Chapter 13 Declarations Increase Among Chicago Bankruptcy Filings

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Though there was a brief respite in bad economic news for a few months in 2009 and into 2010, the problems that small businesses, consumers, and laborers face returned with new rounds of negative financial data in 2011.  As prices for basic commodities increased along with a rise in inflation, wages and retail profits remained flat, creating a situation where American families began to spend far more to survive than what they were earning.  As a result, Chicago bankruptcy filings, along with those in other ‘Iron Belt’ cities, have increased.  Because of a combination of the Bankruptcy Abuse and Consumer Protection Act of 2005 and the fact that more insolvency cases involve wage earners, however, a growing number of these cases have been Chapter 13 filings.

In many ways, this development is actually a good thing, as Chapter 13 grants a bankruptcy petitioner far more control over their own finances.  Unlike Chapter 7, it does not involve handing one’s economic fate over to a third party like a trustee but, rather, challenges a debtor to formulate a plan to repay their creditors.  As such, it gives these debtors a far more active role in their own financial rehabilitation.

Another positive aspect of filing for something other than Chapter 7 bankruptcy is that the consumer retains their assets.  Though this property may still be vulnerable to other types of legal action and have to be liquidated by the debtor themselves, it is at least under their control, which increases the odds that it will be retained at the end of the insolvency process.

The degree to which a Chicago bankruptcy filing results in retained assets and viable financial rehabilitation, though, is often predicated on the manner in which it has been handled.  Because of this, an experienced bankruptcy attorney like the professionals at our offices can make all the difference for a family’s long term economic health.  To learn more about how we can help, feel free to contact us today.  It’s never too soon to get started on the road back to financial certainty.

Berwyn Bankruptcy Cases Usually Fall Under Chapter 7, However Other Options Are Available

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The liquidation of one’s assets can be a painful experience, especially if they have emotional value or were, at one time, looked upon as an investment that would lead to a happy retirement.  The fact that a trustee may not be able to get what is perceived as full market value for some items, in particular, can also be a cruel turn of events that ads insult to injury.  Fortunately, a liquidation of assets is not necessarily a foregone conclusion during any insolvency, especially when it comes to many Berwyn bankruptcy cases that have been filed under Chapter 13 instead of Chapter 7.

Unlike the more popular Chapter 7 filing, a Chapter 13 case enables a debtor to retain their assets and prevent them from being seized for liquidation.  It is not, however, a magic bullet that enables a debtor to retain all their possessions at no cost, as they still owe the debt they have incurred and may have to sell off assets to keep up with their debt repayment plan.  Such a so-called ‘wage earner bankruptcy’, however, does give individuals more freedom over their own assets than what they otherwise would have if forced to hand them over to the discretion of a trustee.  They must, however, be able to arrive at a repayment plan that satisfies their outstanding debt to creditors within 3 to 5 years after declaring bankruptcy.

Because of both the greater degree of control it offers and the fact that the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 uses a ‘means test’ to detect if Chapter 7 filers have disposable income, the overall number of Berwyn Chapter 13 filings has increased in recent years.  For more information on this option and bankruptcy advice in general, any consumer who is facing the possibility of insolvency should contact the experienced attorneys at our office today.  A case that has been thoroughly reviewed, after all, is far more likely to benefit its petitioner than one that has been rushed after a failed Chapter 7 filing.

Chicago Bankruptcy Cases Usually Fall Under Chapter 7

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The liquidation of one’s assets can be a painful experience, especially if they have emotional value or were, at one time, looked upon as an investment that would lead to a happy retirement.  The fact that a trustee may not be able to get what is perceived as full market value for some items, in particular, can also be a cruel turn of events that ads insult to injury.  Fortunately, a liquidation of assets is not necessarily a foregone conclusion during any insolvency, especially when it comes to many Chicago bankruptcy cases that have been filed under Chapter 13 instead of Chapter 7.

