Tag Archives: wage garnishment

Mortgage Relief During Coronavirus Financial Crisis

Mortgage Relief During Coronavirus Offers Several Options

Many Chicago area and suburban residents are wondering how they are going to pay their rent and mortgage payments after losing their income sources and suffering financial losses because of the Conoavirus outbreak. Many businesses remain shut down with no clear indication of when they can and will be able to reopen. But in the meantime, the rent and mortgage still have to be paid or many are going to face evictions and foreclosures.

Just as the Coronavirus spread quickly, the financial aid packages and options are being put together and offered to people quickly. What also comes along quickly are utility, food, gas, and grocery bills. Some people are trying to stretch limited resources and are trying to figure out whether to keep the lights on and food on the table, or make their mortgage or rent payment on time.

Homeowners with equity in their homes can use that equity to do a cash-out refinance and use the money to pay bills. This may also be a good time to refinance your mortgage and lower your monthly payments.

CBS News Offers Information on the Government Stimulus. Watch -> Stimulus Checks: Who Gets One? Who Doesn’t?

Bank of America Offers Mortgage Relief During Coronavirus Crisis

The payments will be added to the end of the loan term, but small business and consumer clients can defer their mortgage payments using a Bank of America program designed to help their customers who need mortgage relief during Coronavirus financial crises such as business shutdowns and interruptions to income for businesses forced to close their doors and send employees home.

Here is a link for Bank of America Payment Deferral Requests

Each request for mortgage loan deferments will be made on a case-by-case basis. Bank of America customers can also defer payments on things like small business loans, automobile loans, and credit card payments, for those customers who qualify for Coronavirus financial relief.

What are Governments Doing to Help with Rent and Mortgage Relief?

The city of Chicago will give residence who have suffered to pay rent and mortgage payments, $1,000 grants, on a one-time basis. Chicago Mayor Lori Lightfoot announced the COVID-19 Housing Assistance Grant on Friday, March 27th, for Chicagoans who lost their jobs or have been financially impacted by the Coronavirus pandemic. The city of Chicago Affordable Housing Opportunity Fund is the source of $2 million in payments to residents in need to keep them safe and secure.

See the City of Chicago Coronavirus website to apply for rent and mortgage relief

Fannie Mae, Freddie Mac, and the Federal Home Loan Banks are working on relief for people impacted by the Coronavirus. If you cannot pay your mortgage, loans owned by Fannie Mae or Freddie Mac may be eligible for deferments on mortgage payments. Qualifying applicants for relief will not incur late fees, have reported delinquencies or foreclosures or legal proceedings while in payment deferment.

For more FHA Coronavirus assistance information click here or contact our mortgage servicer as soon as possible.  

Options for Mortgage Relief Through Private Companies and Banks

In this article, we offer an overview of different financial relief options for Coronavirus mortgage relief, but this is not a complete list of all the options. Most major banks and commercial mortgage lenders have some sort of program available to help people defer their mortgage payments until they can afford to make on-time payments after the Coronavirus outbreak is over and people are back to work.

It makes sense for lenders to offer these options because the people who suddenly cannot make their payments are a good credit risk. If they had good jobs before they will have good jobs again. While financial recovery might take longer for some, there is light at the end of the tunnel and most of the mortgage lenders will get financial assistance of some sort for themselves.

Landlords Want to Be Paid, May Owe Their Mortgages, and May Be Lenient

While some landlords own their buildings in full, many have mortgages to pay. Talk to your landlord about financial concerns and see what they have to say. For all you know, they have a little room with making their mortgage payments because of the Coronavirus and they might be able to wait longer than usual for you to make your rent payment. Many landlords of Chicago area rental buildings want to keep good tenants who regularly pay their rents when things are normal, and right now things are not normal.

Bankruptcy May Also Give You Mortgage Relief During Coronavirus

Bankruptcy can also be an option to keep your home. If you already had mounting debts and credit cards you couldn’t pay, a Chapter 13 reorganization bankruptcy might be a good option for you, and it will allow you to keep your house and take three to five years to get caught up on your mortgage and financial obligations.

Joseph Wrobel is an experienced Chicago Bankruptcy Attorney who can help you figure out if you should take advantage of either Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, to save your car, home and sanity during this unprecedented time.

Call the Chicago Bankruptcy Law Firm of Joseph Wrobel, Ltd. for Mortgage Relief During Coronavirus at (312) 781-0996

COVID-19 Coronavirus Bankruptcy: Save Your Home, Car, and Possessions

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.

Find local information about COVID-19 Coronavirus on the Illinois Department of Public Health website. See also the City of Chicago Coronavirus Response Center.

Chicago Bankruptcy Attorney Joseph Wrobel will help save your home, save your car, and save your sanity when financial emergencies threaten you and your family. Call Attorney Joseph Wrobel now (312) 781-0996.

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.

If you have questions about bankruptcy you should get the information you need. Learn the difference between a Chapter 7 and a Chapter 13 bankruptcy by reading our article on point, How Is a Chapter 7 Different from a Chapter 13 Bankruptcy?

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.

If you have a Chapter 13 bankruptcy, your automatic stay lasts three to five years, because that’s how long your Chapter 13 repayment plan may be. Read our article to learn more, The Automatic Stay: It Stops Bill Collectors in Their Tracks.

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

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.

