Tag Archives: Keep your home

Had Enough Debt? Bankruptcy Options: Chapter 7 & Chapter 13

When Good People Fall Behind We Have Bankruptcy Options: Chapter 7 & Chapter 13

Car accidents happen when we least expect it. Hospital bills continue coming in the mail and it seems you owe more and more people every day. When you cannot pay your bills, your credit can suffer. You may have to use Bankruptcy to wipe out that debt to restore your good credit rating. It can take some time but it’s worth it.

Most families rely on at least two income sources to pay the mortgage or rent, and bills every month. The true cost of living in Chicago is significant. How long could you continue without a paycheck for a month or more?

You try to work with creditors and they get even more aggressive. They are not as sympathetic to your tales of woe, they hear it day in and out.  More and more people use one of their bankruptcy options like Chapter 7 or Chapter 13 Bankruptcy.

The Stress of Paying Minimums and Barely Making It

The cost of living rising faster than wages makes it more difficult than ever to get ahead. Even with an adjusted expectation of the American dream, it seems impossible to save enough to get ahead. With added interest on unpaid debts, the balances due become ridiculous and people know they’ll never pay it off. Some ignore some bill collectors and eventually the calls stop. Then one day a new company picks up the debt and the phone with your number.

A Chapter 7 Bankruptcy Can Eliminate Your Debts. A discharge applies qualified debts that you can eliminate in full when you qualify. To qualify, you have to pass the Means Test. Joseph Wrobel, Limited can help explain it all.

Or Use Chapter 13 Bankruptcy to Keep Your Home, Car and Reorganize Portions of Debt. Chapter 13 is the “reorganization” bankruptcy option to repay a portion of your debts over a three to five year period.

Creditor and Bill Collectors Endless Harassing Behavior

Yes, there are debt collection laws governing collection activity for debts owed for credit accounts, utilities, loans, mortgages, rent, and other financial obligations. For example, a bill collector is not allowed to call you during certain hours. There are also opt-out provisions and written communications you can send directing how you may be contacted within your rights under the law.

Stop the bill collectors with the Automatic Stay. Bankruptcy options with Chapter 7 & Chapter 13 include the Automatic Stay. Any bill collector or creditor who pursues collection activity against you during a bankruptcy violates federal law. They can’t call you, they can’t write to you, and they can’t garnish your wages or seize your bank account. You are free from creditors and bill collectors and their endless harassing behavior during either a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy.

When is Chapter 13 Bankruptcy Better Than Chapter 7 Bankruptcy?

If you don’t qualify for Chapter 7 Bankruptcy you probably qualify for Chapter 13 Bankruptcy. To get a Chapter 7 you must qualify through what is called the Means Test, which involves a calculation of assets, debts and income sources.

Read our article: Qualifying for Bankruptcy in Illinois: The Means Test

Keep certain assets, property, using Chapter 13 Bankruptcy. You may have inherited family heirlooms, cars, property, and other assets and they are valuable to you. Sometimes you can’t put a value on memories and sentimental possessions.

Do I Need to Have Enough Debt to File for Bankruptcy?

People ask me if they owe enough to qualify for Bankruptcy. You do not need to be severely behind or have a mountain of debt a mile high to qualify for a Bankruptcy. Call Joseph Wrobel, Limited at (312) 781-0996 to learn more about the process.

Means testing is what we use at Joseph Wrobel, Limited, to qualify you for Chapter 13 Bankruptcy or Chapter 7 Bankruptcy. When you come and meet with us, we can tell you whether we can put you in Chapter 7 or 13 and then you decide which bankruptcy options fit your needs.

What Happens After Bankruptcy, Will I Get Good Credit Again?

Lending people money is good for the economy and business growth, and after bankruptcy, you are a better lending risk because you have less or no debt. Get a secured credit card because you put the deposit money up front so you are automatically accepted. Use only a portion of the balance available on the new credit card and pay it down to a lower amount just before the end of the closing date. We can help you with all kinds of credit rebuilding tips right here on the Joseph Wrobel, Limited website.

Read our article: Good Credit After Bankruptcy

Credit rebuilding after Bankruptcy is easy and rewarding. Whether you use your right to either of your bankruptcy options in Chapter 7 or Chapter 13 you are going to be in a better position to rebuild your credit after your bankruptcy is discharged, however, you file. People often say the anticipation of rebuilding their credit was worse than actually doing it.

Why Use Joseph Wrobel, Limited for Your Chapter 7 or Chapter 13 Bankruptcy

Joe knows Bankruptcy. For over 40 years he has helped people be able to sleep through the night again. Over many years, men and women and their families from all over Chicagoland have come to us seeking help for their financial woes. We know that bad financial situations happen to good people, despite their best efforts and hard work.

