Chapter 7 and Chapter 13 Relief for COVID-19 Coronavirus Bankruptcy Business Closures
COVID-19 Coronavirus Bankruptcy filings are expected to increase. You should know your rights and options in the Bankruptcy Code if you need financial relief from debts you cannot pay. This is NOT YOUR FAULT. Many of your friends and neighbors know someone who is affected by the government-forced business restrictions and shutdowns. So many of our residents live paycheck to paycheck and they rely on consumer spending to pay for their bills and feed their families.
What to Expect in the Next Several Months Following COVID-19 Coronavirus Business Shutdowns
There will be an increase in bankruptcy filings in the coming months due to COVID-19 Coronavirus-related company layoffs, closures, payroll reductions, dramatic drops in the stock market, and self-quarantines.
We do not know how long the COVID-19 Coronavirus business closures will last. We also don’t know how long many people will be able to hold on or get new work to cover their needs.
Are the Government Bailout and Assistance Plans Enough?
While Congress works on financial assistance programs and options for people affected by forced government shutdowns of businesses, the relief may not be enough to cover all the unpaid bills. One of the plans may allow for additional time to pay rent and mortgage payments. Right now, details on these options are still being determined and we are committed at Joseph Wrobel, Limited to sharing that important information that might be a help to you or your neighbor.
When the stimulus check and other options are not enough, and you fear a foreclosure and repossession of your car, we can solve your problem immediately with the filing of a Bankruptcy Petition.
The Automatic Stay Provision in the Bankruptcy Code Saves You Immediately
The moment your Chicago bankruptcy attorney files your petition for a Chapter 7 or a Chapter 13 bankruptcy, the “Automatic Stay” provision PROTECTS YOU. The automatic stay prevents any bill collectors from contacting you, suing you, or doing anything to pursue you over debts during the entire time you are in a bankruptcy case. So, from the moment you file until the date of discharge, you are safe.
Need A Payment Plan to Pay for Attorneys Fees and Filing Fees? We Can Help You with Your COVID-19 Coronavirus Bankruptcy at the Chicago Bankruptcy Law Firm of Joseph Wrobel, Limited in Chicago (312) 781-0996
A wage garnishment is a court-ordered process requiring your employer to withhold money from your paycheck and direct that money to pay a court-ordered money judgment. When you owe someone money or do not pay bills, the creditor can sue you and get a money judgment. Then they ask the court to enter a wage garnishment order, usually accompanying a withholding order that is sent directly to the payroll or human resources department where you work.
Nobody wants their wage garnished and their paycheck reduced. People worry they won’t be able to pay the bills on less money. People worry their boss will find out and hold the garnishment against them. People worry about being passed up for promotions, or they worry about being fired.
Joe Wrobel is the Chicago bankruptcy lawyer who can stop your wage garnishment. Call Joseph Wrobel, Ltd., today at (312) 781-0996. Stop wage garnishment before or after it happens.
Check out these testimonials from people who loved their bankruptcy with Joseph Wrobel, Ltd.
How to Stop Wage Garnishment of 15 Percent of Your Gross Wages
Chicago bankruptcy lawyer Joseph Wrobel knows you are concerned about your monthly budget. A wage garnishment is going to make it even harder to pay the bills. In Illinois, creditors can take up to 15 percent of your gross wages.
Stop wage garnishment of 15 percent of your grow wages by filing bankruptcy before the wage garnishment is initiated by your creditors. In Illinois, creditors have to sue you and obtain a money judgment before they can petition the court for a wage garnishment. This means that you have time before the wage garnishment takes effect.
As soon as your Chicago bankruptcy lawyer files your bankruptcy petition, your rights take effect, including the automatic stay. An important right under bankruptcy law, the automatic stay stops wage garnishment immediately because that would be collection activity while the person is in bankruptcy, which is prohibited and a violation of federal law.
How Long Can the Automatic Stay Provision Stop a Garnishment
When you meet with Chicago bankruptcy lawyer Joseph Wrobel he will explain how the automatic stay works and how long it will protect you from any collection activity. At your initial meeting with Joe Wrobel, you will be given a roadmap of what will happen from the beginning until the end of your bankruptcy. You will learn that the great thing about filing a bankruptcy petition is that you get immediate relief from bill collectors, lawsuits and wage garnishments.