Unlike the more popular Chapter 7 filing, a Chapter 13 case enables a debtor to retain their assets and prevent them from being seized for liquidation.  It is not, however, a magic bullet that enables a debtor to retain all their possessions at no cost, as they still owe the debt they have incurred and may have to sell off assets to keep up with their debt repayment plan.  Such a so-called ‘wage earner bankruptcy’, however, does give individuals more freedom over their own assets than what they otherwise would have if forced to hand them over to the discretion of a trustee.  They must, however, be able to arrive at a repayment plan that satisfies their outstanding debt to creditors within 3 to 5 years after declaring bankruptcy.

Because of both the greater degree of control it offers and the fact that the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 uses a ‘means test’ to detect if Chapter 7 filers have disposable income, the overall number of Chicago Chapter 13 filings has increased in recent years.  For more information on this option and bankruptcy advice in general, any consumer who is facing the possibility of insolvency should contact the experienced attorneys at our office today.  A case that has been thoroughly reviewed, after all, is far more likely to benefit its petitioner than one that has been rushed after a failed Chapter 7 filing.

Consumers in North Riverside Declare Bankruptcy For a Variety of Reasons

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The popular image of someone in the process of bankruptcy is a picture that involves one too many fast cars or nights out on the town.  Indeed, there are consumers who have had to face insolvency because their lifestyle far exceeded their income or financial resources.  Most bankruptcy filers, however, are simply regular people who have had to face a sudden and unplanned loss in financial resources because of business failures or extended health difficulties.  This is especially true for people living in the western suburbs of Chicago, as the residents of North Riverside declare bankruptcy for many reasons that are directly related to the decline of local businesses and stagnation within the region’s financial services sector.

Fortunately, bankruptcy protection exists as a means for helping these families regain their financial footing.  Contrary to some erroneous beliefs that the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 prevents individuals from declaring bankruptcy if they have any income at all, it merely uses a ‘means test’ to make sure that Chapter 7 protection is reserved for those who have no disposable income.  Other individuals, however, can still petition the courts for Chapter 13 bankruptcy, a type of protection that is perhaps best suited for many working families in the Chicago area.  Also known as a ‘Wage Earner Bankruptcy’, Chapter 13 allows for the retention of all assets so long as the petitioner can develop a plan to repay their creditors within 3 to 5 years.  As many families in the Midwest that have had to declare bankruptcy have at least one wage earner and have also purchased assets that they see as investments rather than luxuries, this type of bankruptcy may be in their best interest.

The details of an individual or family’s situation determine what type of insolvency declarations they should make, however, and as the reasons they have arrived at bankruptcy differ, so do the solutions that can be followed to lead them out of it.  Though BAPCPA mandates that those in the bankruptcy process receive credit counseling from a pre-approved agency, it may also be in the best interest of those who believe they may be facing bankruptcy sometime in the near future to consult with such an agency beforehand to see if insolvency can be staved off.

Barring a financial reorganization, change in income, or debt settlement that can prevent bankruptcy, though, families that feel they must declare either Chapter 7 or 13 should take the time to consult experienced bankruptcy attorneys like the professionals at our offices.  Bankruptcy, after all, is more likely to lead to a successful financial rehabilitation if its initial filing and subsequent agreements were written and negotiated in ways that are advantageous to their claimants.  Though there are many detailed books about bankruptcy law that are currently on the shelves at libraries and book stores, the fact that each family’s insolvency situation is different is the precise reason why experienced counsel can always help with any case.

Cicero Chapter 7 Filers Should Know What Assets are Considered Exempt Before Filing

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The fact that Chapter 7 protects certain essential assets from liquidation is often of great personal relief to filers.  It should, however, be noted that not every major asset is indeed protected after such a declaration and that, even after certain debts have been discharged, creditors may be able to repossess some items for which they still retain a security interest.  These possibilities, however, should not diminish the fact that many items that are critical to someone’s continued survival, like most clothing, trade tools, older vehicles, as well as some other items, are exempt from liquidation under Chapter 7.  Given that many Cicero Chapter 7 filers have already had their property reduced to what will be considered exempt assets, even, the process occasionally results in no discernible change in their daily living conditions.

