Chang Carlin Legal Blog

Top Five Things Covered Under the Fair Debt Collection Practices Act (FDCPA)

Wed, 23 Jun 2010 17:31:00 GMT

According to the Federal Trade Commission, the FDCPA "prohibits debt collectors from using abusive, unfair or deceptive practices to collect from you." Here are the top five things that are (and aren't) covered by the Fair Debt Collection Practices Act (FDCPA):

1. The FDCPA covers personal debt. This includes credit cards, mortgages, auto loans, etc. It does not include business debt.

2. Debt collectors cannot contact you anytime, anyplace. Under the FDCPA, debt collectors can't contact you in the early morning or late evening. They also cannot contact you at work if you have previously indicated that you may not receive phone calls there.

3. Certain behaviors are not appropriate when trying to collect debt. A few examples of this "off-limits" behavior are harassment, false statements and unfair practices.

4. You have options if you believe your rights have been violated. The Fair Debt Collection practices act gives you recourse - you may sue a debt collector or file a complaint with the Attorney General's office.

5. Professional legal assistance is available. A qualified legal professional is your best resource to explain your rights under the Fair Debt Collection Practices Act and go over your options for dealing with your mounting debt and creditors.

For more information on the Fair Debt Collection Practices Act, contact Chang & Carlin today and read on for more information.

Chapter 7 Bankruptcy and Personal Business Failure

Mon, 17 May 2010 18:03:00 GMT

The majority of small businesses are initially funded partly or completely by the business owner. And most of that funding comes from the owner’s savings, equity in their home, or a combination of both. In this case, if the small business fails, the owner may be looking at filing chapter 7 bankruptcy. Here’s why:

The business is personal. For all intents and purposes, the small business is not secured by anything. Additionally, there is little differentiation, legally, from the assets belonging to the business and the business owner. Which means that business creditors can and will come after the business owner personally to collect debts.

Enter Chapter 7 Bankruptcy. If you have no other options, because your business and personal debts are interrelated, your Chapter 7 bankruptcy filing will encompass both types of debt. While it is not the optimum outcome, for any small business owners in the current economy, it is their only choice.

If you have a business that is floundering or that is bleeding your personal assets and are concerned, it makes sense to contact a qualified legal professional about the possibility of filing chapter 7 bankruptcy. To find out more, continue to this article or contact Chang & Carlin today.

Can't Afford Your Mortgage? Foreclosure May Not Be Your Only Option.

Tue, 20 Apr 2010 13:30:00 GMT

Many homeowners, frustrated by mounting debt and decreasing property values, have gotten to the point where they are considering letting the bank foreclose on their homes. If you are a homeowner who is "upside down" in your mortgage and falling behind on monthly payments, there may be an option "short" of foreclosure: a house short sale.

What is a house short sale? Very basically, a house short sale is when you sell your home at a loss. Because you are selling your home for less than is currently owed on it, your lender must approve the "short sale." There are different types of agreements dictating what happens to the difference between the loan amount and the sale price, but in many cases lenders are willing to completely forgive or cancel the remaning debt owed.

While a short sale is preferable to a foreclosure in most situations, it requires lender approval and a lot of red tape. If you are considering a house short sale, the attorneys at Chang and Carlin have extensive experience with real estate law and can explain the process and your options as well as the rules, regulations and financial implications. For more information, read this article and contact Chang and Carlin today.

Bankruptcy and Divorce

Tue, 16 Mar 2010 12:03:00 GMT

First comes love, then comes marriage, then for some comes…bankruptcy and divorce? Or should it be divorce and bankruptcy? Unfortunately, for many couples, debt and divorce go hand in hand. If you feel that your marriage is headed for divorce because of significant financial obligations, you may be wondering if it makes sense to file bankruptcy before or after your divorce.

Ask yourself a few simple questions:
- Is your divorce amicable? Are you able to part ways with your former spouse on good terms and are you confident that they are not hiding assets?
- Are you tired of constant calls and letters from debt collectors?
- Are your spouse and you in agreement about filing bankruptcy?

If you answered yes to the above questions, it most likely makes sense for you to file for bankruptcy with your spouse prior to filing for divorce. It will be less expensive that filing for Chapter 7 orChapter 13 individually, and most likely it will simplify your divorce proceedings and settlement. Additionally, the automatic stay that is provided by Chapter 7 and Chapter 13 will help alleviate some of the stress caused by collection calls and letters as you sort through your finances and dissolve your marriage.

