Bankruptcy in America has been on the rise since the financial crisis upended so many individuals and businesses. Taking on a significant amount of debt was common during the days of the early 2000’s and people felt justified in banking that their job, business, and other investments would remain secure enough to allow a certain level of expenditures. When the bubble burst, those mortgages, student loans, long-term leases, and credit card debt became extraordinarily difficult to pay off. For those who lost a job, switched to a job with lesser pay, had their hours reduced, had a business fail, or have been unable to find work out of school bankruptcy has been an option that offers a fresh beginning.

The challenges on the road to recovery may seem daunting, but there are many things you can do to get your financial status back on track. The following tips can help if you are currently recovering from bankruptcy:

Don’t try to do everything yourself: Seek help! There are many for-profit and non-profit local financial counseling organizations all over the country that can provide support and strategic advice. Additionally, online and local communities of people going through the same thing can be a useful outlet.

Examine what caused the bankruptcy and address any issues: It is crucial to develop a plan to both recover from bankruptcy and stay out of trouble in the future. Make sure you tailor any plan to fit your situation. Creating a new budget, starting a career development plan, and looking for different types of employment may put you in a better position to avoid future financial turbulence.

Set goals: The road to recovery might mean striving to establish a solid credit score, reducing spending, or paying off all debts. Setting goals give you something to work towards, and can help you stay motivated, giving you a sense of accomplishment when you achieve your goals.

Pay your bills on time: Improving credit is a big part of recovering from bankruptcy. Your bill-paying habits account for approximately 35% of your credit score, which is the single biggest factor in what determines a score. This means that making on-time payments is an effective way to improve your score over time.

Watch out for predatory lenders: Bankruptcy in America sometimes means that certain lenders will specifically target you, as a bankruptcy filer. This is why recent filers should be wary of deals that sound too good to be true and/or carry high interest rates. You may be so eager for credit approval that you agree to contracts with high interest rates, but this is risky and may lead toward the same situation you went through bankruptcy to escape.

Keep an eye on your credit score: Recovery from bankruptcy definitely does require some initiative on your part. Be aware that your credit score may contain old or inaccurate information, which can affect everything from job applications to car loan rates. Removing incorrect information could improve your score in surprisingly significant leaps and bounds.

Re-establish credit: A strategic move, such as taking out two credit cards, buying a limited amount of items with them, and paying them off fully each month will improve your credit score.

Stay positive: This is a fresh start. You have escaped that cloud hanging over you and you now have an opportunity to start over. The good news is, once debts are cleared, most people's credit improves after filing for bankruptcy. Bankruptcy can affect lenders view of you as a risk, but they will also note your lack of debts, and many will give you a chance. Stay focused and stay positive, you are on the road to recovery!

Recovering from bankruptcy in America is a process. Don’t get discouraged- there are plenty of good people in the same boat, and the bankruptcy system is there to help people get out of tricky financial situations. Chang & Carlin, LLP can assist you with your bankruptcy legal services, and work with you on the road to recovery from financial turmoil. We offer reasonable fees to meet your legal needs while filing for bankruptcy. Our goal is to improve your financial outlook. Request a Free Bankruptcy Filing 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.

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.

Property exemptions are a way to help you get a fresh start during bankruptcy proceedings. Bankruptcy offers you a new beginning if you've been overwhelmed by debt. It can be very useful, as your debts are discharged, wiped out, or you can have a chance to pay them off over time. A major downside is that some of your property may be sold to pay your creditors. Despite this risk, bankruptcy proceedings are not in place to strip you of everything. The laws were designed to leave you with enough assets and possessions to make a new start.