Because not every asset or other property is protected under Chapter 7, as well as the fact that some can still be repossessed after a bankruptcy period, any individual that is considering insolvency as a legal option should discuss, in detail, their absolute needs and employment situation with their legal counsel.  It’s imperative that a bankruptcy filer’s attorney know what assets are absolutely essential to the financial rehabilitation of their clients as without such knowledge it’s essentially impossible to safeguard them.  Likewise, any Cicero Chapter 7 filer should review all of his major assets with counsel and determine what items are likely to be liquidated and auctioned by the bankruptcy trustee.  Such foresight and planning, ultimately, can make the difference between failed and successful rehabilitation.

In a similar vein, individuals and families that are considering bankruptcy should determine how a ‘means test’ is likely to assess their current financial status.  Beyond determining if their Chapter 7 petition might not be allowed to proceed, such an analysis can also point the way towards alternative solutions such as a Chapter 13 filing or other form of debt reorganization or resettlement.

For more information on how the different types of bankruptcy can affect their lives, individuals should contact an experienced attorney like the astute professionals at our offices.  After having their assets, debts, and income reviewed, our clients can be advised as to what items are likely to be liquidated after a Chapter 7 filing.  If a client’s income is sufficient, our attorneys may also be able to prepare a Chapter 13 case in lieu of one under Chapter 7.  Individuals who are unsure of the exact status of their assets, even, should also feel free to consult with our attorneys.  After all, we’re always happy to advise and represent people who face financial difficulties.

Businesses in North Riverside File For Bankruptcy To Protect Their Futures

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Though businesses occasionally find themselves in situations where they are forced to fend off involuntary bankruptcies that have been put in motion by creditors, such enterprises are just as likely to initiate insolvency filings for the sake of safeguarding their own interests.  As the health of businesses is generally judged to be a part of the overall value of a community, many of the protections granted to individuals by bankruptcy declarations are extended to private companies, both large and small.  Small businesses, after all, are often the primary generator of new jobs in most communities and, because of this, the government considers their continued operation to be essential to the economy.  It’s precisely because such a declaration extends certain protections to their holdings, in fact, that many small businesses in North Riverside file for bankruptcy each year.

In general, there are two basic paths by which a business can file for bankruptcy.  The first, under Chapter 7, is often referred to as a ‘straight bankruptcy’.  As with individuals, a business Chapter 7 filing involves the liquidation by a trustee of all assets that have been deemed non-exempt.  Though the exact nature of these assets or holdings vary from business to business, those that are generally considered essential to some form of rehabilitation can be considered secure from liquidation.  The proceeds from the sale of non-exempt items, however, is used to repay some of the debt that is owed to creditors.  In return, some debt may be forgiven.  Given that the auctioning of substantial assets will usually result in the sudden retraction of a business, however, this form of bankruptcy is sometimes thought of as a measure of last resort.

Another approach is for businesses to file under Chapter 11.  Like a Chapter 13 or ‘Wage Earner Bankruptcy’, debtors under Chapter 11 retain all their assets and continue to manage day to day operations.  They are, however, designated as ‘debtors in possession’ and must cooperate with the Bankruptcy Court to formulate a repayment plan with creditors that prioritizes repayments in a fair manner.  This plan is then voted on by the creditors and may be subject to further modification by the courts if it does not receive the approval of the majority of stakeholders.

As with personal bankruptcy cases, both business Chapter 7 and Chapter 11 declarations are intended to financially rehabilitate enterprises that may be essential to the continued well-being of a community.  As such protections also guard the original investments of shareholders, they are generally thought of as adding stability to the economy.

