January 19, 2010

How Can Bankruptcy Protect Against Foreclosure?

Foreclosure is a legal proceeding through which a lender seeks to obtain a court order that your property must be sold to pay off the defaulted home loan. Prior to the foreclosure home owners have a redemption period to pay the mortgage loan and protect against the court ordered seizure and sale of the home.

In the event a temporary economic problem caused the home loan to fall past due to the point of foreclosure, bankruptcy laws help home owners keep their property though what is referred to as an "automatic stay." Simply described, once a bankruptcy petition is filed, an automatic stay prevents creditors from continuing collection action such as: 1) suing to collect on debt, 2) suing to seize personal property, 3) suing to enforce a lien on a property and 4) writing off or seizing pre-bankruptcy debts owed to the individual filing for bankruptcy.

There are some limitations but in most cases, once the bankruptcy petition is properly filed your Chicago bankruptcy attorney can use the automatic stay to legally stop the continued foreclosure action so that the debtor can negotiate with the bank and bring the home out of foreclosure.

The attorneys at Michelotti & Associates have over 20 years of experience navigating the bankruptcy code and helping DuPage and Cook County residents keep their homes and get back on track. If your lender has threatened a foreclosure you need to take the proper steps to preserve the hard work and equity you have in your home. Find out how the Chicago and Oak Brook offices of Michelotti & Associates can use the automatic stay provisions to help you defend against a foreclosure proceeding.

For more information about bankruptcy protection please view our blog archive below.

E-mail Bankruptcy Attorney Joe Michelotti.

For more information please visit our web site.

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December 14, 2009

WHAT IS BANKRUPTCY?

The headlines are showing bad economic times. Head lines in the Chicago area from Joliet to Aurora, to Naperville to Cicero show how hard a time people are having.

Bankruptcy is a legal proceeding for people whose can no longer pay their debts.

It is governed by federal law, but cases a filed locally in Cook County, DuPage County Kane County. Bankruptcy gives a person the ability to get a fresh financial start. If you are having financial difficulties in Schaumburg, Wheaton, Berwyn or Oak Park, it is something you may want to consider.

When a Chapter 7 bankruptcy case is filed all attempts to collect on debts must stop. That means our clients from Downers Grove, Elmhurst, Lombard, Addison, Elk Grove, Glendale Heights, Woodridge, and Glen Ellyn are protected from any attempts to collect on a debt. This includes collections, lawsuits, garnishments and levies. No one can call you, harass you, or threaten you in any way.

Even the IRS must stop all attempts at collection until things are sorted out. This has worked out very well for many of our clients from such places as Westmont, Roselle, Darien, Villa Park, Lisle, Brookfield, Hinsdale, Westchester, La Grange, Wood Dale, La Grange Park and Western Springs

Check out our website for more info

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August 28, 2009

How Much Does a Bankruptcy cost?

Whether a potential client calls me from Chicago, Naperville, Joliet or Aurora, one question is always the same. How much does a bankruptcy cost?

It's a simple question. It's a fair question, but the answer is complicated.

The answer is divided into three parts.

One:

Filing Fees

Filing fees for a chapter 7 bankruptcy are $299.00. It does not matter whether the case is filed in Cook, Du Page or Will County. Filing Fees for a chapter 13 bankruptcy are $274.00. It doe not matter whether you live in Elmhurst, Downers Grove or Oak Park.

Two:

Classes

Prior to filing a consumer bankruptcy you need to take a credit counseling class. There are generally done over the internet and take about an hour. They cost between $35.00 and $50.00.

Before the bankruptcy is completed you must also take a debtor education class. This is also done over the internet and costs between $15.00 and $50.00.

Three:

Attorneys Fees

This is the part with the most variance. Each case is unique and presents different problems.

In a chapter 7 case in the Northern District of Illinois our base fee is $1800.00. From there we will add or subtract based on your specific needs.

Less than 6 creditors, subtract $200.00, No Real Estate, subtract $200.00, No need to keep a car, subtract $200, Income less than guidelines, subtract $100.

More than one mortgage add $100, Income over guidelines add $200.00.

Also, if there is litigation generated by your creditors or you have an emergency that has to be resolved there would be additional fees for the work involved.

The complete costs on most chapter 7 cases is less than $2000.00.

On a chapter 13 cases in the Northern District of Illinois the statutory attorneys fees are $3,500.00. These are automatically granted by the court and some or all of the fees are paid into the plan. The amount that you will be required to put down will depend on a number of factors.


Contact a Chicago Bankruptcy lawyer Now

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May 2, 2009

Can I Sell my Chicago Home to a Relative to avoid losing it?

As Chicago Bankruptcy attorneys we are often asked whether a house can be sold for a small amount of money to a relative or a friend in order to avoid losing it after a chapter 7 filing.

The answer is no. You cannot transfer property to another person unless you receive its cash value.
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This is especially true if you make the transfer to a family member, If you make a transfer and do not receive enough value (ie money) the the transaction can be undone

There are many legitimate ways to protect your family home.

- Check its value on zillow.com. It may not be worth as much as you think.

- look at how you hold title. If its tenants by the entireties, you may want to consider only one spouse filing a bankruptcy.

- use you bankruptcy exemptions. A married couple has a $30,000.00 exemption

- consider filing a chapter 13 rather than a chapter 7. Costs may be more, but you can keep the house.

- remember to subtract the costs of sale. These can equal up to 10% of the value of the house.

- you might want to consider using up existing lines of to make necessary purchases *** use caution as this can get you into trouble ***

The point is there are many legitimate ways to protect your home, but you need to talk to a lawyer who can give you all of the options

Contact a Chicago Bankruptcy Attorney Now

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