🔒 Overwhelmed by debt? There's a legal path forward.

When creditors won't stop calling and bills keep piling up, bankruptcy may be the structured solution you need. At Leeders Law, we guide individuals and businesses through Chapter 7 and Chapter 13 bankruptcy with clarity and confidence.

Take the first step. Schedule a free consultation today.

📞 [312-346-7400] | 🌐 [LeedersLaw.com]

While Zillow is a good starting place to determine approximate value for your home when filing for bankruptcy, A better option would be a CMA -a comparable market analysis, or even better yet, a full blown appraisal.   When you are close whether your exemption covers the equity in your home, it's best to be certain as to value to avoid liquidation issues with a chapter 7 bankruptcy case.

http://www.abajournal.com/news/article/federal_judge_tosses_suit_claiming_zillow_zestimates_are_illegal_appraisals

Burr Ridge Bankruptcy lawyer new office location - free consultation for chapter 7 and chapter 13 bankruptcy

I am now scheduling appointments for people looking to file chapter 7 or chapter 13 bankruptcy at our newest location in Burr Ridge, IL , serving the Western and Southwestern suburbs and South part of Chicago.

Burr Ridge
1333 Burr Ridge Parkway, Suite 200
Burr Ridge, IL 60527



 We are located in the Chicago suburbs with easy access from I-55, I-355, and I-294 about 20 miles from Downtown Chicago

Office hours are by appointment.   Feel free to call me for a free mini phone consult regarding bankruptcy at 312-346-7400.

Schedule a free consultation with a bankruptcy lawyer at our Burr Ridge office or any of our other locations today to discuss Chapter 7 and Chapter 13 Bankruptcy.

Do you have overdue books to go along with that overdue credit card bill? Well avoid the penalties this next two weeks in Chicago!

http://www.chicagotribune.com/lifestyles/books/ct-cpl-book-fine-amnesty-0203-20160204-story.html

Still cannot discharge Student loans easily in bankruptcy. Supreme Court declined to hear appeal.

No progress for student loans in bankruptcy.   It's up to Congress to change the laws.

http://www.wsj.com/articles/supreme-court-denies-appeal-on-student-loan-erasure-1452527286?platform=hootsuite

How to Know When Bankruptcy Is Right for You

How to Know When Bankruptcy Is Right for You 

Before you decide to file for personal bankruptcy you should be aware that it is not necessarily the best choice for everyone. For many people, bankruptcy should be the last-case scenario only after they have weighed all of their options and determined that they can’t remedy their financial woes.

Ultimately, the decision to file for bankruptcy should be made between you and an experienced bankruptcy attorney. However, there are other methods of determining whether you can get the help you need before consulting with a lawyer and we will outline some of them here.

Are You Eligible for a Debt Management Plan? 

Most people who are financially distressed look to bankruptcy to alleviate them from credit card debt and help them get a new start. Before signing the bankruptcy paperwork, sometimes a debt management plan can help you to reduce your monthly payments, lower interest rates, stop late fees and collection calls and ultimately put you on a path to avoiding bankruptcy.

If you have not already, see if you are eligible for a debt management plan before deciding it’s time to throw in your chips.

Determine if Bankruptcy will Actually Help You

In some cases, bankruptcy will not actually alleviate you of all your debts. Certain types of unavoidable debts, called priority obligations, may not be wiped out in bankruptcy.

You have to consider what you are trying to accomplish by filing for bankruptcy and find out if Chapter 7 or 13 will remedy you of your concerns. As bankruptcy can be complicated, it’s best to consult with an attorney to address what you are hoping to achieve by filing and if there are other options.

Do You Qualify for Bankruptcy? 

Personal bankruptcy, Chapters 7 and 13, have certain eligibility requirements. For instance, if you are going to file for Chapter 7, you’ll have to have a low enough income. For Chapter 13, your debts can’t exceed a certain limit.

Not everyone qualifies for bankruptcy and debtors’ cases can be dismissed if they don’t comply with the courts requirements. For this reason individuals are discouraged from filing without the help of a bankruptcy professional or bankruptcy attorney; there are simply too many laws and policies that can be missed that may result in the dismissal of your case or worse, fraud which results in fines or criminal charges.