Automatic stay protection in a Chapter 7 bankruptcy lasts until your Chapter 7 discharge and the final court date when your bankruptcy case ends and is closed. Likely the creditor will not have anything to garnish your wages for because the underlying debt was probably discharged in the bankruptcy case.
Automatic stay protection in a Chapter 13 bankruptcy will also help you live free of collector harassment while you get caught on your bills and finances over three to five years. Most people who file for Chapter 13 bankruptcy are saving their homes from foreclosure, but they are also saving themselves from wage garnishments. Another example would be a person who wants to stop wage garnishment and discharge the underlying debt, but that person does not qualify for Chapter 7 bankruptcy because they make too much money.
Joseph Wrobel can meet with you and let you know whether you can qualify for Chapter 7 bankruptcy or Chapter 13 bankruptcy depending on your finances and situation. Read our How Do I Start page on our website. Call today (312) 781-0996.
Check out our many locations, there is one near you!
Discharging the Source of the Garnishment in Bankruptcy
Chicago bankruptcy lawyer Joseph Wrobel can advise you about your rights and options under the bankruptcy laws for Chapter 7 and for Chapter 13 bankruptcy. For example, you may have questions about what debts are dischargeable and which are not.
While in a Chapter 7 bankruptcy, the standard full wipeout of dischargeable debt, you can get rid of credit card debt, money judgments, hospital bills and other debt. Meanwhile, child support, DUI personal injury suits, student loans, income tax and debts not listed in your bankruptcy are not dischargeable.
A creditor can also challenge your request to discharge certain debts when they challenge your request to discharge them. For example, if you max out a credit card and incur debts just before a bankruptcy, with the intention of never paying them, it can be considered fraud on the court if you ask to discharge those debts in bankruptcy.
Call Chicago Bankruptcy Lawyer Joseph Wrobel to Stop Wage Garnishment and Learn Your Bankrutpcy Rights Today (312) 781-0996
Joseph Wrobel has been helping Chicago and suburban residents get a fresh start and get out of debt for decades. Mr. Wrobel has seen just about everything and he knows how to handle even the most complex financial situations. When you hire Joseph Wrobel, Ltd., you can put yourself in the best financial position after your bankruptcy. Whether you qualify for a Chapter 7 or a Chapter 13, you and your future credit, buying and borrowing power are in good hands when you hire Joe Wrobel.
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.
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.
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.
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?
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.
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!
Chicago Bankruptcy Lawyer Joseph Wrobel Debunks Myths About Bankruptcy in Illinois
There are all kinds of myths about bankruptcy and the truth about bankruptcy gets more appealing when people learn how a bankruptcy case actually works. You can ask for a Chapter 7 full discharge or a Chapter 13 partial discharge and repayment plan. If you need to keep your home and car, we have options for you. When searching online for information about how bankruptcy in Illinois works, it is important to get your information from an experienced Chicago bankruptcy lawyer who can dispel myths about bankruptcy in Illinois.
Myths About Chapter 7 Bankruptcy in Illinois
People worry about losing their property in bankruptcy in Illinois. Do not worry, because most of your important property asset exemptions. The Illinois Homestead Exemption allows you to keep up to $15,000 in equity in your home. The Illinois Motor Vehicle Exemption up to $2,400 in one motor vehicle is also allowed. You can also keep personal property up to $4,000. There are also exemptions for a list of additional categories.
Despite myths, you can keep your house and save your mortgage with Chapter 13 bankruptcy. In a Chapter 13 you will repay a portion of your debts over a three to a five-year repayment plan. People might also think they do not qualify for a Chapter 13 bankruptcy because they make too much money. When people are looking for a Chapter 7 bankruptcy but they make too much money, they can file a Chapter 13 and enjoy its many benefits.
You can dismiss your bankruptcy at any time if your financial situations change, even if you are still in your Chapter 13 plan. You can also sell your home while in Chapter 13.
Bankruptcy will affect your credit score but it is not forever. Actually, Chapter 7 is on your credit report for 10 years and seven years for a Chapter 13. Meanwhile, despite what some think, your credit score can be repaired. After your bankruptcy discharge, you can get a secured credit card and start rebuilding your credit. The more you use credit responsibly, the quicker your score will rise.
