Tag Archives: automatic stay

Homeowners keep their home using Chapter 7 or Chapter 13 bankruptcy laws

Falling behind on mortgage payments can lead to foreclosure. When a homeowner is unable to delay the foreclosure through attempts at refinancing or otherwise negotiating additional time to get caught up, such as a forbearance, short sale, or deed in lieu of foreclosure, the mortgage lender will likely begin the legal process to foreclose and sell the home at auction to receive payment towards the loan. If a foreclosed home sells at auction for less than the amount owed, the lender will likely obtain a deficiency judgment and attempt to collect amount from the homeowner as well. Homeowners fall behind on mortgage payments for many reasons, and the bankruptcy laws help the homeowner save their home from foreclosure sale.

Filing a bankruptcy triggers the automatic stay provision, stopping a foreclosure and sale of the home.

Depending on the homeowner’s income and complete financial situation, they may qualify for a Chapter 7 bankruptcy, a full discharge, or a Chapter 13 bankruptcy, to reorganize and catch up on payments, sometimes a partial amount of the debt amount. When the homeowner files a petition for bankruptcy, the “automatic stay” provision of the bankruptcy code stops the foreclosure proceedings. The court automatically issues an order for relief including the automatic stay. If there is a scheduled foreclosure sale, the bankruptcy postpones the date of sale during the bankruptcy.

Chapter 7 and Chapter 13 bankruptcy both offer options for homeowners who want to keep their home.

If homeowners qualify for a Chapter 7 bankruptcy, based on their income and financial status, the bankruptcy and automatic stay will stop the collection of other debt collectors, which can free up more money to catch up on bankruptcy payments. The state exemptions for equity in the home may allow a homeowner to keep the home and the mortgage if there is not too much equity in the home and the payments are brought current. If however, the payments are not brought current, as soon as the bankruptcy terminates, so does the automatic stay, and a lender may proceed with foreclosure on a delinquent mortgage. If however, either the homeowner does not qualify for Chapter 7 or they need more time to catch up on mortgage payments, a Chapter 13 bankruptcy can be a better choice.

A Chapter 13 notice also stops a foreclosure sale and the lender’s collection actions. Chapter 13 allows a homeowner to “cure” a mortgage default by making up the past due payments, spread over several months of the Chapter 13 repayment plan. Many bankruptcy payment plans last between three and up to five years, which allows the homeowner a long period to cure the mortgage default and catch up on the late payments. It is assumed that the homeowner is making the regular monthly mortgage payment during the repayment plan. When other debt collection is stopped by the automatic stay, the homeowner should have more money available to pay the current mortgage and a portion of the past due amount over the period of the repayment plan.

Bankruptcy can eliminate a homeowner’s liability to pay mortgage deficiencies.

If the lender forecloses on a home when the mortgage is default, the court can order the sale of the home. If the homeowner owes more than the proceeds of the sale of the home at auction, the homeowner is responsible for paying the shortfall; however, the bankruptcy laws allow homeowners to eliminate the mortgage deficiency. Both Chapter 7 and Chapter 13 bankruptcies can eliminate liability for a deficiency judgment. The bankruptcy laws are certainly beneficial to homeowners who fall behind on their mortgage and depending on the individual homeowner’s financial situation, a home can be saved. The attorneys at Joseph Wrobel, Ltd. are experienced in all the complex provisions of the bankruptcy code and they can help homeowners get a fresh start, in their home, and with more money to keep current with monthly bills.

Joseph Wrobel, Ltd. helps people get control of their finances and a fresh start at financial freedom. The firm’s website contains informative videos about financial issues as well as bankruptcy protection for families who want a fresh start. To keep in touch and read about consumer finance news and stories you can “Like” the firm’s Facebook page and “Follow” Joseph Wrobel. Ltd. on Twitter. If you need immediate legal assistance, please call Joseph Wrobel, Ltd. by calling (312) 781-0996 to talk to an attorney today.

 

 

Qualifying for bankruptcy in Illinois: The means test

Many Chicago area residents and individuals all around the State of Illinois take advantage of state and federal bankruptcy laws for a variety of reasons. A sudden illness or traffic collision can lead to job loss, financial instability and a stack of unpaid bills. For whatever reason, when someone wants to file a bankruptcy petition, they must first qualify for relief by passing the Illinois means test. Generally, the means test is a calculation of finances and numbers used to determine if an individual legitimately needs bankruptcy protection and is financially burdened without bankruptcy relief.