Is it Time to File for Bankruptcy? 

If you are looking for the answer of whether or not you should file for bankruptcy, you should start by asking yourself the above questions. If you find that you can’t afford a debt management plan, are unemployed and have no way to pay off any kind of debt, your best bet may be to consult with a bankruptcy attorney.

Ultimately a bankruptcy attorney will be able to help you explore your options and help you get through what is undoubtedly a stressful and challenging time in your life.

Author Byline:

Debthelper.com is an IRS Approved 501c3 Non-Profit Florida Corporation dedicated to our mission to educate, advise and empower youth to seniors to handle debt, credit and housing and to provide affordable housing opportunities through the acquisition and rehabilitation of residential properties.

Study: 1/3 of Americans don't have anything saved for retirement

Can you believe it? 1 in 3 Americans have no savings?
1 in 5 nearing retirement age have no savings either.
This does not bode well, especially when they turn to the government for support.
But bankruptcy can help get people back on track.
There are required courses that can help educate debtors after bankruptcy, stressing the importance of saving.  Contact me know and I can help you too!
www.LeedersLaw.com
312-346-7400
Free bankruptcy advice.
Let me lead you to financial freedom.

Here is the article on the study.

https://finance.yahoo.com/news/36--of-americans-haven-t-saved-anything-for-retirement--bankrate-com-163208530.html

10 year anniversary of Leeders & Associates Bankruptcy law firm

Today is the 10th anniversary of Leeders & Associates!

In 2004 I started this firm to offer my clients more bang for their buck.  I wanted to make sure they received the best service possible, to help them on their way.  Clients are more than just an account number.  They are people, like you and I.   They come to me at a low point, struggling to get by.  I wanted to give them a helping hand, and lead them to financial freedom.   Bankruptcy was just the tool to do it.   I also wanted to be a counselor as well, helping to cure the problem, rather than putting a band-aid on the result.   These steps have reaped many referrals, which is the ultimate thanks from my clients, who put their trust in me to get them the results they wanted, and to help them learn how to take the steps forward to prevent these issues from arising again.  I hope to expand these services to help clients even more over the next ten years as well.  The job is never finished. I have helped over 5000 clients over the last 10 years, and hope to help 5000 or more over the next 10 years!

Thank you to all of my past and present attorneys, staff, vendors, judges, trustees and colleagues.  Without you, this would not have been possible.   Thank you to my wife and children, my parents, my brother, and all my friends and family for all of your love, support, assistance, and patience!  Thank you to my clients as well.  Sometimes it was easy, sometimes it was rough, but here's to another great 10 years.  Thanks


Terry
312-346-7400
www.LeedersLaw.com
www.facebook.com/leederslaw
www.chicagobankruptcynetwork.com

U is for Unsecured Debt in bankruptcy

Unsecured debt is the debt most debtors in bankruptcy are looking to discharge.  This includes credit cards, medical bills, utility bills.  It also covers repossessions, broken leases and foreclosure deficiencies.

Tax debt and child support are also labeled as unsecured debts, but these take on different dischargability issues.  Most unsecured debts are dischargeable in bankruptcy.  The notable exceptions are domestic support obligations (DSO's) namely child support and alimony.  Some Tax debt.  Recently acquired debt while insolvent.  Most debt to governmental agencies, namely tickets, tollway fines, and penalties.

Other unsecured debts that don't discharge are intentional debts (such as intentional torts) DUI/DWI fines, and debts related to an injury or death as a result of DUI/DWI etc.

If you have significant unsecured debts, we can help. Contact us today for a free consultation to see how you can get a fresh start before the end of the year.  We have several Chicago area locations to serve you.


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S is for Setoff of bank accounts and bankruptcy

I see this issue frequently.

Debtor has a Bank Account at Bank A.   Debtor also has a debt owed to Bank A, say for a credit card, personal loan, or overdraft.

Any money in the bank account on the date of filing is vulnerable, as Bank A has the right of setoff against that account, to pay off the debt to Bank A. 

They say "Possession is nine tenths of the law."  Bank A has possession of the money in the account, a security interest if you will, and can take those funds to pay the debt.   