People worry traditional credit card companies will never give you credit. Actually, as you rebuild your credit and you have fewer creditors after you, you are a better credit risk. A credit union knowing you had a bankruptcy, can make car loans based on your credit score and your current financial position.
Many people who had a bankruptcy get approved for mortgages within a few years of their bankruptcy. The Non-Prime Lenders website offers information about mortgage after bankruptcy.
People are worried about renting or buying an apartment or house after bankruptcy in Illinois. Do not worry about being out on the street. You can certainly rent a home or apartment after a bankruptcy, even if your credit score is not where you want it. Many larger rental companies frequently work with people in a bankruptcy or who recently completed a Chapter 7 or a Chapter 13 case. Sure, some smaller rental companies and individual owners with properties could deny you. But most will charge you a larger security deposit or ask for a co-signer. It is very rare to hear a case of someone not being able to rent a place to live during or after bankruptcy.
Some say you will never qualify for a mortgage after bankruptcy, and they are wrong. When you have more money to pay your bills, it can be easier to rebuild a good credit score for a mortgage in a few years. When you no longer have debts you are unable to pay, you are a better credit risk. If you are renting, you can improve your chances to get a better mortgage and lenders have options for buyers who had a bankruptcy.
The Myths About Employment and Bankruptcy
No, your employer cannot fire you because you filed for bankruptcy. Nor can an employer change anything about your employment because of a bankruptcy.
Public, government agencies may not use bankruptcy in the hiring process. Private employers are not likely to make hiring decisions based on whether someone had a bankruptcy. Private companies may ask to check your credit. While there may be certain special employment positions where bankruptcy could be a problem, for most people this is not a problem.
One of the common reasons people do file for Chapter 7 or Chapter 13 bankruptcy is to avoid pending wage garnishment. Through the process of taking advantage of the bankruptcy laws to stop a wage garnishment, the employer receives a notice of the bankruptcy.
Call Joseph Wrobel, Ltd. at (312) 781-0996 to Learn Answers to Myths About Bankruptcy in Illinois
Whatever your questions or concerns are about bankruptcy, call Joseph Wrobel. Ltd., the Chicago Bankruptcy Law Firm. Joseph Wrobel has been practicing consumer bankruptcy law for many years and has seen and heard just about everything. How do I start?
Every question you have is a good question. Call us to learn answers to myths about bankruptcy in Illinois by dialing (312) 781-0996.
Joseph Wrobel, Ltd., the Chicago Bankruptcy Law Firm Wishes Everyone a Happy Father’s Day in Chicago
While some say every day should be Father’s Day in Chicago, local dads take the opportunity to relax and enjoy their children and families. With all the rain and growth this spring and early summer in Chicago, dads all over the city and suburbs have logged more than average hours mowing and doing yard work to keep up.
Whether you are in good financial shape or considering financial relief from a Chapter 7 or Chapter 13 bankruptcy, you can have a great Father’s Day Weekend in Chicago with your kids and family! Wondering how to get started with bankruptcy and stop the collectors? Learn how to get started with bankruptcy.
Father’s Day in Chicago Activities
Chicago dads who love watching the Cubs or White Sox with their kids have games lined up all weekend. In Chicago, dads watch baseball with their sons and daughters, and many of them have their favorite ballplayers and baseball traditions. The forecast may call for rain so watching the game indoors or under a covered patio.
Go to a horse race at the Arlington International Racecourse. They have more than horse racing and betting, with kid-friendly activities appropriate for all ages, including a petting zoo and carnival activities.
Play catch with Dad on the Chicago Dogs’ Impact Field! Get there early because you have from 11 a.m. to 11:45 a.m. to get out there and play catch on the field before the Chicago Dogs game that starts at 1:05 p.m.
In South Elgin, the Fox River Trolley Museum is a must-visit attraction. Taking a trolley ride is great for family pictures and memories.
Get your hands on Hamilton tickets at the CIBC Theatre in Chicago. The biomusical about Alexander Hamilton is a must-see and provides for all kinds of follow-up discussion topics.
The Role Father’s Play in our Lives
Fathers teach their kids how to be good people. Fathers teach their children how to be team players and leaders. They show their sons and daughters how to love and respect themselves and others. Fathers are superheroes to their children.
As a father, you have to be like a superhero to always make your children feel safe, no matter what. Good parents keep their kids reasonably sheltered from adult problems. Financial troubles and strain can negatively affect kids who may have never otherwise thought or worried about money. So to all the dads who make it through tough times while wearing a strong face, you all deserve a great Father’s Day weekend with your families.
