Podcast: Listen to the August 2019 Bankruptcy Q&A With Chicago Bankruptcy Attorney Joseph Wrobel
For educational and entertainment purposes Chicago Bankruptcy Attorney Joseph Wrobel answers real people’s questions in this question and answer podcast about bankruptcy and consumer finance issues and problems. Joseph Wrobel wants everyone to be financially successful. At times a Chapter 7 Bankruptcy (full discharge) or a Chapter 13 Bankruptcy (3-5 year repayment) is the solution to your financial woes. There are other times you may not need to file for bankruptcy. Joseph Wrobel is here to help you figure out the best way out of your financial problems.
When you have a fresh financial start and don’t owe so much of your paychecks to creditors you are in a good position to save money and rebuild your credit. People are amazed by how easy it can be to have great credit again after they have financial troubles. We help you with everything.
Too often people are scared to use the bankruptcy laws to help them. There are all kinds of myths about bankruptcy and you should know the truth.
Read our blog article on our Chicago Bankruptcy Blogger page, Myths About Bankruptcy in Illinois: Debunked by Joseph Wrobel.
Listen to this podcast as Chicago Bankruptcy Attorney Joseph Wrobel answers real questions about bankruptcy from real people all over the country. Below are summaries of the questions and answers. Note that this is not legal advice, these are general answers based on the information provided. Actual legal advice must take place in the office of an attorney you hire for legal advice. If you need legal advice, please call Joseph Wrobel, Ltd. in Chicago at (312) 781-0996. We have offices all over the Chicagoland area and suburbs so it is easy to come to see us and get answers to your questions.
Vehicle Title Issues
Question: How can I get the title to a vehicle from the bank a year and a half after I filed for bankruptcy? The bank did not want the vehicle back.
Joseph Wrobel: If the car has value and you want to sell it you will not be able to sell it without the title. You could also keep the car and junk it when you are done driving it when you no longer want it or it no longer runs. In the podcast, Mr. Wrobel explains in more detail what documentation might be required by a salvage yard.
Question: Can the lender tack the debt owed on one vehicle to the other we have on the same account with the bank? We declared bankruptcy more than a year ago. With our credit union, we had payments and loans for both vehicles. We were thinking of relinquishing one of the vehicles to the credit union. If we do that can the credit union add that balance to the other loan for the vehicle we want to keep?
Joseph Wrobel: The credit union may have special provisions that say that the collateral for one loan also applies as collateral to the other loan.
Property Lien Issues
Question: Can the bank put a lien on my current property if they foreclose on my rental property? I bought my home in 2007. Then I bought another house and rented out my first house. My renters damaged and abandoned my rent house. Should I just let the bank foreclose on it and get out of the mortgage for the rent house? If they do foreclose on the rent house can they put a lien on my newer house where I am living? If I have to do anything, I have $30,000 in savings.
Joseph Wrobel: There is a Chapter 7 exemption that may apply if you qualify. If you file for Chapter 13, you might surrender other property and get into a plan to repay your debts. This would help you avoid a deficiency judgment and tax on the loss of the lender. Listen to the podcast for more detail from Chicago Bankruptcy Attorney Joseph Wrobel.
Out of State Collection Activity Issues
Question: Can an out of state collector sue me in a state in which they do not operate? I live in NJ and am being harassed by a debt collector from OH.
Joseph Wrobel: Yes, but they cannot sue you out of state in OH unless that is where you were when you signed for the debt. Meanwhile, nothing prevents them from suing you where you live in NJ. They will likely hire contracted attorneys in your state to sue you and attempt to collect a money judgment.
Financial issues cause stress. Read this article: 5 Strategies to Deal With Financial Stress.
Concerned Wife and Spouse Issues
Question: Can my wife stop a foreclosure? My wife is not on the deed for the house even though we have been married for 10 years and file joint tax returns together. I have a mortgage foreclosure sale coming up in three weeks. Can my wife file a Chapter 13 Bankruptcy or a Chapter 7 Bankruptcy to stop the foreclosure sale? I have filed for bankruptcy twice already in the past.
Joseph Wrobel: If your wife is not named on the mortgage, any bankruptcy case she files will not affect anyone else’s property, including yours, even though you are married to her and file joint taxes. While she does not need to be on the title (on the deed) to affect the mortgage, she does need to be named on the mortgage loan agreement.
Insurance Coverage Issues
Question: Is the pending cancellation of my car insurance policy stopped by my filing bankruptcy to get the advantage of the automatic stay provision?
