Mr Cutler and Mr Swanson are fantastic attorneys! I had the pleasure of working directly with Mr Swanson in our Chapter 7 Bankruptcy case. After discussing the case with a few lawyers in the area, I found Mr Swanson to be most intelligent, thoughtful, wanting to listen to our concerns and prompt with responses to questions. Mr Swanson is very...
Your home is likely your most significant asset. Unfortunately, sizable mortgage payments can make it difficult for many people to stay current on their mortgage. Many homeowners decide to file for bankruptcy because they fear losing their home due to missed payments. If you’ve received a notice of foreclosure from your mortgage lender, contact a bankruptcy attorney right away to learn about your options. In some cases, filing for bankruptcy may help you save your home.
As soon as you file for bankruptcy, the court will issue an order for relief. This grants you an automatic stay, which prevents any of your creditors from engaging in collections activities. The automatic stay is in effect regardless of whether you choose a Chapter 7 or Chapter 13 bankruptcy. If your home is in foreclosure, the sale will be postponed while the bankruptcy is proceeding. However, your mortgage lender could choose to file a motion to lift the stay. If this motion is granted, your lender could proceed with the foreclosure process. You’ll still have some time to get your finances straightened out.
If you choose to repay some of your debt with a debt reorganization, or Chapter 13 bankruptcy, your missed mortgage payments can be included in the repayment plan. However, you’ll still need to stay on top of your current mortgage payments, in addition to the payment plan, to prevent the lender from beginning the foreclosure procedure again.
Second and Third Mortgage Discharge
If you have a second or a third mortgage, you may be able to eliminate payments on those mortgages altogether by filing for a Chapter 13 bankruptcy. This is possible when you do not have enough equity in your home to secure those additional mortgages. For the purposes of the bankruptcy, that debt would then be considered unsecured debt and it’s often dischargeable.
Here at Cutler & Associates, Ltd., our team of bankruptcy attorneys is dedicated to helping Chicago-area families keep their homes and get back on their feet financially. If you’ve received a notice of foreclosure and you’re considering filing for bankruptcy, contact us today to set up a consultation in Aurora, Schaumburg, or our other convenient locations. You can connect with us by calling (847) 505-0380.
The bankruptcy means test is a formula used by the bankruptcy courts to assess whether your income exceeds the maximum threshold for filing for a Chapter 7 bankruptcy. It was established with the intent to prevent debtors who may be able to pay some or all of their debts from filing for bankruptcy. If you file for a Chapter 13 bankruptcy, the means test can affect the length of your repayment plan. It’s quite common to make mistakes on the means test, which is why it’s always a good idea to work with a veteran bankruptcy attorney, who can complete this form for you.
Misjudged Household Size
Writing down your household size seems like a straightforward task; however, it’s common to make mistakes in this area. On the means test, your household size is used to assess where your income falls in terms of the median family income, in addition to your standard deduction amounts. Occasionally, a bankruptcy court will accept every member of the household as counting toward the household size. Most of the time, only members that are financially interdependent are included in this figure. For example, if you have someone renting a room in your home, that boarder would not count toward your household size.
Improper Documentation of Income
A number of minor factors can interfere with the way in which your income is documented and whether it matches the figure you include on the means test. For example, your average income may be affected by the issuance date of your paychecks or when you filed the bankruptcy petition. Your attorney can carefully examine your documentation to ensure it matches the income you list.
On the means test, you’ll list expenses that are deductible. A common mistake is to list expenses that are not deductible, such as 401(k) loan repayments and tuition for a child.
When you partner with the team at Cutler & Associates, Ltd., our bankruptcy attorneys will make sure that all of your bankruptcy paperwork is accurate and filed on time. Contact our law firm today at (847) 505-0380 and ask us how we can make filing for bankruptcy as hassle-free as possible. Our bankruptcy attorneys are available in Aurora, Schaumburg, and other convenient locations in the Chicago area.
After filing bankruptcy, you may find it difficult to take out loans with favorable terms—if you’re even approved at all. Still, it’s important to get back in the saddle and start rebuilding your credit score. Though a secured credit card can help, you may need to take out an unsecured credit card to rebuild your credit more quickly.
An unsecured credit card allows you to borrow money that isn’t attached to any kind of lien—in order words, it’s a typical credit card. After you file for bankruptcy, you probably won’t get a credit card with a favorable interest rate or credit limit, but that won’t matter as long as you pay off your credit card on time and in full every month. You can only improve your credit score by proving that you’re a reliable lender.
The bankruptcy lawyers at Cutler & Associates, Ltd. can help you understand what happens before, during, and after the bankruptcy process. Call our Aurora office at (847) 505-0380 to start improving your financial situation.
Even if you consider yourself to be a fiscally responsible person, there could come a time when you suffer financial troubles. If credit counseling isn’t enough to pull you out of debt, you may need to settle for bankruptcy.
This video offers a look at the three most commonly filed types of bankruptcy. Chapter 7 liquidation involves the discharge of debts in exchange for certain pieces of non-exempt property. Chapter 13 reorganization allows the debtor to catch up on late payments through a three-to-five-year repayment plan. Chapter 11 bankruptcy is a lot like Chapter 13, but with a higher debt limit.
To learn more about common types of bankruptcy, trust the Aurora bankruptcy attorneys at Cutler & Associates, Ltd. We’ve been helping individuals get through the bankruptcy process since 1990. Call (847) 505-0380 to learn more.