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    Talking with Creditors if You Can't Pay Your Bills

    Last updated 3 days ago

    Once you miss a payment, your creditors will start calling you and demanding money. If you don’t have the money, however, repaying your creditors simply isn’t an option.

    In this video, a certified public accountant discusses how to speak with creditors. She says it’s important to stay current on utilities, auto loans, and any debts that are set up against assets. If you can’t pay off your credit card, medical bills, or other unsecured debt, simply let the creditor know. The sooner you come clean to your creditor, the better chance you have of negotiating a repayment deal. 

    If your debt is insurmountable, you may need to file Chapter 7 or Chapter 13 bankruptcy. If that’s the case, the expert bankruptcy attorneys at Cutler & Associates, Ltd. will provide skilled assistance. Call our Aurora office at (847) 505-0380 if you have any questions. 

    Preparing for a Chapter 13 Confirmation Hearing in Bankruptcy

    Last updated 10 days ago

    If you have an income that is greater than the Illinois median for a household of your size, you may be eligible to file Chapter 13 bankruptcy. Chapter 13 bankruptcy permits you to repay your outstanding debts through a three-to-five-year repayment plan, and is generally a more favorable bankruptcy option from a creditor’s point of view. If one or more creditors take issue with your proposed repayment plan, however, you may have to go to a confirmation hearing. If so, here is how you should prepare.

    Review Your Repayment Plan

    After completing and submitting your Chapter 13 repayment plan, your creditors will have an opportunity to take a look. If your trustee or creditors identify an issue with your repayment plan, they will request a confirmation hearing. To adequately prepare for your confirmation hearing, consider reviewing your repayment plan for any glaring mistakes.  

    Identify Creditor Objections

    As you review your repayment plan, you should be able to identify your trustee’s or creditors’ objections. Most of the time, creditors object to repayment plans because they feel they aren’t receiving enough money. Trustees often request hearings if they don’t believe the repayment plan to be feasible. Identifying the central issue behind the objection will help you prepare your counterarguments for the hearing.

    Consult an Attorney

    If you haven’t done so already, it’s a good idea to hire a skilled bankruptcy attorney before the confirmation hearing. An attorney can shoulder the burden of preparation and represent your interests during the hearing. Having an attorney by your side and vastly increase your chances of having your repayment plan confirmed.

    If you’re planning on filing Chapter 13 bankruptcy, or have already done so and are facing a confirmation hearing, call Cutler & Associates, Ltd. at (847) 505-0380. Our Aurora bankruptcy attorneys can help you navigate the many difficult aspects of the bankruptcy process and help you find solid financial ground.  

    Can You Pay Off Your Chapter 13 Plan Early?

    Last updated 18 days ago

    Bankruptcy is a perfectly legal and honest means of emerging from insurmountable debt. Even so, many people feel embarrassed by bankruptcy, and want the process to be over as soon as possible. The Chapter 7 bankruptcy process usually only takes a few months to complete, whereas the Chapter 13 bankruptcy process takes three to five years. If you have the means, you might be tempted to pay off your Chapter 13 repayment plan early—but is it worth it?  

    Chapter 13 Bankruptcy Basics

    Chapter 13 is a type of bankruptcy that allows income-earning debtors to reorganize their debt and it pay back over a period of three to five years. First, the debtor must come up with a repayment plan that details precisely how much the debtor will pay to his creditors. Some debts can be partially paid off, while others must be paid in full. Once the repayment plan is approved, the debtor begins making monthly payments.   

    Terms of Early Repayment

    Three to five years is a long time. If your circumstances change halfway through your repayment plan, you may wish to pay off the remainder of your repayment plan and free yourself from your obligation. However, doing so comes with a price. Your outstanding debt is discharged at the end of your repayment period—if you decide to end your repayment plan early, you will also have to pay the amount that would otherwise be discharged.

    Sticking to Your Repayment Schedule

    Though the idea of paying off your repayment plan early may sound attractive, you’re probably better off sticking with your plan to the end. If you have extra money, you might consider setting it aside so you can guarantee that your repayment plan will be paid off. After your repayment plan in finished, your outstanding debts will be discharged.

    There are a few exceptions that allow some people to end their repayment plans early without incurring additional expenses. For help identifying whether your case is an exception, call Cutler & Associates, Ltd. at (847) 505-0380. Our Aurora bankruptcy attorneys can help you get out from under your debt and start anew. 

    What Are the Most Common Types of Bankruptcy?

    Last updated 29 days ago

    The most commonly utilized types of bankruptcy include Chapter 7 and Chapter 13. Chapter 7 is known as a liquidation bankruptcy. If you choose this type, you’ll forfeit your non-exempt assets, which the trustee will then sell to pay off a portion of your debt. The remainder of your debt is discharged. If you own substantial assets, such as a home, and a regular income, your bankruptcy attorney may advise you to file a petition for Chapter 13 bankruptcy. Also known as debt reorganization, this type of filing restructures debt into a manageable payment plan. Debts that are not paid at the conclusion of the payment plan are discharged.

    There are other types of bankruptcy, including Chapter 12, which is appropriate for family farmers. The process of debt discharge under Chapter 12 is much like that of Chapter 13. Businesses most often file under Chapter 11, which enables them to keep some assets while adhering to a debt payment plan. Municipalities may reorganize their debt under Chapter 9.

    If you have any questions about what type of bankruptcy might be best for you, contact the veteran bankruptcy attorneys at Cutler & Associates, Ltd. Chicago-area residents can reach our locations in Aurora or Schaumburg at (847) 505-0380.

    What Bankruptcy Means to the Everyday Consumer

    Last updated 1 month ago

    For the everyday consumer, bankruptcy offers an opportunity to rebuild finances and start fresh. Bankruptcy itself has a long history. In its modern form; however, consumers may choose to file Chapter 7 or Chapter 13 bankruptcy. Your bankruptcy attorney can help you determine which type might be best for you, depending on your assets, income, and debts. If you’ve previously filed for bankruptcy, you’ll need to wait seven years before you can file again.

    Learn more about bankruptcy by watching this news clip. This expert explains the evolution of bankruptcy and the differences between Chapter 7 and Chapter 13. You’ll also learn how long a debt discharge will stay on your credit report.

    If you need a fresh financial start in life, you can learn more about filing for bankruptcy with help from Cutler & Associates, Ltd. Call our Aurora or Schaumburg office at (847) 505-0380.

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