0p296y5fehdjj1g2-redesign-amversion

Bankruptcy, Morality and the Bible

Wed, 25 Oct 2023 01:14:18 GMT

Many individuals experiencing debt problems have deep moral or religious concerns

regarding filing for bankruptcy. Consolation may be found in understanding a good deal

of our modern bankruptcy laws evolved directly from the teachings of the bible.

The "seven year rule" respecting the discharge of debts stems from the "Lord's Release"

in the bible. In Deuteronomy, it was mandated that debts be forgiven every seven years,

regardless of a person's circumstances. Deuteronomy 15: 1-3 ("At the end of every seven

years you shall grant a release. And this is the manner of the release: every creditor shall

release what he has lent to his neighbor or his brother, because the Lord's release has

been proclaimed".)

Congress codified this biblical provision in the Bankruptcy Act of 1938 whereupon an

individual could receive a discharge under Chapter 7 bankruptcy once every seven

years. It has been changed twice since and is now eight years. Congress actually chose

the number "7" to assign to "Chapter 7" of the Bankruptcy Code out of respect for the

biblical precepts.

The seven year rule is again proclaimed in Exodus 21:2. The Old Testament also made

provisions for debt forgiveness as the year of Jubilee wherein debts were to be forgiven

every 50 years. Leviticus 25:10-13.

The New Testament reinforces the principles of debt forgiveness. The Lord's Prayer as

taught by Matthew provides that we seek to "Forgive our debts, as we forgive our

debtors." Mathew, 6:12. The importance of debt forgiveness is reinforced in Mathew 18:

21-35. Jesus promoted debt forgiveness when he punished the "money changers"

(lenders) by removing them from God's temple. John 2:14-21. Jesus also said that for

those who lend and expect nothing in return, their "reward shall be great." Luke, 6:34-

35.

In bankruptcy, we have codified exemptions to prevent certain assets from being seized

by creditors. Many of these modern exemptions also stem from the Bible. For instance,

we have exemptions for: 1) necessary wearing apparel. Exodus, 22:26-27;

Deuteronomy, 24:10-13; 2) tools of the trade. Deuteronomy 24:6; and 3) wages earned,

but not yet paid. Deuteronomy 24:14-15, 17; Leviticus, 19:13.

Finally, the Bible is replete with provisions showing compassion for debtors and

admonishing heavy handed tactics from creditors. Deuteronomy, 15:7-10 (If a man is

poor, do not be hardhearted or tightfisted toward him.); Psalm 15:5 (A righteous man

lends money without "usury" - the charging of interest on a debt.); Deuteronomy 23:19

("Thou shall not lend upon usury to thy brother."); Nehemiah 5:3-13 (pursuing relief

from enforcement of mortgages on the homes and possessions of the Jews); Exodus,

22:25, Ezekiel, 18:13, 22:12, Leviticus, 25:35-36, Psalm: 15:5 (condemning the practice

of usury).

In some form or another, all major religions, including Christianity, Judaism, Hinduism

and Islam prohibit usury by lenders while promoting compassion for debtors. Similarly,

all religions value family preservation far more than repayment of debts.

If you are confronting a moral dilemma with the prospects of seeking relief from your

debts through bankruptcy, you may find great solace in the Bible or through prayer. A

trusted minister or spiritual advisor is often a great source to turn to for a second opinion.

The positive reinforcement can be truly uplifting.

Free Consultation With a Lawyer

offices in Carbondale, Marion and Mt. Vernon, Illinois, to serve you. Evening and

weekend appointments are available.

We are a debt relief agency. We help people file for bankruptcy relief under the

Bankruptcy Code.

Types of Debt in Chapter 13 Bankruptcy in Centralia, IL

Thu, 03 Aug 2023 03:45:12 GMT

When it comes to bankruptcy in Centralia and other towns in Southern Illinois, not all debt is considered equal. Some creditors will be paid back first while others will get what’s left over, if anything.

Understanding the type of debt and creditors you have is important to understanding your bankruptcy.

An experienced bankruptcy lawyer can examine your situation and explain how best to proceed.

These are the debts in bankruptcy:

Priority debts in the Chapter 13 Bankruptcy include costs and fees associated with the Chapter 13 filing, some tax debts and domestic support obligations. These debts are the first to be paid from a repayment plan.

Secured Debts are debts due and owing on a mortgage or car loan and are otherwise known as “collateralized debt.” It is very common for a Petitioner to utilize the automatic stay imputed in a bankruptcy filing to stop the foreclosure or tax sale of a home or a repossession of an automobile. The Chapter 13 Bankruptcy Plan shall provide for payment of any delinquency and/or principal balance on the secured asset (home or automobile).

Unsecured Debts are the last to be paid in a Chapter 13 Bankruptcy Reorganization. The payment of unsecured debts is based on the Petitioner’s affordability. Unsecured debts, include credit cards, personal loans, deficiencies, most judgments, medical bills and many other debts. One of the greatest benefits of Chapter 13 bankruptcy is the ability for a Petitioner to minimize, based on affordability, monthly payments to unsecured creditors.

At The Bankruptcy Clinic, we can help you get out from under crushing debt obligations. Whether it’s Chapter 13 or Chapter 7, we will work to find the best solution for your debt problems. For a free consultation in Carbondale, Mt. Vernon, or Marion, contact The Bankruptcy Clinic today.

Anna, IL Bankruptcy Attorney on Fraudulent Conveyances

Sat, 29 Apr 2023 13:58:23 GMT

When a debtor in Anna, IL files bankruptcy, the trustee and creditors will look for pre-filing sales and transfers that might be considered an abuse of the bankruptcy system.

One type of questionable transfer involves fraudulent conveyances. In anticipation of bankruptcy, some debtors may try to hide certain assets or sell them off to friends or family for less than fair market value. In either case, the trustee can recover these assets for liquidation to pay towards the creditors in a Chapter 7 bankruptcy. In order to prevent this problem, it is best to speak with a bankruptcy attorney before selling or transferring property to anyone.

There are two types of fraudulent conveyances, actual fraud and constructive fraud. Actual fraud occurs when property is transferred within four years of the date of filing and is made with the intent to defraud or hinder creditors. An example might be a man who has $65,000 in debt, but has $10,000 in a money market account. In order to prevent creditors from seizing this account, he transfers the money market proceeds to a friend. This may be considered actual fraud since he made this transfer with the intention of preventing creditors from seizing it.

Constructive fraud occurs when a person sells property for less than a “reasonably equivalent value” and has debts outstanding at the time this transfer was made. There does not need to be any intent to defraud in this situation. An example might be a man who owns a classic car worth $10,000. He sells the car for $4,000 to a friend out of desperation in an effort to pay down the debt. If the amount received for the car was less than its reasonably equivalent value, the trustee may be able to prove constructive fraud and reverse the transfer.

The bankruptcy attorneys at The Bankruptcy Clinic can examine any transactions you have made prior to filing bankruptcy to ensure they were done properly. If it appears certain transactions are suspect and might constitute a fraudulent conveyance, we can fully explain your options. With offices in Marion, Carbondale, and Mt. Vernon, we are convenient to anyone in Southern Illinois. For a free consultation with a bankruptcy attorney, contact The Bankruptcy Clinic today

Limitations to a Chapter 7 Bankruptcy

Tue, 21 Mar 2023 03:45:29 GMT

What Might Keep Me from Qualifying for a Chapter 7 Bankruptcy in Centralia IL?

There are situations where a person may not be eligible for a discharge in a Chapter 7 bankruptcy. For instance, if a person has received a discharge in a C hapter 7 case filed in the last eight years, or a Chapter 13 filed in the last six years, he or she will not be eligible for a Chapter 7 discharge. In those instances, a Chapter 13 may be more appropriate.

Some may wonder if there is a minimum amount of debt required to file a Chapter 7. There is no minimum amount. What might be a seemingly small amount of debt to some may be an insurmountable amount of debt to someone else on a reduced income. It all depends on a person’s unique situation.

One element that is required for a discharge in a Chapter 7 is that the debtor act in good faith. For instance, if one attempts to abuse or exploit the bankruptcy process, the bankruptcy court may deny the debtor a discharge. Similarly, if a person attempts to conceal an asset or incur sizeable debt in anticipation of a bankruptcy, he or she may be denied a Chapter 7 discharge on some or all of the debts.

Another requirement a person must pass is the means test. This is an objective examination of a person’s income factored against allowable expenses to determine if a debtor has the “means” to at least pay back a portion of the debt. If a person makes more than the median income based on their place of residence and family size, there might be a presumption that the person is abusing the bankruptcy process by filing a Chapter 7. In such a case, a Chapter 13 partial repayment may be more appropriate. Our bankruptcy attorneys can examine your financial situation to determine exactly where you stand on the means test and advise you of your best options.

At The Bankruptcy Clinic, we have helped thousands of clients discharge overwhelming debt. We understand the stress caused by debt problems. We work to provide both debt relief and stress relief for our clients. If you feel your debt problems have grown out of control, contact an attorney at The Bankruptcy Clinic today for a free consultation.

Medical Bills and Bankruptcy

Sun, 19 Feb 2023 21:28:30 GMT

The Affordable Care Act is now in its second year and more people have insurance coverage than before this law was passed. Unfortunately, it did not completely end problems associated with medical coverage. People still have to dip into their pocket to pay for deductibles and out-of-pocket expenses to pay for medical care. Those bills can be substantial. For someone barely holding on, this new expense could push them over the edge. Fortunately, bankruptcy exists to help a person get their debts in order. If you have suffered a serious injury and now have medical debt, a bankruptcy lawyer may be able to help.

Medical debt is considered unsecured, non-priority debt which means it can be discharged in Chapter 7 bankruptcy. This is good news for someone who meets the qualifications for Chapter 7. A bankruptcy lawyer can discuss your situation with you to determine if this form of bankruptcy is best for you.

If you do have these bills, it is best to first speak to the hospital or insurance provider to see if you can work out a payment plan. They may be willing to set up a plan to allow you to pay off this debt over time. If you are working and can afford these payments, this might be the best option for you. But if your medical problems are preventing you from working or are just too much to handle, you have options.

At The Bankruptcy Clinic, we know how difficult it can be to suffer a serious medical problem. If you live in Anna, IL. Centralia, IL. Or Harrisburg, IL we can help! When a person is sick or injured, they often can’t work. When you combine this with a large bill from medical providers, this is a recipe for disaster. We can explain your options and find the right solution for you debt problems. For a free consultation to discuss your situation, contact The Bankruptcy Clinic today.

Liens Explained by a Anna Illinois Bankruptcy Lawyer

Thu, 26 Jan 2023 15:04:13 GMT

Some clients come to speak with a Anna Illinois Bankruptcy Lawyer about liens. A lien is a legal claim filed against a piece of property to secure a loan. With a car loan, for instance, the lender will assert a lien against the vehicle. The same is true of a mortgage, where the lender will place a lien on real estate. These liens generally survive a Chapter 7 case unless the property is sold or returned to the lender. Other types of liens, such as those placed on pre-owned household furnishings, can be removed or stripped off in a Chapter 7 or Chapter 13 bankruptcy,

Stripping Real Estate Liens through Chapter 13 with a Anna Illinois Bankruptcy Lawyer

Some liens on real estate, such as a second or third mortgage, can be stripped off or stripped down through a Chapter 13. If the lien is on a primary residence, a lien can be stripped off only if it can be proven the value of the home is fully encumbered by a first or primary mortgage. Lien stripping rules are more liberal for the debtor if there is collateral other than just a primary residence pledged.

