Facing Chapter Seven Bankruptcy is a daunting prospect for those who do not understand the process. Most people live in fear of bankruptcy and may be afraid to consider going to bankruptcy court. However, despite the presence of that dreaded “B” word, opportunity is the light at the end of the tunnel. Understanding Chapter Seven bankruptcy laws and how they can benefit you is a big step on the journey to financial recovery and future success. One of the biggest advantages to declaring Chapter Seven is that you can put an immediate stop to the creditor threats and harassment.

So what exactly is Chapter Seven Bankruptcy, and how can it help you? Sometimes referred to as liquidation, this form of bankruptcy can be a way for individuals (and some businesses) to eliminate unsecured debt when they are in over their heads with monthly payments.

Discharges A discharge can take care of money owed on credit cards, medical bills, personal unsecured loans and many other types of unsecured debt. According to the US Federal Court’s website, a discharge “...releases individual debtors from personal liability for most debts and prevents the creditors owed those debts from taking any collection actions against the debtor. Because a discharge is subject to many exceptions, debtors should consult competent legal counsel before filing to discuss the scope of the discharge.”

Automatic Stay Additionally, an automatic stay will stop most collection actions against you or your property. As long as the stay is in effect, creditors may not initiate or continue lawsuits, wage garnishments, or those harassing telephone calls demanding payments.

Potential Loss of Property However, potential debtors should understand that filing a petition under Chapter Seven may result in the loss of property. In the ensuing case, the bankruptcy trustee will gather and sell the debtor's nonexempt assets to pay creditors. Additionally, some of the debtor's property may be subject to liens and mortgages which pledge the property to other creditors. Moreover, the trustee will liquidate the debtor's remaining assets. The news is not all bad though, as bankruptcy court allows certain property to be exempt from liquidation.

What is Exempt From Chapter Seven Bankruptcy? There is a category of debt classified as “non-dischargeable debts”, which include child support, student loans and most types of tax related debt. Additionally, whether certain property is exempt and may be kept by the debtor is often determined by state law. Consulting an attorney is important in order to determine the exemptions available in the state where the debtor lives.

Secured vs. Unsecured Debt Bankruptcy court will not automatically discharge liens such as your mortgage. If you want to continue to own your home or car, you will need to continue making payments. It is possible, under Chapter Seven to give the “security” back and discharge the remaining debt along with the rest of your unsecured debt. You will need to negotiate a reaffirmation agreement with your lien holders where you continue to make payments in exchange for keeping your property. A reaffirmation is an agreement you make with a creditor that you will remain liable and will pay all or a portion of the money owed, even though the debt would otherwise be discharged in the bankruptcy.

The process may be daunting to think about, but it does not actually take very long to complete; typically, cases only lasts three to four months from the time your Chapter Seven attorney files a case in bankruptcy court on your behalf. After that you will have a fresh start and a plan to stay debt-free. Let Chang & Carlin, LLP help you determine what your options are and create a road map to help you get out of debt; request a Free Consultation today.

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.

Chapter 7 Bankruptcy can happen to anyone. This was recently proven when Chicago Bears alum Bob Avellini filed for chapter 7; Avellini played for the Chicago Bears as a quarterback from 1975 until 1984.

It is unclear what caused the former Chicago Bears quarterback to seek help from bankruptcy court - according to an article in the Chicago Tribune Avellini had $2.2 million in debt and $1.3 million in assets. The article quoted Avellini's current employment to be a self-employed property manager.

You can speculate what pushed Avellini to file bankruptcy, but ultimately he could no longer pay his bills. The decision to file chapter 7 instead of chapter 13 bankruptcy means that the Chicago Bears alum will have his $1.3 million in assets liquidated and the money made from the sales will go to make payments towards his debt. If the bankruptcy filing is successful, Avellini will then be discharged of his remaining debt and given a fresh start.

Had the Chicago Bears alum decided to file for chapter 13 bankruptcy instead he would have had to show proof of income and then be set up on a trustee approved payment plan. Avellini would be expected to make agreed upon payments to creditors for 3-5 years. Once the payment plan was completed he would be discharged of the remaining debt.

