What is Credit Counseling, and Why do I have to do it to File a Bankruptcy?

When the Bankruptcy Code was changed in 2005, a provision was added requiring debtors to complete credit counseling before filing their case.  The course must meet minimum requirements as established by each jurisdiction, and a certificate is given to each debtor upon completion.  Without the certificate, your case can be dismissed after it has been filed.  There are limited circumstances under with a debtor may get the requirement waived, but this is rare.  As such, it doesn’t warrant much discussion here.

I Already Completed a Credit Counseling Course, Do I have to do it Again?

You may have to complete your credit counseling again to file a Bankruptcy in Chicago.  It depends on how long ago you completed the course.  The certificate is only valid for 180 days after you have taken the course.  This is why I work with my clients to time when they should take their course.  Obviously, if you walk in to my office for a consultation and already have a certificate that we can use when filing your Bankruptcy, then every effort will be made to do so.

Don’t Forget About the Second Credit Counseling Course?

After you have file Bankruptcy in Chicago, you are required to complete a second credit counseling course.  This course differs from the first in many ways, and I have had clients state that it was more informative than the other course.  If you have any questions about which course you should take, your Bankruptcy Attorney can often point you in the direction of a qualifying course that is affordable and worthwhile.

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Other Letter C’s in the Chicago Bankruptcy Alphabet

• Cars by Atty. Jeena Cho
• Chapter 7 by Atty. Catherine Eranthe
• Chapter Choic by Atty. Lewis Roberts
• Chapter of Relief by Atty. Christopher McAvoy
• Collection Agencies by Atty. Monica D. Shepard
• Competence and Compassion by Atty. Chris Carr
• Conversion by Atty. Ryan D. Caldwell
• Cosigner by Atty. Bill Balena
• Counseling by Atty. Cathy Moran
• Cramdown by Attys. Bob Doig, Stuart Ing, and Mitchell Goldstein
• Credit Card Tips by Atty. Bret Nason
• Credit Counseling by Attys. Mark J. Markus, and Daniel J. Winter
• Creditor by Attys. Jay S. Fleischman, and Kurt O’Keefe
• Creditors Meeting by Atty. Raymond Kempinski

What makes a Bankruptcy Mill Bad?

There are several reasons to be cautious of Bankruptcy Mills in Chicago.  The first, and most important, is the fact that they tend to treat every Bankruptcy like it is a simple case.  As a result, your Bankruptcy will be broken down into its most basic steps, and treated like a factory process.  You will spend very little time meeting with a skilled Bankruptcy Attorney, and most likely vital details will be missed.  Even worse, you may be asked to sign very important paperwork without ever first discussing what it means with your Attorney.

Without attention to detail, your case can turn ugly in an instant, and you can end up being penalized by the Bankruptcy Court.  After all, it is your life that is on the line here.  A Bankruptcy Mill Attorney in Chicago isn’t concerned with making sure your case is done to the best of his or her abilities.  Rather, they only want to move you through the system as fast as possible to ensure the highest profit.

Why Should You Avoid a Bankruptcy Mill?

One thing that I have learned over the years is that every Bankruptcy client that walks through my door has a unique case, and there is no simple case.  Bankruptcy Mills usually create simple system to handle all cases.  This system will not handle the complications that exist in every case, and tends to miss details.  Additionally, Bankruptcy Mills simply do not provide the level of customer care that I believe in.  At a Chicago Bankruptcy Mill, the Attorneys just don’t have the time to devote the attention necessary to every case because you are one case among the hundreds that they handle at once.

In my office, I keep my clients’ satisfaction as a top priority.  There are many reasons for this.  First of all, you are paying me to help you through the process of filing, and I try to educate my clients as we go along.  Second, the more attention I devote to your case and you, the more likely it is that I won’t miss critical details.  This is important, because ignoring detail can result in your case being dismissed or your Discharge being denied.  That spells death for your Bankruptcy case, and you lose all of its benefits.

Seek out a Chicago Bankruptcy Office that Provides One-on-One Representation.

One-on-One Bankruptcy representation in Chicago is not as hard to come by as you may think.  There are many smaller Bankruptcy Attorneys that operate on a smaller scale, and provide the attention you and your case deserve.  In fact, if you are reading this, then you have already found an office that provides that level of attention.  As a sole practitioner who focuses solely on Bankruptcy cases in Chicago and the surrounding areas, I provide a One-on-One style of representation.  A prime difference you will notice right of the bat is that when you call, I am the one who answers the phone.  That is just one example of the care that I provide to my clients and their cases.  So, if you are looking for a Chicago Bankruptcy Attorney, feel free to contact my office today to set up a free consulation.