If a lien can be stripped off or stripped down, the balance of the loan will be treated as unsecured. It can then be reduced and/or discharged in the bankruptcy. Lien removal can be a tremendous benefit for a homeowner in that it can completely eliminate mortgage payments – something that might prove to be the difference in saving a home.

Properly addressing liens and understanding how to treat secured property is a critical aspect of bankruptcy practice. In speaking with a Anna Illinois Bankruptcy Lawyer , we can help you determine if a lien removal might be feasible through a Chapter 13. We can also explain alternatives available through a Chapter 7. By fully understanding your options, you’ll be sure to make the right decision for you and your family.

At The Bankruptcy Clinic, we work to ensure you can keep your most valued possessions while taking control of the debt. To learn more about how a Anna Illinois Bankruptcy Lawyer can help with your secured debt problems, contact The Bankruptcy Clinic today for a free consultation.

Centralia IL Debt Management Attorney: Benefits of Chapter 13

Sat, 07 Jan 2023 15:23:18 GMT

While some people may automatically assume Chapter 7 is the best bankruptcy option, there are a number of consumers who are better served through Chapter 13. This form of bankruptcy lets a person keep their assets while making payments over a period of time (typically 3-5 years) to the bankruptcy trustee. This trustee then uses that money to pay back creditors. When the bankruptcy period is complete, unsecured debt is discharged and the creditor can no longer collect on that loan. A Centralia IL Debt Management Attorney can discuss your particular situation and determine which bankruptcy option is the best for you.

Centralia IL Debt Management Attorney on Filing Bankruptcy as a Homeowner

Many people who choose to file Chapter 13 bankruptcy are homeowners who face foreclosure. In this case, some of the benefits to filing include:

Automatic Stay, allowing a person to remain in their home for a period
Stripping of second and third mortgages
Potentially allowing a person to catch up on any arrearage while making their mortgage payments

This last option is potentially the best reason for a homeowner to file Chapter 13 instead of Chapter 7. If a person makes enough income to pay any passed-due mortgage payments while staying current during the bankruptcy proceedings, they can stay in their home when their bankruptcy is complete. A Centralia IL Debt Management Attorney can discuss your income and find whether you have the means to make these back payments as well as your current mortgage payments.

If you are a homeowner or someone with other assets you don't want liquidated, there is still relief for your debt. A Centralia IL Debt Management Attorney can discuss your options and find a solution that can let you live stress and debt free. To learn how bankruptcy can give you a fresh start, contact a The Bankruptcy Clinic today.

Home if foreclosure? Contact a Centralia IL Dept Management Attorney Call the Bankruptcy Clinic today at (618) 549-1100

The Importance of Monitoring your Credit Report in Centralia Illinois

Tue, 06 Dec 2022 15:42:34 GMT

Most people in Centralia Illinois don’t closely monitor their credit. They assume everything reported to the reporting agencies is accurate. Only after attempting to make a major purchase on a car or a home does one learn there is a problem. By annually checking your credit report, you can be sure it is accurate and does not contain major errors or problems. This way, when you do make that big purchase, you won’t suffer an unexpected surprise.

Every American has the right to check their credit report from the three major rating agencies once every 365 days. It is highly encouraged people take advantage of this. Identity theft is a growing problem. In addition, many creditors report false or incorrect information on your credit report purely by accident. This can unnecessarily drag down your credit score. Since it can often take months to clear up issues like this, it is best to get these corrections identified and remedied as quickly as possible.

Some might hesitate to check their report out of fear that checking it might bring their credit score down. While it is true that inquiries do play a role in determining your credit score, the reporting agencies generally only count “hard” inquiries. These are inquiries by third parties for new lines of credit on a car, credit card, mortgage, etc. When you check your own credit report, this is a “soft” inquiry and generally has no impact on your credit score.

If you want to obtain a free copy of your credit report with no strings attached, the only reporting agency we would recommend is Annual Credit Report.com (www.annualcreditreport.com). Many other providers purport to be “free”, but require you to pay for ongoing credit monitoring services.

If you find, however, your debt problem is worse than you can manage, it may be time speak with a bankruptcy lawyer. When we file your case, we run your credit report for you. We provide you a complimentary copy of your report, your current credit score, AND your estimated credit score one year following your bankruptcy filing. It has been our experience that the vast majority of our clients do have improved credit scores one year following their bankruptcy filing.

At The Bankruptcy Clinic, we can examine your debt situation and work to find the best solution for you and your family. If you have an unmanageable debt problem, contact The Bankruptcy Clinic today for a free consultation. We proudly serve the Centralia Illinois area

How to Stop a Foreclosure in Murphysboro Illinois

Fri, 18 Nov 2022 21:16:45 GMT

Foreclosure can be a daunting experience. A home is often our most valuable asset. It is the symbol of the American dream, and oftentimes, the most expensive purchase we will ever make.

Unfortunately, some homeowners suffer a setback such as a job loss, divorce, illness or unanticipated event which might make it difficult to keep current on house payments. After falling behind by more than two months, the bank may then refuse to accept further payments, and instead, refer the matter out to their attorneys for foreclosure proceedings.

If you are behind on your mortgage, there may be options available outside of bankruptcy. For instance, a lender may be willing to renegotiate the terms of the mortgage. Although a bank is under no obligation to renegotiate terms, it would often seem in their best interest to at least consider it.

Once a foreclosure starts, however, it can be very difficult to stop in the absence of filing a bankruptcy. Through a bankruptcy proceeding, we can take steps to delay or stop a foreclosure altogether. Our experienced attorneys can explain your options and help you make the right decision for you and your family.

By filing a Chapter 13, we can stop a foreclosure completely. The homeowner is then afforded an opportunity to catch up on the arrearage owed on the home in a structured manner over an extended period of time. A Chapter 13 bankruptcy can also be utilized to strip a second or third mortgage from a home in certain situations.

If it is not cost effective to save a home through a bankruptcy, the automatic stay will still provide a homeowner with additional time to save money for the expenses associated with moving and establishing new living arrangements.

At The Bankruptcy Clinic, we have helped countless clients throughout Murphysboro Illinois save their home from foreclosure proceedings. We understand how difficult this time can be and how much stress it places on a person. We work hard to keep our clients in their homes whenever it is feasible and in their best interest to do so. To speak with an attorney about your situation, contact The Bankruptcy Clinic right away.

How long will my Chapter 13 take? A Harrisburg Illinois Chapter 13 Attorney explains.

Fri, 18 Nov 2022 21:16:44 GMT

Some clients are considering Chapter 13, but aren’t exactly clear how long their repayment period will be. A repayment period in Chapter 13 will last between 3-5 years. A Harrisburg Illinois Chapter 13 Attorney will examine your situation to determine the best option for you. Factors we will consider might include your monthly income, the amount you owe, the amount you are behind on certain debts, as well as other factors that may impact your ability to meet your monthly obligation. By finding the right repayment plan, you can get your debt under control while keeping your home, car, and other assets.

Developing a Repayment Plan with a Carbondale Illinois Chapter 13 Attorney

In Chapter 13, certain debts need to be repaid in full. These debts include:

Priority debt (such as child support, alimony, and back taxes)
Mortgage arrears - the amount you are behind on your house payment
Many secured debts, such as vehicle loans

Some people seek Chapter 13 protection because they may have fallen behind on their mortgage or car payments and are worried they will lose their property. By taking advantage of the longer repayment period, a person’s monthly payments can be lowered. This allows a filer the opportunity to catch up on past-due payments while becoming current over a period of time.

Many people want to get their Chapter 13 over as quickly as possible. This, however, may not be in a filer’s best interest. A Harrisburg Illinois Chapter 13 Attorney at The Bankruptcy Clinic will sit down and explain why a longer repayment period may be in your best interest. This way, you can meet your monthly obligation while getting current on your bills.

If you have questions about Chapter 13, a Harrisburg Illinois Chapter 13 Attorney at The Bankruptcy Clinic can help. Contact us today for a free consultation.

Anna Illinois Statute of Limitations on Debt Collection

Sat, 05 Nov 2022 14:48:57 GMT

While some may think a statute of limitations may be their way out of paying off a past due debt, they may not realize what these laws refer to.

The statute of limitations on debt collection only refers to the length of time a creditor has to file a lawsuit against the consumer in an effort to seek legal recovery. If they file a lawsuit after the statute of limitations has run, the debtor may successfully defend against it on the basis that the statute of limitations has run.

In Illinois, debt collectors have five years to file suit on an open account or unwritten contract and up to 10 years on a written contract. It is important to note, however, if you pay anything during that period, even a small payment on an old debt at any time, that act will restart (or “toll”) the statute of limitations. This reopens the door for lawsuits and collection efforts well into the future. In theory, this could drag collection efforts out indefinitely.

If you are sued for a debt where the statute of limitations has expired, you can successfully defend such an action upon proving this to be the case. It is important not to ignore any legal notice about a debt, even if you are sure the debt is too old. Just because the statute has run does not mean you will prevail in the lawsuit. Rather, it is the debtor’s responsibility to raise this as an affirmative defense.

If you are struggling with old debts you cannot manage, you may want to speak with our experienced bankruptcy attorneys. We serve Anna, Harrisburg, Centralia, and have offices in Marion, Carbondale, and Mt Vernon Illinois to assist you. We can help guide you in the best path for your future.

Harrisburg Illinois Bankruptcy Attorney on Fraudulent Conveyances

Sat, 05 Nov 2022 14:44:35 GMT

When a Harrisburg, Illinois debtor files bankruptcy, the trustee and creditors will look for pre-filing sales and transfers that might be considered an abuse of the bankruptcy system.

intention of preventing creditors from seizing it.

fraud and reverse the transfer.

The bankruptcy attorneys at The Bankruptcy Clinic can examine any transactions you have made prior to filing bankruptcy to ensure they were done properly. If it appears certain transactions are suspect and might constitute a fraudulent conveyance, we can fully explain your options. With offices in Marion, Carbondale, and Mt. Vernon, we are convenient to anyone in Harrisburg, Illinois. For a free consultation with a bankruptcy attorney, contact The Bankruptcy Clinic today.

Can Bankruptcy Eliminate Tax Debt?

Sat, 22 Oct 2022 14:11:59 GMT

One of the most frustrating debts a person can have is tax debt. The IRS is often the most merciless collection agency a debtor can face. The IRS can shut down your business, seize assets, garnish wages, and even withhold Social Security benefits, all in an effort to collect money owed to Uncle Sam. In the majority of bankruptcy cases, this debt is not dischargeable. In some cases, however, it may be possible to wipe that tax bill clean. A bankruptcy lawyer can discuss your situation to determine if bankruptcy may be an option for you. The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

A person qualifies for a discharge of tax bills in Chapter 7 or Chapter 13 if:

The taxes owed are at least three years old.
You filed returns for those taxes at least two years ago.
The tax assessment was made 240 days ago or longer.
You did not engage in fraud or tax evasion.

These are very specific parameters. As such, most people will not qualify for a discharge of tax debt in bankruptcy. But it is still possible, and many times, the timing of a bankruptcy filing can be crucial. A skilled bankruptcy lawyer can answer any questions you may have about tax bills or other debt.

Sometimes a Chapter 13 might be a favorable alternative for tax debts. A Chapter 13 will prevent the government from seizing assets, levying bank accounts, and garnishing wages while allowing you to structure a repayment plan free of future penalties and interest.