For more information on how personal and business bankruptcies compare, any interested party should feel free to contact the experienced attorneys at our offices.  Given that personal and business bankruptcies are a chance for financial rehabilitation that can help everyone who interacts with or relies on a debtor, we’re happy to advise and represent any individual, family, or business entity that is facing an insolvency situation.

Will I Appear on a North Riverside Bankruptcy Register?

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One of the things individuals fear most about declaring bankruptcy is the possibility that they may end up on a searchable online docket.  The truth, simply put, is that bankruptcy filings are a matter of public record unless sealed.  In general, documents relating to bankruptcies are available at the Bankruptcy Clerk’s office during regular business hours and on many searchable databases.  Though a North Riverside bankruptcy register does not exist in the strictest sense of the term as bankruptcy is a matter handled by the federal court system, there are currently a variety of databases that individuals can subscribe to that are designed to allow searches to be narrowed down to specific cities.

A filer, therefore, should have a sense of what information may become available to the public after they declare bankruptcy.  Court records can, for instance, show the original petition, which lists the names of the debtor and all involved creditors, trustees, attorneys, and judges, the sum of money that the suit involves, a timeline of events relating to the bankruptcy, and the final verdict and claims registry.  In addition, these documents may also show the reasons for the proceedings.

The fact that information can be gleamed from public documents that relate to a bankruptcy proceeding, however, should not deter individuals from seeking the protections such a declaration can provide.  In the case of Chapter 13 filings, this includes a time period of between 3 and 5 years for debtors to reorganize and repay what they owe to creditors.  Under Chapter 7, which involves the liquidation of non-exempt assets, this protection includes securing property that is considered essential to one’s continued livelihood, such as trade tools and some older vehicles.

The goal with all forms of bankruptcy, however, is financial rehabilitation, and so anyone who, despite debt reorganization and cost-cutting measures, is still on the verge of insolvency should contact an experienced attorney like the professionals employed at our offices.  They look forward to helping people in financial straits navigate the bankruptcy process.

Chapter 7 is One of Many Types of Bankruptcy

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When people think of bankruptcy they often envision the liquidations that are a part of the Chapter 7 process.  For this reason, families that are suffering from extreme financial stress routinely choose to delay bankruptcy past the point where it can have a positive effect on their lives or ignore the option altogether, often to their detriment.  Not all bankruptcies, however, involve liquidation, as under Chapter 13, for instance, an individual retains all their assets and is instead expected to repay their creditors along the guidelines of a plan that has been approved by the courts.  For many individuals that are still employed and for whom non-exempt assets have been thought of as an investment for future income, such a ’Wage Earner Bankruptcy’ may be the best path toward financial rehabilitation.

Even when someone does declare Chapter 7 bankruptcy, however, they do not necessarily lose any of their assets.  This is because many people who have reached the point where such an insolvency is necessary have already sold off non-exempt assets on their own, leaving, through their own planning, only items that are essential to survival like clothing and trade tools.  Because they have already, in effect, liquidated their own non-essential property, it’s not likely that a bankruptcy trustee will discover non-exempt assets.

Finally, it should also be remembered, beyond Chapter 7 and Chapter 13, that there are other forms of bankruptcy declarations that individuals can make.  Chapter 11, for instance, is intended for use by business entities, however it can also be declared by some large family estates and individuals that meet specific financial and employment conditions.  Another form of insolvency, Chapter 12, can also be utilized by family farms.  Though most Chicago bankruptcy cases have little to nothing to do with agriculture, the growth of small organic farms throughout many of the outer suburbs may bring about changes in how this and other bankruptcy laws are used by the general public.

For more information on how the various bankruptcy laws can affect your family, feel free to contact the experienced professionals at our offices.

