Get your car back with a chapter 13 bankruptcy case!

I've posted a video about how I can get your car back with a chapter 13 bankruptcy case in the Chicago, Illinois area. Check it out. Terry

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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Deeds and Homeowner Association Fees - Bankruptcy Home Blog

Deeds and Homeowner Association Fees - Bankruptcy Home Blog

Interesting fact pattern here. The spin I see is that the debtor files bankruptcy and 'surrenders' the home.
Many mistakenly believe discharging the mortgage means the house is no longer theirs.  It still is, until the property is sold or goes thru foreclosure.   The HOA or condo assessments incurred from the date of bankruptcy until then, are the debtor's responsibility since they owned the property!

The rule is to prevent the other owners in the HOA from having to take on the debtor's debt.

Feds: Bankruptcy scam freed impounded vehicles

I saw the US Trustee's office discussing this matter on a case before Judge Cassling last week. The case was dismissed, namely because the debtor didn't file most of the required documents. It's a shame that these individuals were taking advantage of debtors, when a qualified attorney could get them much better results....get their cars back, and get rid of the fines, often for as little as pennies on the dollar with a Chapter 13 bankrutpcy!!  Contact me for a free consultation on how to do things the right way!  312-346-7400 Leeders & Associates

Feds: Bankruptcy scam freed impounded vehicles

T is for Terrance Leeders - head bankrutpcy attorney and owner of Leeders & Associates

Hi All.  I was recently interviewed for an article by BankruptcyHome.com.  I have enclosed a link to their article.   If anyone as has any further questions, feel free to contact me at Leederslaw.com, or call me at 312-346-7400.   I'm happy to help any consumer or small business debtors file for bankruptcy relief, and as always, we offer free consultations for Bankruptcy.

http://www.bankruptcyhome.com/attorney-interviews/terrance-leeders

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

R is for repossession

R is for Repossession
I would estimate that over half, if not 75% of my clients have had a repossession in the past, many with 2 or even 3 of them.   Chapter 7 is a great tool to wipe those debts out and get a fresh start.   But, if it just happened, and you want your car back??  I can get it back for you!!  Generally in Illinois you get 21 days from the date of the repossession to file a Chapter 13 bankruptcy.  This will allow you to get the vehicle back!  Now, you will be paying back the debt in order to keep it, but that was your intention anyways!!

Another benefit, if the car was purchased over 910 days before the chapter 13 filing, our Chicago bankruptcy attorney at Leeders & Associates can cram down the balance you pay based on what the vehicle is worth today.  We all know how cars and trucks depreciate the minute you drive off the lot, and that by the time you are finished paying, the car is worth but a fraction of the purchase price.   We can save you a ton of money if your vehicle has depreciated too!   We can even get you a much better interest rate in most cases.   Case law wants a debtor to pay prime rate +1 to +3 points.  So as of today, April 26, 2013, that would be between 4.25% and 6.25%!  That may be quite a savings, especially if you bought your car from a Buy Here, Pay Here dealer!

Contact us today for a free bankruptcy consultation.  We have several bankruptcy attorney offices - a Chicago Loop office, South Side of Chicago office, as well as Offices in Schaumburg and Warrenville, IL to serve the city and suburbs.
We have free consultations and have weekend office hours too!  Call today. 312-346-7400.

Q is for Quick Bankruptcy Filing

Bankruptcy cases are filed electronically.
Our office has the capability to file cases quickly for those emergency cases, like to stop an imminent foreclosure sale, or to get a car back that was recently repossessed. This is done utilizing Chapter 13 bankruptcy.  We just need a few pieces of information, you will need to take your credit counseling class, and we are set.  We'll pull your credit reports.   Contact us today if you need a quick bankruptcy filing!  Our website at www.leederslaw.com  has more information.  Let us help you get a fresh start!

We Are Moving!

We are moving!!
Here is our new contact information effective 12/18/2012:

Chicago, IL Office
205 W. Randolph Street
Suite 1240
Chicago, Illinois 60606
Ph. 312-346-7400
Fax 312-346-7401

P is for Plan

Under chapter 13 bankruptcy, you can consolidate your debt, paying back consumer debt at as little as ten cents per dollar owed. Secured debts are paid based on fair market value -most cars, furniture, appliances jewelry etc.

Mortgage arrears are paid 100%, as are domestic support obligations and recent tax liabilities.