Category: Bankruptcy Attorney

You may find yourself without a job and are now overwhelmed with debt you have no hope of paying off. If this sounds like a situation you have gotten yourself into, you might consider filing for bankruptcy. Before you reel back in shock, consider the fact that this may be the best financial decision you can make.

If you still think you are financially sound, ask yourself these questions:

• Do you spend more time on the phone with debt collectors than your family?
• Do you only make minimum payments on your credit cards?
• Do you use your credit cards rather than your salary to pay for necessities, such as groceries?
• Do you have a stack of bills spilling out from your drawer?
• Do you spend your whole salary before the end of the month?

If you answered yes to even two of these questions, your financial situation is more desperate than you thought. By filing for bankruptcy, you can formally declare that you cannot afford to pay what you owe.

To determine where you are financially, you should inventory all of your liquid assets first, such as your stocks, real estate, vehicle(s) etc. After calculating a rough estimate, also figure in your bills and credit statements as well.

If the value of the assets you have is far less than the total debt you owe, consider declaring bankruptcy to get out of this situation. However, do not approach this process.

The worst thing you can do is treat it as a cure-all for your current financial situation. While it will help rid yourself of some debt, you also will be obligated to pay off some debt. The aim of this process is to give yourself a fresh start by discharging certain debts and remove your liability for paying them.

Plus, you will have to file for bankruptcy in the relevant court, a procedure that can be quite complex for the inexperienced. This is where an experienced attorney from Covert Marrero Covert can prove invaluable. Our law firm has a large number of cases involving Chapter 7 bankruptcy and can help you organize your finances and determine the best course of action. This includes filing a petition in court on your behalf to initiate the bankruptcy process. If doing so is not in your best interests, we can help you determine alternatives. Get in touch with us for a consultation today.

The foreclosure process in Illinois or any state, can be a long and tiring endeavor. As a borrower, you may have to deal with financial difficulties – even after it is over and done with. Lenders can also put a deficiency judgment against you to acquire outstanding funds of the loan after the foreclosure.

What are Deficiency Judgments?

Lenders seek deficiency judgment when the owed debt is higher than the sale price of a foreclosed property, which will not cover the amount of debt you owe. The court may tell you to make this payment if the lender appeals to one.

According to the Illinois Code of Civil Procedure, lenders have to file a lawsuit in court to foreclose on a home. In Illinois, lenders can bring two types of deficiency judgments against defaulting borrowers – an in personam judgment i.e. against the borrower and in rem judgment, which is against the property.

In Personam Deficiency Judgment

This is the deficiency judgment the borrower should be really concerned about because if successful, it allows lenders to collect the outstanding amount from them personally. In other words, it gives them the legal right to garnish their salaries and access their bank accounts. In fact, even if the borrower passes away, the lender can collect against their estate.

You can prevent this from happening as a borrower by filing for Chapter 7 bankruptcy. If you file for Chapter 13, you may have to pay part of the debt only.

In Rem Deficiency Judgment

This deficiency judgment usually doesn’t affect the borrower personally. If a lender asks for an in rem judgment, it is seen as part of the foreclosure process, in case the borrower exercises his/her right of redemption.

If you redeem the property after a foreclosure sale, the judgment will allow the lender to put a lien on it to cover the outstanding balance after the payment of the redemption amount. Depending on the court procedure, the foreclosure process can take 215 days in case it is uncontested.

Plus, in Illinois, there can be no deficiency judgment if the lender accepts a Deed in lieu of foreclosure. In this process, the defaulted borrower must transfer the title of the mortgaged property to the lender directly and completely avoid the foreclosure process.

How Covert Marrero Covert LLP Can Help

Receiving a foreclosure notice may feel horrifying, but not if you know the options you have at your disposal. At Covert Marrero Covert, LLP we offer both legal and moral support during this difficult time and provide solutions that can help you get back on your feet faster. The first thing you need to do is act quickly once you receive the notice. This includes working out a mortgage payment schedule with your lender or even filing for bankruptcy – if necessary. Get in touch with us at our law offices in Naperville, Warrenville or Schaumburg, Illinois, for a consultation today.