One of these laws allows a number of property exemptions, which won't be used to pay your creditors' claims. These exemptions are tools which help you to start fresh on the path to a clean slate. The following is a list of a few types of property exemptions that protect you from creditors:

• The Homestead Exemption: This exemption refers to the house that you live in. You can use this exemption if you are filing for bankruptcy to protect equity in your house as long as you live in the house in question. While state homestead exemptions vary quite a bit, the federal homestead exemption was $21,165 as of 2011.
• Motor Vehicle Exemption: Bankruptcy filing law protects a certain amount of value of any one motor vehicle listed in your U.S. federal bankruptcy. Additionally, if you file bankruptcy with a spouse it is possible to combine vehicle exemptions to protect double in vehicle equity, as long as both parties are on the title to the car. As of 2011, the federal exemption for an automobile was $3,450. The equity in your car is based on the car's market value, minus any loans against it.
• Life Insurance Proceeds Exemptions: The federal exemption protects any payment under a life insurance contract that insured the life of an individual of whom you were a dependent, to the extent reasonably necessary for your support or the support of your dependents. The federal exemption of life insurance is a $10,775 of life insurance policy with loan value in accrued dividends or interest along with disability, illness or unemployment benefits, life insurance payments from policy for person filer depended on, and matured life insurance contracts.
• Retirement Assets: The federal exemption (and most states) applies to pension, profit sharing and stock bonus plans, Individual Retirement Accounts (IRAs), and deferred compensation plans such as your 401(k) account and other funds.
• Personal Property: These exemptions are allowed under federal and state bankruptcy laws. As of 2011 the total federal exemption was $11,525, although no one item can be worth more than $550. As items in this category usually have little resale value, this type of property is usually safe from trustees attempting to sell it to repay your creditors. Animals, appliances, books, crops, clothing, furnishings, household goods, and musical instruments are included in this category.

Bankruptcy proceedings differ from state to state, as do the types and amounts of property exemptions. Even though bankruptcy is federal law, and many states have similar procedures on handling Chapter 7 and Chapter 13 bankruptcy, you want to make sure you fully understand any state specific laws. An experienced bankruptcy lawyer like those at Chang & Carlin can help you navigate the complex world of bankruptcy proceedings. At Chang & Carlin, LLP, we work to represent individuals and families going through difficult economic times.

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.

If you are closing a business due to bankruptcy, it is important to know your options. Eight out of every ten business owners will face serious financial problems at some point. Financial issues can occur for many reasons, whether it is the overall economy or a poorly conceived business strategy, there are really only 3 viable choices for a business when facing the financial crunch:

• Find a way to secure more financing
• Default on your loan
• File for a business bankruptcy

Going bankrupt is the simplest way to escape those relentless creditors, but it creates a red flag for your future financial endeavors and hurts your credibility as a business owner. Unfortunately this can lead to both business and personal issues down the road.

If you are closing a business and going bankrupt, you can file under one of three chapters of bankruptcy - Chapter 7, Chapter 11, or Chapter 13. In some cases your business must shut down during bankruptcy, while in other cases your business may remain open. Bankruptcy may be a way to get out of an oppressive lease and provides an orderly way for closing a business. While it can create a black mark on your credit score, filing for bankruptcy does not stop you from trying again and starting a new business in the future.

The following are the different types of bankruptcy and how they could apply to you if you are closing a business:

Chapter 7 This chapter is available for those businesses that are closing permanently. Although valuable assets may be liquidated and used to pay off the debt, this chapter of bankruptcy releases the filers from any obligation to pay. Chapter 7 is available to any type of business.

Chapter 11 Since corporations do not qualify for a Chapter 13, Chapter 11 is available, allowing businesses to reorganize debts and gradually pay them off. Businesses can even remain open during the bankruptcy process while they pay off their debts, and have 6 years to do so. Chapter 11 is available to any business, including corporations.

Chapter 13 Sole proprietors can file for Chapter 13, although they must file as individuals with business debts for which they are personally liable. Upon filing, an automatic stay is initiated, which prohibits the creditors from making any attempt to collect their debt, including starting foreclosure and repossession. Corporations may not file for Chapter 13.

You may have to close your business down if you file for Chapter 7 personal bankruptcy. However, you may be able to keep your doors open if you own an LLC or corporation with the other Chapters, even if you’re liable for a significant portion of its debt.

