Do You Offer Virtual Consultations?
Certainly. At Steven Grace Law, we prioritize convenient communication with our clients. We understand the importance of staying connected, and we provide various communication methods, including text messages, Zoom, FaceTime, and Skype. We’ve got your communication needs covered.
Which Counties Do You Serve in Illinois?
I represent clients across the entire state of Illinois for bankruptcy cases, with a primary focus on Northern Illinois, including Cook, Will, DuPage, and Lake Counties. For other matters, such as foreclosure and debt collection lawsuits, my ability to take on your case may depend on the court’s Zoom policies. Please contact my office for specific details.
What Surprises Can Happen When You File Bankruptcy?
Filing for bankruptcy can cause you to lose access to online payment portals, making it harder to manage automatic payments. This may affect rent or utility payments, potentially leading to missed bills or service interruptions.
What is a Bankruptcy Discharge?
A bankruptcy discharge is a court order that releases a debtor from the legal obligation to repay certain debts, marking the completion of a bankruptcy case and providing a fresh financial start for the individual or business.
What is a Debtor?
A debtor is someone who owes money to another person or company. It’s important to note that being a debtor doesn’t necessarily mean you’re late on payments. Additionally, a debtor can also be someone who has filed bankruptcy to address their financial obligations.
What is a Section 341 Creditor’s Meeting?
The 341 meeting of creditors is a key event in bankruptcy proceedings where the debtor meets with the trustee and any attending creditors. The trustee verifies the debtor’s identity and examines the bankruptcy petition and financial details. Creditors may ask questions about the debtor’s assets and liabilities during this meeting.
How long does bankruptcy stay on my credit report?
Bankruptcy typically remains on your credit report for up to 10 years. However, its impact on your credit score diminishes over time, especially with responsible financial habits and rebuilding efforts. While it may affect your creditworthiness, many individuals begin to rebuild their credit shortly after the bankruptcy process, securing a fresh financial start.
Will I lose my job If I file bankruptcy?
No, you cannot legally lose your job solely for filing for bankruptcy. Federal law, under 11 U.S.C. § 525(a), explicitly prohibits discrimination based on bankruptcy status. This applies to both private and public sector employers, protecting you from termination, demotion, or other adverse employment actions due to your filing.
Are there alternatives to bankruptcy besides filing for chapter 7 or chapter 13?
If Chapter 7 isn’t an option due to income limits or your projected Chapter 13 payment seems high, other pathways exist. Consider Collection Lawsuit Defense or Debt Settlement to tackle each debt separately and avoid bankruptcy altogether.
What are the pros and cons of filing for Bankruptcy jointly with a spouse?
Whether filing jointly makes sense depends on your shared debt. Significant joint debts benefit from a joint filing: it streamlines the process and wipes them out in one case. Mostly separate debts? Filing individually might be better: this could shield one spouse’s credit score from the bankruptcy impact.
What happens to my retirement savings, Social Security benefits, and government benefits if I file for bankruptcy?
Generally speaking, most government benefits are usually protected in bankruptcy. However, in rare instances, certain retirement accounts may be liquidated in Chapter 7 bankruptcy. It is important to know the details before you file.
Will my tax refund be taken if I file for Bankruptcy?
In bankruptcy, a tax refund is considered an asset. For Chapter 7 filers in Illinois, you can use the $4000 wildcard exemption to protect all or part of your State and Federal Tax Refund. You can also use the refund to pay for certain necessary expenses prior to filing Bankruptcy.
Can I exclude a credit card with a low balance from my Bankruptcy?
No, unfortunately. In a bankruptcy filing, all creditors, including credit cards, must be included. Even if not listed, credit card companies often become aware of the bankruptcy, potentially leading to the cancellation of the card or credit line.
What is the definition of Bankruptcy?
I think there are two definitions. First, it’s when you can’t pay your debts when they are due. Second, it’s when the money you owe is more than your assets. Many Americans fall under the second definition, even though they can meet their current debt obligations.
How Much Does Chapter 7 Bankruptcy Cost?
Every case is different—some are complex, and some are more straightforward. A good attorney can tell the difference. At StevenGraceLaw, for a simple Chapter 7 case with a debtor below the median, attorney fees are about $1500. This fee covers the $338 filing fee and the credit report fee.
How Long Does Chapter 7 Bankruptcy Last?
