Bankruptcy Question of the Day Archives

Chicago Bankruptcy Question: Does my spouse have to file for Chapter 13 with me?

Chicago Bankruptcy Question of the Day: Does my spouse have to file for Chapter 13 bankruptcy with me?  When you file for Chapter 13 bankruptcy in the Chicago area, or any form of bankruptcy in any region of the U.S., you generally have the option of filing individually or jointly with your spouse.  The rare exceptions to this rule are when you are forced into an involuntary bankruptcy by your creditors or when one spouse has been barred from filing by the bankruptcy court in a prior case. The more pertinent question is "Does it make sense for you and your spouse to file a joint Chapter 13 case, or for you to file alone?".  The answer to this question depends on a lot of factors specific to your case, but the general concepts to consider are the following. 

Chicago Bankruptcy Question: How are student loans treated in Chapter 7?

Chicago Bankruptcy Question of the Day:  How are student loans treated in a Chapter 7 bankruptcy?  The short answer to this one, in the eyes of debtors filing for Chapter 7 bankruptcy protection in Chicago, is badly. 

Chicago Bankruptcy Question: Will I lose my income tax refunds if I file for Chapter 13?

Chicago Bankruptcy Question of the Day: Will I lose my income tax refunds if I file for Chapter 13?  In the Chicago area, the answer to this question depends on the structure of your Chapter 13 plan of reorganization and which Chapter 13 trustee you are assigned to.  

Chicago Bankruptcy Question: How are state court judgments treated in Chapter 7?

Chicago Bankruptcy Question of the Day: How are state court judgments treated in Chapter 7?  When it comes to state court judgments, timing is everything.  When you fall behind on a debt, the creditor has a right to pursue you in state court in an effort to collect on that debt.  Generally speaking, a complaint is filed with the state court and a summons is issued.  This is one of the common financial warning signs telling you that you should seek the advice of a Chicago bankruptcy attorney.  If you fail to appear, which is usually the case, then the court will enter a judgment against you (known as a default judgment).  Even if you do appear, unless you have a good defense the state court will eventually allow a judgment to be entered against you.

Chicago Bankruptcy Question: How are real estate taxes treated in Chapter 7?

Chicago Bankruptcy Question of the Day: How are real estate taxes treated in a Chapter 7?  I love an easy question, but this one is not quite as easy as it appears.

Chicago Bankruptcy Question: Will filing a Chapter 13 stop a wage garnishment?

Chicago Bankruptcy Question of the Day: Will filing a Chapter 13 stop a wage garnishment?  In almost all cases, the answer to this question is yes.  Immediately upon filing for Chapter 13 bankruptcy protection in the Chicago area, two very important things happen. 

Chicago Bankruptcy Question: How are condominium association dues treated in a Chapter 7?

Chicago Bankruptcy Question of the Day: How are condominium association dues (or homeowner's association dues) treated in a Chapter 7 bankruptcy?  Most of the time, when you purchase a condominium or a townhouse, and often when you purchase a single family home in planned community, there is an association affiliated with the complex/community to which a consensual lien is granted on the property.  The association is comprised of the unit/home owners and each owner must make a payment to the association, usually monthly, in order to pay for the maintenance of common areas, property insurance on the building, etc.  The size and frequency of this payment varies as significantly as the types and values of the properties do.  How these association dues are treated in a Chapter 7 bankruptcy filing is relatively clear cut.

Chicago Bankruptcy Question: What is the normal timeline for a Chapter 13?

Chicago Bankruptcy Question of the Day: What is the normal timeline for a Chapter 13 bankruptcy in the Chicago area?  Local bankruptcy rules, trustee procedures, judge procedures and the Chapter 13 process' are different in every jurisdiction.  This is one of the reasons that when you seek out an attorney to represent you in Chapter 13, you hire one who focusses their practice exclusively on the Chicago area.

Chicago Bankruptcy Question: How is income tax debt treated in Chapter 7?

Chicago Bankruptcy Question of the Day: How is income tax debt treated in Chapter 7?  As with most questions involving creditors in bankruptcy, the answer is "it depends".  When you file for Chapter 7 bankruptcy protection in Chicago, you are required to schedule and notice must be given to all of your creditors.  This includes the Internal Revenue Service, Illinois Department of Revenue and any other taxing authority to whom you may owe income taxes to.

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