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Other Lawyers Helping with the Bankruptcy Alphabet

• Phoenix Law says B is for Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
• New York Bankruptcy Lawyer, Jay S. Fleischman says B stands for Bank Account, Daniel Winter says the same.
• Cate Eranthe says its for Beware of these Credit Card Offers.
• Monica Shepard is going with Bailout.
• Raymond Kempinski says it stands for Bank Account Levy.
• Bank Tips are being given by Wisconsin Bankruptcy Lawyer Bret Nason.
• Christopher McAvoy says B is for Bankruptcy.
• Mitchell Goldstein is going with Bankruptcy Estate.
• Bob Doig gives caution about Bankruptcy Petition Preparers.
• Lewis Roberts says its Bar Date.
• Stuart Ing is talking about the Best Interest of Creditors.
• Jeena Cho says it stands for Borrow.
• Cathy Moran is going with Business, and Ryan Caldwell is on board.
• Chris Carr is discussing Business & Individuals.
• Mark Markus says its Business Bankruptcy.
• Rick Palmer is in with Businesses and Business Debt.
• Bill Balena is discussing benefits when you Buy Low and Sell High.

When do I get the Automatic Stay in a Bankruptcy?

The Automatic Stay operates like an injunction or restraining order against your creditors.  When you file a Bankruptcy in Chicago, an Automatic Stay goes into effect for at least 30 days.  As a result your creditors may not attempt to collect their debts with you.  This is fairly wide-ranging, and provides protections you probably wouldn’t have imagined were possible before speaking with your Bankruptcy Attorney.

What Protections does the Automatic Stay Provide to Debtors in Chicago?

The first thing that most of my clients notice is that creditors stop contacting and harassing them.  That is because the Automatic Stay in a Bankruptcy specifically deters creditors from collecting their debts, and contacting you is generally done for that purpose.  If a creditor were to continue to contact you after they have received the notification that you filed a Bankruptcy, then they could be penalized by the Chicago Bankruptcy Court.

Also, creditors must stop other legal actions that are related to collecting their debts with you.  This can include garnishments, repossessions, foreclosures, and lawsuits for the debt.  As you can see, this is a powerful tool.  Lindsey Law Office provides you with a Chicago Bankruptcy Attorney that knows the power of the Automatic Stay and is willing to enforce it when your creditors misbehave.

When is the Automatic Stay not so Automatic in a Bankruptcy?

It’s important to note that the Automatic Stay is only in effect for 30 days.  It automatically extends in most Bankruptcy cases in Chicago.  However, there are cases that arise in which your Bankruptcy Attorney must manually seek to have the Stay extended beyond 30 days.  If you have filed Bankruptcy in Chicago during the last year, and the case was dismissed for various reasons, then the stay may not automatically extend.  As a result, I always recommend that you seek the assistance of a Chicago Bankruptcy Attorney to address the situation.  Your Attorney will most likely be able to get the Automatic Stay extended as long as the conditions are right.

A Chicago Bankruptcy Attorney Can Help You Obtain the Power of the Automatic Stay

If your creditors are harassing you, garnishing, repossessing, or foreclosing on you, then it’s time to call a Chicago Bankruptcy Attorney who can help you get your life back.  Contact Lindsey Law Office today for your completely free consultation and case evaluation.

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Other Lawyers Helping with the Bankruptcy Alphabet

• New York Bankruptcy Lawyer, Jay S. Fleischman says A stands for Abandonment
• Cate Eranthe says it for assets. Stuart Ing says the same, Mitchell Goldstein agrees, and Monica Shepard is on board
• Mark J. Markus says it’s all about assumption. Rick Palmer agrees. So does Chris McAvoy. California Bankruptcy Attorney Cathy Moran is in agreement.
• Avoidance is the word according t0 Ormond Beach Bankruptcy Lawyer Lewis Roberts.
• A Is For Attorney according to David Axinn
• Lurie Daniel-Favors agrees with me and says A Is For Automatic Stay.  William Carter says the same, and Ryan Caldwell does too.
• Phoenix Law is on board with Automatic Stay.
• Bill Balena claims it stands for Arrests
• Christopher Carr calls it alimony
• Andrew Harris claims it’s advice
• Wisconsin Bankruptcy Attorney Bret Nason says it’s Abuse.
• Christine Wilson claims it is about Application.
• Jeena Cho says it’s the all-important Ask.
• Local Chicago Bankruptcy Attorney, Dan Winter says it stands for Attorney.
• Bob Doig says it’s Automobiles.
• Christine Wilton says it’s for application.
• Kim Coleman is saying it’s adversary proceeding.
• Athena Inembolidis says it’s for advantages.

