Tag Archives: Joseph Wrobel

Chicago Bankruptcy Podcast with Joseph Wrobel: January 2018

Chicago Bankruptcy Podcast with Joseph Wrobel: January 2018

Chicago bankruptcy and consumer credit attorney Joseph Wrobel answers real people’s questions about their financial situations and what options they might have to fix their financial problems.

Click/tap here to listen to the podcast

Sample questions answered in this 30-minute show:

  • Can I still file for bankruptcy after a foreclosure sale?
  • A wrong employer was listed on my Wage Garnishment Notice;
  • What other than my wages can be garnished?
  • Will filing for bankruptcy prevent my license from being suspended?
  • I am on social security disability; can creditors sue or garnish me?
  • Can I be sued if I can no longer afford my mortgage? Can I claim bankruptcy?
  • Are reaffirmations only used in bankruptcy? Can they be requested on new loans?
Bankruptcy Attorney Joseph Wrobel, Chicago Bankruptcy Podcast, wage garnishment, bankruptcy, foreclosure sale, wage garnishment notice, can creditors sue, can no longer afford my mortgage, reaffirmations, Joseph Wrobel, Chicago Bankruptcy, Consumer Credit,
Bankruptcy Attorney Joseph Wrobel

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.

About Joseph Wrobel, Ltd:

Keep up with us on Facebook, Twitter, LinkedIn and Avvo, where you can read client and peer reviews!  Visit our Chicago Bankruptcy website online for more about the firm or call for more information at (312) 781-0996 or e-mail at JosephWrobel@ChicagoBankruptcy.com.

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.

Chicago Bankruptcy Q&A Podcast with Joseph Wrobel: November 2017

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.

Chicago bankruptcy
Helping people get out of debt with dignity and respect for over 40 years.

Sample questions answered in this 30-minute show: Use this link to listen anytime.

  • What happens when a corporation I sued filed for Chapter 7 bankruptcy?
  • Do I have to include my paid for automobile in my Chapter 7 bankruptcy?
  • What happens when my car loan co-signor files for bankruptcy?
  • What happens if a bankruptcy lawyer does not file my bankruptcy petition?
  • I missed my date to file a bankruptcy claim, what happens to my rights?
  • In bankruptcy can I pay for the value of my car instead of what I actually owe?
  • How will my ex-husband’s bankruptcy affect my home if he’s on the mortgage?
  • Can a family member loan me money for a down payment if I am in Chapter 13?

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.

Don’t forget to keep up with us on Facebook, Twitter, LinkedIn and Avvo, where you can read client and peer reviews!

Visit our Chicago Bankruptcy website online for more about the firm or call for more information at (312) 781-0996 or e-mail at JosephWrobel@ChicagoBankruptcy.com.

July 2017 Chicago Bankruptcy Question and Answer Podcast with Joseph Wrobel

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 this podcast interview anytime.

Sample questions answered in this 30-minute show:

  • Can you, and when should you include a title loan in your bankruptcy filing?
  • If you owe money to a business that files bankruptcy, do you still need to pay?
  • When you need to file bankruptcy and get a new car, what is the best plan?
  • What does someone need to do to prepare for a bankruptcy case?
  • Are Social Security and pensions safe from creditors when you file for 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.

Don’t forget to keep up with us on Facebook, Twitter, LinkedIn and Avvo, where you can read client and peer reviews!

Visit our Chicago Bankruptcy website online for more about the firm or call for more information at (312) 781-0996 or e-mail at JosephWrobel@ChicagoBankruptcy.com.

New Credit Reporting Rules: Many may find relief from reports of tax liens and civil judgments

New rules provide credit score relief for some people who have tax liens and civil money judgments against them. Errors on consumer credit reports have been a problem for a long time and many people have incorrect information on their credit reports. New credit reporting rules take effect July 1 and change the way Trans Union, Experian and Equifax verify data regarding the reporting of tax liens and civil judgments. Now, the three credit reporting agencies must verify the individual’s name, address and either social security number or date of birth. Since so many companies omit social security numbers for privacy concerns, there may be a large group of people who will no longer have tax liens and civil judgements appearing on their credit reports. This should also help prevent future instances of information appearing on the wrong person’s credit report.

The purpose of credit reporting and monitoring

From applying for a cell phone account or utility to buying a car or home, our credit rating is used to determine where we stand on the scale of credit risk. With great credit, we present a low risk of not making our payments in full and on time. The volume of credit data and computer systems processing and sharing information open the door to error. If we do not check our credit scores frequently, someone else’s negative information could prevent you from being accepted for a mortgage loan or a new credit card. Imagine finding out your credit score was damaged by another person’s tax lien or the civil judgement entered against them.