Now, it may be possible to force the creditor to return the funds to the bankruptcy estate if the amount in the account was exempted and it violated one of the preference transfer rules.   But there is case law that lets them hold those funds too.  

This is most frequently done by credit unions, I see it often.

The solution?   Open up a bank account at Bank B where the debtor owes no money.   Bank A can only get money in an account with Bank A, they can't cross over into Bank B to get those funds after the filing of Bankruptcy.

Here is the Bankruptcy code section that addresses this situation.
http://www.law.cornell.edu/uscode/text/11/553

11 USC 553 Setoff

(a) Except as otherwise provided in this section and in sections 362 and 363 of this title, this title does not affect any right of a creditor to offset a mutual debt owing by such creditor to the debtor that arose before the commencement of the case under this title against a claim of such creditor against the debtor that arose before the commencement of the case, except to the extent that—

(1) the claim of such creditor against the debtor is disallowed;

(2) such claim was transferred, by an entity other than the debtor, to such creditor—

(A) after the commencement of the case; or

(B)

(i) after 90 days before the date of the filing of the petition; and

(ii) while the debtor was insolvent (except for a setoff of a kind described in section362 (b)(6), 362 (b)(7), 362 (b)(17), 362 (b)(27), 555, 556, 559, 560, or 561); or

(3) the debt owed to the debtor by such creditor was incurred by such creditor—

(A) after 90 days before the date of the filing of the petition;

(B) while the debtor was insolvent; and

(C) for the purpose of obtaining a right of setoff against the debtor (except for a setoff of a kind described in section 362 (b)(6), 362 (b)(7), 362 (b)(17), 362 (b)(27),555, 556, 559, 560, or 561).

(b)

(1) Except with respect to a setoff of a kind described in section 362 (b)(6), 362 (b)(7),362 (b)(17), 362 (b)(27), 555, 556, 559, 560, 561, 365 (h), 546 (h), or 365 (i)(2) of this title, if a creditor offsets a mutual debt owing to the debtor against a claim against the debtor on or within 90 days before the date of the filing of the petition, then the trustee may recover from such creditor the amount so offset to the extent that any insufficiency on the date of such setoff is less than the insufficiency on the later of—

(A) 90 days before the date of the filing of the petition; and

(B) the first date during the 90 days immediately preceding the date of the filing of the petition on which there is an insufficiency.

(2) In this subsection, “insufficiency” means amount, if any, by which a claim against the debtor exceeds a mutual debt owing to the debtor by the holder of such claim.

(c) For the purposes of this section, the debtor is presumed to have been insolvent on and during the 90 days immediately preceding the date of the filing of the petition.

Contact me today if you have this situation and are looking for an attorney to represent you in bankruptcy and want to protect the assets and money you have in the bank.   Call me at 312-346-7400 or visit my website at www.leederslaw.com. 

Happy Friday.

Terry Leeders

G is for Garnishment

Many people file bankruptcy because a creditor has a garnishment.
A garnishment is a court order to deduct a portion of a debtor's wages to pay a creditor who sued the debtor and obtained a judgment.

Garnishments are stopped though the instant a bankruptcy case is filed, regardless if it is Chapter 7 or Chapter 13.  In my Chicago bankruptcy law office, we send a fax notice to the creditor's attorney as to the payroll department or HR supervisor.

Contrast this with a wage assignment.  A wage assignment is where you authorize the creditor to deduct a payment from your wages if you don't make voluntary payments.  The most common are from payday loans.  These can be stopped instantly, before bankruptcy, under the Fair Debt Collection and Practices act and the Wage Assignment Act under the Federal Trade Commission rules.

Contact your attorney, or call us if you need one as soon as possible to help with any of these types of matters. We are here to help!  312-427-7400
Thanks
Terry

Debt Consolidation Companies

Hi All.
As I've discussed several times before, many clients come to me seeking help regarding their debts, after having tried every way to salvage their credit.

Among efforts they have tried:

- Debt Negotiation with creditors
- Debt Consolidation companies
- Debt Settlement Companies
- Rolling the dice and hiding from creditor letters, phone calls and lawsuits

Nearly every client who come to me, stating that they have tried any or all of the above, have told me they just don't work, and they are in a worse position than they were before they started!

