Many people file bankruptcy because a creditor has a garnishment.A garnishment is a court order to deduct a portion of a debtor's wages to pay a creditor who sued the debtor and obtained a judgment. Garnishments are stopped though the instant a bankruptcy case is filed, regardless if it is Chapter 7 or Chapter 13. In my Chicago bankruptcy law office, we send a fax notice to the creditor's attorney as to the payroll department or HR supervisor.Contrast this with a wage assignment....
Stop foreclosure sales with Chapter 13 bankruptcy
Faced with a sale date on your property? Think all is lost? It isn't! You can stop a foreclosure sale before your home is gone for good with a chapter 13 bankruptcy.A chapter 13 can cure your mortgage default, get you a better deal on most financed items, including cars, and can discharge your unsecured debts, often at pennies on the dollar!The bankruptcy code gives debtors who ran into a rough patch the ability to right the ship and get back on track with a chapter 13 repayment plan. The...
Car repossessed prior to chapter 13
Here is a recent decision involving a case where a vehicle was repossessed prior to a chapter 13 bankruptcy. With Chapter 13 filings, the creditor must return vehicle to debtor, otherwise it is a violation of the automatic stay provisions. Now, a bankruptcy must be filed within 21 days of the repossession or the vehicle is sold at auction, and then it would be too late. But here, the Court, on appeal, ordered that the debtor's motion for sanctions should be granted for failure to give...
Recent Bankruptcy Statistics…Bankruptcy is alive and well in the US
Spurred by the down cycle in the mortgage business, a downturn in the economy (Recession? what recession? ) or else just credit providers providing more credit than should be given, we have seen a recent rise in bankruptcy filings both in Illinois and throughout the country. I came across this article from the AP which spells out the numbers for you.
March 3, 2008, 4:08PM Bankruptcy Filings Up 15 Percent in Feb. ...
New updated median income figures for bankruptcy filers
Median income level for Illinois based on family sizeEffective: 2/1/08
| 1 Earner | 2 in Household | 3 in Household | 4 in Household | |
| Illinois | $44,673 | $56,545 | $66,607 |
Bankruptcy Audit’s suspended
This is a bit of interesting news about the random audits performed by the Department of Justice. Previously 1 in 200 cases was audited for accuracy. These audits consisted of independent review of paystubs, tax returns, bank statements, real estate documents and other related items associated with a debtor's bankruptcy case.
From the UST website:
NOTICE REGARDING DEBTOR AUDITS ...
More Bankruptcy Q&A
Here is another rapid fire list of Q & A from bankruptcy questions I have received recently.
If you have a specific question, feel free to contact me and I'll be happy to review your situation with you. Thanks
Subject: What does reach back mean?
Question: I was doing fine financially until I went to commission sales. I kept thinking I was going to make a lot more money than I did. In June 07 I took a cash transfer from my bank credit card to my checking (they offered...
Bankruptcy Questions and answers
Here is an updated bankruptcy question and answer session. As you can see there are many bankruptcy issues that can sway a case one way or another. Hold tight, here we go.
Chapter 7 and Lump sum SSDI payment
Question
My daughter applied for SSDI over 2 1/2 years ago. Her husband left her 2 years ago. Their divorce comes up in March. She just received a lump sum payment from Social Security for her disability. She has not paid any of her credit...
Rapid Fire Q&A
Here are a sampling of questions I have been getting regarding bankruptcy an bankruptcy process. If you would like further bankruptcy information, please contact my law office.
Judgment
Q:
If a Judgment was won against you for a security bond and you file bankruptcy with no real property or income, can that judgment be included in the bankruptcy?
A:
I am not totally familiar with a 'security...
Can a spouse file an individual bankruptcy?
I received an email today from a prospective client asking if a spouse could file bankruptcy without her spouse. Excellent question.
Although both spouses are not required to file bankruptcy jointly, the Bankruptcy Code does require both spouses income to be included in the means test analysis for CMI - current monthly income. However, most people 'pass' the means test analysis and can file for Chapter 7 bankruptcy protection. See previous posts for the median income level in Illinois....