This is the case of John Zales who comes to me from Brookfield, Illinois which is located in Cook County.  John is interested in a Chapter 7 fresh start bankruptcy.  He has never filed for bankruptcy before.  He does not own any real estate.  He is currently renting from a landlord in Hodgkin’s, Illinois.  It is a month to month lease.

One spouse can file for bankruptcy without the other joining in the process, or even consenting to it. There are many instances where a couple would only want only one spouse to file. If one spouse has all the debt, but all of the assets are in the name of the other spouse, only the... Read More »

One spouse can file for bankruptcy without the other joining in the process, or even consenting to it. There are many instances where a couple would only want only one spouse to file. If one spouse has all the debt, but all of the assets are in the name of the other spouse, only the debt-ridden spouse would file. This would result in the couple keeping all of the assets while getting rid of the unmanageable debt—what is known today as a “win-win” situation.

Chapter 13 bankruptcy is often used to save a person's home from foreclosure. Under chapter 13, you are allowed to stop the mortgage foreclosure case and catch your mortgage up-to-date. The chapter 13 plan usually involves paying off the mortgage arrearage over a 3 to 5 year period in addition to making your regular ongoing monthly mortgage payments.

Nobody looks forward to filing bankruptcy. Most would say there is never a good time to need to file bankruptcy. Some times are better than others.  A better time to file the bankruptcy is after you receive the refund.

Typically the filing of a bankruptcy, whether it be a chapter 7 or a chapter 13 eliminates any type of tax liability with regard to the discharged debt.  You might find that a creditor will send you a 1099C at some point after you file for bankruptcy.  However, if you contact your accountant or your CPA or your tax preparer, they will likely advise you that the debt does not have to be or that the tax on the debt does not have to be included in your taxable income because you eliminated it in your bankruptcy case.  Many creditors will simply send those statements not knowing whether or not

Typically, your neighbor will not find out that you filed for any type of bankruptcy protection.  Although bankruptcy is public record, it is not widely published in any newspaper.  It is found online and somebody who wants to search the Clerk of the United States Bankruptcy Court website could find out whether or not you have ever filed for bankruptcy.  However, the likelihood of one of your neighbors out of the blue contacting the Bankruptcy Court website and searching around for your name is very rare.

You must list everybody that you owe and everything that you own on a bankruptcy petition.  It doesn’t matter if the item is paid in full or if there’s money owed on it or if you have a partial interest, if you have any interest or owe any money or even if it’s paid, you must list all of your property.

A common concern for debtors that are considering filing for bankruptcy is whether or not they are going to lose their vehicle if they file a bankruptcy.  The answer to this question depends on several factors so it would be in your best interest, if this is a concern of yours, to consult a bankruptcy [...]

It’s that time again. Time to explain why filing personal bankruptcy can provide enormous tax savings.