Call us to find out if bankruptcy makes sense to you. We review your finances to help you understand all your options. At Joseph Wrobel, Limited we want you to be the one to make the decision whether to file for Chapter 7 or Chapter 13 Bankruptcy.

Call Joseph Wrobel, Limited in Chicago at (312) 781-0996 and learn more about your Bankruptcy options, Chapter 7 & Chapter 13 and protect yourself and your family.

What Everybody Should Know About Chapter 13 Bankruptcy

Chapter 13 Bankruptcy Has Unique Advantages Over Chapter 7

When you go to Joseph Wrobel, Ltd. to talk about your rights and options in the Bankruptcy Code you will learn about Chapter 13 bankruptcy and all how it solves the problem of limitations you may face with Chapter 7 bankruptcy. The main differences between Chapter 7 (discharge) and Chapter 13 (reorganization) are: 1) The total amount of debt discharged versus repaid; 2) Immediate discharge versus three to five years of debt repayment; 3) Chapter 13 is an option if you don’t qualify for Chapter 7; 4) You want to keep your home and certain assets, protecting them from sale.

The bankruptcy code is complex and applies specifically to everyone’s unique financial situation. Whether you qualify for Chapter 7 or 13 can be determined when you meet with a consumer bankruptcy attorney at Joseph Wrobel, Ltd., and your specific financial details are properly analyzed.

Chapter 13 Bankruptcy Stops Bill Collectors

When you file a petition for Chapter 13 bankruptcy, you immediately get protection with the automatic stay provision of the bankruptcy code. The automatic stay immediately prohibits most collectors from continuing activities to collect a debt. Therefore, during your reorganization bankruptcy you should not receive phone calls and mail from collectors.

The automatic stay is especially useful if you are facing eviction, foreclosure, losing basic utilities, losing unemployment benefits, being found in contempt for failure to pay child support or losing your job because of wage garnishments.

The consumer bankruptcy attorneys and staff at Joseph Wrobel, Ltd can explain how you can stop bill collectors in their tracks while you get back on track financially. Read more articles about Chapter 13 bankruptcy and the automatic stay provision on our website, ChicagoBankruptcy.com, tag archives: automatic stay.

Keep Your House and Get Caught Up on the Mortgage with Chapter 13 Bankruptcy

Chapter 7 and 13 are different as they address issues of asset ownership and debt repayment. Where in Chapter 7 you must qualify for a bankruptcy discharge of debts and obligations, there is no real mechanism to help you keep a house in which you have equity. Also, if you make too much money and do not qualify for Chapter 7, you can still file a Chapter 13 bankruptcy to pay back a portion of your debts over time.

With Chapter 13, you can stop the foreclosure process and keep your house while you catch up on your mortgage payments and get current. Some exceptions may apply where you have previously filed and dismissed bankruptcy cases, so it is important to talk to your experienced bankruptcy attorneys at Joseph Wrobel, Ltd., to find out your rights and options in the bankruptcy code to get you a fresh financial reboot.

Take Three to Five Years to Pay Back Portions of Your Debts with Chapter 13 Bankruptcy

Financial emergencies can strike anyone at any time. When you file for Chapter 13 bankruptcy you can agree to a debt repayment plan, for an agreed portion of your debts owed (depends on your specific income and finances) over three to five years. The longer term for repayment afforded by Chapter 13 allows people to catch up on missed mortgage and car loan payments, for example, while they focus on paying off priority non-dischargeable debts, the ones that do not go away with bankruptcy.

Call Joseph Wrobel, Ltd. and Learn How Chapter 13 Bankruptcy Can Solve Your Financial Problems

When you call Joseph Wrobel, Ltd. you can make an appointment to meet with an attorney in one of our multiple Chicagoland city and suburban office locations and learn where you stand. Joseph Wrobel wants you to take control of your finances, so you can decide if filing for a Chapter 7 or 13 bankruptcy makes sense is valuable to you. For more information about Chapter 13 bankruptcy call us at (312) 781-0996.

Bankruptcy Basics: August 2015, Real Questions, Real Answers 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 the podcast now!

Topics covered in this 30 minute show:

  • How do I file for bankruptcy but also keep my home where I have a bad mortgage deal?
  • I had a bankruptcy 3 years ago and to date the bank has not taken my home, what do I do?
  • How can bankruptcy help me with medical bills I incurred when I didn’t have health insurance?
  • My husband might file for bankruptcy after the divorce, how do I protect my house?

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 website 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

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.