If the means test indicates you make too much money to qualify for Chapter 7, you may still be able to eliminate a portion of debt through Chapter 13 bankruptcy reorganization.

Chapter 13 bankruptcy may be a good option for you if you make too much money to qualify for a full discharge under Chapter 7. It is referred to as “reorganization” when you file for bankruptcy under Chapter 13. The bankruptcy trustee will review your means test results, income, and assets to determine how much of your outstanding debt may be discharged, and how much you will agree to retain. The amount you will still be responsible for is paid back through monthly payments to the trustee. Chapter 13 bankruptcy can last for more than a year and at the point you are caught up with your past-due obligations, your case is settled, the bankruptcy proceedings terminate, and you go on with your life.

Regardless whether you proceed in bankruptcy in Chapter 7 or 13, the Automatic Stay provision is still effective to stop creditors from any collection activity while you are in bankruptcy. To learn more, see our article: THE AUTOMATIC STAY: IT STOPS BILL COLLECTORS IN THEIR TRACKS.

Your monthly household income is measured to determine if you are allowed a presumption that you pass the means test and can proceed with a Chapter 7 discharge. There is an Illinois median income for households, based on the number of people in your household. For example, if you are a 1 member household, the median annual income is $48,239 and if you make less, you qualify. Now, if you have a household of 4 members, the median annual income test is $84,901.[i]

The calculations come into play if your household makes more than the Illinois median income test.

It is important to consult and experienced bankruptcy attorney if you plan to proceed with bankruptcy. Many Illinois families include several children who do not contribute income to the family and the median test for a family of 4 as seen above is close to twice that of a single person. What the bankruptcy attorney can do next is calculate income and expenses to determine if the individual can pass the means test for bankruptcy, whether they have the means to pay their debts, or qualify for a Chapter 7 discharge.

To pass the means test to qualify for Chapter 7 bankruptcy, you can ask one of the attorneys at Joseph Wrobel, Ltd., to review your financials and suggest whether you can obtain bankruptcy protection and wipe your debts out or apply for Chapter 13 and discharge some and get caught up on the rest, on a reasonable payment schedule you can afford.

Joseph Wrobel, Ltd. helps people get control of their finances and a fresh start at financial freedom. The firm’s website contains informative videos about financial issues as well as bankruptcy protection for families who want a fresh start. To keep in touch and read about consumer finance news and stories you can “Like” the firm’s Facebook page and “Follow” Joseph Wrobel. Ltd. on Twitter. If you need immediate legal assistance, please call Joseph Wrobel, Ltd. by calling (312) 781-0996 to talk to an attorney today.

 

[i] LegalConsumer, Illinois Median Income Test, Jul. 17, 2015

Bankruptcy Basics: Danger in Attempting Bankruptcy Without a Lawyer

Chicago bankruptcy and consumer credit attorney Joseph Wrobel shares news and updates in bankruptcy law as well as business and consumer financial matters. It has been documented that financial troubles can cause all sorts of ailments, the most common of which is sleeplessness. Joseph Wrobel helps clients alleviate their anxiety created by the inability to pay bills and the embarrassment of financial distress.

CLICK/TAP HERE TO LISTEN NOW

Topics covered in this 30 minute show:

  • What happens when people try to pursue a bankruptcy case (pro-se) without a lawyer;
  • Why the bankruptcy courts treat everyone with the assumption they know the laws;
  • There is no “do-over” or reset button on final decisions by bankruptcy courts;
  • How a bankruptcy attorney can help repair some but not all of the damage.

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. 

Visit our Chicago Bankruptcy Site online for more about the firm. You may also contact Joseph Wrobel for more information at (312) 781-0996 and by e-mail at JosephWrobel@ChicagoBankruptcy.com

Bankruptcy Basics: May 2015 Bankruptcy FAQs

Chicago bankruptcy and consumer credit attorney Joseph Wrobel shares news and updates in bankruptcy law as well as business and consumer financial matters. It has been documented that financial troubles can cause all sorts of ailments, the most common of which is sleeplessness. Joseph Wrobel helps clients alleviate their anxiety created by the inability to pay bills and the embarrassment of financial distress.

Click/tap here to listen to the podcast now.

