Yahoo! News reported that Alabama's Jefferson County is drowning in $4.1 billion in debt. This is more money than most of us will ever see in our lifetime. The county has tried to avoid bankruptcy since 2008 and according to Yahoo! News they are currently working with Wall Street to settle the debt and avoid bankruptcy for good.

Jefferson County is hoping that by negotiating the debt they will be able to reduce what they owe by $1 billion. If they received this reduction they would ensure that the remainder of the debt would be paid back in installments. The extra revenue would come from small increases to the sewer costs to Jefferson County residents.

Besides being able to reduce their debt through negotiation, another reason to avoid bankruptcy is the extraordinary cost of going to bankruptcy court. With all the costs considered included Yahoo! News suggested it would cost approximately $1 million a month to go through bankruptcy court and the trial could last for as long as 18 months.

Yahoo! News also stated that Jefferson County let go 1/4 of their workforce due to a decrease in government funding. With the 550 jobs lost that is a significant number of households in Jefferson County that may not be able to afford to pay if sewer costs increased.

The cost of going to court is much higher for a County than it would be for an individual but this is a great example of exploring your options with a Chicago bankruptcy attorney before making a decision. Your lenders may consider loan modification in order to continue receiving payments from you towards your debts. Most creditors do not benefit if you file for bankruptcy. They stand to make more money if you continue to make payments, even if the payment amounts have decreased because of the loan modification.

If you are suffering with more debt than you can afford meet with Chicago bankruptcy lawyers to discuss your options. Many bankruptcy attorneys offer free legal evaluations so you can find out if they can help you before you have to pay them any legal fees. Some even offer flexible payment plans for the legal fees owed.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

Recording artist R. Kelly is reportedly about to lose his Chicago property to foreclosure. The huge 11,000+ square foot home boasts 13 bathrooms and a four car garage.

According to the Chicago Sun Times the value of the home has decreased $1.2 million from is estimated worth of $5 million in 2009. Kelly owes over $2.9 million on the home.

The news of Kelly's potential comes shortly after recording artist Prince narrowly escaped foreclosure on his home. Prince saved his home by making a large lump sum payment to satisfy creditors. Prince's property was not the current home of his residence but a property that he had torn down the main house to build a new one. The project is not complete.

In other financial news Giordano's recently filed for chapter 11 Chicago and the Los Angeles Dodgers have also filed chapter 11. Chapter 11 bankruptcy does for businesses what chapter 13 bankruptcy does for individuals. It is often referred to as "restructuring" because the business or individual assets are not liquidated.

It is surprising to hear that well known businesses and celebrities are suffering financially and may go bankrupt or foreclose on their homes. This just proves how difficult of an economic time it is right now and how important it is to make good financial decisions.

If you are struggling with debts or mortgage payments seek out a credit counselor and if that doesn't work find Illinois bankruptcy lawyers or a foreclosure attorney in Chicago that offers a free legal consultation. Use this meeting to get the answers you need about bankruptcy and foreclosure. You may find a solution that suits your situation and you will be free of the stress of debt.

If nothing else you can rest easy knowing that you are in very good company as far as other people and businesses that are struggling financially.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

We all know the importance of putting aside some money to be used when you retire. Some people have jobs that offer very generous retirement systems or pensions. Others rely on personal 401k's and other retirement savings accounts as well as the knowledge that they will be able to collect Social Security.

No one wants to find themselves at retirement age facing a mountain of debt and considering chapter 13 or chapter 7 bankruptcy in Chicago Illinois.

Social Security has always been a system in place that you can count on. There was no risk of changes and the money you put into social security is safe.

This is why it surprised some Americans to hear that there has been some discussions about making some changes to the social security system. The Chicago Sun Times reported that the proposed changes would involve an increase to income tax as well as a decrease in benefits. The changes would not decrease the benefits that current retired people receive but it could change the amount their benefits are increased as time goes by.

The whole point of these cuts is to save money and reduce the nation's deficit. The changes listed above would save $200 billion.

For people who are counting on Social Security benefits to survive through their retirement should feel nervous about this. Potentially the changes will be minor however if Social Security is your only plan for retirement you might find yourself looking at a future filled with debt and possibly chapter 13 or chapter 7 bankruptcy in Chicago.

When you reach retirement age you want to be living comfortably, not worried about what type of bankruptcy to file for. Set extra money aside now for your retirement and put a plan in place to help you be financially prepared for retirement.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

It is a surprise to most of us when a well known business files for bankruptcy in Chicago. But it happens to businesses all over the country. The most recent victim of bankruptcy is MLB team the Dodgers.

Businesses will file for bankruptcy in Chicago for all different reasons. Not long ago famous Chicago pizza chain Giordanos filed for chapter 11 bankruptcy. Chapter 11 is what the Dodgers are trying to file as well.

