My car got repossessed. There is nothing I can do to get is back right?Wrong, depending on when you take action. You an often contact your creditor, make the payment to become current and they will return the vehicle. However, you probably do not have the money to become current or you would have paid it before it was repossessed. So now what?You can file a Chapter 13 bankruptcy, again depending on when you take action. If you contact our office prior to the car being repossessed we may be able to prevent repossession which will save you on repossession and storage fees. However, even if it has already been repossessed, the creditor must wait at least 10 days before they can sell the vehicle. So long as we file the Chapter 13 bankruptcy before the vehicle is sold, the creditor must return it to you given that you comply with certain requirements.In order to file the Chapter 13 bankruptcy we need:Most recently filed state and federal taxes6 months of income historyCredit counseling certificateDocumentation of the creditor who did or is about to repossess the vehicleA completed questionnaire that we will provide to you (While it is ideal to have this completed prior to filing, depending on the time crunch, this can be completed the day after the bankruptcy is filed)Attorney’s fees and court costs (Fees should be discussed with the attorney as they vary by office and circumstanceOkay so the bankruptcy is filed. You are done and they have to give you the car back right? Not necessarily.Prior to returning the vehicle to you the creditor CAN, but does not always require:Storage/Repo fees to be paid. Occasionally the creditor will agree to roll these fees into the loan. While you are still eventually going to pay for it, it helps with not having to come up with the money immediately in order to have the vehicle returned.The creditor can request proof of insurance. Seems simple enough since you should have insurance on the vehicle anyways. However, rules allow the creditor to require proof of 3 months prepaid insurance with a minimum liability amount. This can pose a problem depending on how you pay for insurance. If you pay monthly you likely will have to come up with additional funds to prepay the 3 months.

“Transferred, Sold” accounts from Chase are a common error on after bankruptcy credit reports. When a bank sends your credit card account to a debt collector before your bankruptcy is filed, your after bankruptcy credit report often does NOT show the bankruptcy discharge on that “transferred, sold” account. Instead, they usually show “transferred, sold” account [...]The post “Transferred, Sold” accounts on your after bankruptcy credit report appeared first on Robert Weed.

  In our previous post we discussed the bankruptcy petition, the Schedule A listing of real estate/property and the Schedule B listing of personal property. In this post we will discuss property exemptions (Schedule C). Under federal and state bankruptcy laws, there are categories and amounts of property that are exempt from the bankruptcy process. […]The post Bankruptcy Filing – Property Exemptions and Schedule C appeared first on Tucson Bankruptcy Attorneys Trezza & Associates.

This is the case of Barb from Chicago, Illinois.  Barb comes to my office with medical bills, credit card bills and most importantly, a home that she really cannot afford.  She has an equity loan on her home which matures in approximately 2 years.  She is considering Chapter 7 bankruptcy to eliminate her debt but+ Read MoreThe post Bankruptcy Analysis For Barb T. From Chicago appeared first on David M. Siegel.

In a Chapter 13 bankruptcy case, upon filing, there is a creation of the Automatic Stay which protects the debtor against certain actions by creditors.  If the debtor is filing a bankruptcy case where a prior case was dismissed within the last year, then the Automatic Stay unless extended, will expire after 30 days.  This+ Read MoreThe post Motion to Extend the Automatic Stay appeared first on David M. Siegel.

If you are filing a Chapter 13 bankruptcy case in Chicago and in the prior year you have had two or more cases dismissed, then you are going to want to impose the Automatic Stay in your current filing.  By the fact that you have had two or more bankruptcy cases dismissed within a calendar+ Read MoreThe post Motion To Impose The Automatic Stay In A Chicago Bankruptcy Case appeared first on David M. Siegel.

