonus paycheck. You’ll be able to save the money, at long last, to make your dreams come true. Next week, we’ll tell a quick little story about a payroll control mishap – what happened when the debtors’ (former) attorney miscalculated how much to deduct, leading to their case’s being dismissed – and how Lakelaw stepped in and saved the day.

 Chapter 13 Bankruptcy Case Tip 1 There are many tips that I can give you which will help you have a successful chapter 13 case or at least the most success possible under your circumstances. The biggest tip that I can give you however, is to go on payroll control for your chapter 13 trustee+ Read MoreThe post Three Tips For A Successful Chapter 13 Bankruptcy Case appeared first on David M. Siegel.

Real Estate Property This is the case of Eddie B. who comes to me from Chicago, Illinois, which is located in Cook County, Illinois for a bankruptcy consultation. Eddie has filed a chapter 7 bankruptcy but it’s been over 12 years so he is eligible to file again. He owns a single-family home worth approximately+ Read MoreThe post Bankruptcy Case Study For Eddie B. From Chicago, Illinois appeared first on David M. Siegel.

I think it’s an FDCPA violation for a debt collector to call itself Law Enforcement Systems. One of my bankruptcy clients brought me a bill from an outfit called Law Enforcement Systems. The bill as for $100.65.  That’s 65 cents for a toll they say she didn’t pay.  (She says she tossed the money in.) […]The post Can a Debt Collector Call Itself “Law Enforcement Systems”? by Robert Weed appeared first on Robert Weed.

Filing Is A Mistake If…. Filing chapter 7 bankruptcy is a mistake if you have assets that are going to be taken in exchange for your fresh start. It is one thing if you know that your assets are going to be taken and you’re willing to sacrifice them. It’s quite another thing to have+ Read MoreThe post When Is Filing Chapter 7 Bankruptcy A Mistake? appeared first on David M. Siegel.

When a business files for bankruptcy and closes its doors, it is filing a chapter 7 bankruptcy. This means that the company or corporation will no longer operate under that name and will no longer transact any business whatsoever under that name. Provided the corporation has no assets, creditors are unable to collect on their+ Read MoreThe post What Happens To Personally Guaranteed Debt In A Business Bankruptcy? appeared first on David M. Siegel.