In a Chapter 7 case, even collection efforts by the IRS are stopped during the pendency of the case. Even if your tax debts are not dischargeable upon completion of the Chapter 7, most other unsecured debts are. Once these debts are wiped clean, it might make it much easier to pay back the tax debts owed to the government.

At The Bankruptcy Clinic, we understand how difficult overwhelming debt can be. If you are experiencing debt problems, we can discuss your options. If you live near Marion, Mt. Vernon, or Carbondale, we have locations to serve you. For a free consultation to discuss your debt options, contact The Bankruptcy Clinic right away.

How Much Debt Does the Average Household Carry?

Sat, 22 Oct 2022 14:04:50 GMT

The first step towards getting your debt under control is taking a hard look at your finances and seeing exactly where you stand. Comparing yourself to other Americans can be a good first step in determining whether or not you have borrowed too much and may need the help of a bankruptcy attorney. A recent study found that the average household has more than $129,000 in debt, with the average credit card debt coming in at $15,000. Of course, it should be noted that every household is different, so manageable debt for one person may be completely unmanageable for another.

The biggest debt most people carry is a mortgag, with the average mortgage coming in at about $165,000. This debt isn’t necessarily bad debt. Since homes generally increase in value over time, a borrower will build equity in their home over time. A person needs to buy a home that is within their means, but so long as they have a stable job and their mortgage costs about 28% of a family’s income, they should be OK.

Credit card debt, however, is almost always bad debt. It often has a high interest rate and is used for purchases that don’t increase in value. It leaves a person paying down debt month after month, gobbling up a significant portion of their income. If you are using credit cards to make ends meet and can’t seem to pay down your balance, it may be time to speak to a bankruptcy lawyer to discuss your options.

At The Bankruptcy Clinic, we can examine your overall financial situation to determine if bankruptcy may be right for you. We can examine your income (if any) relative to the debt you owe, the types of debt you have, and other factors that will impact your potential bankruptcy filing. We understand how stressful debt can be and will work compassionately with you to find the best solution for you and your family. For a free consultation in Carbondale, Marion, or Mt. Vernon, contact The Bankruptcy Clinic right away.

Good Faith Explained by a Carbondale Chapter 7 Attorney

Sat, 17 Sep 2022 14:30:19 GMT

In order to receive a Chapter 7 discharge, a person will need to show their case was filed in good faith. This is a necessary part of obtaining a discharge of your debts. In order to prevent abuse, part of the 2005 bankruptcy reforms requires a person be able to establish a good faith filing. A Carbondale Chapter 7 Attorney can examine your particular situation to make sure you meet these standards.

Preventing a Bad Faith Dismissal with a Carbondale Chapter 7 Attorney

A bankruptcy court may look at a variety of circumstances in determining if a bankruptcy is filed in good faith. Aside from recent purchases and spending habits, a court might also consider the number of times a person has filed bankruptcy, any omissions or misrepresentations in the bankruptcy schedules, and any conduct which may be egregious or done with the intention of frustrating creditors.

A Carbondale Chapter 7 Attorney will look at your entire situation to make sure your filing meets the standards of good faith before your case is filed. This will prevent your bankruptcy from getting dismissed by the bankruptcy court.

At The Bankruptcy Clinic, we understand how stressful debt can be. We can end the harassing phone calls and collection activities. We will answer questions you may have while making sure you are fully informed throughout the process. Our lawyers will work closely with you to ensure standards of good faith are met in your case.

If you have debt problems, a Carbondale Chapter 7 Attorney can help. To learn more, contact The Bankruptcy Clinic today for a free consultation.

FICO Score Explained by a Marion Illinois Debt Management Lawyer

Sat, 17 Sep 2022 14:25:42 GMT

Many people understand, in a broad sense, that filing bankruptcy will be bad for their credit, but they may not fully understand what this means. Specifically, filing bankruptcy will impact your FICO score, which is the number that banks and other lenders look at when you apply for a loan. It essentially measures how much of a risk a person poses for default on that particular loan. A Marion Illinois Debt Management Lawyer can examine your particular score and discuss exactly how much of an impact filing bankruptcy may have on your credit.

Factors in your FICO Score from a Marion Illinois Debt Management Lawyer

Your FICO score will take into account several factors in determining your credit risk. These include:

Late payments
Adverse actions (bankruptcy, default, etc.)
Total credit obligations vs. credit line
Length of your credit history

This chart shows how important each factor is in determining your particular FICO score. As you can see, making payments on time is the most important factor in maintaining your credit score.

For many people who need help from a Marion Illinois Debt Management Lawyer, the hit to their credit score is often negligible. This is because people have fallen behind on so many loans or had so many move to collections, that the score is already poor. To be sure, bankruptcy is a serious decision that should not be entered into lightly, but if it is fear of ruining your credit that is holding you back, that fear is likely overblown. The majority of our clients have improved credit scores within one year following the filing of their bankruptcy cases. If you are curious about your financial history, you can check it for free here once every 365 days.

Each person’s circumstances are different, so a Marion Illinois Debt Management Lawyer at The Bankruptcy Clinic will have to find the right solution for your debt issues. We will take the time to explain exactly what filing bankruptcy means for your credit and how long it will take for you to rebuild your FICO score. If you have overwhelming debt, contact The Bankruptcy Clinic today to learn how to get it under control.

Facing serious debt problems? Contact a Marion Illinois Debt Management Lawyer

Call The Bankruptcy Clinic Today at (618) 993-1300

Disability Payments and Bankruptcy Explained by a Mt. Vernon Illinois Bankruptcy Law Firm

Tue, 30 Aug 2022 21:56:55 GMT

People on a fixed income are especially susceptible to debt problems. All it takes is an unexpected car repair or a medical problem to cause a person to fall behind. This can often cause a snow ball effect with other bills. Some might fear losing their disability benefits through the filing of a Chapter 7 bankruptcy. Fortunately, these payments are exempt in a bankruptcy proceeding , allowing a person to keep this money while still obtaining the fresh start Chapter 7 bankruptcy offers.

For those who are continuing to retain funds from a lump sum back disability payment, however, it will need to be shown that proceeds in a bank account came directly from that payment. This can be tricky, particularly if other money is later intermingled within the same account. A Mt. Vernon Illinois Bankruptcy Law Firm can guide you on how to properly protect lump sum benefits before you receive them.

Freedom from Debt with a Mt. Vernon Illinois Bankruptcy Law Firm

Exempting Social Security and disability payments is a public policy decision to help the most vulnerable people in society. If these payments were used to pay off creditors in Chapter 7, it would leave the elderly and disabled without the most basic means of support.

Although Social Security and disability benefits are exempt, this does not grant someone permission to abuse the bankruptcy system. A Mt. Vernon Illinois Bankruptcy Law Firm can examine your particular situation to make sure your filing is in good faith. If it is, Chapter 7 may be in your best interest.

At The Bankruptcy Clinic, we understand how difficult debt problems can be. Far from just a money issue, these problems can dominate a person’s thoughts. Harassing phone calls, threatening letters, and other collection activities can completely rob a person of the very enjoyment of life. If you suffer from debt problems, and you are on a fixed income, there are options available. To learn how a Mt. Vernon Illinois Bankruptcy Law Firm can help you, contact The Bankruptcy Clinic today for a free consultation.

Debt Settlement Explained by a Carbondale Bankruptcy Lawyer

Tue, 30 Aug 2022 21:56:53 GMT

An alternative to bankruptcy for some people may be debt settlement. A debt settlement is when a creditor agrees to a payment for a lesser amount than that owed in order to satisfy the debt. For example, a person may owe $22,000 on a credit card. The individual offers the credit card company a lump sum of $12,000 to satisfy the debt. If the creditor agrees, the remainder of the debt will be “written off” and this will end any further responsibility on behalf of the debtor. A Carbondale Bankruptcy Lawyer can explain what any debt settlement agreements may mean for you and explain their benefits and drawbacks.

Disadvantages of Debt Settlement from a Carbondale Bankruptcy Lawyer

One drawback of debt settlement is that any forgiven debt will generally be attributed as income to the debtor. In the above example, the credit card company would typically issue a 1099 for the $10,000 that was written off, creating a tax liability for the debtor. Depending on your situation, these additional taxes could pose a significant problem. On the other hand, there are no tax consequences for a debt discharged in bankruptcy.

A second drawback of debt settlement is that is almost always much more expensive than simply discharging the debt in bankruptcy. In Chapter 7, a Carbondale Bankruptcy Lawyer could potentially discharge the above $22,000 for a small fraction of the cost of a settlement. Even if you can work out a deal for a debt settlement with one creditor, this does little to help if you are dealing with multiple creditors and multiple debts.

Most debt settlements require you to pay a sizeable amount of money in one lump sum in a very short period of time, such as the end of the week. This is something most debtors are simply not in a position to do. In a Chapter 13 bankruptcy, most filers would pay back far less than what they would otherwise pay to settle the debt, while stretching out the reduced payments over a period of time.

If you have questions about debt settlement versus bankruptcy, a Carbondale Bankruptcy Lawyer at The Bankruptcy Clinic can help. We understand how frustrating substantial debt can be and we will work to find the best solution for your problems. Whether that is Chapter 7, Chapter 13, debt settlement, or something else, you can be sure we will help you to find the best option for your particular debt issues.

To learn more about how we can help with debt problems, contact The Bankruptcy Clinic today for a free consultation.

Divorce and Bankruptcy

Mon, 15 Aug 2022 04:02:01 GMT

Financial troubles are one of the most common reasons for divorce. Therefore, it’s not uncommon for couples to seek bankruptcy protection at the same time or immediately prior to seeking a divorce. Before finalizing your divorce, it may be a good idea to speak with an experienced bankruptcy attorney to be fully informed on your options.

Whether you file for bankruptcy or divorce first will depend upon a variety of factors, such as your respective incomes going forward, the type of property you own or will be keeping, how the property is to be apportioned, and the type and amount of debt each of you owe.

In terms of bankruptcy, the two main chapters have very different timelines. A Chapter 7 bankruptcy discharges the debts relatively quickly, usually in just a few months. A Chapter 13 bankruptcy, however, involves developing a repayment plan that requires three to five years to complete. Most couples would not relish the thought of entering into a joint three to five year repayment plan that will continue long after the divorce is finalized.

If a couple jointly owns property they wish to protect, it might be beneficial to file for bankruptcy before the divorce. More jointly owned property might be protected by doubling the exemptions for each married couple.

One of the most time-consuming aspects of a divorce is dividing debts among each spouse. What’s more, assigning a joint debt to one spouse does not immunize the other spouse from liability. For example, if your ex-spouse was assigned payment of a joint credit card balance in your divorce and he or she doesn’t pay the bill, or files for bankruptcy, the credit card company will come looking for you for repayment.

If, however, you and your spouse file for bankruptcy before you divorce, you may be able to wipe out these debts so neither one of you will have to worry about them. For this reason, and many others, bankruptcy often reduces the time, cost, and expense for both parties in a prospective divorce.

If you are considering divorce and have financial troubles, The Bankruptcy Clinic can help. For a free consultation to discuss these matters, contact us today.

Dangers of Deception from a Carbondale Illinois Bankruptcy Lawyer

Mon, 15 Aug 2022 03:56:24 GMT

When one is considering bankruptcy, it may seem tempting to try to skirt the rules or game the system. This is never a good idea. If the bankruptcy court, the trustee, or any of your creditors discover you have abused the system or attempted to hide assets, you could face stiff punishment, including fines and even possible imprisonment.