There is One Big Reason to Discuss Transfers with Your Chicago Bankruptcy Attorney.

Your Chicago Bankruptcy Attorney is working for your best interests.  If you fail to disclose a transfer to him or her, they will be working blindfolded.  The reason property transfers are important is that your Chicago Bankruptcy Trustee may be able to undo the transaction.  Or, you could be forced into a Chicago Chapter 13 Bankruptcy to protect the transaction.  The majority of the analysis regarding these issues deals with the compensation that you received from the transfers, and your Attorney should be able help you figure out what to expect once you file Bankruptcy.

My Chicago Bankruptcy Attorney has Asked about Transfers over the Last Four Years, but the Forms Only Require Me to Disclose the Last Two Years.

This is true, but your Chicago Bankruptcy Attorney should be able to explain the reason that he or she wants to consider the last four years.  The short answer says that although the Bankruptcy Forms only require disclosure of the last two years, your Trustee will likely attempt to look at the last four years for transactions to undo.  The long answer deals with the specifics of the Bankruptcy Code itself.  It authorizes the Trustee to undo transactions that go back four years.  You, therefore, are scrutinized for transactions over the last four years, but you are in compliance with the disclosure requirements of the Bankruptcy Code if you only disclose transactions during the last two years.

How a Chicago Bankruptcy Attorney can help if You have Transferred Something in the Last Four Years.

Your Chicago Bankruptcy Attorney should first help you determine if the transfer is a problem for your case or for the person who received the property.  Next, your Chicago Bankruptcy Attorney should discuss the ramifications of filing your case considering the transfer occurred.  Most often the transfer is innocent and for fair-market value.  However, if a family member is involved, you should be cautious, and prepared to defend the transfer to the Trustee or Court if necessary.

A Chicago Bankruptcy Attorney can help you avoid a lot of stress by properly preparing you to handle the rigors of filing Bankruptcy.  It is not a matter to be taken lightly, and one mistake can doom your case or others that you love.  Make sure to seek out a Chicago Bankruptcy Attorney who will take the time to make sure that your case is prepared properly, and with the consideration necessary to see to it that you are protected.

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A Chicago Bankruptcy Attorney will make sure the Stay Goes into Effect Properly.

It isn’t enough to just file the Bankruptcy to stop your creditors.  A Chicago Bankruptcy Attorney will know what steps are necessary to make sure that the Stay goes into effect with regard to each creditor, and how to enforce it if a creditor violates the Stay.

Your Chicago Bankruptcy Attorney will have Notice provided to each Creditor.

As a Chicago Bankruptcy Attorney, when I file a Bankruptcy for a client, I make sure that each creditor is disclosed within the paperwork filed with the court.  Additionally, I see to it that the proper address for each creditor is also included.  This way the court is able to send Notice to each creditor that you filed  Bankruptcy.  This Notice is 100% necessary.  Without it, you will not be able to punish a creditor that has violated the Stay.  A good Chicago Bankruptcy Attorney keeps a list of addresses for regular creditors that are included in most Bankruptcies.  Additionally, a Chicago Bankruptcy Attorney should pull your credit bureau report to make sure that all of your creditors have been included with the proper address.

Your Chicago Bankruptcy Attorney should Enforce the Automatic Stay when Creditors Violate it.

After your case has been filed, you should notify your Chicago Bankruptcy Attorney if creditors continue to contact you.  Even calling you on the phone is considered a violation of the Stay and can be punished by seeking a fine in court.  Your Chicago Bankruptcy Attorneys should start by sending a letter to the creditor demanding that they stop all contact, and the Attorney may even demand money to offset Attorney fees due to the contact.  If the creditor continues to contact you after the attorney has sent a letter, legal action should follow.  Your Chicago Bankruptcy Attorney should file a complaint for damages within your Bankruptcy against the creditor.

A Chicago Bankruptcy Attorney can help you stop creditor harassment, and you should consider the option of filing Bankruptcy if you are having trouble keeping the creditors under control.  However, the requirements of filing a Bankruptcy to have the Automatic Stay in full force are often best handled by a skilled Chicago Bankruptcy Attorney.

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