Filing chapter 11 bankruptcy is similar to filing chapter 13 in Chicago. Chapter 11 is for businesses but chapter 13 is for individuals. The idea behind these two forms of bankruptcy is that they allow you to restructure your finances and get back on your feet.

Major league baseball is still very popular in our country and there are lots of opportunities for earning money and increasing sales. It is anticipated that Dodgers owner Frank McCourt will try to show how he can restructure the team to make money and survive on it's own after the help of chapter 11. However if the judge does not see the validity of his claims then the Dodgers will be forced to liquidate their assets (sell the team) in order to pay off creditors. It was reported by the NBC Sports HardBallTalk that the team filed for bankruptcy and was unable to make payroll that was due in three days.

Similar to chapter 11, if an individual was filing for chapter 13 Chicago they would have to prove that they have a reliable and steady income coming in. If they have income but are overwhelmed by debts they would be put on a payment plan to pay off creditors. If the plan is kept for 3-5 years then debts would be discharged and the debtor would receive the benefit of a clean slate that comes with bankruptcy.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

When you file for chapter 13 bankruptcy in Chicago you are assigned a bankruptcy trustee. During the chapter 13 Chicago process your trustee will attend the creditors meeting with you and collect your payments and distribute the money to your creditors.

In order to be discharged of debt through chapter 13 Chicago you are required to make payments towards your debts for 3-5 years. These payments need to go directly to your trustee.

Missing payments will result in having your chapter 13 Chicago case dismissed. The payment process is there to prove that you are responsible for your debts and committed to getting back on your feet financially.

Your chapter 13 trustee will not accept a personal check for your payment. You will need to obtain a money order or cashiers check. At the time of getting this money order or cashiers check make sure you save the receipt. You also need to make sure you put your full name and court case information on the front of your check. Your chapter 13 trustee has a lot of cases that they're responsible for. Having your payments organized will help them do their job faster.

A bankruptcy trustee typically receives payments at a PO Box address. This is important to note because if you've waited until the last minute to send in your payment you will not be able to send it quickly with FedEx. Instead you can use Express Mail through the United States Postal Service. Even if you give yourself plenty of time, send your payment through certified mail. That way you can track the delivery.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

The most important thing is to remember that payments should be early instead of on time. You don't want to risk discharge by being delinquent on a couple of chapter 13 Chicago payments.

When an individual is suffering from mounting debt that they cannot afford they may consider filing for chapter 13 bankruptcy. Chapter 13 bankruptcy is best suited for an individual who has a consistent job but still cannot afford to pay their bills in full.

Chapter 11 bankruptcy is very similar except that it is for businesses. Both chapter 11 and chapter 13 bankruptcy are a great option for reorganizing and starting over.

Creditors actually make more money when their debtor files chapter 11 or chapter 13 bankruptcy in Chicago. This is because they require a period of payments made by the debtors and distributed to the creditors. After the payment period is over the debtor is discharged of the remaining debts. Because chapter 7 bankruptcy is liquidation the creditors do not come away with as much from the bankruptcy.

In recent chapter 11 news the famed Chicago pizza chain Giordano's has filed for chapter 11 bankruptcy. By filing chapter 11 the business is asking for relief from their debts and hoping to continue operating their business during the bankruptcy proceedings and after they have been discharged of their remaining debts. According to the Lake County News-Sun the Giordano's debts include: $426,700 to Saputo Cheese USA, $214,000 to Greco & Sons as well as $132,000 to Heinz North America.

If the chapter 11 case is a success they will make payments toward these debts for a few years after filing but the payments will be manageable for the business. After completing their payment schedule whatever debts remain to these companies will be discharged.

If creditors lose money during a chapter 11 or chapter 13 filing in Chicago they may have a basic insurance policy to protect their losses.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

In bankruptcy everyone filing is given a 'means test' by their Chicago bankruptcy lawyers. This test looks at your household income and determines what form of bankruptcy you qualify for.

If your household income is lower than that average of your state than you would qualify for chapter 7 bankruptcy. However if your income is above average then you would have to file for chapter 13 bankruptcy. In layman's terms the difference between chapter 7 and chapter 13 bankruptcy in Chicago is that with chapter 7 you liquidate all assets and at the end become discharged of all qualifying debts. Chapter 13 bankruptcy means that you keep your assets but have to make payments towards them for the next 3-5 years. It is not until this payment plan is completed that you will be discharged of debt.

Everyone's financial situation is different but anyone with a lot of debt but no assets would prefer to file chapter 7 bankruptcy in Chicago. For some couples that are struggling, accepting that their marriage is headed for divorce can be a way to qualify for bankruptcy. The 'means test' evaluates your household income. When two people are divorced they no longer share a household income. This makes it more likely that if two people divorce they can qualify for chapter 7 bankruptcy.