To find out more about bankruptcy and divorce and what the right choice is for you, read this article about Bankruptcy and Divorce and contact Chang & Carlin for more information about Chapter 7 and Chapter 13.

Tax Debts and Chapter 7 Bankruptcy

Tue, 12 Jan 2010 17:31:00 GMT

It is possible to get rid of your tax debt through Bankruptcy. Don’t enter into any agreement with the Internal Revenue Service, just eliminate your tax debt through either Chapter 7 or Chapter 13. The only requirements to discharging tax debt are that the tax debt be due over three years before filing, the tax returns were indeed filed and that there was no attempt to file fraudulent tax returns or evade such taxes.

Now, that sounds simple, because it is. As Americans face crushing tax problems, Bankruptcy is the answer to getting out of your tax debt in many cases.

The usual disputes in discharging tax debt in Bankruptcy is that the IRS will examine why the taxes were not paid and argue accordingly that non payment alone constitutes “willfully attempted to evade” the tax debt. However, Courts have held that non payment alone, does not constitute sufficient grounds for evasion of tax debt.

Chang & Carlin, LLP are committed to understanding everything about discharging tax debt under the Bankruptcy laws. Please contact us to see how we can help.

The content found on the Chang & Carlin Blog is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney A blog does not create an attorney-client relationship. If you are interested in obtaining information about bankruptcy, you are encouraged to call our law firm at or fill out our free legal evaluation to speak with an attorney.

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Can I get rid of my second mortgage in Bankruptcy?

Fri, 14 May 2010 13:30:00 GMT

One of the great things about filing for Chapter 13 under the Bankruptcy Code is that an individual or family can actually strip a second mortgage or line of credit from your home. That's correct. I said strip a second mortgage or line of credit. How would you like to just make the lien on your house created by your second mortgage or line of credit disappear?

As long as you owe more on your first mortgage than your house is worth, an individual or family has the right in a Chapter 13 to eliminate all other mortgage liens on the homestead. To successfully avoid the wholly unsecured second mortgage or home equity line, the attorney must file an adversary to determine the whether the lien can be avoided. This is filed with the Bankruptcy Court, but is not part of the Chapter 13 filing itself. The mortgage company’s usual defense is that the house is worth more than the first mortgage and the lien is not wholly unsecured. Any individual or family seeking to eliminate the lien must have a full appraisal showing the value of the house. Without the appraisal, there is no basis to show that the lien should be stripped.

Once the lien is stripped, the amount owed on the lien will be paid out at the same rate that the unsecured creditors will be paid. So if the Chapter 13 plan calls for the unsecured debt to be paid back at a 10 percent rate, the lien will only be paid out at a 10 percent rate. Stripping the second mortgage or the line of home equity is one of the great benefits of filing Chapter 13.

To see if you would qualify for this please feel free to call one of the attorneys at Chang & Carlin, LLP to discuss your case further.

10 things a Bankruptcy Court Will Not Tell You - Smart Money Magazine Article

Fri, 14 May 2010 13:31:00 GMT

I ran across an interesting article in Smart Money Magazine that talks a little bit about bankruptcy.

A couple of key points in the article state that bankruptcy is not limited to people who are "poor" there are many people who used to make good money, but are not having trouble making ends meet. The article also talks about keeping your house, car and furniture. In Illinois, we use state exemptions to determine what we can protect from your creditors and what might be subject to liquidation.

I think that a lot of people try to stay out of bankruptcy even though they realize they don't have any other choice. Which relates to Number 5 in the article; Number 5 is pretty interesting to me and it basically states that debt settlement firms may do more harm than good. Many of my clients have tried to do debt settlement and after 6 months ended up filing for bankruptcy.

One other interesting point is regarding the attorney fees. Filing for bankruptcy can be expensive, here at Chang and Carlin, we charge very reasonable fees for filing both Chapter 7 and Chapter 13, and in addition offers flexible payment plans to get your case filed. Fill out a free legal evaluation to talk to an attorney to see how we might be able to help you through this difficult time.

