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October 2016 Archives

What you should know about reaffirming debt

Filing for Chapter 7 bankruptcy can be a complicated and emotional process, especially when you are faced with decisions that may seem overwhelming. Although people who file for this type of bankruptcy are able to wipe out much of their debt, they run the risk of having some of their property and/or possessions reclaimed by a trustee who is appointed to the case.  There are ways, however, of keeping some of your property, such as your home or vehicles, through loan reaffirmation in Illinois.

How does Chapter 11 bankruptcy work?

Whether you have filed for Chapter 11 bankruptcy on your own merit or your creditors have submitted a petition for bankruptcy on your behalf, you may be wondering what the process entails. If you are going to file for bankruptcy in Illinois, you will need to submit several documents. This includes a list of all your assets and liabilities, your current income, a statement of financial affairs and any contracts and leases you may have. You must also take a credit counseling course before the bankruptcy will be considered.

Garnishing wages in a Chapter 13 bankruptcy

If you are behind in making payments on your mortgage, vehicle loans, credit cards, medical expenses or other types of loans, you may have received phone calls, texts and/or emails from creditors. In an attempt to reclaim owed funds or replace missing payments, creditors may take action by garnishing your paycheck. While it may be impossible to retrieve the funds that have already been lost through wage garnishment in Illinois, filing for Chapter 13 bankruptcy may help to protect you from losing more money. At Ledford, Wu and Borges, LLC., we know that having your wages garnished can be overwhelming. You have options when it comes to unfreezing your bank account, having your wages garnished or filing for bankruptcy.

Prison debt may be discharged under certain conditions

In a Chapter 7 bankruptcy, people are able to discharge much of their debt and start fresh with a clean financial slate. There are some expenses, such as school debt and child support, that can not be wiped free from the list of owed debts. Other expenses that are not eligible for discharge include penalties and fines that are given by a criminal court of law. In some cases, however, certain situations in Illinois may be difficult to discern whether the debt is criminal in nature. One case showed how even though a debt is connected to a prison does not always mean that it is exempt from bankruptcy.   

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