Topics covered in this 30 minute show:

  • If I get sued and lose at trial and my creditor gets a judgment can I still file bankruptcy?
  • I am trying to do bankruptcy without a lawyer, do I have to include empty accounts?
  • Is a surviving spouse responsible for the credit card debt of their deceased spouse?
  • If I filed for bankruptcy in 2012. I’m behind again on bills, when can I file again?

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.

For more about the firm. You may also contact Joseph Wrobel for more information at (312) 781-0996.

Debt collection: What happens when an old judgment is revived?

When a creditor sues you and obtains a money judgment, it is up to that creditor to collect on that judgment using the procedures available to them through the courts. Sometimes judgments are not collected and there might not be any collection activity for a period of years. There is a statute of limitations period in which time a creditor must collect on the judgment or else the right to collect goes away. If, however, the creditor files a petition with the court to renew the judgment, it can be enforceable against the debtor for the next statutory period of time.

To the extent a judgment against you can be renewed over time, you may be asked to pay a money judgment from many years ago, at some point in the future. When creditors have money judgments they often sell or contract with a collection law firm or company to collect the amount due through use of the court’s authority to seize bank accounts, garnish wages, seize assets and otherwise compel the sale of property to satisfy the debt. Only an automatic stay through the bankruptcy laws can stop collection efforts.

If you get a notice or credible threat that your money, assets and property could be seized, a bankruptcy lawyer can help stop the collectors.

Filing a petition for bankruptcy relief creates a set of rights and duties among debtors and creditors. The automatic stay provision in the bankruptcy code prevents creditors from contacting you or engaging in debt collection activities while a bankruptcy case is pending and ongoing. If the holder of the money judgment continued threatening to or engaging in activity to seize your accounts or assets they would be in violation of the automatic stay provision, and in violation of federal bankruptcy law.

Click to learn more from Joseph Wrobel, Ltd. from the sample of “automatic stay” articles in the blog library.

There are other options you could take if you decide the debt owed in the judgment is not substantial and bankruptcy is not your current plan of action.

If the creditor trying to enforce an old judgment does not have “standing” which generally means, the legal right to sue and use the courts enforcement abilities, the old judgment might not be effective against you. In many cases debts are bought and sold like any other assets, and the person claiming you owe them money might not have the proof that they rightfully own the debt they say you owe them.  Making the debtors prove they are trying to collect on a valid judgment they have the right to enforce is an important part of a lawyers job, defending their clients against potentially bogus creditor claims.

Joseph Wrobel, Ltd. helps people get control of their finances and a fresh start at financial freedom. The firm’s website contains informative videos about financial issues as well as bankruptcy protection for families who want a fresh start. To keep in touch and read about consumer finance news and stories you can Like the firm’s Facebook page and Follow Joseph Wrobel. Ltd. on Twitter. If you need immediate legal assistance, please call Joseph Wrobel, Ltd. by calling (312) 781-0996 to talk to an attorney today.

The automatic stay: It has exceptions and there are ways you could lose its protection

In a previous article about the automatic stay provision of the bankruptcy code we lined up a few situations in which this section of the bankruptcy law stops bill collectors in their tracks. As a general rule, when a petition for bankruptcy relief is filed and accepted by the bankruptcy court, the automatic stay provision is effective and remains in place until the bankruptcy is over.

As a debtor, you do not have to do anything to use your automatic stay benefit. Rather, all your listed creditors should receive notice sent by your bankruptcy attorney informing them about the bankruptcy and the law prohibiting collection of debts while you are in a bankruptcy case. Having said so, it is important to note the scenarios in which actions and obligations cannot be avoided through a bankruptcy filing.

There are some legal actions not stopped by the automatic stay:

  • Tax proceedings are allowed to proceed despite the automatic stay provision in bankruptcy.
  • Pension loans are still collectable and are properly withheld from an individual’s paycheck to repay a loan from a qualified pension.
  • Divorce proceedings continue and are not stopped by a bankruptcy filing. The automatic stay does not affect child support and spousal maintenance cases, however the underlying factors leading to the bankruptcy might impact financial outcomes.
  • Child custody and visitation proceedings also continue in family court despite a bankruptcy case. Paternity of children can also be established with no concern for a bankruptcy matter.