Fathers Handle Financial Stress and Pressure, Sometimes Bankruptcy
Financial emergencies happen to good people. Good Dads can lose their job. Great dads never let the kids see them sweat financial difficulties. Parents who discuss money in front of the children may be creating an unnecessary level of anxiety in children who don’t need to worry about adult matters. For example, children who do not understand what bankruptcy is could be upset about worries in their minds that they don’t share. Kids may not understand that bankruptcy does not mean ruin and it does not mean they will have to give up all their possessions. Who knows what kids might think if they overhear mom and dad talking about money problems and bankruptcy.
If you are facing a financial situation that includes a bankruptcy filing, or something is changing at home because of money, keep an eye on your kids. You know how to hint around at things and fish for their questions. You might also make a light mention of making some changes that are better for the family.
In any event, talk to others and look up advice from experts about dealing with parenting and financial issues and questions. At the very least, an effort to hide finances from children might make everyone happier.
Learning Financial Tips and Information from Fathers
Dads should teach their kids what they have learned and what their fathers taught them. For example, saving some of your paychecks for emergencies and future needs is something that starts early. When grandmother gives you money for your birthday, take some of it and put it in the piggy bank or savings account. Piggy banks are great because they get heavier and louder the more you fill them up.
Teaching children to earn their own money is important. Parents who gave their kids everything without them learning to work and earn may not be helping their children learn about earning money. The young kids who mow lawns and walk dogs for extra money can save up for things they want. You may be surprised how many kids get ideas on how to make money and start small businesses. Supporting your son or daughter’s lemonade stand today can give them the confidence they need to do whatever they want in the future.
Financial realities can change. Fathers can help their kids prepare for the reality of financial uncertainty. Explain with a game of Monopoly this Father’s Day Weekend in Chicago and let your kids understand money comes and money goes. What you do with the money in between sets up you up for security or peril. These are all good life lessons to teach children.
Happy Father’s Day Weekend to all Dads from Joseph Wrobel, Ltd., the Chicago Bankruptcy Firm
When Chicago area fathers need to take advantage of the bankruptcy laws to protect their families, they can call Joseph Wrobel, Ltd., with convenient offices located in the Chicago-Loop, Chicago-Rosemont, and in the suburbs of Burr Ridge, Deerfield, Gurnee, Naperville, Orland Park, Schaumburg, Skokie, St. Charles and Westchester. They can represent Illinois clients in Cook County, Will County, DuPage County, Kane County, LaSalle County, Kendall County, and Lake County.
For a free consultation for bankruptcy information after Father’s Day Weekend in Chicago, call Joseph Wrobel, Ltd., at (312) 781-0996.
500 Jobs Cut: May Need Career Retraining After Job Cuts and Bankruptcy May Be a Great Option
News reports say nearly 500 employees in the Chicago-area working for MB Financial Bank will be out of a job soon. The MB Financial job cuts are happening because Fifth Third Bank recently acquired MB Financial Bank in a $4.7 billion merger. 493 layoffs are expected in May, most of the job cuts taking place at the MB Financial location in Rosemont, and about a dozen in the downtown Chicago MB corporate headquarters. For many reasons some of the people who lose their jobs with MB Financial will need career retraining after job cuts.
A bank spokesman reported that most of the layoffs are coming in the next four months and others will occur over time through the rest of 2019 and 2020. The reason for the job cuts is a cost savings of $255 million, in part from closing one in five bank branch locations.
Trends we can follow after job cuts are announced indicate that more customer service jobs are going away because of the Internet and automation technology. If automated telephone answering software can understand you and help with basic account information and customer service, there is less need for a customer service representative. Likewise, if more people can get their banking information and handle basic transactions on their computers, handheld devices, and ATMs, the need for human customer service professionals decreases.
Could You Pay the Bills While Looking for a New Job?
The recent US Government Shutdowns were shocking to many people because they were unable to pay their rent, mortgages, credit cards, and utilities. Even though the federal employees temporarily laid off from their non-essential government positions were going to receive back pay, their cash flow was interrupted.
Could you pay the bills if you suddenly had to live without getting a paycheck on time? You may be able to get away with only paying the minimum due amounts on credit cards, and getting a month behind on utilities, but most likely you cannot get along too long without substantial savings.
