Financial advice and tips

I recently stumbled upon a very useful and insightful Blog Managing Personal Finance
run by Devray. By profession, she is a consultant in Personal Banking for several years. She works for Debt Consolidation. She does a lot of reading and research on these subjects. The materials that you read are the result of interactions with finance experts, customer feedbacks, experiences and a lot of exploration of the subjects. So feel free to dig in and explore the vast wealth of information provided here.

They're Back.....Audits That is....

May 9, 2008
As mandated in Section 603(a) of Public Law 109-8, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, the United States Trustee Program (USTP) established procedures to audit petitions, schedules, and other information in consumer bankruptcy cases filed on or after October 20, 2006. Pursuant to 28 U.S.C. § 586(f), the USTP contracted with independent accounting firms to perform audits in cases designated by the USTP.

In January 2008, the USTP temporarily suspended its designation of cases subject to audit for budgetary reasons. The USTP is preparing to resume its designation of cases, although random audits will now be conducted in 1 out of 1,000 cases (as opposed to 1:250 cases) filed in a judicial district. The USTP will resume its designation of cases subject to audit effective May 12, 2008.

Bankruptcy Exemptions for retirement accounts in IL, reaffirming car lease and home

Subject:	assets in bk
Question:	are both 401K's and IRA's exempt from chpt 7 in IL? Also, while credit is still in good standing can I lease a new vehicle getting a good interest rate and not have to list them a debtor? What happens to my house if it has no equity but I continue making the payments on time.
Answer:	Yes, there are exemptions for IRA's and 401k in IL to protect them 100% in IL. All debts, including leases must be listed in the case, but you can choose to assume the lease, keep making payments, and keep the vehicle in chapter 7. If you have no equity in the home, are current on the payments, you can reaffirm the debt to allow you to keep the property after bankruptcy. If you would like a free consultation to meet with me, I'd be happy to set that up. Please contact me at the phone/email in my profile. Thanks. Terry Leeders

northern district of Illinois bankruptcy statistics

2008	Jan	Feb	Mar	Apr	Total
Ch7	1602	1951	2296	2502	8351
Ch11	10	10	11	47	78
Ch13	964	962	961	1124	4011
Total	2576	2923	3268	3673	12440
increase	35%	37%	29%	54%
from 2007

Here are recently published figures for bankruptcy filings for Chapter 7, Chapter 11, Chapter 13 in the Northern District of Illinois. (no chapter 12 cases were filed)
As you can see, the numbers have bounced back and increased significantly over last years figures. This can be associated with increased foreclosures, downturn in the economy, and the increasing unemployment rate.

bankruptcy motion to compel trustee to assume 3rd party contract

Recent court of appeals bankruptcy decision:

7th Circuit Cases
Civil - Bankruptcy
Chiplease, Inc. v. Steinberg, No. 07-1879 (5/15/08). Appeal, N.D. Ill., E. Div. Aff?d.
Dist. Ct. did not err in affirming Bankruptcy Ct. order that denied plaintiff's motion to compel Trustee to assume debtor's contract with third-party and to assign debtor's rights in contract to plaintiff. Record showed that debtor's right to renew terms of contract had expired, and thus Trustee's assumption of contract would have subjected Trustee to sanctions under Fed. R. Bankr. P. 9011.

Keeping a corporate credit card after bankruptcy?

Subject:	Chapter 7 & Corporate Credit Card
Question:	My husband and I are reviewing our options but need to find out if his corporate American Express card (which is paid in full each month) would be included in a discharge. The card is tied to his SS number, but is tied to his job. If this card were to be included, he would be unable to keep his job because he travels alot. How can we find out with 200% certainty that he could keep his card?
Answer:	If there is a balance, then it would need to be included if he was the signer on the original application. If he is just an 'authorized user' on a corporate account, or if there is a zero balance, then it would not need to be listed. (if they send the bill to him, then it is his debt, and not an authorized user) Then, after bankruptcy, it will be up to the lender if they wish to let him keep the account, unfortunately, most do not, even with a zero balance, but check with AMEX to be sure.