North Riveside Bankruptcy Questions Answered: Five Things Every Consumer Should Know

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At a time when rising electricity, gas, and food prices have forced even the most conscientious and responsible of consumers to consider the possibility that they may have to declare bankruptcy in the near future, taking the time to review a few basic facts regarding insolvency can be a useful exercise.  Indeed, as declines in commerce, real wages, and price hikes for commodities like power and consumables have had a noticeably negative impact on individuals, including the residents of North Riverside, bankruptcy questions have increasingly become a topic of everyday conversation.  To help both people in general and anyone who may be considering declaring bankruptcy, then, we’ve put together a brief set of questions and answers:

I’ve heard that bankruptcy laws have changed in recent years.  Can people still file for Chapter 7?

Yes, though they must meet certain requirements.  The changes people are generally thinking of when they discuss the new restrictions on Chapter 7 filings were brought about by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.  Though it mandates that a person’s finances undergo a ‘means test’ before a Chapter 7 filing can proceed in the courts, such a petitioner may still file for Chapter 13 if they are discovered to have disposable income.  They must also wait eight years before they can file again.

Are there specific laws for each city or state?  Are North Riverside bankruptcy laws different than those in Chicago or other parts of Illinois?

Bankruptcy proceedings occur in federal court and are generally governed by federal bankruptcy statutes, however the laws of individual states influence areas not covered by federal bankruptcy laws.  A case filed in North Riverside or any western suburb, for instance, will be handled in a federal court, however it is also affected by the laws of the state of Illinois.  Individual cities do not have their own bankruptcy laws.

Do I lose everything when I file for bankruptcy?

No.  Under Chapter 7 non-exempt items are auctioned off by a trustee, however many essential, or ‘exempt’, items are retained throughout the procedure.  Under Chapter 13 an individual has none of their assets liquidated, however they must form a plan that will allow them to repay their creditors within 3 to 5 years.

Are there ways to avoid bankruptcy?

Yes.  Debt consolidation and resettlement with creditors are but two of the many possible ways to avoid bankruptcy.  For more information on this subject, it might be in a consumer’s interest to consult a credit counseling agency.

There are, of course, many of the bankruptcy questions that deserve detailed answers.  As every individual case is affected in slightly different ways by the law, however, anyone who may be facing insolvency should speak to one of the experienced attorneys at our offices.  We are, after all, always happy to help anyone in need of legal counsel.

Chapter 13 Declarations Increase Among North Riverside Bankruptcy Filings

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Though there was a brief respite in bad economic news for a few months in 2009 and into 2010, the problems that small businesses, consumers, and laborers face returned with new rounds of negative financial data in 2011.  As prices for basic commodities increased along with a rise in inflation, wages and retail profits remained flat, creating a situation where American families began to spend far more to survive than what they were earning.  As a result, North Riverside bankruptcy filings, along with those in other western suburbs, have increased.  Because of a combination of the Bankruptcy Abuse and Consumer Protection Act of 2005 and the fact that more insolvency cases involve wage earners, however, a growing number of these cases have been Chapter 13 filings.

In many ways, this development is actually a good thing, as Chapter 13 grants a bankruptcy petitioner far more control over their own finances.  Unlike Chapter 7, it does not involve handing one’s economic fate over to a third party like a trustee but, rather, challenges a debtor to formulate a plan to repay their creditors.  As such, it gives these debtors a far more active role in their own financial rehabilitation.

Another positive aspect of filing for something other than Chapter 7 bankruptcy is that the consumer retains their assets.  Though this property may still be vulnerable to other types of legal action and have to be liquidated by the debtor themselves, it is at least under their control, which increases the odds that it will be retained at the end of the insolvency process.

The degree to which a North Riverside bankruptcy filing results in retained assets and viable financial rehabilitation, though, is often predicated on the manner in which it has been handled.  Because of this, an experienced bankruptcy attorney like the professionals at our offices can make all the difference for a family’s long term economic health.  To learn more about how we can help, feel free to contact us today.  It’s never too soon to get started on the road back to financial certainty.