As an example, Joe Francis, the man behind the Girls Gone Wild video series, has been assessed an ongoing fine of $5,000 per day until he returns two luxury cars removed from his nowbankrupt business. The bankruptcy judge in his case is now attempting to issue a warrant for his arrest. Before, during and after a bankruptcy filing, it always pays to be forthright and honest.

Practices to Avoid from a Carbondale Illinois Bankruptcy Lawyer

Some potential abuses of the bankruptcy system might include:

Incurring new debt in anticipation of a bankruptcy filing
Hiding or concealing assets
Transferring assets to third parties
Filing in advance of receiving a monetary settlement or inheritance
Not being forthright about your income or assets

If a person knows a bankruptcy is imminent, it might seem tempting to max out credit cards or take out payday loans in anticipation of the filing. Unfortunately, your creditor may sue you in bankruptcy court for fraud. If the creditor is successful, the debt will not be discharged. Further, you may be forced to incur costly additional attorney’s fees to defend you in such an action.

The penalties can be far worse if you are not honest in reporting your assets or income, or you refuse to cooperate with court directives. This may be grounds for denying your discharge entirely on all of your debts, fines, and even possible imprisonment. Bankruptcy fraud is a felony punishable by up to five years in prison or a fine of $250,000.

A Carbondale Illinois Bankruptcy Lawyer at The Bankruptcy Clinic can help clear up questions you have about your bankruptcy. If you are considering doing something deceptive or dishonest, please talk to us first. However, if you have already incurred debt or transferred assets in anticipation of a bankruptcy filing, we can at least offer helpful and proactive steps to mitigate the damages is in a subsequent bankruptcy filing. This way, you won’t be denied the fresh start you deserve.

To learn more, contact The Bankruptcy Clinic today for a free consultation.

The Dangers of a Non-Attorney Bankruptcy Instead of a Mt. Vernon Illinois Bankruptcy Law Firm

Mon, 15 Aug 2022 03:28:20 GMT

This is a subtitle for your new post

Some advertise they can file a Chapter 7 bankruptcy for you without the use of an attorney. These outfits may claim cost savings through the use of an unlicensed bankruptcy preparer to prepare your bankruptcy paperwork. A Mount Vernon Illinois Bankruptcy Law Firm provides superior knowledge and service that ultimately will not only save you money, but countless headaches in the end.

How a Mt. Vernon Illinois Bankruptcy Law Firm Provides Superior Service

As the saying goes, “You get what you pay for.” This is especially true when using a non-attorney to file your Chapter 7 bankruptcy . Although it may seem appealing to try to save money, there are significant disadvantages to utilizing a nonlicensed attorney compared to a Mount Vernon Illinois Bankruptcy Law Firm. Some of the dangers of hiring a non-attorney might include:

Petition and Schedules getting rejected or dismissed for being improper
Missed exemptions, causing you to lose valuable property
No assistance with your sworn testimony at your 341 meeting
Increased workload in correcting mistakes and oversights
Possible court sanctions against the preparer or service
The costs of potentially hiring a bankruptcy lawyer to fix a mess

If your petition or schedules get rejected or dismissed, you must start over from the beginning. Further, if exemptions are missed or not fully utilized, you can lose valuable assets and considerable money in the process. Finally, the U.S. Trustee and U.S. Attorney’s offices actively prosecute non-licensed attorneys for the unauthorized practice of law in bankruptcy matters. If your preparer is prosecuted or sanctioned by the court, you could be compelled to appear in court to testify as to the credentials and representations of your preparer. Suddenly, what seemed like a good deal can become a complete nightmare.

The risks are simply too great to not utilize a Mount Vernon Illinois Bankruptcy Law Firm . After all, your financial future is at stake. If you are considering bankruptcy, contact The Bankruptcy Clinic, PC, for a free consultation. We will put our 50 years of legal experience to work for you.

Filing Chapter 7 bankruptcy? Contact a Mount Vernon Illinois Bankruptcy Law Firm Call The Bankruptcy Clinic, PC, today at (618) 315-6600

Debt Settlement Company Indicted for Fraud

Mon, 11 Jul 2022 05:09:54 GMT

Debt Settlement Company Indicted for Fraud

Mission Debt Settlement, a debt settlement company, was indicted for mail fraud and wire fraud for allegedly scamming its clients. This company claimed it could reduce debt by approximately 45% for its clients. In reality, they achieved no debt reduction whatsoever. They also allegedly stole money from client accounts that was supposed to be paid to creditors. In reality, no money was actually paid to creditors. The government alleged the company “systematically exploited and defrauded” more than a thousand disadvantaged families. In the end, the owner of the company was sentenced to prison for nine years while other employees awaited sentencing . As a bankruptcy attorney, these allegations are extremely upsetting.

This company preyed upon some of the most vulnerable people in society. These were people deep in debt who were hoping to avoid bankruptcy. They turned to this company to help settle their accounts and hopefully get their debts reduced. In the end, they wound up much worse off than they were before.

While this is an extreme case, many debt settlement companies overpromise and under deliver. To be clear, the vast majority of these companies are not engaged in fraud as Mission Settlement Company was. But they often charge high fees and achieve little in the way of debt reduction. Before working with a debt settlement company, speak to a bankruptcy lawyer about your situation.

Attorneys, unlike debt settlement companies, abide by a strict ethical code. The goal of an attorney is not to give you a hard sell or false promises. We are ethically obligated to give you the best information possible to help you make the best decision for you and your family. If bankruptcy is not your best option or there are other ways to get out of debt, we will tell you your options.

If you are deep in debt, the attorneys at The Bankruptcy Clinic are here to help. We have helped many clients throughout Southern Illinois get their debt under control once and for all. For a free consultation in Mt. Vernon, Marion, or Carbondale, contact The Bankruptcy Clinic today.

Can a Debt Consolidation Loan Lower my Principal?

Mon, 11 Jul 2022 05:09:23 GMT

Can a Debt Consolidation Loan Lower my Principal?

Many people see ads on television for debt consolidation loans. These companies make it seem that by working with them, a debtor can bring multiple debt payments down to one affordable bill each month. In reality, debt consolidation loans do nothing to actually lower the principal balance on a set of bills. Only filing bankruptcy can lower your principle (through Chapter 13) or discharge them altogether (through Chapter 7). Before taking out a debt consolidation loan, carefully consider whether this loan will truly help you or simply keep you trapped in debt.

Debt consolidation loans consist of having a lending institution pay off your loans, then lumping this amount into one payment each month. For instance, if a person owed $10,000 between four credit cards, the company or bank would pay off the four cards and a person will then owe $10,000. This loan certainly makes it easier to keep track of payments – instead of writing four checks each month, a person will only write one. But ultimately, the debtor still owes $10,000 plus interest.

A debt consolidation loan might be good for a debtor who has difficulty tracking multiple payments or runs the risk of missing payments. Late payments on a credit card can really add up and keep a person trapped in debt, not to mention the negative effect this may have on one’s credit. This loan may also be a good idea if the interest rate is substantially lower than the credit cards. For example, if each credit card has an APR of 22% and the debt consolidation loan has an APR of only 10%, the loan might ultimately be a good idea. But in order to get this interest rate, a debtor will almost certainly need excellent credit.

Before taking out additional loans to pay off other creditors, speak with a bankruptcy attorney at The Bankruptcy Clinic. If a debt situation has become overwhelming, taking out more loans will ultimately prove futile. An experienced lawyer can examine your situation to determine if bankruptcy might be your best option.

If you are struggling to make ends meet and have serious debt issues, we are here to help. For a free consultation in Marion, Carbondale, or Mount Vernon, contact The Bankruptcy Clinic today.

The Dangers of Using a Petition Preparer Instead of a Bankruptcy Attorney

Mon, 11 Jul 2022 05:08:25 GMT

The Dangers of Using a Petition Preparer Instead of a Bankruptcy Attorney

Some individuals, in an effort to save money, might be tempted to use a bankruptcy petition preparer instead of a bankruptcy attorney for their filing. A petition preparer is someone who fills out forms on behalf of a filer. In theory, the debtor provides information to the petition preparer who then types and files the paperwork in accordance with the bankruptcy rules. Because these people are not attorneys, there are significant limits on the services they can legally provide.

A petition preparer is prohibited from giving legal advice. This includes any advice as to how items should be valued, which type of bankruptcy should be filed, when a bankruptcy should be filed, or what sort of legal exemptions should be used. A preparer also cannot appear with the debtor in court-ordered Meetings of Creditors or for any court proceedings related to the filing. Essentially, a petition preparer is a modern-day scrivener.

While some people might benefit from using a bankruptcy petition preparer, most will find that a bankruptcy lawyer is a far better option. Because an attorney can give legal advice, he can competently guide the client through the entire process. A debtor can be confident that all relevant exemptions are identified and applied to ensure assets are protected to the maximum extent possible. An attorney will greatly decrease the likelihood of experiencing serious problems with a bankruptcy filing.

The U.S. Trustee’s office, which supervises bankruptcy filings throughout the U.S., actively prosecutes petition preparers for engaging in the unauthorized practice of law . Because it is difficult to competently prepare bankruptcy schedules without engaging in the practice of law, a petition preparer is always at risk of being shut down or investigated. It only adds insult to injury when a debtor is compelled to attend supplemental court proceedings to substantiate a claim against a third party entity for engaging in the unauthorized practice of law.

Before working with a petition preparer, speak with an attorney at The Bankruptcy Clinic first. During this free consultation, we can discuss your particular situation and explain exactly how we can help. We have helped thousands of clients get out of debt and will put that experience to work for you. If you are deep in debt in Marion, Carbondale, or Mt. Vernon, we have three convenient locations to serve you. Contact The Bankruptcy Clinic right away to discuss your debt situation.

Cramdowns - Mt. Vernon

Mon, 20 Jun 2022 16:24:26 GMT

Mt. Vernon Chapter 13 Lawyer: Can I Lower the Principal on a Secured Loan?

People who have a large loan for a secured piece of property (car, home, etc.) may want to reduce the amount of principal they owe on the property. For instance, an investment home may have significantly decreased in value or a vehicle may have depreciated. Lowering the principal on the loan is known as a “cram down.” A Mt. Vernon Chapter 13 Lawyer can examine the value of your property relative to the balance remaining on a particular loan and see if a cram down is applicable.

Cram Downs Explained by a Mt. Vernon Chapter 13 Lawyer

Many people use cram downs in Chapter 13 to save their vehicles. Because a car is a depreciating asset, the loan become more and more onerous as each day passes. If a person has a balance on a car loan of $15,000 but the vehicle is now only worth $9,000, a Mt. Vernon Chapter 13 Lawyer may be able to lower that balance to $9,000 and have the remaining money discharged as unsecured debt at the completion of your bankruptcy.

It is important to note, however, that there is a rule called the 910 Day Rule. Under this rule, the loan for the purchase of a vehicle must have been incurred more than 910 days prior to the bankruptcy filing. This is equivalent to approximately 2.5 years. This rule is intended to prevent abuse of cram downs from people who have only recently purchased a car and are now trying to get their loan reduced.

Cram downs may also be applicable to secured debts incurred for the purchase of personal property items so long as the debt was incurred more than one year prior to the bankruptcy filing. A cram down cannot be used for a person’s primary residence but may be applied to commercial real estate.

If you have assets you wish to keep but also carry a large debt load, a Mt. Vernon Chapter 13 Lawyer at The Bankruptcy Clinic can help. If cram downs are possible, our attorneys will work to reduce your principal or change your intere st rate, allowing you to keep your property at a discount. If you would like to learn more about Chapter 13 bankruptcy, contact The Bankruptcy Clinic today for a free consultation.