Bankruptcy is the inability of an individual to repay their debts in full on time per the repayment schedule. Under federal law, all individuals are allowed to file for bankruptcy to seek an immediate stop on repayment to creditors. It can help avoid immediate foreclosure, eliminate legal debts, help stop wage garnishments, and restore any termination of utility services to both your house and business. Debt adjustment or Chapter 13 bankruptcy helps debtors with a repayment plan that can be used to repay debts and seek a new start.

Understanding Chapter 13 Bankruptcy

Also called the wage earner’s plan, Chapter 13 bankruptcy allows a debtor to repay full or partial debts over a period of three to five years, depending on their income. An incorporated business or self-employed individual can file for chapter 13 unless a previous bankruptcy petition was dismissed by the court prior to 180 days because creditors exercised their liens or debtor failed to appear in front of the court. An Official Bankruptcy Form should be completed, which includes list, amount and nature of creditors, source and frequency of debtor income, debtor property list and debtor’s monthly expenses. If you are filing Chapter 13 bankruptcy for the first time, seek support from a competent bankruptcy attorney.

Advantages

Possible advantages include:

• Removes all creditor accounts after 7 years,
• No assets such as vehicles, house or other property are confiscated,
• No income test is required, but an Official Bankruptcy Form must be filled and verified,
• Provides up to five years to repay debts,
• Allows for forming classes of creditors, and reduction of principal or interest fee can be sought,
• Repayment plan modification available if debtor loses their job.

Disadvantages

Bankruptcies need timely repayments and must adhere to the plan for a debtor to seek relief:

• Chapter 13 bankruptcy can only be valid if the debtor salary is below the median wage,
• Almost all disposal cash is applied to a repayment plan and payments are done through payroll,
• It can be hard to buy new assets or mortgages,
• Chapter 7 straight bankruptcy cannot be sought during the repayment period,
• It can be difficult to improve your credit score for 7 years until the debts are removed from credit history.

Upon discharge, a debtor will still be liable for repayment of all long-term debts, government taxes, child support or education loans.

If you wish to know more about chapter 13 bankruptcy filling in Illinois or speak with an experienced bankruptcy attorney, contact the offices of Covert Marrero Covert LLP at (630) 717-2783 and schedule a free consultation session.

Bankruptcy is a difficult time and you need to meticulously plan for everything. Hiring the wrong attorney can make matters worse. Finding the right lawyer to file for bankruptcy is essential to help you and your business. Before you browse the Internet for the best bankruptcy attorney, here are some things you need to look out for before hiring an attorney.

Experience in Relevant Field

Let’s start with the most obvious: Look for a lawyer with years of experience in managing bankruptcy cases. The important thing to consider is years of experience may not always mean this particular lawyer will be a good choice. Instead, look for a competent bankruptcy attorney who has years of experience in dealing with different types of bankruptcy cases. If an attorney has more experience in winning Chapter 7 bankruptcy cases (and if your bankruptcy is around the lines of Chapter 7) but not Chapter 13 or Chapter 11, then the best choice would be to choose the one with more experience in Chapter 7 cases.

Availability

When you need an experienced bankruptcy attorney, it is essential to consider how accessible he/she is. Check the availability of the lawyer by booking an appointment. If he/she were too busy, they would probably let you know if they are taking on any new cases.

Malpractice Insurance

When you need to hire a bankruptcy lawyer, make sure they have malpractice insurance. If they don’t, find a lawyer who has. It’s important to keep in mind the insurance provides protection for the lawyer and not the client.

Ask Other Business Owners and Legal Professionals

To help you find the right lawyer for your bankruptcy case, you should ask other business owners and legal professionals for recommendations. If someone has already worked with a competent bankruptcy attorney, ask them for contact information of that lawyer. You should observe other bankruptcy lawyers in court and see how they handle the case. If you like any particular lawyer, you may ask him/her to represent you in court regarding your bankruptcy case.

Ask Questions

Asking different questions from your potential bankruptcy attorney is the best way to determine if a particular lawyer is right for you. Don’t hesitate to ask any questions you have regarding the lawyer’s qualification, experience, the toughest case they may have ever handled, and most importantly, ask about their accessibility to you during bankruptcy filing proceedings.

If you wish to know more about filing for bankruptcy in Illinois or speak with an experienced bankruptcy and real estate attorney, contact the offices of Covert Marrero Covert LLP at (630) 717-2783 and schedule a free consultation session.