It is possible to lose the protection of the automatic stay:

  • If you had an earlier pending bankruptcy case filed within one year of your current case, the judge might not allow your automatic stay protection to take effect, based on certain facts and circumstances.
  • If there are deadlines you must meet for addressing collateral property securing other debts, and you fail to comply, you might lose your automatic stay protection.

Eviction cases have special rules where the automatic stay will not matter:

  • Creating a dangerous situation or condition or using illegal substances in connection with a rental property can lead to eviction the automatic stay will not prevent.
  • Landlords obtaining judgments of possession before a tenant files for bankruptcy can still have tenants removed despite an automatic stay, in most cases subject to exception.

The bankruptcy code is full of general rules, exceptions and conditions in which exceptions might not apply. It is important to talk to an experienced bankruptcy attorney to find out how the automatic stay provision of the bankruptcy code can help you in your specific situation.

Joseph Wrobel, Ltd. helps people get control of their finances and a fresh start at financial freedom. The firm’s website contains informative videos about financial issues as well as bankruptcy protection for families who want a fresh start. To keep in touch and read about consumer finance news and stories you can Like the firm’s Facebook page and Follow Joseph Wrobel. Ltd. on Twitter. If you need immediate legal assistance, please call Joseph Wrobel, Ltd. by calling (312) 781-0996 to talk to an attorney today.

Bankruptcy Basics: February Bankruptcy FAQs Part 1 of 2

Chicago bankruptcy and consumer credit attorney Joseph Wrobel shares news and updates in bankruptcy law as well as business and consumer financial matters. It has been documented that financial troubles can cause all sorts of ailments, the most common of which is sleeplessness. Joseph Wrobel helps clients alleviate their anxiety created by the inability to pay bills and the embarrassment of financial distress.

LISTEN TO THE PODCAST NOW

Topics covered in this 30 minute show:

  • How much debt do I need to have to file for bankruptcy and what does it cost?
  • If I have a money judgment entered against me can it be removed in bankruptcy?
  • What happens to medical debts from one state in another if I file for bankruptcy?
  • How does bankruptcy affect my taxes, since I received a form 1099 from a collector?

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.

Visit our Chicago Bankruptcy Site online for more about the firm or contact Joseph Wrobel for more information at (312) 781-0996.

The automatic stay: It stops bill collectors in their tracks

Compared to many laws on the books in the U.S., the bankruptcy code sometimes seems like magic. For no other reason than you have a right to apply for it and a desire to wipe out debt, you can petition the bankruptcy court to either eliminate your debts and/or pay them back for pennies on the dollar. The moment you enter the magical world of bankruptcy it my feel like you have stepped into a protective bubble in which the torture of financial stress does not exist. The exterior lining of the bubble might be the automatic stay provision.

When a petition for bankruptcy relief is filed and accepted by the bankruptcy court, the automatic stay provision is effective and remains in place until the bankruptcy is over. As a debtor, you do not have to do anything to use your automatic stay benefit. Rather, all your listed creditors should receive notice sent by your bankruptcy attorney informing them about the bankruptcy and the law prohibiting collection of debts while you are in a bankruptcy case.

The automatic stay provision in the bankruptcy code has the following direct affects:

  • No wage garnishments are allowed. Some people have multiple wage garnishments and creditors in line to garnish wages. When wages are garnished to pay off judgments it can be tough to keep up with the current food, housing and utilities payments. When there is not enough cash flow to live and the situation is based on fixed income, bankruptcy and the automatic stay will allow you to take home your entire salary.
  • The government cannot claw back overpayments of benefits. Public benefit payments are usually recollected through deductions on future benefit checks and through billing the recipient. The automatic stay provision, however, only applies when you are still eligible to receive public benefits.
  • Evictions are stopped in most cases*[i]. If your landlord already has an order of possession to kick you out, the automatic stay is not going to help you. But if there has not been an eviction procedure yet filed, you might be able to use the automatic stay provision to stay in the home for a few days or weeks.
  • Foreclosure proceedings are stopped. Once your bankruptcy is over and the automatic stay is lifted a bank holding a delinquent mortgage over your head may still be able to continue foreclosure proceedings. Many people who want to keep their home use a Chapter 13 bankruptcy when they might not otherwise be able to stay in their home with a Chapter 7 bankruptcy.
  • Your utilities cannot be disconnected. This is not a permanent bar to disconnect, but the automatic stay will help you keep the phone, gas, water or electric on for at least 20 days.