It is very unlikely that anyone would file for divorce simply to help qualify for bankruptcy however it could certainly be a contributing factor.

It is not uncommon for a divorce to be caused in part by financial burdens. The opportunity to liquidate those burdens through chapter 7 bankruptcy can be very appealing and certainly a desirable factor of divorce.

Whatever your situation, your Chicago bankruptcy lawyers will tell you that it is best to file for divorce first and then file for bankruptcy. Trying to do both things at the same time is likely to result in disaster.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

The first thing you need to know about car repossession laws is that if you want to save your car you need to act quickly. Ideally you should reach out to a bankruptcy lawyer in Illinois as soon as you are threatened with the possibility of repossession.

If you're car has been repossessed many lenders don't even give you two weeks before the repossession is final and a bankruptcy lawyer in Illinois is unable to help you.

Once you hire an Illinois bankruptcy lawyer they are going to want to review your financial situation with you. This will help them determine what the best solution will be for you. If you are unable to pay the outstanding balance of your car loan then your only hope to save your car would be chapter 13 bankruptcy. Chapter 13 is a form of bankruptcy where you are assigned a payment plan for a designated number of years. If you successfully stick to the payment plan you can then be discharged of all remaining debts and keep all of your assets.

In order to qualify for chapter 13 bankruptcy you need proof of steady income and you need to be able to show that you will be able to make the necessary payments.

A bankruptcy lawyer in Illinois may review your finances and tell you that you aren't in a financial position to continue making the car loan payments. If this is the case they will look at your other debts. If you are behind in a lot of your finances you may qualify for chapter 7 bankruptcy. With chapter 7 you give up all of your assets but you are wiped clean of all qualifying debt and you get a fresh start.

Once you are faced with repossession you need a qualified Illinois bankruptcy lawyer on your side. Their guidance will help you navigate through the current repossession laws.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

Unfortunately you can't just hire a Chicago bankruptcy lawyer when debt becomes more than you can manage and then just sit back and let them do all the work. Yes, hiring a lawyer relieves you of all the complicated paperwork and legal requirements of filing bankruptcy but there is still plenty for you to do.

Your job during a chapter 13 bankruptcy case in Chicago is in the preparation. You need to organize all the information and debt details your attorney needs. Here is a basic list of what you want on hand for your Chicago bankruptcy lawyer.

1. Personal information like the social security numbers of you and your spouse as well as recent addresses.
2. Proof of income is needed for a minimum of the past 6 months. This includes pay stubs as well as bank statements.
3. All asset information like mortgages or property titles.
4. Bill details for every creditor. Copies of the bills are best because you'll need contact information for the creditors.
5. Investment details like retirement accounts, insurance policies, and investments like CD's, bonds and stocks.
6. Assets sale details including property sales or transfers for the past year.
7. Legal details like past bankruptcy filings or any lawsuits against you will be needed.

The more organized you can be with the necessary documentation the more smoothly your bankruptcy filing will go. You may even save money on legal fees by helping your Chicago bankruptcy lawyer work more efficiently.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

Trust is an important component in any relationship. But when your home, car and financial reputation are in someone else's hands, you want to be sure they are working with your best intentions in mind. Unfortunately there are some Chicago bankruptcy attorneys that may take you as a client and suggest bankruptcy even if it isn't the best decision for you.

When you first speak with an attorney you are interested in working with, they should invite you to meet with them for a free consultation. This gives you the opportunity to get to know the attorney better and it gives them a chance to learn about your situation and determine if they think they can help or not.

It is possible that someone who cannot pay their bills is not a good candidate for either chapter 7 or chapter 13 bankruptcy. Chapter 7 bankruptcy is sometimes referred to as "liquidation" because all assets that you currently have are taken and sold for cash which is used to pay your debts and expenses. Chapter 13 bankruptcy incorporates a payment plan that entitles debtors to keep their assets upon completing the payments. Steady income is a requirement for chapter 13 bankruptcy.

It seems logical that anyone suffering and unable to pay their bills should be able to determine the best form of bankruptcy for them and then file for it. This is true if you meet the requirements however someone can qualify for bankruptcy but not benefit from it.

Regardless of chapter 7 vs. chapter 13 there are some debts that cannot be discharged through bankruptcy. This means you can file bankruptcy and be cleared of all debt but any debts falling into these categories will still be your responsibility.

1. Child or spousal support
2. Student loans
3. Back taxes owed

If your debt is made up primarily of student loans and a tax debt owed to the government and a small amount of credit card debt then bankruptcy is not meant for you. The only debt you would be discharged of is the credit card debt and it is likely that won't be enough to stop you from struggling financially.

Any Chicago bankruptcy attorney who suggests that you should file in a situation similar too this clearly does not have your best interests in mind.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.