Do you offer virtual consultations?
Certainly. At Steven Grace Law, we prioritize convenient communication with our clients. We understand the importance of staying connected, and we provide various communication methods, including text messages, Zoom, FaceTime, and Skype. We’ve got your communication needs covered.
What is a Bankruptcy Discharge?
A bankruptcy discharge is a court order that releases a debtor from the legal obligation to repay certain debts, marking the completion of a bankruptcy case and providing a fresh financial start for the individual or business.
What is a Debtor?
A debtor is someone who owes money to another person or company. It’s important to note that being a debtor doesn’t necessarily mean you’re late on payments. Additionally, a debtor can also be someone who has filed bankruptcy to address their financial obligations.
What is a Section 341 Creditor’s Meeting?
The 341 meeting of creditors is a key event in bankruptcy proceedings where the debtor meets with the trustee and any attending creditors. The trustee verifies the debtor’s identity and examines the bankruptcy petition and financial details. Creditors may ask questions about the debtor’s assets and liabilities during this meeting.
How long does bankruptcy stay on my credit report?
Bankruptcy typically remains on your credit report for up to 10 years. However, its impact on your credit score diminishes over time, especially with responsible financial habits and rebuilding efforts. While it may affect your creditworthiness, many individuals begin to rebuild their credit shortly after the bankruptcy process, securing a fresh financial start.
Will I lose my job If I file bankruptcy?
No, you cannot legally lose your job solely for filing for bankruptcy. Federal law, under 11 U.S.C. § 525(a), explicitly prohibits discrimination based on bankruptcy status. This applies to both private and public sector employers, protecting you from termination, demotion, or other adverse employment actions due to your filing.
Are there alternatives to bankruptcy besides filing for chapter 7 or chapter 13?
If Chapter 7 isn’t an option due to income limits or your projected Chapter 13 payment seems high, other pathways exist. Consider Collection Lawsuit Defense or Debt Settlement to tackle each debt separately and avoid bankruptcy altogether.
What are the pros and cons of filing for Bankruptcy jointly with a spouse?
Whether filing jointly makes sense depends on your shared debt. Significant joint debts benefit from a joint filing: it streamlines the process and wipes them out in one case. Mostly separate debts? Filing individually might be better: this could shield one spouse’s credit score from the bankruptcy impact.
What happens to my retirement savings, Social Security benefits, and government benefits if I file for bankruptcy?
Generally speaking, most government benefits are usually protected in bankruptcy. However, in rare instances, certain retirement accounts may be liquidated in Chapter 7 bankruptcy. It is important to know the details before you file.
Will my tax refund be taken if I file for Bankruptcy?
In bankruptcy, a tax refund is considered an asset. For Chapter 7 filers in Illinois, you can use the $4000 wildcard exemption to protect all or part of your State and Federal Tax Refund. You can also use the refund to pay for certain necessary expenses prior to filing Bankruptcy.
Can I exclude a credit card with a low balance from my Bankruptcy?
No, unfortunately. In a bankruptcy filing, all creditors, including credit cards, must be included. Even if not listed, credit card companies often become aware of the bankruptcy, potentially leading to the cancellation of the card or credit line.
What is the definition of Bankruptcy?
I think there are two definitions. First, it’s when you can’t pay your debts when they are due. Second, it’s when the money you owe is more than your assets. Many Americans fall under the second definition, even though they can meet their current debt obligations.
How Much Does Chapter 7 Bankruptcy Cost?
Every case is different—some are complex, and some are more straightforward. A good attorney can tell the difference. At StevenGraceLaw, for a simple Chapter 7 case with a debtor below the median, attorney fees are about $1500. This fee covers the $338 filing fee and the credit report fee.
How Long Does Chapter 7 Bankruptcy Last?
A Chapter 7 bankruptcy usually takes about 90 days from start to finish. Once you file, you’ll have a meeting with the Bankruptcy Trustee within 30 days, and then you’ll need to complete a second credit counseling class within 45 days. If everything goes well, this is the last step before the Court finalizes your case by issuing the order of discharge. That means your case is done.
What Are The Requirements For Chapter 7 Bankruptcy?
To start Chapter 7 bankruptcy in Chicago, you need to meet certain conditions. The key factor is your income, which has a maximum limit for eligibility. You also have to pass a “means test” that checks if you can repay certain debts. Finally, your expenses must be more than your net income to qualify.
