That’s why they find their way to my office to discuss the benefits and options available to them under the Bankruptcy Code.  While not perfect, a Bankruptcy can afford many people the opportunity to save their home, or to walk away without much penalty.  It is certainly one of the last options, but one that should be considered when you get stuck in the nightmare of the foreclosure process.

Most of my clients have trouble understanding how they found themselves in the mess they are in.  They are good people facing a big problem, but fear that maybe they are somehow less of a person as a result of their situation.  I don’t believe this conclusion (just like many other Bankruptcy Attorneys across the country).  And, neither does ProPublica.org.

They posted a video today that attempts to break down what happened during the recent mortgage crisis and subsequent failed government programs.  I think that it does a good job of capturing the frustrations that I see on a daily basis with many of my prospective Bankruptcy clients:

Don’t forget that you aren’t the only person experiencing this problem.  It is important to take action to fight for your home, and your family.  You should investigate all options available to you including filing Chapter 7 or Chapter 13.  You’ll never know their benefits unless you meet with a Bankruptcy Attorney to discuss the alternatives.

Photo: JefferyTurner/flickr

What will a Discharge do for me?

In short, a Discharge releases the debtor from personal liability for debts listed in the Schedules.  This means that creditors are no longer allowed to attempt to collect your debts with them.  As such, creditors are prohibited from communicating with you regarding the debt.  This includes restrictions on telephone calls, letters, and personal contact.  If a creditor willingly violates the Discharge, they can be liable to the debtor legally.

The Discharge is a Powerful Tool, but it only applies to Certain Debts.

As you can imagine, there are limitations and exceptions to the benefits of the Discharge.  That means that not all debts are treated equally when it comes to your Bankruptcy.  You should go through your debts with your Chicago Attorney to determine the likely treatment of each one.

Generally speaking, unsecured debts (such as credit cards) are Dischargeable.  However, domestic support obligations (which are also unsecured debts) are not Dischargeable.  This can vary, though, from state to state depending on who the debt is owed to.

Additionally, taxes are sometimes Dischargeable, but that is highly dependent upon the circumstances surrounding the debt owed to the taxing authority.  If the taxes owed are less than three years old or the return has yet to be filed, then almost certainly the taxes are Non-dischargeable.  If you owe taxes, I can not advise you strongly enough to seek the assistance of a skilled Chicago Bankruptcy Attorney such as Lindsey Law Office.  Tax Dischargeability involves a complicated analysis that requires attention to detail and a decent amount of time.

Secured debts can be Discharged.  However, if you wish to keep the property to which the debt is linked, you will likely have to Reaffirm the debt instead.  This means that the debt will survive your Bankruptcy, and you will be liable to pay it going forward.  If, on the other hand, you wish to return the property to the creditor (such as a car), then you may receive a Discharge for the obligation.

Finally, student loans are almost never Discharged.  So it is likely you will still have to pay on those obligations following your Bankruptcy.  However, a Chapter 13 Bankruptcy can provide some level of control over the way they are repaid.

Be Careful! You can Lose Your Right to a Discharge.

Sometimes debtors feel that they can outsmart their creditors, and they will try to utilize as much of their credit before they file a Bankruptcy.  Every Bankruptcy Attorney in Chicago has handled a case at one time or another in which the debtor has done this.  Most creditors will catch on to what is happening (many have systems in place to catch this kind of behavior).  After they catch it, the creditors will contact your Attorney, and threaten to file a claim of Fraud with the Court.  This can cause you to lose your Discharge on not only that one debt, but on all of the debt that you listed in your Bankruptcy Schedules.  Therefore, if you are considering filing a Bankruptcy, you would do best to no longer use your credit because it can risk the main purpose of filing:  your Discharge.

Photo: nickton/flickr

Other D’s in the Chicago Bankruptcy Alphabet:

• Mitchell Goldstein says it’s Debt Relief Agency.
• Jay Fleischman says it’s Debtor, and Christopher McAvoy also says it’s Debtor.
• Wisconsin Bankruptcy Lawyer, Bret Nason, says it’s Declaring Bankruptcy.
• Ryan Caldwell says it’s Deconsolidate.
• Rachel Lynn Foley says it stands for Deed in Lieu of Foreclosure.
• Cathy Moran says it’s Discharge, Mark Markus agrees, Stuart Ing is also in with Discharge, Christine Wilton agrees, and Dan Winter is on board.
• Catherine Eranthe says it’s Disclose, Bob Doig says it’s Disclosures.
• Monica Shepard is in with Divorce.
• Jeena Cho says it’s Do’s and Don’ts, and Peter Behrmann agrees.
• Kim Coleman is talking about Documents.
• Chris Carr says it’s Domestic Support.
• Bill Balena says it’s DUI, DWI, OVI.
• Dorota Trzeciecka says it’s Domicile.

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.

Photo: TooFarNorth/flickr

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, Phoenix Law 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.

Photo: takomabibelot/flickr

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.
• Athena Inembolidis says it’s for Bankruptcy Budget.
• Mitchell Goldstein is going with Bankruptcy Estate.
• Bob Doig gives caution about Bankruptcy Petition Preparers.
• Lewis Roberts says it’s Bar Date.
• Stuart Ing is talking about the Best Interest of Creditors.
• Nancy Martin says it’s best efforts test.
• 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.

Photo: cheesy42/flickr

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 to 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.
• Nancy Martin says it’s for avoidance of preferential transfers.