Nothing can be worse than putting all your "eggs in one 'credit basket" just to find out that the basket has a hole in it!! I've heard nightmares of these companies who promise the world and do little but cash the debtors check. There have been lawsuits filed in various states in hopes to shut down this consumer fraud that is rampant in the credit-debt world.

We are here to help. Talk to an experienced attorney who handles debt matters for clients on a day to day basis. Bankruptcy could be the answer, even if it sounds scary. Not to worry, things get better after bankruptcy.
Credit scores nearly always improve if you can take the lesson to heart and start rebuilding credit. Bankruptcy clients are getting credit after bankruptcy. They are!
My clients are getting credit cards, loans, car notes, and even homes after bankruptcy.

It does not take forever either! Often a debtor can start rebuilding credit almost immediately after the discharge. You don't need to wait 7 years, which is a horrible misconception I hear all of the time.

With the bankruptcy law change from 2005, Congress now requires debtors to receive debt counseling. In fact,they have to take 2 courses in order to be discharged of their debts in bankruptcy.

These classes can be done online, by phone or in person, and are relatively inexpensive, from free up to about $50 or so for each course.

They offer long term solutions to help get back on track to teach you the real life tools that high school and college often do not!

For a free bankruptcy consultation in Illinois, we are available to help get you on the path to financial freedom.

It's a free consultation, it can't hurt!
Terry

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!

Tax refunds in Illinois bankruptcy cases

As 2010 winds to a close, we hope you are enjoying your holiday season and we wish you the best for the New Year. Tax refund time will be approaching soon, so this post includes a few tips to help your bankruptcy case go smoothly in the new year. When it comes time to meet with the bankruptcy trustee after we file your case, they will ask you about your tax refund. Here are some general tax refund tips to help you most debtors avoid any problems when they file the case:

DO:
Pay the balance of attorney’s fees & court costs
Spend on necessities (rent, car note, food, utilities etc.) Pay with cash and debit cards.
Prepare and electronically file your taxes early
Tell your lawyer what you expect to get back & make a copy of the return before sending it in

DO NOT:
Take rapid refunds
Pay family or friends
Buy luxury goods
Do not charge on your credit cards, even small amounts
Pay small debts or debts you want to discharge
Wait until April to file your taxes

We may be able to protect a portion of your refund from seizure by the bankruptcy trustee, but we will need to see your tax return and discuss it with you over the phone.

The Illinois exemption is $4000 for wildcard, which is used to protect your household goods, money in the bank as well as the refund, so there could be some timing issues here. Any earned income credit portion will automatically be protected in addition to the wildcard amount we may use for the rest.

We can help you keep your refund, but you must retain our services for us to review your case and assist you. As always, feel free to give us a call and we’d be happy to discuss it with you. We would rather advise you on how to keep your tax refund than see the bankruptcy trustee take it from you! Remember each case is different, so you should rely on your attorneys advice once they know all of the facts of your case. Good luck and happy new year.

Recent Bankruptcy Statistics...Bankruptcy is alive and well in the US

Spurred by the down cycle in the mortgage business, a downturn in the economy (Recession? what recession? ) or else just credit providers providing more credit than should be given, we have seen a recent rise in bankruptcy filings both in Illinois and throughout the country. I came across this article from the AP which spells out the numbers for you.

March 3, 2008, 4:08PM
Bankruptcy Filings Up 15 Percent in Feb.

© 2008 The Associated Press

WASHINGTON — U.S. personal bankruptcy filings rose last month to the highest monthly level since Congress passed a sweeping bankruptcy overhaul that made filing more difficult.

Consumers made more than 76,000 personal bankruptcy filings in February.

That was up more than 10,000, or 15.2 percent, from 66,000 a month earlier and up from more than 55,000 in February 2007, according to data collected by the National Bankruptcy Research Center and published by the American Bankruptcy Institute, a research group in Alexandria, Va.

It was the highest monthly figure since October 2005, when bankruptcy filings surged to nearly 620,000 before a new law made it more difficult for consumers to seek bankruptcy-court protection from creditors.

Last year, personal bankruptcy filings jumped 40 percent to more than 800,000 due to rising mortgage payments, job losses and other financial pressures, after a sharp decline a year earlier.

