Recent Blog Posts

How to Get a Free Credit Report

Timothy Brown, Esq. — Sun, 16 Oct 2011 01:39:00 GMT

Under the Fair and Accurate Credit Transaction Act (FACTA), you are entitled to receive one free credit report per year. You can obtain your free credit report from www.annualcreditreport.com, which is a website maintained by the three major credit reporting agencies, Experian, Equifax, and TransUnion. The free report, however, does not provide your current credit score. If you wish to also obtain your credit score, they will provide this to you for a small fee.

If you are considering filing for Bankruptcy, your Bankruptcy attorney will likely ask you to provide a credit report along with various other documents. If you are in McHenry, Kane, or Dekalb County, Lake in the Hills Bankruptcy Attorney Timothy Brown will be glad to provide you with a free Bankruptcy consultation. Just click or call 815-455-9529 to schedule an appointment today.

Waiting Period for Filing a Subsequent Bankruptcy Petition

Timothy Brown, Esq. — Thu, 13 Oct 2011 15:52:00 GMT

A debtor who has previously filed for Chapter 7 Bankruptcy must wait eight (8) years to file again for Chapter 7 protection. This period is calculated based on the date that the respective Bankruptcy petitions are filed. However, if eight years has not elapsed since a previous Chapter 7 filing, the debtor may still be eligible for Bankruptcy relief under Chapter 13, but only if four (4) years have elapsed since the previous Chapter 7 filing.

Automatic Stay Stops Creditors in Their Tracks

Timothy Brown, Esq. — Thu, 13 Oct 2011 03:25:00 GMT

Under Section 362 of the U.S. Bankruptcy Code, creditors are prohibited from continuing any further collection action against a debtor who files for Bankruptcy relief. If a creditor is aware of the automatic stay, but continues to pursue collection of a debt, the creditor can be held in contempt for failure to observe the automatic stay. The automatic stay prohibits creditors from garnishing your wages, freezing bank accounts, foreclosure, lawsuits, repossession, and making personal contact with you for the purpose of collecting a debt.

Bankruptcy Exemptions in Illinois- Which Law Applies?

Timothy Brown, Esq. — Tue, 11 Oct 2011 18:13:00 GMT

Under the U.S Bankruptcy Code, an individual filing for Chapter 7 is allowed to keep their property, so long as the property does not exceed a certain dollar amount. The particular dollar amounts are governed by the applicable "exemptions." The U.S. Bankruptcy Code states that federal law will be used to determine a debtor's property exemptions, unless the individual state has "opted-out" of this federal exemption plan. If a state opts-out of the federal plan, the state may apply its own exemption law. In Illinois, the state has opted-out of the federal plan. As such, the state's exemption law determines the extent to which a debtor's property is protected in a Chapter 7 Bankruptcy case.

Recent U.S Supreme Court Decision

Timothy Brown, Esq. — Thu, 06 Oct 2011 18:18:00 GMT

In the recent case of Ransom vs. FIA Card Services, N.A., the U.S. Supreme Court ruled that a consumer may not use the IRS "ownership expense" deduction for a vehicle when the consumer owns the vehicle but is not obligated, at the time of filing, to make any payments on the vehicle. In the 8-1 decision, the majority reasoned that such a deduction does not constitute an "applicable" expense under the Bankruptcy Code.

This decision will affect individuals wishing to file under both Chapter 7 and Chapter 13 who own their vehicle free-and-clear of any loan or lease obligation. In the context of Chapter 7, such individuals may now have more difficulty passing the "means test" because their "disposable income," a figure used to determine Chapter 7 eligibility, will now be higher as a result of the deduction being disallowed. In the context of Chapter 13, individuals may now be required to pay a larger amount to creditors in their repayment plan.

Do's and Dont's Before Filing for Chapter 7

Timothy Brown — Wed, 05 Oct 2011 16:55:00 GMT

If you are planning to file for Chapter 7 Bankruptcy, you should follow the rules and guidelines detailed below:

Do Not

1) Give any special preference to a particular creditor. The Bankruptcy law prohibits giving special preferences to a particular creditor at the expense of other creditors. A creditor is not allowed to receive more than his or her "fair share." If you make large payments to a general creditor within 3 months of filing for Bankruptcy, or you make large payments to an "insider," such as a family member or business associate, within one year of filing for Bankruptcy, the Bankruptcy court can require that the money be repaid to the Bankruptcy estate. Regular payments to a secured creditor, however, would not be considered to be a an improper transfer.

2) Purchase any luxury items. You should limit your expenditures to only necessary goods and services. If you purchase luxury items before filing for Bankruptcy, you will remain liable for the debt or will be required to pay the Bankruptcy estate for the amount of the purchase. The purchase of luxury items in anticipation of filing for Bankruptcy can also jeopardize your ability to obtain Bankrutcy relief.

3) Transfer any property to a third party. Some debtors, fearing that they will not be allowed to keep certain property in Bankruptcy, transfer their property to a third party in an effort to put the property out of the reach of creditors. Such a transfer, however, is fraudulent.

4) Use your credit cards. The Bankruptcy law does not allow a debtor to incur additional debt that the debtor does not intend to repay. If you use your credit cards for purchases or cash advances in anticipation of filing for Bankruptcy, the creditor or Bankruptcy Trustee will likely object to your request for Bankruptcy relief.

5) Borrow from your retirement or 401(K) fund. The tax liability for such a withdrawal cannot be discharged in Bankruptcy.

1) Gather all of your bills (for the last 2 months), bank statements (for the last 2 months), pay stubs (for the last 7 months), and tax returns (for the last 2 years). When you meet with your Bankruptcy attorney, you should bring these items to your initial meeting.

2) File any outstanding tax returns.

3) Stay current on your car and house payment, if you intend to keep the property. If you intend to keep your property, your options can vary, depending on your particular circumstances. You should consult with a qualified Bankruptcy attorney to discuss your options in this regard.

4) Obtain a credit report.

Welcome to our Crystal Lake Attorney Blog

Timothy Brown, Esq. — Fri, 09 Sep 2011 17:07:00 GMT

Our lawyers are pleased to announce the launch of our Crystal Lake general practice blog