Converting a Chapter 13 to Chapter 7 with a Marion Illinois Debt Relief Attorney

Mon, 20 Jun 2022 16:24:24 GMT

A Chapter 13 bankruptcy is often times in one’s best interest. Perhaps a 13 filing was necessary to save a home from foreclosure, to keep a vehicle from being repossessed, to insulate one from marital debt stemming from a divorce, or to stop a pending garnishment or asset seizure. However, circumstances often change. A divorce or job loss could result in a reduced income or altered finances. The vehicle you wanted to save through the 13 may have been destroyed in an accident. A medical catastrophe may have occurred since the Chapter 13 filing resulting in unanticipated medical expenses. If these are other circumstances have led to a change in your financial situation, it is always possible to convert your Chapter 13 to a Chapter 7 using a Marion Illinois Debt Relief Attorney .

Who can convert a Chapter 13 with a Marion Illinois Debt Relief Attorney?

Generally, most people can convert their case to a Chapter 7, provided they can meet the income requirements imposed by the Means Test, have not filed Chapter 7 during the eight year time frame preceding the Chapter 13 filing, and are not engaging in conduct deemed to be an abuse of the bankruptcy process. If you wish to convert your Chapter 13 to a Chapter 7, a Marion Illinois Debt Relief Attorney will examine your case and make sure it is in your best interest. While you may run the risk of losing certain assets you might have otherwise kept in a Chapter 13, it also means you will get a fresh start free of debt at an earlier time.

A potential advantage of initially filing a Chapter 13 is preservation of the discharge in your case. If a Chapter 7 discharge is received, a person is time barred from seeking to discharge new debts for some period of time following the closing of the case. However, upon conversion of a Chapter 13 to a Chapter 7, the Bankruptcy Code allows you to add in any additional bills you may have incurred along the way since the filing of the Chapter 13. This might be advantageous to someone struggling with ongoing costly treatment or other unanticipated events.

If you have filed Chapter 13, but now realize a Chapter 7 might be a better option, speak with a Marion Illinois Debt Relief Attorney at The Bankruptcy Clinic, P.C. today. Together, we will find the best option for you, allowing you to keep as many assets as possible while freeing yourself from oppressive debt. Contact a lawyer at Ban kruptcy Clinic, P.C. today for a free consultation.

Consumer Financial Protection Bureau Warns Against Debt Settlement Companies

Mon, 20 Jun 2022 16:24:16 GMT

When people are deep in debt, it may seem tempting to work with a debt settlement company. The Consumer Financial Protection Bureau recommends consumers consider other options before using a debt settlement service . We believe this is good advice.

Debt settlement companies claim they can compel creditors to renegotiate the terms of agreements in order to help people get out of debt. In many, if not most cases, not only do these companies fail to deliver on what they promise, they actually leave people far worse off than before.

These companies first tell consumers to stop making payments on their debt. Unfortunately, this exposes debtors to increased collection efforts including imposition of late fees, penalties and interest, thereby increasing the debt load. The bills are often then transferred to collection agencies and law firms. The debtor’s credit score plummets.

A lawsuit will often follow. Even though the debt settlement companies may actually be law firms or purport to be affiliated with law firms, these firms are rarely ever licensed to practice in the state the lawsuit is actually filed. As such, they can do very little, if anything, to defend debtors in state court proceedings.

Some major red flags to look out for when dealing with debt settlement companies include:

Up-front fees required to “negotiate” with creditors
Operational base or law firms registered outside of your state of residence
Making promises that sound too good to be true
Vague references to “new government programs” regarding debt settlement
Promises of making your debt go away or compelling your creditors to work with them

Creditors are never under an obligation to negotiate with a debt settlement company. Even if one or two creditors might be willing to, it does little good if the other creditors do not. In general, a person can generally obtain far better results attempting to negotiate with a creditor himself rather than relying on the assistance of a debt settlement organization. At least this way, the debtor won’t lose money if the negotiations prove unsuccessful.

If you are burdened with overwhelming debt, you should speak with an experienced bankruptcy lawyer about your options. Our attorneys do not promise more than we can deliver, and we will fully explain your options under the law. We can fully protect you from collection efforts and lawsuits with guaranteed results rather than shallow promises. We make it a point to deal openly and honestly with our clients. This way, you can rest assured you will be making the best informed decision for you and your family.

With offices in Marion, Mt. Vernon, and Carbondale, we have locations convenient to everyone in Southern Illinois. For a free consultation with a bankruptcy attorney in your area, contact The Bankruptcy Clinic right away.

Issues Paying Off Medical Debt? You’re Not Alone

Mon, 16 May 2022 03:50:54 GMT

It is common knowledge that medical debt can overwhelm those with low incomes or the uninsured or underinsured. However, it may be a bit startling to realize the rising costs of premiums and copays also can overwhelm an increasingly higher number of middle income and self-employed Americans, thereby shaking many families sense of financial security.

A poll conducted last year by the New York Times and the Kaiser Foundation

( https://www.nytimes.com/2016/01/06/upshot/lost-jobs-houses-savings-even-insured-oftenface-crushing-medical-debt.html?mcubz=1 ) showed approximately 20 percent of those younger than 65 reportedly had issues paying their medical bills over the past year. While that is lower than the 53 percent of those without insurance, it still was significant.

Of those struggling, the survey showed 63 percent had used most or all of their savings and 42 percent took on an extra job or worked more hours. Some had to make even more dramatic changes like moving in with a roommate or searching for charity.

In many cases, although more people are insured with the advent of the Affordable Care Act, many of the plans have adjusted to covering more people by decreasing benefits and some things that used to be covered are no longer covered in the same way they were before. In addition, rising deductibles and co-pays combined with the penalty mandate are squeezing the pocket books of many healthy Americans, self-employed, small businesses, and middle income individuals.

In many instances, working directly with the hospital or provider can help you reduce your bill and make things more manageable. If this is not feasible, as is often the case, bankruptcy may be the best alternative.

Both Chapter 7 and Chapter 13 bankruptcy can offer relief from overwhelming medical debts in different ways. Chapter 7 bankruptcy eliminates debts like medical debt, while Chapter 13 bankruptcy helps you create a payment plan to pay back what the court deems you can reasonable afford over a reasonable period of time.

If you are struggling with medical debt and unsure what your next step should be, you may

want to contact a Southern Illinois bankruptcy attorney who can discuss your options with you. Call today and find out how we can help you.

Illinois Statute of Limitations on Debt Collection

Mon, 16 May 2022 03:43:47 GMT

While some may think a statute of limitations may be their way out of paying off a past due debt, they may not realize what these laws refer to.

If you are struggling with old debts you cannot manage, you may want to speak with our experienced bankruptcy attorneys. We have offices in Marion, Mt. Vernon and Carbondale to assist you. We can help guide you in the best path for your future.

The Importance of Monitoring your Credit Report

Mon, 16 May 2022 03:39:28 GMT

Most people don’t closely monitor their credit. They assume everything reported to the reporting agencies is accurate. Only after attempting to make a major purchase on a car or a home does one learn there is a problem. By annually checking your credit report, you can be sure it is accurate and does not contain major errors or problems. This way, when you do make that big purchase, you won’t suffer an unexpected surprise.

If you want to obtain a free copy of your credit report with no strings attached, the only reporting agency we would recommend is Annual Credit Report.com ( www.annualcreditreport.com ). Many other providers purport to be “free”, but require you to pay for ongoing credit monitoring services.

Chapter 13 to Save Home

Sat, 16 Apr 2022 14:19:30 GMT

Marion Illinois Debt Management Attorney: Saving Your Home Through Chapter 13

While some people may automatically assume Chapter 7 is the best bankruptcy option, many individuals are better served through a Chapter 13. This form of bankruptcy allows a person to keep his assets while making partial payments on other debts over a period of time (typically three to five years) to a bankruptcy trustee. This trustee then uses that money to pay back creditors only to the extent a person can afford. When the bankruptcy period is complete, the balance of any unsecured debt is discharged and the creditors can no longer collect on the remaining debt. A Chapter 13 bankruptcy typically looks better on your credit than a Chapter 7. A Marion Illinois Debt Management Attorney can discuss your particular situation and determine which bankruptcy option is best for you.

Marion Illinois Debt Management Attorney on Saving Your Home

Many people who choose to file Chapter 13 bankruptcy are homeowners facing foreclosure. If you are behind on your mortgage payments, Chapter 13 is often the best option for savings your home. The benefits of a Chapter 13 filing include:

An automatic stay stops the foreclosure process immediately, allowing individuals the opportunity to remain in their home
Second and third mortgages can be stripped off in certain cases where the home might otherwise be over secured
A person can catch up on any arrearage on the mortgage while resuming regular mortgage payments
Individuals have the flexibility to amend a Chapter 13 plan as their situation changes

Saving a home from foreclosure is often the best reason for a homeowner to file Chapter 13 instead of Chapter 7. So long as you have sufficient income to pay the past due mortgage payments while staying current during the bankruptcy proceedings, you can save your home and keep it once the bankruptcy is complete. A Marion Illinois Debt Management Attorney can discuss your options and advise whether this might be your best option

If you are a homeowner or someone with other assets you don't want liquidated, there is still relief for your debt. A Marion Illinois Debt Management Attorney can discuss your options and find a solution that will allow you to live stress free while making you debt free. To learn how bankruptcy can give you a fresh start, contact Bankruptcy Clinic, P.C. today

Home in foreclosure? Contact a Marion Illinois Debt Management Attorney

Call The Bankruptcy Clinic today at (618) 993-1300

Beware the Claims of Debt Consolidation Companies

Fri, 25 Mar 2022 00:04:00 GMT

When people are deep in debt, they often try to do everything possible to avoid filing bankruptcy. An alternative they may consider is debt consolidation, which they may have heard about through various forms of advertisement including TV, radio, mailings, or even online. The information they obtain usually sounds very appealing and would appear to be an effective alternative to bankruptcy. Consumers should be very careful when dealing with debt consolidation companies and understand exactly what they can and cannot do.

First, it is important to research any and all companies before giving them any money. In fact, if they require money up-front that should be considered a red flag indicating the company is a scam. Consult the Better Business Bureau, do as much online research as possible, and trust your gut if something seems off. If the company is making claims that sound too good to be true, then you might be dealing with a scam artist.

Debt consolidation companies essentially pay off all loans and become the sole creditor for their client. The client then makes one monthly payment to the company to pay the balance. This certainly makes paying your bills more convenient. While these companies may offer a lower interest rate than credit card companies or other creditors, the balance on the debt will remain unchanged (and may actually be higher once administrative fees are added).

While lower interest rates might save the debtor money, if the balance is overwhelming, debt consolidation will not do anything to help mend the financial situation. The debt will remain oppressive and leave the debtor struggling to make ends meet. In most cases, bankruptcy is the best option for someone deep in debt.

Unlike debt consolidation, bankruptcy can completely discharge a debt in Chapter 7 or cap payments as a percentage of income in Chapter 13. Bankruptcy is a powerful tool for someone carrying a huge debt load. At The Bankruptcy Clinic, we can explain how bankruptcy can help you.

Whether you are in Carbondale, Marion, Mt. Vernon, or anywhere else in southern Illinois, we have an office to serve you. We have helped countless clients throughout southern Illinois obtain the help they need with serious debt. For a free consultation to discuss your debt problems, contact The Bankruptcy Clinic today.