The trend may worsen this year as consumers' high debt loads are made worse by mortgages resetting at higher rates. The spike "forecasts the start of more to come," Samuel J. Gerdano, executive director of the bankruptcy institute, said in a statement.

Reopening a chapter 7 case

I receive several inquiries about reopening a chapter 7 case once the case is closed.

This is possible to do, however it is subject to court approval.
1. The debt must have been incurred before the date your case was originally filed.
2. The court charges an amendment fee of $26 to add on debt to a case.
3. There is also a reopen fee to reopen a case once it is closed, $260 for Chapter 7.
4. Your attorney may charge an additional fee to do the work for you.
5. This must be done by motion to the court, then the judge will rule on letting the case reopen.

Bankruptcy Questions and answers

Here is an updated bankruptcy question and answer session. As you can see there are many bankruptcy issues that can sway a case one way or another. Hold tight, here we go.

Chapter 7 and Lump sum SSDI payment

Question
My daughter applied for SSDI over 2 1/2 years ago. Her husband left her 2 years ago. Their divorce comes up in March. She just received a lump sum payment from Social Security for her disability. She has not paid any of her credit cards, etc. for the past two years however I have been paying her car payment; titled jointly. I have been paying all her expenses the past two years with the agreement she pay me back when she got her settlement. She is planning on filing Chapter 7. Does she have to disclose the lump sum payment of social security disability? She owes me $8k of the $15k she received. What effect will that have on her filing? Also what happens to the car since it is in her husband's name also? She would like to keep it. Thank you.

Answer
Yes, she would disclose it. Her attorney will use state exemptions to protect it. She should not pay you, as the trustee in the case can then come after you for the funds.
For a cosigned debt, she can choose to reaffirm the debt so she can keep the car, and should continue to make the regular payments on it.
She should talk to a local bankruptcy attorney to get state specific advice.

Subject: Motion for Deficiency

Question
I live in Ohio. Filed Ch.7. Surrendered our condo to the trustee, he abandoned the property,it went into foreclose and sold at auction. I recently received a notice for motion of deficiency filed by the condo association, which by the way was listed in the original filing. Do I owe this money? What happens if I don't go to the hearing?
Thank you
Answer
If you listed the debt in bankruptcy, then the bankruptcy discharged your obligation for this debt. I assume this is a state court motion, where they may be asking for $ from the lender, as they usually have a condo association lien on the property.
IF it is a bankruptcy motion, you should speak to your attorney.

Subject: chapter 7 and tax refund

Question
i live in wisconsin a few years back i was involved in a car accident. the womens attorneys sued for 85,000 and it was granted. i want to file chapter 7 since i really have no assets at all to get rid of this judgement.i still desperately need my tax refund which should be significant w/2 children.is it better for me to file my taxes before or after i file for bankruptcy?should i anticipate them taking a portion or all?i am extremely stressed about this due to having to pay for child care. thank you very much.
Answer
Each state has exemptions to protect assets. You should meet with a local bankruptcy attorney to advise you how to protect your assets and when is the best time to file a case. Car accident debts are normally dischargeable, unless there was DUI/DWI or intentional injury.

Subject: Filing taxes post bankruputcy discharge

Question
I have completed a Chapter 7 bankruptcy during 2007. I am unsure how, or if, I am required to report that to the IRS. I owe no back taxes, and taxes were not apart of my bankruptcy. All of the debt that was discharged was consumer credit debt. I maintained my home,car and personal belongings.
Answer
As far as I know, there are no special deductions or exemptions to list when filing your taxes in regards to your bankruptcy. You should mention it to your tax preparer just in case, since I am not a tax expert, and the tax code is as big as the bankruptcy code!

Subject: Getting out of Bankruptcy

Question
I need to know how can refinance my home loan and get out of bankruptcy.
Answer
I assume you are in chapter 13 bankruptcy. You will need to seek out a lender and get a proposed refinance contract. Then get that to your attorney to draft a motion to permit you to refinance. You should also order a payoff statement from the trustee. Once the motion is granted, (court will look to see if it is reasonable and necessary, comparing costs before and after etc.) then you can close on the loan and turn the proceeds over to the trustee to distribute to your creditors. You should allow about 30 days for the motion to be heard and granted.