Many of the workers affected by shutdowns waited for the government to reopen, and others immediately started looking for a new job. If you cannot pay the bills after a job cut you might be facing evictions, foreclosures, credit account default, and the shutoff of utilities.
There are two types of bankruptcy protection available to consumers with debts they cannot pay. First, Chapter 7 Bankruptcy helps to wipe out and discharge the responsibility to pay dischargeable debts. Note that not all debts are dischargeable. For example, child support is not a debt you can discharge in a bankruptcy case.
Second, a Chapter 13 Bankruptcy is referred to as a wage earner’s plan. People with regular income can use Chapter 13 to develop a plan to repay a portion of their debts over a three to five year period. The problem workers facing job cuts may face is not having the regular income to qualify for a Chapter 13 Bankruptcy, also referred to as a “reorganization” bankruptcy. It is important to talk to an experienced bankruptcy attorney to learn how you can qualify for either Chapter 7 or Chapter 13.
When you contact Joseph Wrobel, Limited at (312) 781-0996 you can share more information about your financial circumstances and get a better idea which bankruptcy laws you can take advantage of to help get you out of debt.
Stop the Bill Collectors with the Automatic Stay
One of the most exciting advantages of a bankruptcy filing is the Automatic Stay provision that stops collectors in their tracks. Simply put, when someone files for bankruptcy, creditors may no longer pursue any collection activity. Therefore, during the bankruptcy case, whether you have a Chapter 7 or a Chapter 13, the bill collectors cannot communicate with you at all. No more phone calls, no more threatening letters.
The immediate ceasing of collection activity is just the first benefit of bankruptcy that many people can enjoy. Too often when people think about bankruptcy, they imagine companies going out of business and empty buildings. For consumers, bankruptcy is a right and a law designed to give people a fresh start, a chance to get back in control of money and finances.
Most people who file for bankruptcy will tell you that the anticipation of filing for bankruptcy was more stressful than actually moving forward and filing for Chapter 7 or 13. You may have a variety of questions about job cuts and bankruptcy.
Job Retraining Programs, Online, and Trade School Options
The chances are that some of the MB Financial employees losing their jobs are going to need career retraining after job cuts so they can get a new position, in a new career track. Workers in positions being reduced or replaced by technology and automation can change directions and pursue retraining for new positions that will be in demand and not in immediate danger of being cut.
When looking into career retraining options, consider some of the following steps you can take to make more money and increase job security:
Take a class to explore a new career field, to update a specific job skill or learn a new skill to make you more appealing to employers. By taking a class after being out of school for years, you show employers that you are flexible and interested in learning new skills.
Short-term training for new jobs is something you can pursue through certification programs, and certificate programs at local schools.
Begin a degree program and switch careers. You can plan your education and enroll in a degree program using financial aid tools which can also help pay for living expenses while pursuing higher education. Job cuts can be a disguised blessing.
Getting Financially Fit with Joseph Wrobel, Limited, the Chicago Bankruptcy Law Firm (312) 781-0996.
Even with bad news of job cuts, there are good opportunities behind the scenes. Some who wish for a higher paying job or career with more opportunities may get their wish in a job cut situation. The nearly 500 employees at MB Financial Bank can take advantage of one of their bankruptcy options while also pursuing retraining opportunities. To learn about bankruptcy or get some tips and leads on career retraining after job cuts, call Joseph Wrobel, Limited in Chicago at (312) 871-0996.
Bankruptcy for Unpaid Workers in Chicago Who Run Out of Money
The current government shutdown causes people to ask themselves what would happen if they did not receive their paycheck for several weeks or longer. For families living on budgets, not receiving pay means the bills are not going to be paid. Unpaid workers without savings to temporary replace regular income can lose their homes, cars and credit cards if payments are delinquent.
Even though currently unpaid government workers are promised to receive their back pay after the shutdown, they may not be paying their mortgage, rent, car payment, student loans, utilities and other financial obligations. How long would you be able to continue without pay and the immediate need to get another source of income.
In many cases the unpaid workers with specialized work skills and experience cannot find another job very easily, and not at the same pay grade.