Beware Compound Interest, says a Mt. Vernon Chapter 7 Bankruptcy Attorney

Fri, 25 Mar 2022 00:03:58 GMT

As anyone who has had credit card debt can tell you, one of the most complicated (and expensive) issues involves compound interest. This is essentially “interest on top of interest,” and it can prove extremely costly for someone paying only the minimum payment on credit cards each month. Since most credit cards compound interest monthly, virtually all of the minimum payment is applied to compounding interest rather than the underlying principle. A Mt. Vernon Chapter 7 Bankruptcy Attorney can explain exactly how this interest is impacting your monthly payments and how you can begin to pay down principle.

Examples of Compounding Interest from a Mt. Vernon Chapter 7 Bankruptcy Attorney

Let’s assume a person has a major car problem and has to put $1,000.00 on a credit card with an 18% interest rate. It might be safe to assume this would cost $180.00 annually in interest. However, the loan will actually cost $195.62 in yearly interest. While this might seem like a negligible amount, it can add up quickly, especially for someone with multiple credit cards or extremely high balances.

If a person were then to pay the minimum on this card (the interest plus 1% of the balance), the monthly payments would start at $25. In the first payment, $10 would be applied to the principal while $15 would be applied to the interest. The following month, the minimum payment would drop to $24.75, with the majority still being applied to pay interest. In total, it will take a person 113 months, or nearly ten years, to pay off a single credit card this way. That would total $923.12 in interest paid on top of the $1,000.00 underlying debt. To check for yourself, enter in the numbers into the calculator here .

Unfortunately, many people can only afford to make this minimum payment and find themselves trapped in debt. If a person begins missing payments, there will be late fees added which makes the cost of repayment even higher. A Mt. Vernon Chapter 7 Bankruptcy Attorney can examine your debt situation to determine if you may benefit from bankruptcy. If so, our lawyer will be able to discharge this debt for you, allowing you to get a fresh start free from onerous debt payments.

At The Bankruptcy Clinic, we fully understand how difficult debt problems can be. We know it is almost impossible for many to pay more than the minimum payments, and we understand the costly waste involved with interest only payments. We can help find a solution for your debt issues. To speak with a Mt. Vernon Chapter 7 Bankruptcy Attorney about your debt problem, contact The Bankruptcy Clinic right away for a free consultation.

Benefits of Chapter 13 - Carbondale Bankruptcy Attorney

Fri, 25 Mar 2022 00:03:56 GMT

While some people may automatically assume Chapter 7 is the best bankruptcy option, there are a number of consumers who are better served through Chapter 13. This form of bankruptcy lets a person keep their assets while making payments over a period of time (typically 3-5 years) to the bankruptcy trustee. This trustee then uses that money to pay back creditors. When the bankruptcy period is complete, unsecured debt is discharged and the creditor can no longer collect on that loan. A Carbondale IL Debt Management Attorney can discuss your particular situation and determine which bankruptcy option is the best for you.

Carbondale IL Debt Management Attorney on Filing Bankruptcy as a Homeowner

Many people who choose to file Chapter 13 bankruptcy are homeowners who face foreclosure. In this case, some of the benefits to filing include:

Automatic Stay, allowing a person to remain in their home for a period
Stripping of second and third mortgages
Potentially allowing a person to catch up on any arrearage while making their mortgage payments

This last option is potentially the best reason for a homeowner to file Chapter 13 instead of Chapter 7. If a person makes enough income to pay any passed-due mortgage payments while staying current during the bankruptcy proceedings, they can stay in their home when their bankruptcy is complete. A Carbondale IL Debt Management Attorney can discuss your income and find whether you have the means to make these back payments as well as your current mortgage payments.

If you are a homeowner or someone with other assets you don't want liquidated, there is still relief for your debt. A Carbondale IL Debt Management Attorney can discuss your options and find a solution that can let you live stress and debt free. To learn how bankruptcy can give you a fresh start, contact a The Bankruptcy Clinic today. Home in foreclosure?

Contact a Carbondale IL Debt Management Attorney Call The Bankruptcy Clinic today at (618) 549-1100

Why File for Bankruptcy?

Sat, 05 Mar 2022 15:08:57 GMT

While filing for bankruptcy is not for everyone, in some situation it may be your best option. Some people wait too long. In the process, the pressure mounts and they get themselves deeper and deeper into trouble. In the worst situations, they may lose so much more by not seeking relief from their financial issues.

If one of the following situations apply to you, you should consider filing for bankruptcy.

If you have fallen behind on mortgage payments or you are facing or in foreclosure.
If your personal property like your car is facing repossession.
If your wages have been garnished and your bank account has been liquidated.
If you feel like you are in over your head with uncontrollable unsecured debts like credit card bills, hospital or doctors’ bills.
If one or more of your creditors have turned your account over to a collections agency or person or if you have lawsuits pending or creditors threating to sue you.
If you are receiving collection calls at home or work.
If you have income taxes you are unable to pay.
If you have significant medical bills not covered by insurance.
If your total debt, excluding your house, is more than you could pay within five years.

Many of these situations indicate your financial situation is out of control and you may need help regaining control. We know no one thinks they will be the one filing for bankruptcy, but in some situations, it may be the smartest move. If you are struggling with your finances, you may want to speak with our experienced Southern Illinois bankruptcy attorneys. Call our office today for your free, initial consultation.

Will Bankruptcy Permanently Ruin My Credit?

Sat, 05 Mar 2022 15:01:56 GMT

Some people are worried that filing bankruptcy will permanently ruin their credit score. They know that they need a minimum credit score in order to get a mortgage, auto loan, and other important lines of credit. They worry that their filing will permanently follow them around, barring them from this important money. Fortunately, filing bankruptcy won’t permanently ruin anything. In fact, it may even make getting such loans easier. A bankruptcy attorney can fully explain your options and how filing bankruptcy might help you.

The fact of that matter is that many people deep in debt already have poor credit scores. When you routinely miss payments or fall substantially behind on a bill, it gets reported to credit agencies. And since on-time payments are among the most important factors in a credit score, most people with serious debt problems already have a poor credit history. Therefore filing bankruptcy may not have as large of an impact on a particular score then you might imagine.

To be certain, filing bankruptcy will negatively impact your credit. It is a big decision that should never be entered into lightly. In the months following bankruptcy, it will be difficult to obtain lines of credit. But the further you get away from the filing, the more options you will have available. Eventually, after 8 years, the Chapter 7 bankruptcy completely falls off your credit report.

This can make it easier to obtain lines of credit because you won’t be throwing money at debt that can never be repaid. Instead of throwing good money after bad, you can actually begin to save money for a down payment on a home or car. You can also borrow responsibly and show creditors that you can manage your money. While bankruptcy will be a temporary setback, it can eventually lead to a positive credit score.

At The Bankruptcy Clinic, we understand how debt problems can ruin a person’s life. We will carefully examine your options and help you find the best solution for your debt troubles. We have helped clients across southern Illinois get the help they need with debt. For a free consultation, contact us right away.

You Can Answer the Phone Again

Sat, 19 Feb 2022 14:43:54 GMT

You feel the agitation as you see another call that you don’t want to answer. It’s from a strange number. You get these calls many times a day. There’s nothing different you can tell this person than what you told the last person who called. Your financial situation is no better to today than it was the day before.

You’d like to have peace of mind, but you’re not sure what to do. We can help reduce your stress and anxiety. A bankruptcy filing will immediately stop collection calls and most types of garnishments, liens, and collection efforts.

Some are afraid of filing bankruptcy because they are nervous about going in front of a judge or into a courtroom. Most of our clients never appear before a judge or even go into a courtroom. Rather, once your case is filed, you will attend a brief administrative hearing before a bankruptcy trustee, not a judge. Most of these meetings we attend locally are not in a courtroom, but rather, an alternate location. You can rest assured one of our well qualified Illinois bankruptcy attorneys will be present with you at this meeting to help ensure it goes smoothly. We will be your advocate throughout your bankruptcy case.

The skilled attorneys at Bankruptcy Clinic, PC, are ready to help you navigate the challenges of filing for bankruptcy. A bankruptcy never has to be painful, and we want your case to flow as smoothly as possible. Everybody needs help from time to time, even in matters of personal finance.

If you are tired of ignoring the phone, or making up excuses for not paying money that you don’t have in the first place, please call for a free consultation with the attorneys at Bankruptcy Clinic, PC. Call today to hear a friendly voice on the other end, one who wants to help you get things back on track in your life. The best thing we offer is peace of mind. With peace of mind, you can answer the phone again.

Will my Bankruptcy be Made Public?

Sat, 19 Feb 2022 14:23:54 GMT

Some people worry that when they file bankruptcy, everyone they know will find out about it. Most people don’t want their money problems made public, so they struggle in silence with their debt.

All bankruptcy filings are public record, but this does not necessarily mean that everyone will find out about yours. Most newspapers throughout Southern Illinois do not publish the names of bankruptcy filers. However, a small minority of them do. A bankruptcy attorney can fully explain this situation and help reassure you the decision to file bankruptcy is the correct one.

When you file for bankruptcy in the Southern District of Illinois , anyone with a PACER account will have access to the details of your case. PACER stands for Public Access to Court Electronic Records. It allows you to access public documents from the federal court system. You are charged a certain fee for each document depending on its size. Since the vast majority of individuals don’t have such an account, they won’t be able to see details of your case.

A public records search will also show details of your bankruptcy, but in general these searches cost money, which deters people from just casually searching for your case.

While it is difficult to access bankruptcy filing information, it is certainly not impossible. And since it is not possible to seal bankruptcy filings, people should prepare for the fact that someone may find out about their bankruptcy filing.

But this fact should not deter people from seeking protection from the bankruptcy court. While it may be uncomfortable to admit that debt has become overwhelming, it is the best option for many people struggling with credit card bills, medical costs, and other bills causing them stress.

The temporary embarrassment of someone finding out about a bankruptcy is far outweighed by the relief that comes from finally dealing with debt once and for all. For most of our clients, it is far more responsible to make efforts to address the debt through a bankruptcy process rather than running from it in the hopes it will simply disappear.

At The Bankruptcy Clinic, we can explain the public records that come with filing bankruptcy and explain how a person might access them. This can reassure you and give you the peace of mind in knowing that bankruptcy is the right option. To discuss your debt problems with an attorney in Carbondale, Mt. Vernon, or Marion, contact The Bankruptcy Clinic today for a free consultation.

Marion Illinois Debt Management Assistance: How Much Will I Pay in Chapter 13?

Sat, 15 Jan 2022 14:25:40 GMT

For clients seeking Marion Illinois Debt Management Assistance through Chapter 13 bankruptcy , a common question we receive is how much of the unsecured debt will need to be repaid. Unlike Chapter 7 , Chapter 13 requires a debtor to propose a repayment plan to pay back at least some of the unsecured debt.

Marion Illinois Debt Management Assistance on How that Plan is Calculated

Generally speaking, the unsecured creditors must be paid back the greater of: 1) what you can afford to pay back; or 2) the liquidation value of your estate. These are explained in more detail below.

When speaking of what you can afford to pay back, there is a two prong test we typically use. If you earn less than the median income for a family of your size in the county you reside in, we look at your income going forward and subtract out those expenses necessary for your maintenance and support using a hypothetical budget we help you prepare. If, on the other hand, your family earns above the median income level, your ability to pay will usually be governed by Form 22C , which provides a more mechanical, statutory model for calculating your disposable income going forward.