Even though bankruptcy is federal law, and most states have similar procedures on handling bankruptcy, bankruptcy filing law differs from state to state.This is why it is a good idea to always consult with a bankruptcy attorney from the state where your case is taking place.

The lawyers at Chang & Carlin, LLP are sensitive to the difficult decision you may be facing and are here to help you through this tough financial and personal time in your life. If you are considering closing a business and going bankrupt, let us help you determine what your options are and create a road map to guide you through the process of getting the best results possible for you and your business.

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.

What is Chapter 11 Bankruptcy and how does it compare to other forms of bankruptcy? To begin, Chapter 11 tends to be targeted to larger businesses, but individuals may also use this reorganization plan. Under Chapter 11, businesses and individuals may restructure their debt without liquidating their assets. So who typically uses Chapter 11?

• Small businesses
• Individuals
• Partnerships
• Corporations
• Other business entities

This plan allows these parties to reorganize operations and continue running through the whole bankruptcy process. Individuals with high levels of debt may use this process, but it can be very complex and costly. Most individuals seeking bankruptcy without liquidation prefer to file under Chapter 13.

What is Chapter 11 for Individuals?

• Chapter 11 is often the only option available to an individual debtor with income greater than that allowed by Chapter 7, and has secured debt greater than that allowed by Chapter 13.
• For example, an individual may own a large section of real estate property, but does not have sufficient liquidity to pay debts as they occur.
• Chapter 11 benefits individuals by allowing them to keep assets beyond the exemptions available under Chapter 7 and Chapter 13.
• Chapter 11 cases for individuals are infrequent, so if you are an individual considering filing Chapter 11 the guidance of a bankruptcy attorney could be very beneficial.

To initiate a Chapter 11 Bankruptcy case, a voluntary petition is filed with the bankruptcy court. Once the initial filings have commenced, all assets, liabilities, and a statement of financial affairs also must be filed.

Automatic Stay: Once the Chapter 11 process has begun, creditors must cease all actions to collect money owed to them from you or your business immediately. This allows an individual or business to begin negotiations with creditors, granting you some time to work through financial difficulties.

Chapter 11 also grants the exclusive right to file a plan of reorganization for a period of 120 days and to solicit a plan of reorganization for a 180 day period.

To better understand what Chapter 11 bankruptcy is, knowing the basics of other common types of bankruptcy is also useful:

Chapter 7 Bankruptcy: Probably the most common form of bankruptcy used by individuals, although businesses also may file under Chapter 7.  

• A court-appointed trustee assesses and gathers the individual’s assets.
• The assets are sold by the trustee for cash which pays off creditors.
• Some assets may be exempt, and these will not be liquidated.
• Chapter 7 filing cannot be repeated for six years.

Chapter 12 Bankruptcy: This voluntary bankruptcy is tailored specifically for farmers and fishermen who have a steady income.

• The debtor establishes a plan to pay off all or part of their debts over a certain period of time.
• Chapter 12 is a much less daunting and expensive procedure than Chapter 11.

Chapter 13 Bankruptcy: Works for individual debtors with a steady income and small businesses.

• During “individual reorganization,” debts are paid over a 3 to 5 year period and the debtor may keep their property.
• Chapter 13 stops foreclosures and repossessions.
• Once a plan is confirmed, creditors will be required to accept payments according to the terms of the plan or not get paid at all.

Hopefully this overview has been useful for those wondering, ‘What is Chapter 11 Bankruptcy?’.

Even though bankruptcy is federal law, and most states have similar procedures on handling bankruptcy, bankruptcy filing law in Illinois differs from laws in other states.That is why it is a good idea to always consult with an Illinois bankruptcy attorney.

The lawyers at Chang & Carlin, LLP are sensitive to the difficult time you may be facing and are here to help you through this tough financial and personal time in your life. If you are considering filing bankruptcy, let us help you determine what your options are and create a road map to help you get out of debt.

