Tuesday, January 25, 2011

Stop foreclosure sales with Chapter 13 bankruptcy

Faced with a sale date on your property? Think all is lost? It isn't! You can stop a foreclosure sale before your home is gone for good with a chapter 13 bankruptcy.

A chapter 13 can cure your mortgage default, get you a better deal on most financed items, including cars, and can discharge your unsecured debts, often at pennies on the dollar!

The bankruptcy code gives debtors who ran into a rough patch the ability to right the ship and get back on track with a chapter 13 repayment plan. The plan focuses on the value of assets, and your current monthly disposable income to create the repayment plan. The plan usually runs for 36-60 months in most cases, and debtors are usually debt free at the end (aside from the regular mortgage payment, ongoing child support and student loans).

If you are in Illinois, call Leeders & Associates today at 312-427-7400 to get information on chapter 13. We offer free consultations and roll much of our fees into the repayment plan too!

Thursday, January 20, 2011

Tax Refund anticipation Loan

There is much to say at this time of year regarding tax returns. One thing that comes up, is that many of my clients take refund anticipation loans to get their refund sooner. I've seen several commercials now on TV hyping these loans from Tax Preparers.

This is something I tell each and every client not to do.

Several issues:
1. Have you seen the crazy interest rates they charge? They are huge! 300-400% or more! This is hundreds of dollars to get your money a few weeks sooner, is that smart?
2 They don't come too much faster than you would get your tax refund if you file electronically, and get direct deposit.
3. These refund anticipation loans are just that, loans. If there is a seize order out there for child support, judgments, student loans etc, the loan company will come calling, since they didn't get the refund as agreed upon when you take these loans.
4. If you wind up owing this company, it might not be dischargeable in bankruptcy on several challenges: a) too recent, or b) false information in the loan application (otherwise the company may have denied the request originally)

So, file your taxes. File them electronically, and request the IRS direct deposit them into your bank account. They even offer debit cards too.

Talk to your bankruptcy lawyer about how to protect the tax refund if you are looking to file bankruptcy.

If you are in Illinois, you can contact me at or call me at 312-427-7400, or view my website at


Here is a good foundation to support, they do some fine work.
Can you RISE to the occasion?