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.

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.

Your FICO (credit) score is your key to getting a loan.  When your FICO score is pulled for a home or car loan the score determines if you are qualified to borrow the requested amount and then what interest rate you will pay on your loan. The FICO score alone could disqualify you from the loan or increase the interest rate you will pay for your purchase. If you have filed for chapter 7 Chicago or foreclosed on your home, your credit score is going to need some work before you can get a loan.

We are all familiar with what a credit score is but very few know what goes in to the number.

35% of the score comes from how much debt you have compared to how much credit you have. This is called your debt-to-credit ratio.

10% of your score comes from what kind of loans you have. For example, credit card debt is also known as unsecured debt and is a less stable form of a loan. When you have a mortgage or loan out on a car or house it's considered a secure loan. That is because there is an actual item backing the debt. Secure debt is better received in your credit score.

10% of the score depends on the number of credit applications you have recently filled out. Every time you apply for a credit card (including store cards), car loan, mortgage etc. your credit report is pulled. To differentiate, if you are asked for your social security number on an application, they are going to pull your credit.

35% of your score is dependent on your track record for making on-time payments. This is an easy habit to get into that will improve your FICO score.

15% of your FICO score is based on how long you have been building up your credit history. Blemishes on your credit record stay for as long as 7 years and will continue effect your credit score.

Your Chicago bankruptcy lawyers will tell you that the better you understand your FICO score the easier it will be to increase it. If you have filed for bankruptcy in Chicago or if you are trying to get back on your feet financially for another reason rebuilding your credit is the first place to start.

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.

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.

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.

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.

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.

When filing for chapter 7 bankruptcy in Chicago there is always a concern that one of your creditors may dispute your filing. If a creditor has an objection to the filing they will begin an adversary proceeding which is basically a lawsuit. This can delay or even end your chances of receiving a discharge from your debt.

It is an understandable assumption to believe that your creditors would object to your bankruptcy discharge on the grounds that you will no longer be making payments to them. Certainly they do not want you to be discharged of the debts that you owe to them? Why wouldn't they object?

In many situations creditors actually have insurance policies to protect them from the losses caused by bankruptcies. Of course creditors want to see debtors meet the terms of their loan agreements however they also want to see that the bankruptcy system is not abused.

If a creditor suspects that assets or income have been hidden they will look for proof and contest the bankruptcy filing. These types of financial confusions can sometimes arise from a bankruptcy that coincides with a divorce. Debt between two people who are getting a divorce can be confusing and assets blurred. A bankruptcy may be questionable to a creditor during this time.

Misuse of the bankruptcy system is not good for creditors or debtors.

There are occasions where a creditor protests a discharge and the debtor hasn't actually done anything wrong. This is a situation where you want a qualified Chicago bankruptcy lawyer on your side. You will also have an easier time if you were completely honest and upfront with your lawyer about the complete picture of your financial profile.

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 2005 the Bankruptcy Abuse Prevention and Consumer Protection Act change the way bankruptcies happen. This act set in place a requirement that anyone who plans to file for bankruptcy must complete a credit counseling course at least 180 days before they file for bankruptcy.

The counseling can be done by telephone, on the internet or in person. It is required that the counseling be done by an approved educator. You can find a list of approved courses at the U.S. Trustee Program. Your Chicago bankruptcy lawyers will also be able to recommend credit counselors.

The course is likely to cost $50 to complete.

The goal of this credit counseling is that you'll have the opportunity to look at your financial situation with the help of a financial counselor. You'll better understand why you're in the financial position you're in and potentially find ways to get back on your feet. There is a hope that some people will be able to avoid bankruptcy after they've taken the credit counseling class. It has made bankruptcy less of a "quick fix".

You have to wait approximately 6 months after the credit counseling course to file for chapter 7 bankruptcy in Chicago and then another few months after that before you'll receive discharge. This act makes it important not to delay making the decision to file for bankruptcy. You'll only slow down the time frame for you to receive discharge.

Another component to the Bankruptcy Abuse Prevention and Consumer Protection Act is that there is now a debtor education class required after you file for bankruptcy but before you will be discharged of your debts. Understanding all of the steps required for chapter 7 bankruptcy in Chicago is important to managing your expectations.

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.