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 was recently decided that Eastman Kodak Co., will no longer produce digital cameras, digital picture frames or video cameras. Kodak has been in bankruptcy since January and is restructuring the company through chapter 11. It has been reported that Kodak has approximately $6.8 billion in debt.

Kodak is a 131-year-old company that is most commonly associated with film. In past years it tried to compete in the new technology of digital photography, but the income wasn't significant and the equipment they made was not memorable for customers.

According to an article in the Chicago Tribune, Eastman Kodak will now focus on printers, photo printing both online and in retail locations, as well as accessories for cameras and camera batteries. This new product line is far removed from the original cameras and film they once sold. It is expected that Kodak will continue to make film however the market for it is growing smaller and smaller.

The fate of Eastman Kodak compares with that of companies like Borders and Blockbuster. Borders filed bankruptcy after they could not compete in the e-book technology and hard copy books are becoming a thing of the past. Blockbuster could not compete with online services like Netflix and ultimately sold itself to Dish Network.

These are examples of businesses like Kodak that were not able to evolve their business with the changing times. Chicago company Hostess is currently working with bankruptcy lawyers, because the business is suffering in part due to new healthy eating habits by the American people. As we become better educated on healthy foods, Hostess specialties like Twinkies are not being purchased.

Eastman Kodak hopes that they can use the opportunity of bankruptcy to restructure their business to make it profitable again. The removal of digital cameras shows they are not trying to compete in their old specialty. They are looking ahead to grow their business and get out of debt for good.

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.

Each year on December 31st Americans pledge to eat healthy and spend less in the coming year. Turns out these resolutions are causing hardships for well known brands like Quiznos sandwich shops and Chicago's Hostess Brands.

With more people packing lunches and pinching their pennies Quiznos has found themselves in debt. According to the Chicago Sun Times they owe $875 million. The company is working with creditors to restructure the debt and make it possible for the company to pay off debt while avoiding bankruptcy. This is what Chicago bankruptcy lawyers would call, restructuring.

If successful, Quiznos can restructure their debts without bankruptcy and save themselves and their creditors the expense of bankruptcy while working together to get back on their feet.

Sometimes the best way to avoid bankruptcy in Chicago is to evaluate the success of your marketing presence. If Quiznos is losing customers concerned with cost they should market daily deals, sandwich giveaways and show customers that their product saves them money.

Hostess is filing for bankruptcy in Chicago. The brand is responsible for Wonder Bread, Ho Hos, Ding Dongs, Twinkies and Sno Balls. These snacks are well known by all Americans and their brand is strong. The problem for Hostess is the 150 calories packed in one Hostess Twinkie. Americans who are concerned with their health and diet are not buying Hostess products at the store.

Due to this change in American's diets Hostess is seeking the help of bankruptcy lawyers to file chapter 11 for the second time in 10 years.

This raises the question of how the company will do after bankruptcy. Healthy eating habits are here to stay and the best way to avoid bankruptcy is to market their product and develop new products for health conscious Americans.

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 an individual or business is about to go into bankruptcy or foreclosure they often spend their final months trying everything in their power to avoid those things. A homeowner will try desperately to stop foreclosure or sell the home before it is taken. A business owner may also try to sell a business in hopes of garnering a profit that can be used to pay of creditors.

According to an article in Yahoo! Auto Swedish car manufacturer Saab tried one last thing to save the business from bankruptcy. They worked out a deal with Chinese automaker Zhejiang Lotus Youngman. For a moment is seemed as if Saab would survive however GM blocked the agreement for security reasons. Saab is currently being manufactured with a GM engine because GM was the owner until 2010 when it was purchased by Dutch entrepreneur Victor Muller. GM also does a lot of business selling cars in Asia so having that information in the hands of a car manufacturer there was risky for their business.

GM narrowly escaped bankruptcy itself in 2009 and cannot afford any further set backs.

Probably a wise decision for GM has resulted in bankruptcy and liquidation for quirky car brand Saab.