Can’t everyone do a Chapter 7 or a Chapter 13?The simple answer is no. The eligibility for a Chapter 7 is based on several things:Median Income for Household Size – The median income determines what a Debtor or Debtors can file a bankruptcy. Median income is determined by household size. The following is the median family income data for Missouri and Illinois.   Household Size   Missouri       1 $41,092       2                     $51,784       3                    $59,549      4 $72,150  Illinois$47,485$59,861$68,721$80,776  Don’t panic yet. The means test is a complicated beast. The above amounts are the median income. If your income is higher than above amount for your household size does not mean that you cannot file a Chapter 7. It simply means that we now have to complete the extended means test to determine whether you may still be eligible to file a Chapter 7. There are many expenses that can be calculated to determine eligibility. There are IRS Standard deductions for housing and vehicles expenses depending on whether the vehicle(s) have a debt. Other major expenses in the means test are:Taxes – Tax obligations that are paid out of your incomeInvoluntary deduction – Union dues, Mandatory retirement plans and uniformsHealth, disability or term life insuranceSecured debt paymentsCourt ordered paymentsChildcareHealthcareEducation for employment or disabled childCharitable contributionsThe eligibility for a Chapter 7 also depends on eligibility for discharge. A Chapter 7 discharge can only be obtained every 8 years. Therefore, even if your income makes your eligible for a Chapter 7, you may not be able to file a Chapter 7.So then if my income does not allow me to do a Chapter 7 I can do a Chapter 13 right? Not necessarily. While there is not a income limit on Chapter 13’s, there is a debt limit that the Debtor must not exceed in order to be eligible for a Chapter 13 bankruptcy. In a Chapter 13 there are separate debt limits for both secured and unsecured debts. In order to be an eligible Debtor in a Chapter 13, secured debts must not exceed $1,149,525.00. In order to be an eligible Debtor in a Chapter 7, unsecured debts must not exceed $383,175.00. In debts listed on the schedules exceeds these amounts, the trustee can move for dismissal of the bankruptcy.  Often times these amounts in excess are foreclosed homes or student loans.

Do I Need to Know All of My Creditors when I meet with an attorney about the bankruptcy for the first time?No. While policies may vary firm to firm, most offices will have you complete some sort of intake sheet upon arrival. This intake sheet will give the attorney some insight into your situation and potential issues in your case. Income information and possible equity issues should be looked at closely upon intake to determine potential issues, creditors amounts and information is not needed for the initial.                                   So what questions is the intake going to ask me?Again, this may vary office by office so keep in mind that this is only what our office asks and another office may ask different information. We ask the following:First Name, Middle Initial if applicable, and Last NameAddress including City, State, Zip CodeEmail address if applicableContact phone numbers including home, cell, work, etc.Marital Status: Single, Married, Divorced, Widowed, SeparatedHousehold Size and ages of any dependentsInformation on any prior bankruptcies including when they were filed and what chapters were filedThe reason(s) you are considering filing bankruptcy and rough estimates of the amounts owed. Common reasons include:Credit CardsMedical billsLate on house payments with possible foreclosure scheduledLate on car payments with possible repossessionDeficiency on repossessed vehicles or foreclosed homesLawsuits pendingGarnishments and/or bank leviesWhether debt is primarily consumer debt or debt from running a businessBank taxes owed if applicableRecently received or expected tax refundsBack child support or any support or maintenance owed if applicableReal Estate InformationIf purchasing or own real estate outright:Amount owedValue of houseInsider Payments: Whether you have made payments to family members or friends in the past yearVehicle information: For each vehicle that has your name on the title(even if you are not the one that drives or pays for the car), we need the year, make, model, estimate of the miles, approximate value of the vehicle, loan amount and whether you intend to keep each vehicle. This includes motorcycles, RV’s, ATV’s, etc.Possible Claims you may have against anyone for any reason including personal injury, workers comp, wrongful death, etc.Business Information if you own a business: Value of business and its assets, etc.Estimate of your gross monthly income from ALL sources of income including food stamps, social security, child support, etc.   

The automatic stay protects debtors from collection activities after a bankruptcy case has been filed. What about a case where there is insurance coverage available on behalf of the debtor? What I am referring to is a case where the debtor was involved in an auto accident, had insurance coverage and then files for bankruptcy+ Read MoreThe post Advanced Practitioner Advice From Chicago Bankruptcy Lawyer David Siegel appeared first on David M. Siegel.

 Americans are used to handling debt.  Most people carry debt of some sort in their daily lives.  Even ones that are handling or managing the debt still feel the stress that comes with that debt.  Despite this fact, most people carry on and seem to get by.  That is, of course, until a creditor begins+ Read MoreThe post What Pushes People In Chicago To File Bankruptcy? appeared first on David M. Siegel.