A Chapter 7 bankruptcy usually takes about 90 days from start to finish. Once you file, you’ll have a meeting with the Bankruptcy Trustee within 30 days, and then you’ll need to complete a second credit counseling class within 45 days. If everything goes well, this is the last step before the Court finalizes your case by issuing the order of discharge. That means your case is done.
What Are The Requirements For Chapter 7 Bankruptcy?
To start Chapter 7 bankruptcy in Chicago, you need to meet certain conditions. The key factor is your income, which has a maximum limit for eligibility. You also have to pass a “means test” that checks if you can repay certain debts. Finally, your expenses must be more than your net income to qualify.
What Are the Income Limits for Filing for Chapter 7 Bankruptcy in Chicago?
To qualify, your yearly household income needs to be below: $67,102 for one person, $84,892 for two, $101,951 for three, or $122,289 for four. Add $9,900 for each additional family member. But don’t worry if you’re close to the limit! A secondary means test can still qualify you, so consulting a bankruptcy lawyer is crucial.
Can I keep my car, house, and other assets if I file for Chapter 7?
The amount of property you can exempt from creditors depends on its type and how many people are filing bankruptcy. For example, a single person can protect up to $2400 in vehicle equity, $15,000 in home equity and $4000 in other assets. These numbers double for two people.
How much are Attorney Fees for Chapter 13 Bankruptcy?
In the Northern District of Illinois, Attorney fees are capped at $4500 for a duration of 3-5 years. Furthermore, the filing fees for a Chapter 13 bankruptcy stand at $313. Attorney fees can be paid through the Bankruptcy Plan, and you can get started for as little at $350.
How much will my Chapter 13 bankruptcy payment plan cost?
This is a complex question, which depends on your individual goals and income. However, a simple answer is your Chapter 13 plan payment amount should be what you can afford to pay after adding up your total household net income and subtracting your allowable expenses.
What happens if I fall behind on my payments during my Chapter 13 plan?
First of all, you and your attorney would need to assess the reason you are overdue in the first place. If it was due to a decrease in income, whether permanent or temporary, you may be able to amend the bankruptcy plan to lower the payment. However, this depends on multiple factors.
What Is Foreclosure Defense?
Foreclosure defense, in simple terms, involves your attorney navigating court procedures to challenge the foreclosure lawsuit on your property. Your attorney can employ various methods and laws to compel the mortgage company to engage in negotiations, working toward achieving your specific goals.
How does a forbearance differ from a loan modification?
A forbearance temporarily suspends or reduces your mortgage payments, but you’ll still owe the missed payments once it ends. In contrast, a loan modification permanently changes your loan terms, such as reducing the interest rate or extending the loan term, to make payments more affordable and bring the loan current.
What are my options for repaying missed payments after forbearance?
After forbearance ends, you can catch up by repaying the missed payments in a lump sum, setting up a repayment plan to spread the amount over time, or by adding the missed payments to the end of your loan term with a loan modification.
What is the redemption period, and how does it affect my chances of keeping my home?
Redemption refers to a crucial opportunity lasting 7 months from the date of being served, where you can fully pay off your loan. This can be achieved through methods such as refinancing the loan, selling the house, or other viable means. It’s worth noting that this period also marks the earliest day your mortgage company can initiate the foreclosure auction to sell your house.
What does “standing” mean in a foreclosure case?
Standing refers to the lender’s legal right to foreclose on a property. They must prove they own the loan and have the authority to enforce the mortgage.
Can I challenge the lender’s right to foreclose on my home?
Yes, you can challenge the lender’s standing by showing that they don’t have the proper legal documentation, such as the original promissory note or valid mortgage assignments.
How long do I have to appeal a foreclosure case after the Confirmation of Sale?
To appeal a foreclosure case after the Confirmation of Sale, you have a 30-day window from the date the Order of Confirmation is issued by the Circuit Court Judge, as this order typically represents the final appealable decision in a foreclosure case. When calculating the deadline for filing your Notice of Appeal, start counting from the day following the circuit court’s order. Be sure to include weekends and holidays in your count.
Can I Stop The Foreclosure Process If I Make A Lump Sum Payment?
In Illinois, catching up on missed payments and related fees within 90 days of receiving a foreclosure summons can stop the process via “reinstatement” under Section 15-1602. Full payoff is also an option after the 90 day deadline.
What Happens If I Lose My Case? Do I Still Have To Lose My Home?
Even after a foreclosure judgment, your fight isn’t over. There are legal avenues and appeals possible before the house reaches auction. Let’s discuss your goals and explore options to keep you in your home.