Joseph Wrobel: No, the automatic stay stops collection procedures but does not prevent an insurance company from canceling your insurance.
New Loan and Lender Issues
Question: Can I get a new loan if I am making payments to my lawyer to file my Chapter 7 Bankruptcy?
Joseph Wrobel: If you are making payments on attorneys fees to your lawyer and your bankruptcy will not be filed until you pay your attorney in full, then there is nothing to stop you from getting a new loan. However, if you incur new debt just before you file the bankruptcy, it is a bad idea. The trustee may not allow you to discharge the new debt, especially since you knew you were going to file for bankruptcy and had been making pre-payments to your attorney.
Chapter 13 Bankruptcy Repayment Issues
Question: I understand I can file for Chapter 13 Bankruptcy and get a five-year repayment plan. But what happens if I lose my job and cannot make the payments?
Joseph Wrobel: You may want to convert a Chapter 13 Bankruptcy to a Chapter 7 Bankruptcy and discharge their remaining debt. Whether this is your best option depends upon why you filed a Chapter 13 and not a Chapter 7. Did you have a prior Chapter 7 filing? Did you have too much equity in an asset?
Call Joseph Wrobel in Chicago to learn more about how and when to file a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy. Our main number in Chicago is (312) 781-0996.
Foreclosure Summons Detail Issues
Question: What happens if the name listed in the foreclosure summons is not my name because it is misspelled? My last name is spelled wrong. Are these grounds for dismissing their foreclosure case? What can I do?
Joseph Wrobel: This is what is known as a “di minimis error” and is easily correctable if you were to challenge the validity of the summons.
Avoiding Foreclosure Sale Issues
Question: Can I stop a foreclosure auction by filing a Chapter 13 Bankruptcy only three days before the sale?
Joseph Wrobel: Yes, absolutely you can stop the foreclosure auction and save your house by filing for Chapter 13. You MUST have the petition filed with the Court before the auction sale. If you were to wait until after the foreclosure auction sale, you will not be able to save your home if that is your goal for filing a Chapter 13 Bankruptcy petition.
Bankruptcy and Credit Report Issues
Question: If I filed a Chapter 13 Bankruptcy and it was immediately dismissed, can I get that removed from my credit report? I filed Chapter 13 to protect my home from being foreclosed when I was behind on my mortgage. Luckily I was able to work out a payment plan with the lender mortgage company and no longer needed the Chapter 13. I cannot increase my credit score at the moment because of the bankruptcy filing showing up on my report.
Joseph Wrobel: Your credit report is a history of your credit. You cannot change it and you cannot remove the bankruptcy filing information, that will be present for 7 years.
Bankruptcy Case Time Issues
Question: How long does the Chapter 7 Bankruptcy process take from start to finish?
Joseph Wrobel: About 4 months.
Do I Need Bankruptcy Issues
Question: My son is 27 and has about $25,000 in medical and credit card debt. How can we figure out whether a Chapter 7 Bankruptcy is a good option for him? My son lives with us and he owns no property.
Joseph Wrobel: Maybe a Chapter 7 Bankruptcy is a good idea. Assuming your son has no other assets, and he can pass the income test for Chapter 7, this might help him out depending on his financial situation. Other options might be repaying enough of the loans in enough time to avoid bankruptcy. When creditors are facing getting zero dollars because the debt was discharged, they might be more likely to make a deal for less than the amount owed or a payment plan over time that makes the debt payments more manageable while your son works to earn more money and get ahead financially.
You might also like this article: Why You Should Never Cosign for Your Kids
What Are the Financial Questions that Keep You Up at Night?
Don’t Waste More Time in Anxiety: Call Joseph Wrobel, Ltd. (312) 781-0996
Joseph Wrobel and his staff at Joseph Wrobel, Ltd. are ready to help answer your questions about financial problems and solutions. If bankruptcy is a good option for you, they will help you figure that out. Don’t waste another day being harassed by creditors. Use your right to the automatic stay: it stops bill collectors in their tracks.
We hope you find this information helpful. We host and share these podcast interviews and summaries about questions and answers about bankruptcy every month. You can also find more information by searching our website. Thank you for reading and sharing our podcast interview summary!
Want to listen to more of our Chicago Bankruptcy Question and Answer Podcasts? Find this episode, August 2019 Chicago Bankruptcy Question and Answer Podcast with Joseph Wrobel, and all our episodes on the Chicago Bankruptcy Update channel on the Blog Talk Radio network.