What Are the Income Limits for Filing for Chapter 7 Bankruptcy in Chicago?
To qualify, your yearly household income needs to be below: $67,102 for one person, $84,892 for two, $101,951 for three, or $122,289 for four. Add $9,900 for each additional family member. But don’t worry if you’re close to the limit! A secondary means test can still qualify you, so consulting a bankruptcy lawyer is crucial.
Can I keep my car, house, and other assets if I file for Chapter 7?
The amount of property you can exempt from creditors depends on its type and how many people are filing bankruptcy. For example, a single person can protect up to $2400 in vehicle equity, $15,000 in home equity and $4000 in other assets. These numbers double for two people.
How much are Attorney Fees for Chapter 13 Bankruptcy?
In the Northern District of Illinois, Attorney fees are capped at $4500 for a duration of 3-5 years. Furthermore, the filing fees for a Chapter 13 bankruptcy stand at $313. Attorney fees can be paid through the Bankruptcy Plan, and you can get started for as little at $350.
How much will my Chapter 13 bankruptcy payment plan cost?
This is a complex question, which depends on your individual goals and income. However, a simple answer is your Chapter 13 plan payment amount should be what you can afford to pay after adding up your total household net income and subtracting your allowable expenses.
What happens if I fall behind on my payments during my Chapter 13 plan?
First of all, you and your attorney would need to assess the reason you are overdue in the first place. If it was due to a decrease in income, whether permanent or temporary, you may be able to amend the bankruptcy plan to lower the payment. However, this depends on multiple factors.
What Is Foreclosure Defense?
Foreclosure defense, in simple terms, involves your attorney navigating court procedures to challenge the foreclosure lawsuit on your property. Your attorney can employ various methods and laws to compel the mortgage company to engage in negotiations, working toward achieving your specific goals.
What is the redemption period, and how does it affect my chances of keeping my home?
Redemption refers to a crucial opportunity lasting 7 months from the date of being served, where you can fully pay off your loan. This can be achieved through methods such as refinancing the loan, selling the house, or other viable means. It’s worth noting that this period also marks the earliest day your mortgage company can initiate the foreclosure auction to sell your house.
How long do I have to appeal a foreclosure case after the Confirmation of Sale?
To appeal a foreclosure case after the Confirmation of Sale, you have a 30-day window from the date the Order of Confirmation is issued by the Circuit Court Judge, as this order typically represents the final appealable decision in a foreclosure case. When calculating the deadline for filing your Notice of Appeal, start counting from the day following the circuit court’s order. Be sure to include weekends and holidays in your count.
Can I Stop The Foreclosure Process If I Make A Lump Sum Payment?
In Illinois, catching up on missed payments and related fees within 90 days of receiving a foreclosure summons can stop the process via “reinstatement” under Section 15-1602. Full payoff is also an option after the 90 day deadline.
What Happens If I Lose My Case? Do I Still Have To Lose My Home?
Even after a foreclosure judgment, your fight isn’t over. There are legal avenues and appeals possible before the house reaches auction. Let’s discuss your goals and explore options to keep you in your home.
Why did the guidelines change for discharging student loans?
Given the ongoing student loan debt crisis, the Biden administration initiated a comprehensive overhaul in 2022, significantly altering the treatment of student loans in bankruptcy. Setting politics aside, I firmly believe that making student loans dischargeable in bankruptcy was a necessary step. Without these changes, student loan debt risked becoming an enduring burden on the American economy, trapping individuals in overwhelming debt with no viable way out.
What documentation is necessary for filing a Student Loan Adversary?
Since you will already be in an active Bankruptcy case, many essential documents will likely already have been submitted to your attorney. However, additional information is needed, including your comprehensive student loan history, encompassing payments, consolidations, and applications for deferral, forbearance, and income-based repayment. All this information can be retrieved from studentaid.gov, and our office is available to assist you in navigating the download process.
What Should I Do If My Wages Are Being Garnished?
If your wages are being garnished, it likely means that one of your creditors has sued you and secured a judgment. Under this judgment, the creditor is permitted to take 15% of your gross weekly paycheck before taxes or deductions. Filing for either Chapter 7 or Chapter 13 bankruptcy will promptly halt this garnishment, and in certain instances, you may even be able to recover the money that has already been garnished.
