ChicagoBankruptcyLawyersAttorneys

Can a Person Keep a Car in a Chapter 7 Bankruptcy?

01/29/11

The general answer is yes, provided a number of factors exist. First, the person must be current on his monthly payments. If not, the auto finance company will likely choose to repossess the auto rather than offer a reaffirmation agreement. Second, the person must not have significant equity in the vehicle. If so, the trustee may be able to sell the vehicle right out from under the individual and tender a check for $2,400.00 in exchange for the vehicle.

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The Repayment Plan within the Chapter 13 Bankruptcy

01/28/11

Chapter 13 bankruptcy can often provide the greatest chance to save a home that is in foreclosure. In addition to the proposed plan to repay mortgage arrears and other creditors, there is often a secondary payment plan once the case is confirmed. The circumstance I am referring to is a default order providing for repayment of past due obligations through the Chapter 13.

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722 Redemption & Attorney’s Fees

01/24/11

In the case of Valory Denise Ray, the Unites States Trustee moved for disgorgement of fees earned by debtor’s attorney. The fees in question were those earned during a 722 redemption process whereby the redemption company paid a portion of the loan amount as attorney’s fees. The United States Trustee asserted that a conflict of interest existed in that the funds were borrowed from a third party lender. The United States Trustee also asserted that the amount of the fees was excessive.

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Lien Stripping a Junior Mortgage: Have Your Expert Ready

01/22/11

When stripping a junior mortgage, make sure that you have an expert witness available to testify. In a recent case before Judge Cox, a junior lien was stripped, despite the fact that the evidence showed that most comparable properties values would have prevented the stripping. The debtor was able to convince the court because of the expert testimony of one witness. The creditor attorney was able to effectively cross examine the expert; however, without an expert of its own, the creditor was at a tremendous disadvantage.

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Don’t Pay a Dime for an Initial Consultation with a Bankruptcy Lawyer

01/20/11

If you are considering filing for bankruptcy, either Chapter 7 or Chapter 13, beware of lawyers that charge a fee for the initial consultation. You have to ask yourself several questions before doing so:

1) Why should I pay before I know if I can even be helped by the attorney?
2) Am I getting the advice of the top attorney or simply a newer associate?
3) Am I being treated with personal care or am I being herded in like a sheep?

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Aurora Illinois Bankruptcy Lawyer’s Office Now Open Every Saturday

01/15/11

For all Aurora, Illinois residents considering filing either Chapter 7 or Chapter 13 bankruptcy, the law offices of David M. Siegel has extended the office time available in Kane County.

Specifically, the Aurora office, located at 1700 N. Farnsworth Avenue, Aurora, IL 60505, will be open every Saturday from 9:00 am through 12:00 Noon. Every initial consultation is complimentary. Anyone seeking information or advice will receive a copy of the book, Chapter 7 Success: The Complete Guide to Surviving Personal Bankruptcy. For more information, contact (847) 520-8100.

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Supreme Court in the Driver’s Seat in Ransom v. FIA Card Services

01/15/11

In a significant decision affecting bankruptcy cases throughout the United States, the Supreme Court of the United States has determined that a debtor, who does not make a loan or lease payment, may not take the car ownership deduction. This case has impact on all Chapter 7 and Chapter 13 bankruptcy cases currently being administered by David M. Siegel & Associates, throughout Chicago and the surrounding suburbs.

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Confusion Between Credit Counseling & Debtor Education in Bankruptcy

10/19/10

Some things are inevitable. If an error can be made, it will be. Take for example, when filing for bankruptcy, the requirement of both credit counseling and debtor education. There is a particular sequence or order in which those requirements must be satisfied. Further, there is a proper timing for each requirement.

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Evidence of Foreclosure on a Credit Report

10/18/10

There has been a recent question as to when the fact of foreclosure hits a credit report. The question arose in the context of doing a short sale, after a bankruptcy, to avoid the blemish of a foreclosure as well as a bankruptcy. After research, exploration and after speaking with the credit bureaus, I submit the following:

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Rule 2004 Examinations in Bankruptcy

09/29/10

A Rule 2004 Examination is an examination of the debtor, separate and distinct from the 341 meeting of creditors’ examination. It all begins with a Motion from a party in interest and the Court’s granting of the examination. A subpoena is served compelling the attendance of the debtor along with certain documentation is many cases.

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