When we refer to the liquidation value of your estate, we mean what items you would have lost had you done a Chapter 7. In a Chapter 13 bankruptcy, a creditor cannot receive less than they would have received under a Chapter 7. If, for instance, we are not able to protect $3,000 of equity in a vehicle after utilizing your exemptions in a Chapter 7, the trustee would sell your vehicle and pay your creditors that amount. However, in a Chapter 13 you keep the vehicle while paying back the $3,000 to the unsecured creditors yourself.

Our Marion Illinois Debt Management lawyers will work out a plan that lets you keep the assets you want while staying within your budget. We will look at your individual situation and let you know whether a Chapter 13 or Chapter 7 is in your best interest. For a free consultation about how we can help, contact us today.

Having serious debt problems? Seek qualified Marion Illinois Debt Management Advice Call The Bankruptcy Clinic, PC, today at (618) 993-1300

2015’s Bankruptcy Cases of the U.S. Supreme Court

Sat, 15 Jan 2022 14:17:03 GMT

The Supreme Court of the United States (SCOTUS) issued some very controversial high-profile decisions in its 2015 session. It also ruled on five cases involving bankruptcy. There are approximately 10,000 cases from the lower courts that are appealed to the Supreme Court every year, and the Court might select 75-80 cases per year.

In 2015, five of those cases involved bankruptcy law. That might not seem like a lot, but it is. The SCOTUS does not hear many bankruptcy cases compared to other areas of law, and to select five cases in one session is quite significant.

It is likely these cases will NOT affect most consumer bankruptcies. But it is imperative your bankruptcy attorney always keeps abreast of the rulings from the higher courts.

Here are the five cases:

Caulkett v. Bank of America, N.A.: A debtor in a Chapter 7 bankruptcy proceeding may not void a junior mortgage lien under 11 U.S.C. § 506(d) when the debt owed on a senior mortgage lien exceeds the current value of the collateral if the creditor’s claim is both secured by a lien and allowed under Section 502 of the Bankruptcy Code.
Bullard v. Hyde Park Savings Bank: A bankruptcy court’s order denying confirmation of a debtor’s proposed repayment plan is not a final order that the debtor can immediately appeal. (It can cost thousands of dollars to formally appeal a case; filing an untimely appeal can be a waste of money for most debtors)
Harris v. Veigelahn: when a debtor in good faith converts a bankruptcy case to Chapter 7 after confirmation of a Chapter 13 plan, undistributed funds held by the Chapter 13 trustee are refunded to the debtor (as the Third Circuit held in In re Michael). (Considering what a Chapter 13 debtor would have likely already paid in by this time, this is hardly ‘free money’ for the debtor)
Baker Botts, LLP v. ASARCO, LCC: Section 330(a)(1) of the Bankruptcy Code does not permit bankruptcy courts to award fees for defending fee applications to professionals hired under Section 327(a) of the Bankruptcy Code. (An attorney or other professional should not be awarded fees for his time spent justifying his fees)
Wellness Int’l Network, Ltd. v. Sharif: Article III permits bankruptcy judges to adjudicate Stern claims (certain areas of law considered “core matters” under 29 USC 157(b) such as fraudulent transfers and state law counterclaims) with the parties’ knowing and voluntary consent. (This is a complicated issue regarding what kinds of cases a bankruptcy judge can and cannot hear associated with a bankruptcy case. This eases the strict ruling from an earlier case called Stern v. Marshall)

The attorneys at Bankruptcy Clinic PC have fifty years of combined experience and have filed thousands of consumer bankruptcies in Southern Illinois. You can count on our attorneys to keep current on the law and case rulings of the courts that may affect your case. If you are in need of debt relief, call us at our Carbondale, Marion or Mount Vernon office for your first step to a financial fresh start

341 Hearing Explained by a Jefferson County Illinois Bankruptcy Lawyer

Thu, 13 Jan 2022 18:48:16 GMT

The 341 hearing, also known as the Meeting of the Creditors, is a necessary part of any bankruptcy. In both Chapter 7 and Chapter 13, creditors are given an opportunity to review the reasons for a debtor’s bankruptcy filing to determine if there may be potential abuse. This is not a court hearing, but rather, occurs in a meeting room with the trustee and creditors. A Jefferson County Illinois Bankruptcy Lawyer can assemble all the documents with you for this meeting to make sure a filer is well-prepared for any questions a creditor may have.

Documents Gathered by a Jefferson County Illinois Bankruptcy Lawyer

Some Trustees require you to provide information before your 341 Meeting of Creditor hearing. This might include recent tax returns, trust documents, bank statements, deeds to real property or titles to vehicles.

For your meeting, you will need to bring the following:

Identification documents (Driver’s License, Social Security card, passport, etc.)
Other documents specifically requested by the trustee

After your meeting is over, there may still be times the Trustee requires additional information - such as additional bank account statements, pay stubs or additional tax returns. The Trustee will usually ask you and your attorney at the hearing to provide this information to him or her as quickly as possible.

A Jefferson County Illinois Bankruptcy Lawyer can explain exactly what you will need for your 341 meeting. We will also explain how to obtain certain documents should you need to provide copies to the Trustee.

Ensuring that a 341 meeting goes smoothly is vital to your bankruptcy filing. If abuses are identified or if a creditor objects, it could result in a bankruptcy getting dismissed. This means collection activity will resume, including foreclosures and repossessions.

Bankruptcy filings can be complicated and detail-oriented. At The Bankruptcy Clinic, we work to simplify this process for our clients by answering any questions and carefully assembling documents needed.

This way, you can be sure your bankruptcy will go as smoothly as possible. To learn more about how a Jefferson County Illinois Bankruptcy Lawyer can help with your debt problems, contact The Bankruptcy Clinic today for a free consultation.

Am I Responsible for My Deceased Parent’s Bills?

Mon, 13 Dec 2021 06:27:53 GMT

It is not uncommon for a parent to pass away with outstanding debts such as medical bills, credit cards, and personal loans. Often, the children of the deceased may be concerned that they may now be responsible for these debts. Unless a child has co-signed or individually guaranteed a debt, he or she is not legally responsible for its payment. Instead, any debts owed by the decedent should be paid from his or her estate.

This may not, however, stop some debt collectors from harassing heirs or loved ones in a misguided effort to extract money for the debt. If you are receiving these phone calls, refer any calls to the executor of the estate. If you are the executor, inform the collector that this person is now deceased and send them a copy of the death certificate. This should stop the collection activity.

If, however, you did co-sign or guarantee a particular debt, then this is now your responsibility. Very often, this may apply to funeral expenses or medical bills which you agreed to assume, sometimes even out of duress. This can be difficult, especially when the death is unexpected, leaving the survivor with no other means or ability to pay the debt. If you have found that a loved one’s death has left you with unanticipated bills, it may be time to speak to a bankruptcy attorney to learn your options.

At The Bankruptcy Clinic, our attorneys have helped many clients after the unexpected passing of a loved one. Whether it was a parent with whom a child had a joint account, a spouse who was the breadwinner of the family, or a sizeable funeral bill, this life changing event can bring with it huge, unmanageable expenses. If you have found yourself in this situation, we may be able to help. If you are in Southern Illinois, contact one of our three convenient locations in Marion, Mt. Vernon, and Carbondale for your free consultation.

Listing Creditors on My Bankruptcy Case

Wed, 08 Dec 2021 01:47:47 GMT

When filing for bankruptcy, you need quite a bit of information to make the process go as smoothly as possible. It may be obvious, but in order to list your creditors in your case, you will need their names and all their information, including what you owe them and their addresses.

In the first part of the process we type up a creditor mailing list, or matrix. This is an alphabetical list of all your creditors. We generally will require the running of a credit report to ensure we are thorough in our efforts to include all debts. The court then takes this list and sends notice of your bankruptcy to everyone on this list.

You should not intentionally omit a creditor from this list or fail to list debts you owe in your case. You must sign the bankruptcy schedule under penalty of perjury. If you intentionally omit information, you can face fines and punishments for doing so.

If you file for Chapter 7 bankruptcy and don’t list a creditor but do not have assets available for distribution in the case, it is less serious than if you have assets. If you do not have assets, and the omission was unintentional, the creditor is generally prohibited from collecting on the debt just as if they would have been properly noticed.

However, in a Chapter 7 case with assets, the issue becomes more serious. Because the creditor loses their right to file a proof of claim and receive any payment in your case, they may collect after your discharge is complete.

Similarly, in a Chapter 13 case, if a creditor is omitted the debt will not be discharged at the conclusion of your case. Since that debt was not worked into your debts, you will have to deal with it separately, even though your other debts might have been properly addressed.

If you are struggling financially, you need to speak with an experienced Mt. Vernon bankruptcy attorney. We can discuss your case with you and present your options to ensure you don’t get stuck in a financial mess.

What Are the Good Faith Requirements for Bankruptcy?

Fri, 03 Dec 2021 04:39:00 GMT

In order to be eligible for a discharge of your debts in a Chapter 7 bankruptcy or a Chapter 13 reorganization, you need to show that the bankruptcy is being filed in good faith. Debtors filing bankruptcy are required to use the bankruptcy laws for honest intentions rather than attempting to abuse the process.

A bankruptcy attorney can examine your situation to ensure you meet all the requirements. So long as that can be shown, your bankruptcy proceedings should flow smoothly and you can get your debt problems under control.

One factor creditors or the court might look at is the repayment history on an account. If a person hasn’t tried to make payments, this may show a lack of good faith. By making payments, a person can show he or she at least made an effort to repay the creditors but was unable to continue to do so.

Another factor is how honest was the debtor with their creditor when applying for a loan or a line of credit. For example, some credit cards ask a person to disclose their monthly income. If the person wildly overinflated this income in order to get a higher credit limit, this may signal to a judge that the person did not act in good faith in obtaining the credit. Similarly, if a person maxes out credit cards just prior to filing bankruptcy, this also might be a sign of bad faith as well as a basis for a creditor to challenge any efforts to discharge the debt.

Good faith also requires that people be honest with the bankruptcy court about their financial situation and their property. If someone attempts to deceive the court or conceal assets, these are clear indicators of bad faith. Even if transfers have been made or charges were incurred prior to (or even after) meeting with a bankruptcy attorney, the good faith requirements of bankruptcy mandate these issues be disclosed in an honest and forthright manner and they be brought to the surface as soon as practicable.

Lack of good faith has its consequences. If a bankruptcy is dismissed due to lack of good faith, the debtor will lose the protection of the automatic stay and the debt may survive the bankruptcy. This means that creditors may not only be allowed to resume their collection activities against a debtor, but the underlying debts might never be capable of being discharged in a subsequent bankruptcy proceeding. An experienced bankruptcy attorney can prevent this from happening while keeping your bankruptcy on track.

At The Bankruptcy Clinic, we have helped clients across Southern Illinois get relief from overwhelming debt. If you are in Marion, Mt. Vernon, or Carbondale, we have a location to serve you. For a free consultation to discuss your debt problems, contact The Bankruptcy Clinic right away.

Is There a Limit to the Number of Times I Can File Chapter 7?

Wed, 01 Dec 2021 02:39:35 GMT

There is no limit to the total number of times you can file a Chapter 7 bankruptcy. But due to certain time restrictions you might prefer to wait to file. A bankruptcy attorney can examine your situation to determine if you are eligible to file this type of bankruptcy.

Chapter 7 can help a person get debt problems under control, but it doesn’t prevent future money problems from occurring. Some people find themselves back in money trouble even after filing Chapter 7. A myriad of unforeseen events might occur following a prior bankruptcy such as a divorce, lost job, unforeseen illness, or simply getting overwhelmed with bills.