You are not a bad person for discharging a money judgment in bankruptcy

Once a month Chicago bankruptcy attorney Joseph Wrobel answers frequently asked questions on the Chicago Bankruptcy Update Internet radio podcast. One of the questions on this month’s program involved the potential discharge of a money judgment. The individual wanted to know if they can file for bankruptcy and include a judgment for money ordered by a local court. The judgment is currently being repaid through a wage garnishment. Listen to September’s FAQ in bankruptcy radio show.

Here was the specific question: “In 2009, I returned a vehicle for which I could no longer pay due to death of my husband and my being laid off. The financial company sued me and is now garnishing my wages at 15%. Can I include the remaining balance and stop the garnishment in Chapter 7 bankruptcy?”

Joe’s answer based on the information provided: Yes, a judgment is just another debt that can be discharged. When you owe money to a person or company and you don’t pay them, they go to court and get a judgment against you, ordering you to pay the money or the court will allow the debtor to collect it from you with the power of the court, including actions like wage garnishments. When you file a Chapter 7 bankruptcy petition, the individual garnishing your wages and any other bill and debt collection activities must stop and are forbidden during the bankruptcy as a matter of federal law.

A judgment to pay another is not a moral issue or punishment for failure to pay.

Many people think that a judgment for an amount of money is not dischargeable in bankruptcy. This is not true at all. While criminal courts ‘punish’ people for breaking criminal laws and causing harm to victims and society, a small claims or civil court is never punitive. The civil court could in many cases care less why the debt wasn’t paid, unless your credibility is otherwise at issue in the lawsuit. The civil court that enters a judgment against you simply applies the law to the facts presented to them. If you owe money, they can order you to pay. That is all.

When you file a petition for bankruptcy protection the automatic stay provision kicks in and the collection activity, in this case a garnishment, must stop during the time the bankruptcy case is ongoing. Your attorney, assuming you hire one, will send a notice to whomever manages your wage garnishment and it must stop. If the judgment amount is included in the list of debts to be discharged, the discharge notice will also be sent to whomever is collection on the judgment as well as with whomever obtained or now owns that judgment.

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

Five common reasons people in Chicagoland might file a bankruptcy petition

The United States Bankruptcy Court for the Northern District of Illinois has an interactive website listing near-live information about current filings with the bankruptcy court. For example, today, the 19th of August, there were 61 Chapter 7 and 40 Chapter 13 bankruptcy petitions filed as of 1:50 p.m. The total amount of filings for the current year to date are 33,009 (compared to 2013 at this time and date when there were 35, 927 filings). The website also allows you to search by the top city accounting for the largest number of bankruptcy filings. If you guessed Chicago was number one, you are correct. Chicago residents have filed 12,698 bankruptcy petitions this year. Following with much smaller numbers are Rockford, Aurora, Joliet, Plainfield, Calumet City, Elgin, Bolingbrook, Waukegan and Naperville.

Why are so many people filing for bankruptcy protection?

Of course, every individual and family who files for bankruptcy has a unique reason and need for relief from bill collectors and legal actions by creditors. Some people even spend more money they cannot afford in debt relief programs that do not pull their participants out from behind all the bills they cannot pay. At any given point, your life and financial circumstances can change drastically. If you are not wealthy and do not have a safety net, you might take advantage of bankruptcy protection. Below are a few of the circumstances in which people decide to file for bankruptcy.

  1. A medical emergency can cause an individual to file for bankruptcy.

Imagine you are driving to work and are hit by a big truck. Many people only carry the state minimum required insurance coverage and some people have no insurance. If the insurance policies do not pay or the amount of your medical bills exceeds the policy limits, you might have a big financial problem on your hands. Yes, a personal injury suit might make you whole, but that could take years and the bills still come due while you wait, and you might not be working.

  1. The loss of a job can devastate a family’s budget, sending them into bankruptcy.

Many Americans filed for bankruptcy when our country plunged into recession in 2008 and beyond. Economic recovery can be slow and when jobs are lost, people can sink deeply into debt, sometimes beyond recovery. Unless that new job pays a sports hero salary, you may consider eliminating debt you will never likely be able to repay after being out of work for a sometimes extended period of time.

  1. Wage garnishment can trigger an interest in bankruptcy relief.

When a creditor obtains a money judgment against you, they can file a wage garnishment and send that to your employer who is ordered to withhold money from your paycheck and pay it to the creditor. While many Chicagoland families live on a tight budget, the reduction in a paycheck can mean the difference in keeping the lights on. A bankruptcy filing can stop a wage garnishment and you may be able to eliminate the underlying debt.

  1. Banks foreclosing on your home can lead to a bankruptcy filing.

Sometimes life’s hassles and expenses cause us to fall behind on the mortgage. A sick child or a surprise transmission repair can cause a family to slip one month, then maybe two. By that point, it can be nearly impossible to bring the mortgage current. A Chapter 13 bankruptcy may help you keep your home and put other creditors on hold while you get caught up.

  1. Relentless creditors and stress from debt can drive a person to seek bankruptcy help.

When creditors know they can call and bug you until you pay, they can and will. The stress of not being able to pay bills is awful. Too many people turn to the bottle or worse when facing debilitating stress. When they file for bankruptcy, the automatic stay provision kicks in and those creditors can no longer ruin your day, or they will be violating federal law.

If one of the above scenarios is all too familiar, we can help you make the determination if bankruptcy protection is right for you. Joseph Wrobel, Ltd. has convenient offices located all over the Chicagoland area for your convenience. Our new contact us page has address and map directions to our offices in: Chicago; Deerfield; Gurnee; Naperville; Orland Park; Schaumburg; Skokie; St. Charles and Westchester.

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’sFacebook 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.