Here is the link to the article: http://www.smartmoney.com/personal-finance/debt/10-Things-Bankruptcy-Court-Will-not-Tell-You/ The content found on the Chang & Carlin Blog is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney A blog does not create an attorney-client relationship. If you are interested in obtaining information about bankruptcy, you are encouraged to call our law firm at or visit our website at www.changandcarlin.com

Discharging Student Loans in Bankruptcy

Fri, 14 May 2010 13:31:00 GMT

In order to discharge student loans in bankruptcy, you must show the court "undue hardship". In order to establish this many Courts have followed the Brunner test.

Based on legislative history and the decisions of other district and bankruptcy courts, the district court adopted a standard for "undue hardship" requiring a three-part showing:

(1) that the debtor cannot maintain, based on current income and expenses, a "minimal" standard of living for herself and her dependents if forced to repay the loans;

(2) that additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and

(3) that the debtor has made good faith efforts to repay the loans.

The first part of this test has been applied frequently as the minimum necessary to establish "undue hardship." See, e.g., Bryant v. Pennsylvania Higher Educ. Assistance Agency (In re Bryant), 72 B.R. 913, 915 (Bankr.E.D.Pa.1987); North Dakota State Bd. of Higher Educ. v. Frech (In re Frech), 62 B.R. 235 (Bankr.D.Minn.1986); Marion v. Pennsylvania Higher Educ. Assistance Agency (In re Marion), 61 B.R. 815 (Bankr.W.D.Pa.1986). Requiring such a showing comports with common sense as well.

The content found on the Chang & Carlin Blog is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney A blog does not create an attorney-client relationship. If you are interested in obtaining information about bankruptcy, you are encouraged to call our law firm at 866-790-8601 or visit our website at www.changandcarlin.com

Why File for Chapter 13 Bankruptcy?

Fri, 14 May 2010 13:33:00 GMT

There are 5 major reasons why people file for Chapter 13 bankruptcy:

1. Stop a foreclosure or repossession.

2. Protect an asset that would otherwise not be protected in Chapter 7.

3. The debtor makes too much money to file for Chapter 7.

4. The debtor has been discharged in a prior Chapter 7 case and is not eligible to file again; and

5. To consolidate debts that would not be dischargeable in a Chapter 7 case.

This is a very basic outline of why one would file Chapter 13.

The content found on the Chang & Carlin Blog is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney A blog does not create an attorney-client relationship. If you are interested in obtaining information about bankruptcy, you are encouraged to call our law firm at 866-790-8601 or visit our website at www.changandcarlin.com

Top 10 Reasons to File for Chapter 7 Bankruptcy in Illinois

Thu, 19 Nov 2009 14:42:00 GMT

Is Bankruptcy for me? I am in over my head each month will bills, how can I get a fresh start? How can I get the creditors to stop harassing me? I am being garnished, what do I do? If you have asked your self any of these questions then read below and see how filing a chapter 7 Bankruptcy can help relieve your stress and put you on the path to a successful financial future.

Top 10 reasons to file a chapter 7 Bankruptcy:

1. Filing a chapter 7 bankruptcy puts you in control of your future financial security.

2. Bankruptcy helps you start to address your financial situation in a constructive manner.

3. Bankruptcy will not relieve you of your obligation to pay your mortgage, but it might make your mortgage easier to pay by getting rid of other debts that are weighing you down each month.

4. If you do not have insurance and are over come with medical bills. Chapter 7 can help you eliminate those debts.

5. You lost your driver’s license and need to get it back. Chapter 7 can help you eliminate accident debts for no insurance.

6. Stop Harassing Behavior from Creditors and Collection agencies.

7. Chapter 7 bankruptcy is the way to go because it's fast, effective, easy to file, and doesn't require payments over time.

8. By regaining control of your finances you are now able to rebuild your credit, stay out of debt, start saving for the future and live your life the way you want. DEBT FREE !!!!

9. Filing a Chapter 7 Bankruptcy stops wage assignments and garnishments.

10. Everyone deserves a second chance.

Having a Banruptcy Attorney in Chicago who listens to your concerns, makes you feel important, does not treat you like a number, and cares about your case can be an invaluable tool when filing your bankruptcy.

At Chang and Carlin we are here to help those who are ready to regain financial control.

The content found on the Chang & Carlin Blog is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney A blog does not create an attorney-client relationship. If you are interested in obtaining information about bankruptcy, you are encouraged to call our law firm at 866-790-8601 or visit our website at www.changandcarlin.com