Chicago Bankruptcy Attorney Blog http://www.chicagobankruptcyattorneyblog.com/ Published By Michelotti & Associates en Copyright 2009 Fri, 28 Aug 2009 15:24:38 -0600 http://www.sixapart.com/movabletype/ http://www.rssboard.org/rss-specification 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

]]> http://www.chicagobankruptcyattorneyblog.com/2009/08/how-much-does-a-bankruptcy-cos.html http://www.chicagobankruptcyattorneyblog.com/2009/08/how-much-does-a-bankruptcy-cos.html Fri, 28 Aug 2009 15:24:38 -0600 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

]]> http://www.chicagobankruptcyattorneyblog.com/2009/05/can-i-sell-my-house-to-a-relat.html http://www.chicagobankruptcyattorneyblog.com/2009/05/can-i-sell-my-house-to-a-relat.html Chapter 7 Bankrutpcy Sat, 02 May 2009 19:12:55 -0600