Examples of Situations Causing Unpaid Workers Who Consider Bankruptcy
Workers are unpaid for a variety of reasons. Layoffs happen in manufacturing due to slow business or problems. Companies with a cash flow problem may not be able to pay their workers on time. Sometimes a struggling company does not have enough money in the bank for all the payroll checks to clear. In other cases, the employers accounts could be seized or frozen. For people working as contractors for others, one party may refuse to pay because they have an issue with the work not being performed correctly. In each of these scenarios, the unpaid employee still needs to pay their bills.
Unless workers have several months of bill paying money set aside for cash flow emergencies, they may be considering their bankruptcy options. Chapter 7 and Chapter 13 bankruptcies have features and options that will help people and their families.
The Automatic Stay Provision of the Bankruptcy Code Stops Creditors from Contacting You
Creditors and bill collectors are aggressive and persistent. Economic conditions like a government shutdown mean that many workers will not get their paychecks. After the bills come due and are not paid, collectors have options. Some waive late fees and extend due dates. Temporary relief runs out at some point. Aggressive bill collectors want you to pay them before you pay someone else. They will call you and send extra past due notices in the mail. When friends or relatives listed as references on loans getting phone calls about you not paying your bill it can be embarrassing and aggravating.
The “Automatic Stay” stops bill collectors in their tracks. When either a Chapter 7 or Chapter 13 bankruptcy case is filed, including a list of all the creditors the filer may owe, those creditors receive notice that they may not continue any collection activity so long as the bankruptcy case is ongoing.
Save your home from foreclosure and sale by filing for bankruptcy, taking advantage of the automatic stay. The bankruptcy postpones foreclosures and sales.
For some unpaid workers a Chapter 7 bankruptcy case might have already been on their mind. When people have debt, they cannot afford to pay, when they are making less income than before, and when the outlook for paying off all the debt is bleak, a fresh start with a Chapter 7 bankruptcy can make a major difference for a family struggling with money and bills.
The point someone who already has financial troubles doesn’t receive their paycheck, a Chapter 7 bankruptcy will help. Eliminate the credit card debt, the payments for a car worth less than owed. Eliminate the mortgage on the house that is too big and expensive.
When people start over after a Chapter 7 bankruptcy, they can control their budgets and not get behind in debt. And when people no longer owe money to so many creditors, they become a better credit risk. Rebuilding credit after a bankruptcy takes some time but is easier than people think.
Chapter 13 bankruptcy may be attractive to unpaid workers who expect to receive their back pay but who need temporary protection from collections and foreclosures. When you file for a Chapter 13 bankruptcy you can “cure” your mortgage default by making up past payments over months.
A Chapter 13 “reorganization” bankruptcy can last three to five years, giving the unpaid employee time to catch up on debts when the paychecks stopped coming for whatever reason.
One misconception about Chapter 13 is that every dollar owed must be repaid. In fact, depending on a person’s financial calculations, they may only have to repay a percentage of the amount owed.
To save your home, car and other assets you don’t want liquidated, call Joseph Wrobel, Ltd. and learn where you stand and for which type of bankruptcy you qualify. Call day or night (312) 781-0996.
Joseph Wrobel Can Help if Bankruptcy Makes Sense and Will Help Unpaid Workers Get a Fresh Start
When you call Chicago bankruptcy lawyer Joseph Wrobel and make an appointment at one of the conveniently located offices around the Chicago area you are taking the next step in finding out if bankruptcy is the right thing to save you from money problems.
At your meeting with Joseph Wrobel when your financial information is processed, he will tell you about your options under the bankruptcy law. If you or a friend is an unpaid employee because of a shutdown, lack of business, layoff or any reason, contact online or call Joseph Wrobel, Ltd. today and get the information about bankruptcy for unpaid workers, to turn off the bill collectors and turn on your fresh financial start. The main Chicago office telephone number is (312) 781-0996.
If I took out a $4,000 loan today to help my son, can I file bankruptcy in three months?
Can I discharge my SSA over-payment with Chapter 7 bankruptcy? I have been told by an SSA representative that I can, but I was not sure.
Can a person withdraw from a bankruptcy, whether a Chapter 7 or Chapter 13?
My cell phone is disconnected, will a Chapter 7 or Chapter 13 bankruptcy help reinstate my account?
I am in a Chapter 13 bankruptcy; can I refinance my mortgage?
I live overseas and want to file Chapter 7 bankruptcy in Massachusetts.
