Schottler & Associates

Chapter 13 Declarations Increase Among Chicago Bankruptcy Filings

admin — Wed, 22 Feb 2012 22:31:04 +0000

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.

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

admin — Mon, 13 Feb 2012 16:49:01 +0000

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 Chicago 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 Chicago 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’s.

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.

Forest Park Bankruptcy Questions Answered: Five Things Every Consumer Should Know

admin — Fri, 03 Feb 2012 17:10:41 +0000

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 Forest Park, 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 Forest Park bankruptcy laws different than those in the suburbs?

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 Forest Park, 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.

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

admin — Wed, 25 Jan 2012 19:39:28 +0000

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

admin — Tue, 17 Jan 2012 22:31:53 +0000

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.

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

admin — Mon, 09 Jan 2012 21:42:38 +0000

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

admin — Tue, 27 Dec 2011 13:28:03 +0000

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.

Will I Appear on a Maywood Bankruptcy Register?

admin — Mon, 19 Dec 2011 17:52:19 +0000

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 Maywood 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.

Throughout Broadview, Bankruptcy Questions Can Be Heard Every Day: Here Are a Few Answers

admin — Wed, 14 Dec 2011 17:36:58 +0000

The Chicago suburbs, and Broadview in particular, have been badly hit by the nation’s continued economic problems. Beyond inflation, an unstable investment outlook, and a freefall within the real estate market, the lack of economic expansion has led to a scenario where very few businesses are adding new workers or increasing the hours or salaries of those they already employ. Because of these sad, but unfortunately true facts, many families that once would never consider declaring bankruptcy an option have been forced to learn more about it. Indeed, across Broadview bankruptcy questions have begun to crop up more and more in daily conversation.

Because there are so many questions regarding insolvency, a quick review of basic bankruptcy laws might be of help to some of the many families that are thinking of seeking out the protection it grants. As always, questions regarding specific cases and the application of the law should always be reviewed with an experienced attorney, however the following should be able to answer the most common bankruptcy-related questions:

Do I lose all of my assets when I declare bankruptcy?

No, as the point of bankruptcy is to protect certain essential assets from being seized by creditors. Under Chapter 7, these can include trade tools, homes, and older vehicles, among other items. Referred to as ‘exempt’ assets, they are protected from liquidation. All non-exempt assets, however, will be sold by a trustee and used to reimburse creditors. Under Chapter 13 an individual never loses any assets due to the bankruptcy declaration.

Is it true that it’s harder to declare bankruptcy because of the new laws?

In some ways. Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 an individual can only declare bankruptcy once within an eight year period. They must also take a so-called ‘means test’ before a Chapter 7 filing can proceed. If the test determines that they have disposable income, they can re-file under Chapter 13.

If I declare bankruptcy does it absolve me of child support?

No, child support and some other forms of debt are generally not discharged under either Chapter 7 or Chapter 13 bankruptcy.

Are there ways to avoid bankruptcy?

Yes, as creditors are occasionally willing to modify the terms of loans and other debts. Debts can also be consolidated and restructured by a debt management firm for a fee.

Can bankruptcy impact my job or future careers?

Yes, as there are certain military and other security jobs that look into someone’s bankruptcy status.

There are, of course, many other common questions individuals have about bankruptcy. To discuss some of them with an experienced attorney, anyone who may be thinking about declaring insolvency should feel free to call our offices today.

Oak Park Chapter 7 Filers Can Still Retain Assets Among Bankruptcy Law Changes

admin — Tue, 06 Dec 2011 17:23:47 +0000

The many modifications to existing bankruptcy code that have been brought about by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 have created a popular belief, in some communities, that the protections afforded to deeply indebted consumers by an insolvency declaration no longer apply or, in most cases, have been severely restricted. This is not true by any means, as Chapter 7 still provides for the protection of non-exempt, or essential, assets from liquidation. What has changed, however, are the criteria needed for such a case to proceed.

Whereas Oak Park bankruptcy laws once permitted multiple Chapter 7 filings within a short period of time, BAPCPA has limited such cases to a limit of one within an eight year span. It has also mandated that a so-called ‘means test’, which is designed to determine if an individual really does not have the disposable income needed to pay back creditors, be performed before each Chapter 7 case can proceed. In contrast to common misconceptions, if an individual debtor is found to have sufficient disposable income to begin to repay their creditors they may still declare bankruptcy, however their case must proceed under Chapter 13 bankruptcy laws. Also referred to as ‘Wage Earner Bankruptcy’, such cases involve the creation of a court-approved debt repayment plan that is designed to repay creditors within 3 to 5 years. Under Chapter 13, however, none of a debtor’s assets are liquidated by a bankruptcy trustee. Even after BAPCPA, then, declaring bankruptcy is still a viable option for many people, though the exact approach they may have to take to insolvency may differ from before.

No matter what an individual’s exact bankruptcy questions may be, however, the manner in which the law affects each person’s case can be thoroughly and insightfully explained to them by skilled attorneys like the professionals at our office. Because of our many years of experience, we’re able to ascertain what the best course of legal action is for any client and, in turn, save them time and money in the long run.