A person must wait at least eight years from the filing date of a previous Chapter 7 filing before being eligible to discharge debts in a Chapter 7 again. For example, if a person filed for Chapter 7 bankruptcy on October 1, 2010, he will have to wait until October 1, 2018 before a discharge of the new debts can be obtained through Chapter 7. If a person previously filed Chapter 13, they must wait at least six years from their Chapter 13 filing before being eligible for a discharge in a subsequent Chapter 7 filing. (There are some reasons a person may want to file a Chapter 7 even if they will not receive a discharge - but these are fairly uncommon). For those that cannot wait six to eight years to file another case, a discharge can still be obtained through a Chapter 13 filing so long as four years have passed since the prior Chapter 7 filing.

You will also be subject to financial requirements in order to be eligible for a discharge in a Chapter 7 bankruptcy. Even if you previously filed Chapter 7, the court will look at your circumstances now to ensure your income falls below the state median level. There is a limit to how much you may earn and file for Chapter 7 bankruptcy. If your income is over that limit, you may not qualify to file a Chapter 7 at all, let alone receive a discharge. In such a case, a Chapter 13 may be a preferred option.

At The Bankruptcy Clinic, we understand how frustrating it can be to deal with debt problems. It makes life extremely stressful and can make a person feel like there is no way out. We can explain your options and help you find a solution to your money problems. For a free consultation, contact The Bankruptcy Clinic today.

What Should I Expect During my Free Bankruptcy Consultation?

Tue, 23 Nov 2021 03:54:41 GMT

Some people hesitate to contact a bankruptcy attorney because they worry they’ll be pressured into filing. They worry that the process may be like buying a car, where a salesman uses pushy techniques to get you to sign on the dotted line. Fortunately, an experience with The Bankruptcy Clinic is never like this. We feel it is our ethical obligation to help a client find the right solution for their debt problem, whether that is bankruptcy or some other option.

During your free consultation, please try to bring the following information:

Copies of all your most recent bills
Most recent federal and state tax returns with a W-2
Most recent paycheck stub
A copy of the most recent tax bill for any real property you own
Make, model, year, and mileage of any vehicles you own or are purchasing
If you were divorced in the last six years, a copy of your marital separation agreement

During this meeting, we can get an accurate idea of your financial situation. We then help explain your options, how bankruptcy will affect you, and what the pros and cons of filing might be.

If bankruptcy seems like your best option, we will schedule a second meeting to get a complete understanding of your situation. This also give you time to think about your decision, to speak with family or friends who may have filed bankruptcy to learn about their experience, etc. We will not collect a dime from you until you have been fully informed of your options, we have a complete understanding of your financial situation, and you are fully committed to filing bankruptcy.

We understand how difficult debt problems can be, and it is our goal to provide relief from this stress, not add to it. We never pressure people into filing bankruptcy or into doing something they aren’t comfortable with. At all times during the consultation and intake process, you will be in control of your case and free to walk away without owing us any money. Our only goal is to make sure you are completely informed of your rights under the law.

If you are struggling with debt problems and don’t know where to turn, the bankruptcy lawyers at The Bankruptcy Clinic can help. For a free consultation in Mt. Vernon, Carbondale, or Marion, contact one of our three convenient locations right away.

Holiday Hangover: What To Do About Overspending During The Holidays

Sat, 13 Nov 2021 14:33:13 GMT

Your intentions are good. You’re sticking to a budget this holiday season. No extras. Then you realize you forgot a gift for your kid’s teacher, or didn’t realize your brother’s new girlfriend would be joining you and you wanted to make her feel welcome. Or maybe the holidays crept up on you and you didn’t have quite enough time to save enough for the gifts you wanted to buy. If you are suffering from a holiday hangover after realizing how much the holidays cost you, you’re not alone.

Depending on your financial situation, overspending at the holidays can be a temporary setback or may be the straw that breaks the camel’s back. It may be overwhelming, but holiday debt shouldn’t cramp your style forever. Take some steps to help recover your finances and prepare better for the next year.

First of all, take stock of your overall financial health. Are there some extras you can forgo this month to help pay down your debt? Assess where your money is going and changes you can make to pay off your debt.

Secondly, make a list of all your holiday debts that should be addressed and make a plan how to best pay them down. Make a list of minimum payments and at least meet those obligations. If you can’t meet all your minimum payments, pay your secured debts (like those secured by your house or a car) and then move onto the unsecured debts.

Most importantly, assess what you spent this year and come up with a plan for next year. The holidays come at the end of every year and those headaches can be avoided if you start setting aside a bit each month to cover the inevitable costs.

If your debt has gotten out of control, you may want to speak with an experienced bankruptcy attorney. We can help you figure out how to get out of debt. Call today for your free, initial consultation.

What Will I Lose if I File for Bankruptcy?

websitebuilder@thryv.com — Wed, 22 Apr 2020 15:13:01 GMT

Many people in need of bankruptcy relief are hesitant to proceed because they wrongly assume they will lose assets they have acquired. However the vast majority of the Chapter 7 cases we file are no-asset bankruptcies, meaning the debtor can keep all of his or her assets after we apply the proper exemptions. When you have a no-asset bankruptcy, you are able to truly get a fresh start and reestablish your financial life. Our Mt. Vernon bankruptcy lawyers can help you get that fresh start.

Even if there may be a particular asset at risk in a Chapter 7 bankruptcy, we can generally prepare you in advance for that, while having a plan of action going forward. For instance, we can generally work with the trustee overseeing your case to arrange either turning over all or part of an asset, or in the alternative, buying back all or part of that asset from the bankruptcy estate. If an asset needs to be protected at all costs, we always have the safer option of steering you into a Chapter 13 bankruptcy where no unencumbered assets are generally at risk.

At The Bankruptcy Clinic, an experienced bankruptcy lawyer can sit down to discuss your current situation with you. We help you look at the whole picture and can ensure against you losing valuable assets such as your home or car. By receiving sound advice about your debt options, you can be sure you are choosing the best path for you and your family.

Bankruptcy may not the first choice for many people, but when you lay it all out, it may be your best option. If that is the case, it is important you work with an experienced Mt. Vernon bankruptcy lawyer to guide you through the process.

Here at the Bankruptcy Clinic, our lawyers work closely with our clients to help them find the right solution for their debt problems. Whether you have a no-asset Chapter 7 bankruptcy or a Chapter 13 bankruptcy, you can trust you are in good hands. Our Mt. Vernon bankruptcy lawyers truly care about you and your family.

To learn more about how our attorneys can help with your debt problems, contact the Bankruptcy Clinic today. We also have offices in Marion and Carbondale to serve your needs.

Why File for Bankruptcy?

websitebuilder@thryv.com — Wed, 29 May 2019 15:40:42 GMT

If one of the following situations apply to you, you should consider filing for bankruptcy:

If you have fallen behind on mortgage payments or you are facing or in foreclosure.
If your personal property like your car is facing repossession.
If your wages have been garnished and your bank account has been liquidated.
If you feel like you are in over your head with uncontrollable unsecured debts like credit card bills, hospital or doctors’ bills.
If one or more of your creditors have turned your account over to a collections agency or person or if you have lawsuits pending or creditors threating to sue you.
If you are receiving collection calls at home or work.
If you have income taxes you are unable to pay.
If you have significant medical bills not covered by insurance.
If your total debt, excluding your house, is more than you could pay within five years.

Call our office today for your free, initial consultation.

Tax Debt and Bankruptcy

websitebuilder@thryv.com — Wed, 29 May 2019 15:39:08 GMT

With tax season fast approaching, some filers are about to be hit with a large tax bill. They may be curious if bankruptcy is an option to help them discharge this debt. Unfortunately, tax debt can only be discharged in bankruptcy in very limited circumstances. If you have questions about tax debt and bankruptcy, contact a Southern Illinois bankruptcy lawyer right away to learn your options. In order to discharge a tax debt in Chapter 7, a debtor will need to meet all of the following

Requirements:

Tax debt is income tax debt;
There was no fraud, evasion, or other illegal activity involved in your filing;
The tax debt is at least three years old;
You have filed a tax return;
The tax return was filed at least 2 years ago;
At least 240 days have passed since the IRS assessed the tax debt.

These requirements mean that only a very small number of debtors can discharge tax debt in Chapter 7.

In Chapter 13, a person’s payments will be capped based on their income, but when that repayment is complete the person will still owe the remaining debt to the IRS. While bankruptcy won’t directly help with tax debt for most filers, it still may be a person’s best option. By discharging other bills in Chapter 7, it may free up enough disposable income to allow a person to repay Uncle Sam. The same is true of Chapter 13: capping monthly payments may allow a person to save up money to use to pay back the IRS. Tax debt is a serious problem and bankruptcy may be able to help. At The Bankruptcy Clinic, we can examine your situation to find the right solution for your debt problem. For a free consultation to discuss your debt problem.

Contact The Bankruptcy Clinic right away.

Calculating Chapter 13 Payments

websitebuilder@thryv.com — Wed, 29 May 2019 15:37:10 GMT

In Chapter 13, a debtor is allowed to keep important assets that might otherwise be at risk of being sold

in a Chapter 7. However, a debtor in a Chapter 13 is usually required to pay back at least a portion of the

debt owed to the unsecured creditors.

An obvious question our clients have is: how much will I have to pay back? Unfortunately, there is no

quick and easy answer. No two situations are ever the same. Generally, a debtor must pay back to the

unsecured creditors the greater of the following two options: 1) the equivalent value of the items that

would have otherwise been at risk of being sold in a Chapter 7; or 2) a debtor’s disposable income - the

amount of money left over after taking into account those expenses that are necessary for your

maintenance and support.

In determining a debtor’s disposable income, additional factors come into play. If your income is above

the median level for your household size and geographic location, your disposable income is determined

by the “Means Test”, an objective tool established by Congress which allows for certain maintenance

and support deductions premised on IRS national and local expense standards. If you are above the

median level, you will generally be required to enter into a Chapter 13 repayment period for five years.

If your income is below the median level for your household size and geographic location, then

disposable income is much simpler to determine. We simply look at your household budget to

determine those expenses that are necessary for your maintenance and support going forward. As a

below median debtor, you will generally be required to enter into a Chapter 13 repayment period for at

least three years.

Some debts are generally required to be paid in full through a Chapter 13. Typically, this would include

priority debts such as child support, alimony, or back taxes incurred in the last three years. Other debts

that are generally paid in full include mortgage arrears where one plans on keeping a home. If a person

has a second mortgage, it may be possible in some cases to completely strip off the mortgage from the

property. Obviously, this can significantly reduce the amounts required to be paid back.

Other secured debt payments may be modified or reduced in a Chapter 13. For instance, if you owe

more on a car or personal property loan than what the property is worth, we can often do a “cram

down” where you pay back the fair value of the collateral rather than the full amount owed. Similarly,

we can often lower the payments on secured debts by extending the duration of the repayment period

or reducing the interest rate to something more affordable.

Obviously, a lot of factors go into determining what will have to be paid back and over what time frame.

Our experienced bankruptcy lawyers can discuss your income, your assets, examine your specific debt

situation, and help you get a definitive idea of what exactly you will have to pay back and for how long.

We will help you develop a repayment plan that allows you to make affordable monthly payments while

keeping your valued assets. For a free consultation in Marion, Mt. Vernon, or Carbondale, contact our

office right away.