When a high profile person like a former Chicago Bears quarterback files for bankruptcy it draws a lot of public attention. It is likely that during the case his bankruptcy lawyers will shed some light on what caused the bankruptcy filing.

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 we are trying to save money there are expenses that are so important we have no choice but to pay them. Things like food, car and health insurance, gas and pet food feel like cost that will never go away.

With many Americans out of work and narrowly escaping chapter 7 bankruptcy in Chicago, some may begin to feel they are out of options.

Your Chicago bankruptcy lawyers will tell you that making changes to your spending on necessities might be the difference between filing for bankruptcy and getting back on your feet financially.

An article in Yahoo! Finance outlined several ways you can cut down on costs that you may have thought were here to stay.

Health Care Costs -
Employers who offer health insurance often offer multiple plans to their employees. Shop your options every year at open enrollment. Consider how often you visit the doctor and how much the co-pays will be. If your spouse has insurance through their employer determine who has better coverage. 

For someone with healthy teeth the cost of dental insurance that is only used for 2 cleanings a year is a huge waste.

Lower Car Expenses -
Most of us have to drive everyday. Gas is not an expense we can avoid but we can decide how much we're going to pay for it. Websites like Gas Buddy and FuelPrices.net can tell you what gas station has the cheapest gas in your area each day. Save money on insurance by updating your policy each year and shopping competitors prices for the best rate.

Spend Less At The Grocery Store -
Everyone has to eat, there's no way around it. However you can cut the cost of food with a little effort. 

Grocery store sales run on a 12 week cycle. This means that every 12 weeks the cost of staples like cereal and meat are at their lowest. If you can line your shopping up with this cycle it can result in huge savings. If you don't buy enough to warrant a bulk food store membership consider splitting one with another family may be the perfect solution.

Cut Pet Care Costs -
Buying your pet's food at Target or Walmart can help you save a lot of money. It might even save you a trip to the pet store. More competitors have emerged that make flea and tick prevention medicine. Some of them are priced significantly lower than others.

Paying a little more attention to how you spend your money and what you can do differently can go a long way. Make these changes in 2012 and watch the savings pile up.

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 today's job market there is no doubt that many former students are having difficulty making their student loan payments. College is expensive and loan payments can be as much as a mortgage in some cases.

It is important that former students figure out how to make those student loan payments because if you file for bankruptcy in Chicago your student loans will not be included in the debts that are discharged. Debts owed for back taxes, alimony and child support are other forms of debt that cannot be discharged through chapter 7 or chapter 13 bankruptcy in Chicago Illinois.

This makes it more important than ever to evaluate your finances before student loans kick in. Far too many former students do not realize how much they have in loans or who they will owe money to. Some loans are private, others are from the government. These loans will all carry different interest rates.

The first step a recent college graduate should take is to look at their student loan debt and research their options for consolidating their loans. Loan consolidation will sometimes carry a higher interest rate because of the various lenders you could have used. However if you have never consolidated before, you may be eligible for a special low interest rate.

Most importantly, if you are unable to make payments and feel like chapter 7 Chicago is your only option, don't just stop making payments to your student loan creditor. Contact your lender and see if you can defer the loan payments to help you get back on your feet. There are a lot of resources available to those that take action when they feel they are getting into trouble financially.

Organizing your student loan payments and making on time payments is a great way to avoid chapter 7 bankruptcy and build your credit.

Loan consolidation makes it easier to make payments, helps make sure you won't miss a payment and can often save you money in the long run.

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.

Credit Card debt is a big problem in America. The July issue of Woman's Day reported that the average household carries over $10k in credit card debt. Once you've gotten this deep in credit card debt it can begin to feel impossible to get out of it.

If credit card debt gets out of control it can very easily lead to chapter 7 in Chicago.

This is because a lot of Americans do not know how to start digging themselves out of debt and don't know that there are credit counseling and financial advisors available to them.

The first step in recovering from credit card debt is to start looking at the numbers. Look at your total debt and figure out how long it will take you to pay off if you only pay the minimum. The answer will be staggering enough to make you want to pay a lot more than the minimum. But for those who carry debt on multiple cards it can be hard to decide where to start paying down.