How errors happen and how prevalent they may be

With tax liens alone, some estimates suggest that half of the tax lien information reported to the credit bureaus has ended up appearing on the wrong person’s credit report. When social security numbers are available to the individuals reporting tax liens, one missed number could cause the wrong person to receive a negative mark on their credit report.

Even if someone checks their credit frequently, or pays a few bucks every month for a credit monitoring service, the effort it can take to correct the mistake can be staggering.

How the new rules apply to tax liens and civil judgments

The rule change for reporting information to the credit bureaus about tax liens and civil judgements will require the verification of three pieces of vital information, the individual’s name, address, and either their social security number or date of birth.

By requiring three sets of identifying criteria be matched before receiving credit reporting data about tax liens and civil judgments, the likelihood of mismatches is significantly reduced.

The new rules take effect July 1. This article in USA Today has more information about the new rules and how they might apply to you.

About us: Joseph Wrobel, Ltd., works with clients to find out if they qualify for Chapter 7 or 13 bankruptcy, and their options and rights under the law. The firm will also advise and assist clients with questions and concerns about the collectors and their rights to pursue you.

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.

Don’t forget to keep up with us on Facebook, Twitter, LinkedIn and Avvo, where you can read client and peer reviews!

 

Mortgage loan options after bankruptcy

There are several types of mortgages available in to home buyers after a bankruptcy discharge. After a bankruptcy discharge under Chapter 7 or Chapter 13 you may be able to qualify for a mortgage sooner than you think. When your debt to income ratio is better after discharging some or all debts, you may be a better lending risk when you have more disposable income to save money and pay bills. After your bankruptcy discharge you have some time to work on re-establishing your credit and saving money for down payments and closing costs. When you are ready to start shopping for a mortgage there are several options to consider depending on your personal situation and home ownership goals.

How long will I have to wait?

There are two types of bankruptcy, Chapter 7 (full discharge) and Chapter 13 (partial discharge and reorganization). Many people with Chapter 13 bankruptcies are approved for government-backed mortgages after one year or they could be approved for a conventional mortgage loan after two years. The Chapter 7 bankruptcy filers may have to wait three or four years after their discharge to be approved for a new mortgage.

Some people chose to take at least two years or more to rebuild their credit using secured credit cards and small loans, while also saving cash for the expenses involved in putting money down and closing on a new home. The longer you wait, the better interest rate you may get. This is not always true however because interest rates fluctuate.

Conventional and government-insured loans

The difference between conventional loans and those insured by the U.S. Government is the financial guarantee for the lender, in case the individual fails to pay the mortgage. Conventional loans are not guaranteed by the federal government, and because they are not secured, the buyer must have better finances.

The common government-insured mortgage loans are the FHA loans, VA loans and USDA loans:

  • FHA loans backed by the Federal Housing Administration allow participants to make down payments as low as 3.5%. Purchasers will be required to pay for mortgage insurance which increases monthly payments;
  • VA loans secured by the U.S. Department of Veterans Affairs help military service members and their families buy homes with 100% financing meaning the purchaser only needs to pay the closing costs.
  • USDA loans are insured by the U.S. Department of Agriculture and benefit rural buyers who satisfy income requirements including a steady middle class income who otherwise may not qualify for conventional loans.

Adjustable vs fixed-rate mortgages

If you are approved for a fixed-rate mortgage when interest rates are low you will be locked in at that low mortgage rate for the entire term of the loan and your monthly payment will not change. The other type of loan is an adjustable-rate mortgage loan (ARMs) which have interest rates that change from time to time based on interest rates. Some ARMs provide fixed rates for several years after which time the rate is subject to adjustment based on the rates at the future date. If interest rates are high on mortgages when you are applying, you might want an ARM so that you can try to lock in a better rate when the rates go down. You always have the opportunity to refinance your loan and select a fixed-rate mortgage after having an ARM for some time.

For more information about applying for mortgages after a bankruptcy, please call Joseph Wrobel, Ltd.

About us: Joseph Wrobel, Ltd., works with clients to find out if they qualify for Chapter 7 or 13 bankruptcy, and their options and rights under the law. The firm will also advise and assist clients with questions and concerns about the collectors and their rights to pursue you.

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.

Don’t forget to keep up with us on Facebook, Twitter, LinkedIn and Avvo, where you can read client and peer reviews!

 

May 2017 Chicago Bankruptcy Question and Answer Podcast with Joseph Wrobel

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 this podcast interview anytime.