What are the potential drawbacks of moving a foreclosure case to federal court?
Moving a foreclosure case to federal court can bring higher costs, stricter rules, and a faster pace, which may limit preparation time. If federal claims are dismissed, state claims may need to be refiled.
Why did the guidelines change for discharging federal student loans?
Given the ongoing student loan debt crisis, the Biden administration initiated a comprehensive overhaul in 2022, significantly altering the treatment of federal student loans in bankruptcy. Setting politics aside, I firmly believe that making student loans dischargeable in bankruptcy was a necessary step. Without these changes, student loan debt risked becoming an enduring burden on the American economy, trapping individuals in overwhelming debt with no viable way out.
What is the first step to discharge federal student loans after filing for Chapter 7 or Chapter 13 bankruptcy?
The first step to discharge student loans after filing for Chapter 7 or Chapter 13 bankruptcy is to submit an Adversary Complaint under 523(a)(8), challenging the dischargeability of the student loans. Proper notification must be given to the US Department of Education and all relevant parties to formally begin this process.
What documentation is necessary for filing a Student Loan Adversary?
Since you will already be in an active Bankruptcy case, many essential documents will likely already have been submitted to your attorney. However, additional information is needed, including your comprehensive student loan history, encompassing payments, consolidations, and applications for deferral, forbearance, and income-based repayment. All this information can be retrieved from studentaid.gov, and our office is available to assist you in navigating the download process.
How can I obtain the attestation form needed for the discharge process?
You can obtain the student loan attestation form needed for the federal student loan discharge process for free from the US Trustee. This fillable PDF form is specifically designed for the student loan discharge procedure in bankruptcy cases. Alternatively, you can create your own version of the attestation, but it must adhere to the format used in the US Trustee’s version to ensure it is acceptable in court.
What information is included in the student loan discharge attestation?
The student loan discharge attestation includes detailed personal information, such as your name, age, residence, and household size. It also requires verification of student loan details, including outstanding balances and payment history, as well as your current employment status and household income and expenses. Additionally, the attestation asks for information about your inability to repay the loans in the future, prior efforts to repay the loans, and a detailed assessment of your current assets.
What are private student loans, and how do they differ from federal student loans?
Private student loans are educational loans issued by private lenders such as banks, credit unions, or other financial institutions, rather than the federal government. They typically have variable interest rates and fewer borrower protections compared to federal student loans. Federal student loans, on the other hand, are funded by the government and offer fixed interest rates, income-driven repayment plans, and potential forgiveness options. The key differences lie in their funding sources, terms, and borrower benefits.
What makes discharging private student loans in bankruptcy so challenging?
Discharging private student loans in bankruptcy is challenging due to the stringent criteria established by the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005, which classifies most private student loans as non-dischargeable “qualified educational loans.” Borrowers must prove “undue hardship,” a difficult standard to meet, often requiring a separate legal proceeding called an adversary proceeding.
What strategies can be used to discharge private student loans in bankruptcy?
Discharging private student loans in bankruptcy can be achieved through two main strategies: filing an adversary proceeding during the bankruptcy case or filing a motion for declaratory judgment after discharge contesting the “qualified educational loan” criteria mentioned above. The adversary proceeding involves a separate lawsuit within the bankruptcy case to determine dischargeability. Alternatively, a motion for declaratory judgment can be filed if creditors attempt to collect on the loans post-discharge, arguing that the loans should be considered dischargeable based on specific legal criteria.
What is wage garnishment?
Wage garnishment is a legal process where a court orders your employer to withhold a portion of your paycheck and send it directly to a creditor to pay off a debt. This typically follows a court judgment against you, and the amount withheld depends on the type of debt and applicable legal limits.
How can I find out who is garnishing my wages?
If you’ve noticed a wage garnishment on your paycheck and aren’t sure who is responsible, start by reaching out to your Human Resources department. They can provide important details like the court case number or the name of the garnishing agency. If this doesn’t give you the answers you need, you can search your local courthouse records in the civil, law, or small claims sections. If you suspect the garnishment is for child support, you should also contact the Illinois State Disbursement Unit (ILSDU) for more information.
Can a creditor garnish my wages without a court judgment?
In Illinois, most creditors need a court judgment to garnish your wages. However, certain debts, like unpaid child support or federal student loans, can lead to automatic wage garnishment without a court order.
Which forms of income are exempt from wage garnishment in Illinois?