Chicago bankruptcy lawyers will tell you that Saab probably did everything they could to avoid bankruptcy. Working deals at the last minute means they were trying to avoid bankruptcy just as any individual would.

If you are feeling the threat of bankruptcy hanging over your head talk to Chicago bankruptcy lawyers today and find out what steps you can take to secure your financial future. A bankruptcy filing attorney in Illinois is likely to offer a free legal consultation. This is an opportunity to get your questions answered before you commit to working with them. If you are struggling financially take advantage of the free advice and find out if there is a reasonable solution for your financial problems.

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.

Rapid growth of a business can potentially ruin the business by taxing its resources and decreasing the quality of the product. Chicago bankruptcy lawyers have seen too many businesses fail because they overextended themselves and took on too much new business.

According to an article in AOL Jobs, this is true for a cupcake bakery in the UK that offered an aggressive Groupon. The Groupon let customers order from her online cupcake business for 75% off. The bakery owner knew that the deal would cost her $3.80 for each Groupon that was sold but she believed the loss was worth it for the increased exposure for her business.

On a small scale this might have been true however in this instance 8,500 of the bakery Groupon's sold. Because the bakery owner had to hire 25 additional staff members to complete all of these orders the loss totaled over $50,000.

The bakery owner nearly escaped filing chapter 11 bankruptcy and called the Groupon situation a total disaster in the AOL Jobs article.

Any business owner will tell you that some edeavors lose money while others make money. It's a learning process but when a business suffers a loss this great it can push the owner into chapter 11 bankruptcy.

Chapter 11 bankruptcy for a business is often similar to chapter 13 bankruptcy in Chicago. It gives a business an opportunity to restructure to ensure that they can make payments towards their debts and get out of debt. In order to file chapter 11 you have to prove that your business will be profitable again after getting through this current financial situation. For other businesses chapter 11 may be more like chapter 7 bankruptcy in Chicago where all assets are liquidated and the business is dissolved after the bankruptcy filing is complete.

According to the article in AOL Jobs the bakery owner had the option to control their sale with communication with Groupon. A Groupon representative explained that the bakery owner initially wanted to do a Groupon nationally in the UK but the company convinced her to focus on a smaller reach of 15 markets. Groupon also explained that businesses have the option to stop a sale during the day if it's selling too quickly or to put a cap on what they can afford to sell.

When used wisely a marketing tactic like Groupon can be great for a business, but it imperative that you understand the big picture before publishing your offer.

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.

Chicago lovers and pizza lovers were saddened in February when they heard that well loved pizza chain Giordano's was filing for chapter 11 bankruptcy in Chicago. There was a brief attempt to stop bankruptcy in May when the owner, John Apostolou filed documents to terminate the bankruptcy filing however it was not successful.

According to an article in Nation's Restaurant News the case did not go smoothly at first but after the trustee of the case is reporting that there have been no problems since.

Giordano's is a family restaurant that was originally opened by two brothers in 1974 and then sold to Apostolou in 1988. Apostolou's two sons and one nephew are part of the business as joint-venture partners in two of the chain's Florida locations. Giordano's owns 47 locations in Illinois and Florida.

Giordano's customers are worried about what's going to happen to their favorite pizza place. Giordano's is currently in the liquidation phase of the chapter 11 bankruptcy filing. You may recognize the term liquidation from chapter 7 Chicago bankruptcy. Chicago bankruptcy lawyers would explain that when you file for bankruptcy all of your assets are liquidated in an attempt to pay as much to your creditors as possible.

Giordano's has several pieces of real estate, restaurant locations, joint-venture restaurants as well as franchise agreements. This is a very valuable company to the right person. It is possible that each asset will be sold of separately and individuals could open a new restaurant or do whatever they want with the property. There has been some discussion as reported in Nation's Restaurant News that Gino's East is interested in buying Giordano's. If Gino's East did buy Giordano's they are likely to keep it Giordano's and continue to operate it. Giordano's and Gino's East have been competitor's for years.

Whatever happens with Giordano's it is certain that things will change for the popular pizza chain.

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.