Sample questions answered in this 30-minute show:

  • Can the Chapter 7 Bankruptcy Trustee take my IRS refund?
  • Will a prior credit counseling certificate work for my new bankruptcy?
  • How long can a creditor in Illinois file a lawsuit against you?
  • Am I responsible for my wife’s credit card debt?
  • Is it possible to vacate a dismissed 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.

Don’t forget to keep up with us on Facebook, Twitter, LinkedIn and Avvo, where you can read client and peer reviews!

Visit our Chicago Bankruptcy website online for more about the firm or call for more information at (312) 781-0996 or e-mail at JosephWrobel@ChicagoBankruptcy.com.

Are short sales worth the risks and is bankruptcy a better option?

 

When bad things happen to good people homes may fall into foreclosure. In too many cases, houses are not worth what the owner owes on the mortgage. This is common with people who bought their homes before the recession when prices were high. If the lender forecloses on the house it will be sold to the highest auction bidder. If the house sells for less than is owed, there may be an opportunity for the lender to sue and collect the deficiency judgment, or balance due after foreclosure. If the market is flooded with foreclosure homes, they could be sold off for significantly less than they would be worth in a healthier economy and real estate market. As foreclosure sales created more financial damage to many, the alternative method of short sales became more popular, giving homeowners an easier way out of their mortgages.

While short sales allow is a sale of your home to a new homebuyer for less money than you owe on your mortgage. If the lender bank agrees to a short sale deal, you may sell the house and be released from the mortgage lien and may go on your way to rent or purchase a more affordable home. While this sounds like a dream come true, there may be a few catches.

Here is a short list of considerations when you have the option to short sell your home:

  1. The lender bank and decision maker on your mortgage has no duty to accept a short sale deal. When you owe the money, you owe the money, plain and simple. The bank may be motivated to do a short sale if the market is flooded with upside down deals and the home is likely to sell under value at auction. Instead of fighting to then also collect the deficiency judgment against you, a lender may be more likely to work with you on a short sale deal, to get the house sold for fair market value.
  2. Even if the bank allows the short sale deal, they may not operate at the speed of business and it may be easier to lose buyers who cannot wait for a slow-moving lender bank. If the lender has a large volume of short sale deals, it may be even more difficult to get things done in a timely manner. Losing buyers and increased aggravation are possible in many short sale deals.
  3. Deficiencies are also possible with short sale deals. Even if you get more money for your house in a short sale, the amount you owe may still leave you short. It is a good idea to have a financial advisor assist you with your options to see what makes the most sense. If the short sale is still going to leave you high and dry, it may be better to proceed with a simpler foreclosure.

Short sales are long and complicated. There are more people involved in the transaction, more tax implications, more chances for something to go wrong. The more complicated the process, the easier it is for people to get frustrated and walk away from a deal.

Why would bankruptcy be a better option?

Depending on a review of your financial situation, a Chapter 7 or Chapter 13 bankruptcy may help you keep your home and avoid foreclosure. If you know you are badly upside down on your home and want to get out of your mortgage regardless, a bankruptcy can help you wipe out the amount of the deficiency judgment and give you a fresh start.

Depending on what you owe, how much you own and your income, a Chapter 7 full discharge will stop your bill collectors and wipe out all your dischargeable debts. If you do not qualify for a Chapter 7, a Chapter 13 reorganization bankruptcy will allow you to pay back a fraction of your debts over a three to five-year period, which may help you stay in your home and avoid making the foreclosure versus short sale decision.

About us: Joseph Wrobel, Ltd., works with clients to find out if they qualify for Chapter 7 or 13 bankruptcy, and their options and rights under the law. The firm will also advise and assist clients with questions and concerns about the collectors and their rights to pursue you.

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.

Don’t forget to keep up with us on Facebook, Twitter, LinkedIn and Avvo, where you can read client and peer reviews!

 

How well do you know reverse mortgages?

By now, anyone who watches TV has likely seen advertisements for reverse mortgages. Targeted towards senior citizens who own their homes free and clear. Ads highlight that the Federal Housing Authority (FHA) insures over 98 percent of all the reverse mortgages in United States. A reverse mortgage loan allows a home owner, at least 62 years of age, to convert the equity in their home into cash. Some people take monthly payments, lines of credit as well as lump sums of cash as needed. The loan against the equity in the home is secured by the home itself.

When the owner passes away the loan becomes due in full and is often taken from the proceeds of the sale of the home. In other cases, a life insurance policy may be used to repay the loan if home and other property is given to others in a will. The lenders offering reverse mortgages charge fees and surcharges along the way. These fees and the terms of the loan are a function of the life expectancy of the home owner, the value of the home and other factors.