In Illinois, income exempt from wage garnishment includes Social Security benefits, SSI (Supplemental Security Income), unemployment insurance benefits, and most veterans’ benefits. Additionally, ERISA-protected retirement accounts and certain public assistance programs like TANF and SNAP are also exempt.
How does Illinois law calculate the amount of wages that can be garnished?
Under Illinois law, the amount of wages that can be garnished is the lesser of 15% of your gross weekly wages or the amount remaining after subtracting 45 times the Illinois minimum wage from your weekly disposable earnings. The calculation ensures that a portion of your earnings remains protected.
Does wage garnishment apply if I have multiple jobs?
Yes, your wages can still be garnished if you have multiple jobs. The total garnishment limit is simply recalculated based on your combined earnings from all jobs.
How long does wage garnishment last?
Wage garnishment continues until the debt is fully paid off or a legal action, such as bankruptcy, halts it. In Illinois, judgments over $25,000 accrue interest at 9% per year, while those under $25,000 accrue interest at 5%. The duration depends on the total debt amount and repayment progress.
What Should I Do If My Wages Are Being Garnished?
If your wages are being garnished, it likely means that one of your creditors has sued you and secured a judgment. Under this judgment, the creditor is permitted to take 15% of your gross weekly paycheck before taxes or deductions. Filing for either Chapter 7 or Chapter 13 bankruptcy will promptly halt this garnishment, and in certain instances, you may even be able to recover the money that has already been garnished.
What is car repossession?
Car repossession is the process where a lender takes back a vehicle from the borrower due to missed loan payments. It typically occurs when the borrower defaults on the loan agreement, and the lender exercises their right to reclaim the collateral. This process follows specific state laws and can vary in terms of notice and procedures.
How can I prevent car repossession in Illinois?
To prevent car repossession, ensure you make payments on time and communicate with your lender to negotiate a payment plan if needed. Consider selling the car or returning it voluntarily with a written agreement if you cannot keep up with payments. If necessary, explore bankruptcy options to protect the vehicle and potentially restructure your loan terms.
How many payments can I miss before getting my car repossessed in Illinois?
In Illinois, a lender can repossess your car after just one missed payment, as the state law does not require advance notice or a grace period. The exact timing may vary depending on the lender’s policies and history of missed payments. It’s crucial to review your loan agreement for any specific terms related to default and repossession.
Are lenders required to give notice before repossessing a vehicle in Illinois?
No, lenders are not required to provide notice before repossessing. They can repossess the vehicle without prior warning if you default on the loan. This lack of notice can result in an abrupt loss of transportation.
What actions can a repo man legally take during the repossession process?
A repo man can legally repossess a vehicle, provided they do so without using force or threats and do not breach the peace. This means they cannot break into locked areas or garages.
What should I do to retrieve my personal belongings from a repossessed car?
To retrieve your personal property, first contact the towing company or your lender to request the return of your items. Ensure you get a written notice from the agent detailing how and when you can collect your belongings. If necessary, make the request in writing and be prepared to pay any nominal fees associated with the return.
Should I voluntarily surrender my car if I can’t make payments?
Voluntarily surrendering your car can give you some control over the process and potentially reduce additional fees, but it doesn’t erase any remaining debt after the sale. This option may help you avoid the stress of an involuntary repossession but will still negatively impact your credit score.
What is a resale deficiency balance?
A resale deficiency balance is the remaining amount owed after a repossessed vehicle is sold, if the sale price is less than the outstanding loan balance. Creditors may pursue the borrower for this remaining balance, potentially leading to additional financial challenges. There is a statute of limitations of four years for creditors to file a lawsuit to collect this deficiency.
How can I get my car back without filing for bankruptcy?
To reclaim your repossessed car without filing bankruptcy, you can either reinstate the loan by paying overdue amounts and repossession costs if you’ve paid at least 30% of the total loan, or redeem the vehicle by paying the entire contract balance plus repossession and storage fees. Alternatively, negotiate with the lender for a settlement or reduced payoff amount.
How can filing bankruptcy halt car repossession?
Filing for bankruptcy triggers an automatic stay, which temporarily prevents creditors from taking any action, including repossessing your car. In Chapter 7 bankruptcy, you may negotiate to keep the car by reaffirming the loan or redeeming the vehicle at its current value. Chapter 13 bankruptcy allows you to restructure the loan terms and potentially reduce payments or the loan balance.