The best choice is to pay extra on your credit card with the highest interest rate. While you are paying that down just pay the minimum on your other cards. Once you pay one off move to the next highest interest rate card.

If you have good credit you may be able to get a low interest credit card. If that is possible you should consolidate all of your credit card debt onto that one card and start paying it down.

The July issue of Woman's Day suggests that if you are tempted to make a purchase using your credit card look at the price of the item and break it down with your hourly pay rate. How many hours would you have to work to pay for this item? And if you charge it you should figure you'll pay double for it before it's paid off when you factor in interest. This should make you think twice before making an unnecessary purchase.

Evaluating your credit card situation and putting together a plan is the best way to avoid chapter 7 Chicago.

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 someone files chapter 7 bankruptcy in Chicago they will do so knowing that all of their assets will be liquidated. The cash from the liquidation will be used to make payments to creditors.

Many do not understand all the possible exemptions allowed with chapter 7 bankruptcy. Potential exemptions are:

• Social security benefits
• Pensions and retirement benefits
• Cash from any insurance policies
• Approximately $17,000 of equity in their home
• Up to $1,000 worth of personal jewelry
• Tools used for your job
• A minimum of 75% of wages
• Federal exemptions: survivor, disability, lighthouse worker's and miscellaneous benefits
• A homestead exemption may allow you to keep some of the equity in your home.

Exemptions vary by state and you do not automatically get these exemptions. The proper exemption paperwork needs to be filled out by your trustee. Consult with your chapter 7 bankruptcy lawyer right away and determine which of your assets may qualify for exemption.

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.

Bankruptcy trustees are assigned to every bankruptcy case. The job that they perform is essentially to handle the financial analysis and distribution of funds.

Due to the vast differences between chapter 7 bankruptcy and chapter 13 bankruptcy the role that the trustee takes on is very different.

People often wonder how the trustee is paid, especially in chapter 7 bankruptcy which involves liquidation of all assets.

The trustee in chapter 7 bankruptcy reviews all the assets that are owned by the debtor and then liquidates them. The cash from the liquidation is used to make partial payments to their creditors and also goes to the debtor to help them maintain their monthly bills. Another portion of the money from the liquidation goes to pay the trustee.

When someone files for chapter 13 bankruptcy they have a sizeable income and usually either did not qualify for chapter 7 because they make too much money or wanted to keep whatever assets they have. The trustee in a chapter 13 case reviews the debtors income and debt. They then organize a payment plan which has to be approved by the bankruptcy court. Once they plan is approved and the debtor begins making payments the trustee receives a payment/commission from these payments. The payments are made for a few years and once the plan is completed the debtor is discharged of remaining debt.

When people file for bankruptcy money is obviously very tight. Despite this there are some fees that cannot be avoided. Paying the court fees, attorney fees and paying a trustee cannot be avoided.

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 question on anyone's mind when they decide to file for bankruptcy is whether or not they will be able to keep their assets.

If you are filing for bankruptcy but still have a steady income you may be able to file for chapter 13 bankruptcy and keep your assets.

Chapter 13 bankruptcy sets you up on a revised payment plan for your assets. You make the assigned payments for a certain block of time and once you have completed the terms agreed upon you will be discharged of remaining debts and you can keep your assets.

People who have an income below the median for the state of Illinois are eligible to file for chapter 7 bankruptcy. Chapter 7 bankruptcy is typically identified as the "liquidation" form of bankruptcy. The only way to keep an asset while filing chapter 7 bankruptcy is to reaffirm your debt. This means that you work with the creditor and come to an agreement to keep your asset and continue to make payments towards you debt. Reaffirming your debt can keep that asset out of the bankruptcy proceedings.

Contrary to popular belief it is possible to keep your assets when you file for bankruptcy. Bankruptcy can be much easier to accept when you can keep your home or vehicle safe. To better understand what type of bankruptcy best suits your situation you should discuss your options with a Chicago bankruptcy attorney.

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.