Subject: chapter 7 questions

Question
My wife and I recently filed chapter 7(with an atty).I would like to know if I can talk to a lender about the terms of my loan.To be more specific,We own an RV and wish to keep it.However,I/we are not going to "reaffirm".The main reason is I know that the bank doesn't want it and I don't want to be responsible in the future if I cant continue to pay.At the present time we are current on our payments and are continuing to pay.Is it reasonable to ask them to reduce the loan amount or interest rate to help us as long as we continue to pay?.............more important,........Is it legal?

Thank you in advance for your time and help.Please be advised that your answer may generate more questions.I/we ahve talked with our attorney about alot,however he is on his honeymoon at this time and unavailable.
Answer
If you do not reaffirm, then there is no negotiation with the lender. The reaf may have better terms for you. if not reaffirmed, the lender has the right to the items back. IF you pay for them, it would be up to the lender if they will agree to let you keep the items if you are current. Since the RV may have some resale value, you need to speak to them directly about the options available if you do not want to reaffirm. They are under no obligation to let you keep the RV, even if you are current, if you don't sign the reaffirmation.

Subject: Chapter 7

Question
Went in for a consultation for chapter 7 but new questions arise after the consultation.
1. Been in SC for a year now planning on moving back to GA in a couple of months. Should I go ahead and file it now in SC or wait?
2. The lawyer told me to list my assets. Do I have to list my furniture/TV(I do not want to lose it)?
3. The lawyer also told me something about Chapter 722(something about car loan) do you know what kind of car I can get?
4. Should I file taxes before or after I file?
5. If I do list assets will a trustee actually come out to see it?
Answer
1. You would need to still file in SC for 90 days after you move.
2. List all assets, and your attorney will use the state exemptions to protect your assets so that you can keep them.
3. 722 is where you can buy your car for fair market value as opposed to paying off the balance of the loan. They can help you finance something after bankruptcy too.
4. Check with your attorney to see what portion of the refund may be protected.
5. Rarely does a trustee investigate assets. You sign the papers under oath, so be sure to list all of your assets.

Subject: chapter 13

Question
I have about 22,000 in unsecured debt. All very high interest rates (cc's and 3 personal loans). I tried consolidating part of my debt into a personal loan of 10,000 6 months ago. The consolidated loan is 24% revolving and in 6 months i only managed to bring down the total 100.00 dollars, and now I am even farther in debt and can't make ends meet. My minimum payments are 700 dollars monthly. I make 37,000 a year and own my home and don't want to lose it. I will need a care within 3-5 years. If I take the chapter 13 route, what would I expect to lower my payments too monthly and will the recent 10,000 unsecured loan (it was deposited in my account, however no luxuries were purchased with it, it was used for repayment of personal debt), affect my filing. I can't go on like this, I can not even barely make these payments of 700.00. I live in PA.
Answer
With Chapter 13, you would pay back anywhere from 10-100% depending on your income, and depending on your assets. You would pay this debt back with little to no interest. Speak with a local PA bankruptcy attorney to find out the exact percentage of repayment based on your individual situation.

Subject: Chapter 7

Question
Hello,

I have filed Chapter 7 and included my home (in Georgia). The mortgage attorney has a court date of January 31, 2008 for a motion of relief from stay. Will I be notified as to how soon I need to vacate the property or approximately how long will I have left to remain on property? I asked my attorney and was told 2-3 months after filing date. I just wanted to see if I could get a more definite time frame. Thank you in advance.
Answer
Once the stay is modified, the lender will start the foreclosure process. Foreclosures can be up to 9 months, depending on the case and the jurisdiction you live in. You would have a bit of time to stay in the property and to find alternate living arrangements. The bankruptcy will eliminate the balance owed on the mortgage.

Blockbuster fees

I received an interesting email from Blockbuster yesterday.
They are increasing fees from $17.99 to $19.99.
This comes on the heals of the plan modification they put thru just several months ago....eliminating the free in-store game rental coupon each month as well as capping the in-store exchanges at 5.
I understand that companies need to make a profit, but this is ridiculous.
I emailed them back both times, but got a canned letter about profits, and providing quality service and the 'value' that I am receiving.
I have read online that some fees jumped to $34.99 per month ($10 increase)
This all comes after Blockbuster touted it's services and benefits over Netflix in their 2007 marketing campaign (voice over by Alec Baldwin).