Doing your research is important. The more you can learn about the pros and cons of reverse mortgages, the better decisions you and your family can make.

As the reverse mortgage ads suggest, the children of aging parents can be involved in the process of researching reverse mortgage loans and the lenders. Even if your parents are well-able to manage their financial affairs, it is always helpful to get another opinion, especially when there are so many new financial opportunities for seniors budgeting for and funding their retirement years. While researching, pay attention to credible alerts and warnings published online. Be careful because in the sea of information there is plenty of what looks like news but is really advertising telling you that reverse mortgages are risk free and there is never a need to look any further.

The loans are only as good as the lenders. Homeowners considering reverse mortgages should be notified by their lender that while the reverse mortgage is in place, the homeowner must still pay taxes and insurance on the property and that is not something covered by the lender. Lenders may also charge high fees on loans and get away with it when working with seniors who may have less bargaining power in negotiating the terms of the loan. It is important to know what financial terms are reasonable in the current time and market. Knowing what the competition is offering makes it easier to negotiate a fair reverse mortgage loan.

Beware of what you are risking with reverse mortgage loans and be vigilant. If you must, hire a professional to help you negotiate a better deal and avoid the awful stories told by several loan victims.

Read these stories at Center for American Progress: Treasury Secretary Nominee Steve Mnuchin’s Bet Against Seniors:

  • Only press coverage stopped the eviction of a 103-year-old grandmother on a technicality
  • 92-year-old widow evicted for 27-cent shortfall
  • Foreclosure actions that defy common sense

At Joseph Wrobel, Ltd., we help get our clients a fresh start at financial success. We feel strongly that everyone should be financially successful when they have the right tools and knowledge to make the best deals that protect their savings and help grow for the future.

About us: Joseph Wrobel, Ltd., works with clients to find out if they qualify for Chapter 7 or 13 bankruptcy, and their options and rights under the law. The firm will also advise and assist clients with questions and concerns about the collectors and their rights to pursue you.

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.

Don’t forget to keep up with us on Facebook, Twitter, LinkedIn and Avvo, where you can read client and peer reviews!

 

Can my college transcripts really be withheld if I owe the school money?

At various times in life we may be asked to produce our college transcripts for a new job or an application to a program or further education. This issue arose in a question covered in the Chicago Bankruptcy Update podcast series where real questions are asked and answered by Chicago bankruptcy attorney, Joseph Wrobel. The individual seeking guidance needed a copy of their college transcript and the school refused their request, stating that an outstanding amount of $3,000 was still owing for tuition.

In this case the individual seeking their college transcripts filed a Chapter 7 bankruptcy and received a discharge. The short answer to the question as to whether the school may withhold the transcripts is a function of the automatic stay provision in the Bankruptcy Code.

When you file for bankruptcy, the automatic stay provisions protect you from collection activity.

The automatic stay takes effect when the petition for bankruptcy is filed with the bankruptcy court. The automatic stay provision prohibits creditors from engaging in collection activity while a bankruptcy case is active and until the case is over. While Chapter 7 discharge cases can be completed in a matter of months, a Chapter 13 reorganization case, involving payments to the trustee to catch up on debts, can be structured with three to five years of scheduled payments, thus the automatic stay is effective for a longer period of time.

The school’s refusal to tender the college transcripts is a collection activity. If the student does not pay the outstanding tuition, the school may refuse to offer the transcript. If, however, the request for the transcripts is made during a period when the automatic stay is active, the school is prohibited from collection activities and would be required to turn over the transcript.

You may be able to obtain a discharge of your duty to pay a debt, but the creditor may still want payment and in this case, can continue withholding the transcript, even after bankruptcy.

As soon as the bankruptcy case were to end and the automatic stay naturally terminates, the school could resume the position that they will not tender the transcripts until payment is made. Understand that the bankruptcy discharge may have the effect of terminating the school’s legal right to collect the debt, the debt still exists insofar as the school may still want the debt repaid before they tender the transcript.

A word to the wise: it is a good idea to keep copies of academic transcripts just in case a situation like this were to happen to you. While most people never plan to file for bankruptcy protection, financial emergencies and other bad things can happen to good people.

Joseph Wrobel, Ltd., works with clients to find out if they qualify for Chapter 7 or 13 bankruptcy, and their options and rights under the law. The firm will also advise and assist clients with questions and concerns about the collectors and their rights to pursue you.

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.

Don’t forget to keep up with us on Facebook, Twitter, LinkedIn and Avvo, where you can read client and peer reviews!