I have already filed bankruptcy, it was discharged this June. Can I get a house on a land contract?
Can a person apply for a credit card now after 8-9 years after bankruptcy has passed?
If I sell my house will defaulted student loans take the money at closing?
If you are already working with a debt relief company are you able to decide to do bankruptcy instead?
Can I stop foreclosure on my mother’s home if it is in bankruptcy?
Joseph Wrobel has been a practicing attorney since 1973 and has experience in a wide variety of law relating to legal matters for individuals and families. Wrobel helps clients get out of debt and get a fresh start. He is an active member in several bar associations and the Bankruptcy Panel of Pro Bono Program of the Chicago Volunteer Legal Services. After serving the U.S. Army Reserve 363rd Civil Affairs Unit, Wrobel earned a B.A. in Psychology from Northwestern University and in 1973, he earned a JD from DePaul University Law School.
Joseph Wrobel Limited is a small law firm of attorneys and staff experienced in consumer bankruptcy. They are not a bankruptcy law factory and you will not get lost in their office. You will be treated as a human being with courtesy, dignity, and respect. The mission of Joseph Wrobel Limited is to have you take control over your finances through the proper use of the bankruptcy laws.
Joseph Wrobel, Ltd. has offices located in the Chicago-Loop, Chicago-Rosemont, and in the suburbs of Burr Ridge, Deerfield, Gurnee, Naperville, Orland Park, Schaumburg, Skokie, St. Charles and Westchester. They can represent Illinois clients in Cook County, Will County, DuPage County, Kane County, LaSalle County, Kendall County and Lake County.
Whether to File Bankruptcy After Divorce: Consider These Scenarios
Divorce is difficult enough without also worrying about finances after the divorce and whether filing for bankruptcy after divorce makes sense and will help you out. In some situations, the spouse ordered to pay the other doesn’t hold up their end of the bargain in the settlement or divorce decree. You can go back to court and try to order the deadbeat spouse to pay what they were ordered but that doesn’t stop the creditors who want their money. When you cannot pay them, you may wonder if a Chapter 7 or Chapter 13 bankruptcy will save you.
The creditor knows one thing, it wants to be paid. The creditor could care less whether you have a court order that says your spouse is ordered to pay the credit card, when you are liable for the debt and it remains unpaid you risk damage to your credit, collection efforts, lawsuits and wage garnishments.
Few people will criticize you for filing bankruptcy after a messy divorce where you and the former love of your life are left to fight over debt. In some cases, the former spouse just wants to punish you by not coughing up the money they owe you to pay off debts.
A Personal Bankruptcy Only Affects Your Credit, Not Your Spouse
Bankruptcy laws are there to protect you when you cannot afford to pay debts. Chapter 7 is the typical full discharge we think of and Chapter 13 is a reorganization bankruptcy where you repay a portion of your debts over a three to five-year period. While you and your spouse may be jointly liable on a debt, you both have independent personal credit ratings and those scores are totally separate.
When you are looking for bankruptcy answers and call Joseph Wrobel’s Chicago Bankruptcy Firm, he will find out whether you and your former spouse are both liable on certain debts. Mr. Wrobel can tell you what happens when one spouse files bankruptcy and the other has not and is still liable for the debt.
Is the debt discharged if two people are listed? Or, simply, is the obligation for one party to pay the debt discharged and the other is on the hook? What happens if the debtor comes after the other party to pay the debt when it was ordered to be paid by the other by the divorce court? Call Joseph Wrobel, Ltd. in Chicago if this is your problem. (312) 781-0996.
You and Your Former Spouse Accumulated Debt During Marriage
When you were married, you and your spouse worked hard and spent money keeping up with your friends and neighbors. As you approached your divorce your divorce lawyer asked you to complete paperwork listing all your assets and debts. Shocked, you realize how much your debts outweighed assets. Yes, your marital home was beautiful, but everything was financed.
Most couples approaching divorce are dividing debt at the end of the marriage. Houses are mortgaged with second mortgages and lines of credit. Credit cards are carrying transferred balances from other high interest cards. Vehicles are financed or leased. In many divorces, the only assets available are vested funds in retirement accounts.
The High-Income Earner Paying for Two Residences and Child Support
Divorce is very expensive, especially for the spouse making more money. The higher income earner may be ordered to pay alimony. When there are minor children, there is also an obligation to pay child support. Even a professional earning significant income feels the immediate reduction in their income needed to pay bills and live from day to day.