How does this relate to Bankruptcy? Well, this shows that you should watch your monthly budget, and seek out cheaper/less expensive alternatives when possible to help your pocketbook. While $2 doesn't seem like much each month, if each and everything you pay for was $2 more, then you would definitely be feeling this crunch.

So, get out there, comparison shop..not only for prices, but for services offered and the lovely "Customer Service" that is out there.

See you all in the Netflix camp...because that is where I am headed. Thanks!

Substantial Abuse, Bankruptcy Planning & Chapter 7 bankruptcy

What does one have to do, or in this case from Wisconsin, NOT DO, to create substantial abuse ?

RECENT CASES: Feb. 6. 2007

Chapter 7 Debtor who fails to aggressively seek out work before the case is subject to dismissal based on the totality of the circumstances. 'Substantial abuse' is now just 'abuse.'

The court noted: " ... this Court concludes that a debtor who lacks the ability to pay because she has not engaged in a broad employment search, does not wish to work outside her chosen field, does not wish to work within her chosen field outside of southeastern Wisconsin, and takes this position at the expense of her creditors, abuses the provisions of Chapter 7 ..."

The court held, "The court concludes that it must look at the debtor's ability to pay her creditors at the time of the hearing on the motion to dismiss." " . . . it must delve further and find out why the debtor does not have the ability to pay. Finally, the Court concludes that if the debtor's inability to pay creditors is self-imposed, it may consider this fact ... in terms of the totality of the circumstances ..."

In re Richie, 353 B.R. 569 (Bankruptcy.E.D.Wis. 2006)

Therefore, as practitioners, this case is disturbing, as it takes out the element of bankruptcy case planning. What should a bankruptcy attorney advise their client? If a debtor's attorney advises the debtor to stop working, so that the debtor's income would allow them to pass the means test, it sounds like that would open the attorney up to malpractice, as it could get the chapter 7 case dismissed. Very interesting. Therefore, everything you advise a debtor must be very well thought out and planned, knowing that there are these type of pitfalls for the unwary practitioner!

Surrender Vehicle in Chapter 13 - Creditor allowed an unsecured deficiency balance

Northern District of Illinois - Eastern Division Chicago Bankruptcy Judge Squires recently ruled in the chapter 13 case of Linda J. Blanco, 06B 13223, where debtor tried to surrender a vehicle in full satisfaction of the claim owed. Judge Squires

The Court held that "the Debtor may not surrender the collateral in full satisfaction of the debt to the Creditor. The Creditor is entitled to seek its available state law remedies, including its right to an unsecured deficiency claim after liquidation of its collateral."

Judge Squires follows the minority argument in other jurisdictions, but it is also supported by fellow Chicago Bankruptcy Judge Schmetterer. This argument states that that when the collateral is surrendered, "the bankruptcy estate no longer has an interest in the collateral for purposes of § 506." Wherefore, the “hanging paragraph” does not preclude the creditor from claiming an allowed unsecured deficiency claim under § 502.

Judge Squires continued:
"Judge Schmetterer in the Morales case followed Judge Shefferly’s logic in Particka, and he aptly explained the interplay between § 506(a) and § 1325(a)(5)(C):

if a debtor surrenders the vehicle, the interests of parties in the collateral and the impact of § 506 changes. Section 506(a) applies only to “an allowed claim of a creditor secured by a lien on property in which the estate has an interest. . . .” 11 U.S.C. § 506(a). If a confirmed Chapter 13 plan provides for surrender of a vehicle under § 1325(a)(5)(C), the estate no longer has an interest in the vehicle. . . . When . . . . the debtor surrenders the vehicle and the estate no longer has an interest in the property that secures a claim, there is no reason to use the valuation process provided in § 506 to determine the amount of the allowed secured claim. Rather, once the vehicle is surrendered to the creditor pursuant to § 1325(a)(5)(C), the value of the creditor’s secured claim is determined under state law, Illinois U.C.C., 810 ILCS 5/9-610-624. "