Real Estate Section Of Petition From Burnham Bankruptcy Lawyer

Bankruptcy clients in Illinois use the state exemptions.  These are the same Illinois exemptions already being used by people who are being collected upon by bill collectors. So just know you are allowed to keep quite a bit of property and still file a Chapter 7 as long as it is properly listed. You’ve got to actually put that exemption on the petition. And the software helps you do that, by the way. The software is really good. It knows real estate and it starts to highlight the right exemptions for you.

If there’s a second mortgage, obviously that has to be listed there too. This affects the equity. So you have to take the current value and you have to subtract out the amount owed on the first and the amount owed on the second. They also might be behind on property taxes. Those might be sold, too. That affects the equity, too. It’s basically if the trustee is going to sell it, the trustee has to pay off all of the indebtedness on the property to determine what’s left. So in most of our cases today, we are not seeing any equity in the property. And they keep it.

Landlord/tenant is the next area of the Petition. Landlords don’t get notice so clients should not be worried about landlords getting notice. They are listed here but they don’t get a bankruptcy notice. This isn’t really an important section but every once in a while, if someone is an owner of property that they are renting out, we need to know who their tenant is.  And then the term of the lease is a either month-to-month or yearly.

see also Burham Bankruptcy Lawyer or call (847) 520-8100.