Many people simply run out of monthly income when paying alimony, child support and other debts ordered to be paid by the court. Is it a surprise some people simply stop paying? No.
You Are the Higher Wage Earner and Want to File Bankruptcy After Divorce
With a few options on the table you owe lots of money and have some decisions to make. In most cases any child support obligation will be automatically withheld from your paycheck. With what is left you simply cannot make it. Maybe you want to file bankruptcy to eliminate the credit card debt you were ordered to pay. Maybe you realize you can no longer afford the mortgage on the expensive house or financed luxury vehicle. It is time to downsize.
Before you take advantage of the bankruptcy laws consider your obligations to your former spouse and children and ask Joseph Wrobel about your obligations in the family court. He can talk to your divorce lawyer and help you make the best financial decision that gives you a break without hurting your former spouse and your children.
You Are the Dependent Lower or No Wage Earner and Need to File Bankruptcy After Divorce
If your former spouse and co-parent identified in the paragraph above did not heed our advice not to hurt you or the children by leaving you high and dry, you can get the help you need with the bankruptcy laws. Depending on your settlement agreement and divorce decree you might need to consider whether to include certain debts to be discharged in your bankruptcy. Like your former spouse would, you too should ask Joseph Wrobel to help figure out what to do with post-decree divorce financial obligations.
When you do file for a Chapter 7 or Chapter 13 bankruptcy, your phone should stop ringing as debt collectors are prevented from collecting or contacting you during bankruptcy. The “Automatic Stay” provision also stops a Wage Garnishment. Helping you keep money in your pocket during the bankruptcy is what we do for you at Joseph Wrobel, Ltd.
Your Spouse Files Bankruptcy After Divorce, How Does Joint Debt Impact You?
Joint debt means joint responsibility. If you and your former spouse are both named on a financial account, then you both are jointly responsible, regardless of what it says in the divorce decree. If your ex-spouse is ordered to pay and they stop paying, the obligation becomes yours, 100 percent.
With so much uncertainty about Filing for Bankruptcy After Divorce, talking to both your divorce lawyer and a bankruptcy lawyer such as Joseph Wrobel is necessary, so you don’t worsen your financial position and future if things do not go as planned after the divorce.
Call Joseph Wrobel, Ltd. in Chicago today at (312) 781-0996 and learn your rights and options under the law if you are considering filing for bankruptcy after divorce.
Are you tired of being harassed by collectors and worrying about your financial future? Joseph Wrobel is someone you should listen to when he talks about bankruptcy and financial freedom. (312) 781-0996.
This is the October 2018 Chicago Bankruptcy and Financial Freedom Podcast! Joseph Wrobel is the principal attorney at Joseph Wrobel, Ltd., with office locations all over the Chicagoland area.
On this bankruptcy and financial freedom podcast, Mr. Wrobel answers real questions that real people just like you are wondering about bankruptcy and what happens in certain situations where people are concerned about keeping their home, car and stopping collection activities and wage garnishments.
Want to stop the collectors dead in their tracks with the Automatic Stay provision while you pay back a portion of your debts over three to five years with Chapter 13? Listen and learn.
Some of the questions covered in this month’s bankruptcy and financial freedom podcast include: (1) If I file for bankruptcy, will the funds levied in my bank account be released? (2) Will my roommates’ items be liquidated if I file for bankruptcy? (3) How can I retrieve my forfeited house, after a property tax foreclosure? (4) How long does a bank have to pick up a vehicle if I stop making payments? (5) Can a bank short sell a house after the owner declares bankruptcy? (6) Can a bank refuse to sign a release of lien, demanding payment in full? and (7) Can I eliminate income tax debt in a Chapter 7 bankruptcy?
Joseph Wrobel is an experienced consumer bankruptcy attorney with over 40 years’ experience. When you call his office, he will help analyze your financial information and let you know whether you qualify for Chapter 7 or Chapter 13 bankruptcy relief, so you can get a fresh start.
Remember, what is most important is what you do after a bankruptcy filing. Most people have great credit and can easily buy homes and cars sooner than they realize after getting rid of their bad debt.
Thank you for listening to the Bankruptcy and Financial Freedom Podcast for October 2018.