These are a few of the ways you can take advantage of the bankruptcy code and the automatic stay provision to stop collectors and keep your salary while you go through the process of getting a fresh financial start.

There are several general rules and exceptions to them in bankruptcy. The difference between Chapter 7 and Chapter 13 is also significant and it is important to hire an experienced bankruptcy attorney when you want to make the best of your decision to file for bankruptcy.

Joseph Wrobel, Ltd. helps people get control of their finances and a fresh start at financial freedom. The firm’s website contains informative videos about financial issues as well as bankruptcy protection for families who want a fresh start. To keep in touch and read about consumer finance news and stories you can Like the firm’s Facebook page and Follow Joseph Wrobel. Ltd. on Twitter. If you need immediate legal assistance, please call Joseph Wrobel, Ltd. by calling (312) 781-0996 to talk to an attorney today.

[i] *While the automatic stay may be able to stall an eviction, there are certain situations in which you could still be removed from your home and a bankruptcy attorney can best explain what might happen to you based on the facts and circumstances involved.

Planning a bankruptcy in 2015? Time to get things in order.

Many people who make the decision to file a petition for bankruptcy have been thinking about it for a while. In most households, a series of life and financial events usually cause an inability to keep up with the payments on houses, cars, credit cards and so on. There are a few “last straws” that prompt people to file for bankruptcy. Wage garnishments and home foreclosures are common events that cause an individual person or married couple to declare bankruptcy in either a Chapter 7 discharge or a Chapter 13 reorganization bankruptcy.

  1. Measuring the credibility of collector threats;

Debt collectors have very convincing threats they can use to coerce you into making a payment on a debt you owe them, regardless whether you can afford to pay them. If paying a credit card, for example, means you will be without food or power, you might not be able to afford to pay them. If the amount you owe is not significant a collector might simply call you forever. They might also sue you. Remember that large credit card companies have collectors with attorneys on file it may cost them very little to get a money judgment against you. If there is a judgment against you, the creditor may get the court to seize cash in your bank account or force the sale of assets to pay the debt. A bankruptcy could stop that creditor in their tracks.

  1. Keep your cash account balances low if you are concerned with account seizures;

If you have money sitting in your checking account to pay large bills such as rent and mortgage payments, consider converting cash into money orders or otherwise safeguard it somewhere else than cash checking accounts. If your account is seized by the court in collection of a money judgment, you may have a very difficult time persuading your creditor or court to return your cash because you had it budgeted for car or housing payments.

  1. Negotiating payment plans to avoid bank account seizures;

Even though a creditor might obtain a money judgment against you for the full amount they are seeking, they might also accept monthly payments, and so long as they receive monthly payments they might refrain from seizing your cash accounts and assets.

  1. Creating all your list of debts and collectors;

Order a copy of your credit report using a website such as Credit Karma (they advertise no fee access to credit scores and reports) and compile a master list of everyone to whom you owe money. By reviewing all three credit reports (Equifax, Trans Union and Experian) you can make sure nothing slips between the cracks. A bankruptcy petition requires a complete listing of all creditors. It is a good idea to become familiar with how credit is reported so you can later watch over it and make sure there are no inaccuracies. Many people have some sort of incorrect information listed on their credit report(s).

  1. Meet with a bankruptcy attorney who can advise you about next steps;

In order to qualify for Chapter 7 or Chapter 13 bankruptcy it is recommended you work with a licensed bankruptcy attorney who understands how to navigate the complex system of bankruptcy qualifications such as the means test for Chapter 7. Your bankruptcy attorney can also tell you everything you need to do to prepare for your bankruptcy case. When you are looking for a bankruptcy attorney, look for an attorney or law firm primarily focused in bankruptcy law because that experience is helpful to making sure you get a fresh financial start with the best outcome from the bankruptcy case.

  1. Create a working budget during bankruptcy and stick to it after;

Many people say that the most important credit factor about bankruptcy is what you do to protect your credit after a bankruptcy. Since the automatic stay provision of your bankruptcy stops creditors from collecting from you during the case, you will be able to apportion monthly income to keep up with important payments and start saving money for the future. Setting and sticking to a strict budget will help in building discipline and living within your means so you can avoid financial problems in the future. Just as easily, as people fall into the habit of overspending, they can learn the habit of budgeted spending.

  1. Research how to challenge negative marks on credit reports.

A bankruptcy discharge may eliminate your duty to pay certain debts, but that does not automatically wipe those debts from your credit rating. Your credit score might still be low after your bankruptcy case, and it will be necessary to let the credit reporting agencies know that a debt is no longer owed and should be eliminated from the credit report. There are agencies who work with clients, for a reasonable fee, and help update the credit agencies to reflect the results of a bankruptcy discharge order.

Most of a bankruptcy client’s anxiety can occur in the time before a bankruptcy filing. Once the information is collected and the process is underway, the client can relax and prepare for financial success with a fresh start.

Joseph Wrobel, Ltd. helps people get control of their finances and a fresh start at financial freedom. The firm’s website contains informative videos about financial issues as well as bankruptcy protection for families who want a fresh start. To keep in touch and read about consumer finance news and stories you can Like the firm’s Facebook page and Follow Joseph Wrobel. Ltd. onTwitter. If you need immediate legal assistance, please call Joseph Wrobel, Ltd. by calling (312) 781-0996 to talk to an attorney today.

Mark’s story: He thought he would be ruined filing bankruptcy before 30 years old.

Mark’s story is one not too uncommon in our current economy, in which many people are still recovering from the great recession. Among the petitioners for bankruptcy relief, we are starting to see more recent college and graduate level young adults whose expectations did not pay off. While they can rarely, if ever, discharge their student debt, the credit cards and spending habits some kids develop can really hurt their future financial lives.

Live like a student while in school or live like a student after you graduate.

When Mark applied to law school, his student loan advisor gave him some good advice he regrets not taking. She told him to only take the maximum amount you need for tuition and books and consider working part time to pay for some of your rent and living expenses. Mark was not worried, he knew he would make plenty of money after law school and he was sure he would get a great associate position at the firm he was going to work at, seeing as one of the partners belonged to the same country club as Mark’s father.

Mark’s parents told him that they would pay for college but he was on his own for graduate school. Mark was used to a better standard of living, coming from a well to do suburb, and he took out the full amount available so he could maintain his standard of living and spending. With his good grades from college Mark was sure law school would be a piece of cake, since he was smart and things always came easy to him.

The best-laid plans often can and will fall apart and blow up in your face.

There were a few surprises in store for Mark as he got settled in law school and worked through first semester with his classmates, learning how to research and write, and some of the foundation of a legal education. When it came to final exams, Mark studied hard and also hung out with a few of his friends who got finance jobs after college and also lived in the city. Mark thought he did well on his final exams. As it turned out however, he finished his first semester with a 3.00 GPA, a far stretch from his 3.85 GPA he earned in college. Law school was a bit more competitive.

Moving forward a few years, Mark did not get the job he expected, but ended up with a lower paying law clerk job. He maxed out his student loans every semester to keep up with his friends with big salaries. He graduated from law school around the middle of his class. He passed the bar exam on his third attempt. He could not find a decent paying associate attorney job to save his life. His credit card bill debt was in the clouds, along with his car payment and the unsecured loans he borrowed after maxing out on his federal loan ceiling.

Bankruptcy helped Mark eliminate some of his unsecured debt to give him a better chance at having a normal financial life.

Mark’s father refused to bail him out and Mark could not even make his minimum payments. His father actually suggested he file for Chapter 7 bankruptcy and hope he learned his lesson. Mark even had trouble renting an apartment because his credit report was so bad. After his bankruptcy case was over and Mark learned how to spend in his actual income bracket things were smooth sailing again. One of the important things Mark did after the bankruptcy was work on rebuilding his credit using some time-tested strategies, and he was able to buy a new car, although at a higher interest rate. Mark plans on refinancing and is saving money for a down payment on a condo.

 Deciding whether bankruptcy protection may be the answer to your financial problems requires knowing the law and how it can help you.

 Mark’s story is one that many young and seasoned people have to tell these days. What is important to remember is that there is always light at the end of the tunnel and a fresh start really can put people back on track.

Joseph Wrobel, Ltd. helps people get control of their finances and a fresh start at financial freedom. The firm’s website contains informative videos about financial issues as well as bankruptcy protection for families who want a fresh start. To keep in touch and read about consumer finance news and stories you can Like the firm’s Facebook page and Follow Joseph Wrobel. Ltd. onTwitter. If you need immediate legal assistance, please call Joseph Wrobel, Ltd. by calling (312) 781-0996 to talk to an attorney today.