Cutler & Associates, Ltd.

See How Bankruptcy Affects Different Debts With These Sites

Are you a struggling debtor in the Chicago area? If so, learn more about debt and bankruptcy with the following links and consult the legal team at Cutler & Associates by calling (847) 868-2265. We have seven different locations throughout Illinois and can give you answers about numerous complex financial and legal issues, so call today.

• This page from the U.S. Courts website helps clarify the specific debts that you can and cannot discharge during a Chapter 7 proceeding.
• If you owe the IRS back taxes, you may be able to file for bankruptcy with the sole intent of discharging these debts. WSJ MarketWatch outlines the specific legal criteria that govern IRS debt.
• According to the National Consumer Law Center, student loans may be discharged in bankruptcy in extraordinary circumstances. Click through to learn more.
• If you carry federally backed student loans, look through the U.S. Department of Education FAQ section on bankruptcy.
• Depending on your bankruptcy discharge, you may owe more taxes during the year that you filed for Chapter 7 or Chapter 13. The IRS website helps explain the logistics associated with taxable debt.

To Learn More About Bankruptcy, Be Sure To Visit The Links Below

Would you like to learn more about the bankruptcy procedure and what it entails? Readers who benefitted from our recent look at bankruptcy provisions and automatic stays are sure to appreciate the following resources for more in-depth explorations of these interesting topics.

• An automatic stay can help you avoid foreclosure. Investopedia.com explains this important financial concept.
• This infographic from Good Magazine offers a look at the largest bankruptcies in U.S. history, depicted based on the size of their assets at the time of filing.
• The statute describing the automatic stay can be found in Title 11 of the U.S. Code. You can read the entire law on the U.S. Government Printing Office’s website.
• Some large U.S. corporations have filed for bankruptcy protection in the last couple of decades, as you can learn by reading this article from Business Insider.
• Futures Magazine reports that Chrysler only spent 41 days under bankruptcy protection during the 2008 financial crisis.

For bankruptcy help in the Chicago area, contact the bankruptcy attorneys with Cutler & Associates by calling (847) 868-2265.

What to Do When Credit Collectors Violate the Fair Debt Collection Practices Act?

Are creditors calling you at all hours of the day and night? This video explains the Fair Debt Collection Practices Act, and how debtors can fight back against inappropriate collection methods. The law is meant to protect consumers against harassment by allowing them to sue the collector for money damages.

If a debtor is threatening you, showing up at your work, or calling you in the middle of the night, you may be able to sue the collection company in a court of law. Your state’s attorney general can also file a criminal claim. Click play to learn more!

Chicago-area residents in need of actionable legal advice should contact Cutler & Associates at once. Call (847) 868-2265 today to speak with one of our skilled attorneys. We can help you hold your creditors accountable for their illegal conduct.

How the Automatic Stay Goes to Work for You As Soon as You Declare Bankruptcy

Are you swimming in a sea of unpaid bills and repossession notices? If so, the automatic stay that comes along with filing for bankruptcy can give you the breathing room you need to sort out your finances. Here is a closer look at how this stay can help you and your family from the minute you declare bankruptcy:

Buying You Time
According to federal law, the filing of bankruptcy triggers an automatic stay on your debts. This is similar to pressing the pause button on your mortgage, loans, and collection actions. After your paperwork is processed at the courthouse, creditors must stop calling you until your bankruptcy proceeding is resolved. The stay also means that the bankruptcy judge will be able to help modify your loans.

Preventing Foreclosure
One of the main benefits of an automatic stay is its ability to pause any foreclosure proceedings. If you have fallen behind on your mortgage payments, you will probably receive notices from the bank alerting you to the possibility of bank repossession. Filing either Chapter 13 or Chapter 7 bankruptcy ensures that the collection and foreclosure processes are paused. You are allowed to stay in your home at least until the resolution of your petition. At your bankruptcy hearing, a judge will be able to restructure your mortgage to help you pay it off in a shorter period of time.

Opening the Door to Modification
A bankruptcy judge has the power to change the terms of your loans, forcing creditors to adhere to his or her order. As a result, lenders that may not have been initially open to the idea of loan modification will now be compelled to make life easier for you.

Depending on your financial situation, bankruptcy’s automatic stay can make a world of difference. Chicago and Schaumburg-area residents should consult the skilled legal team at Cutler & Associates to help determine whether filing for bankruptcy is the smartest option for you. Call our office today at (847) 868-2265 to schedule a free consultation with a member of our team.

A Look Back at Some of the Biggest Bankruptcies in History

If you are struggling to pay off high-interest credit card debt and see no end in sight, filing for bankruptcy can help you discharge these loans and enjoy a debt-free life again. The stigma once associated with this process is long gone—and bankruptcy is more common than you think. Read on for an overview of some of the largest bankruptcies in American history.

Chrysler
One the largest casualties of the 2008 recession was Chrysler. It entered bankruptcy protection with more than 31 billion dollars in assets, and received a bailout from the U.S. government to help cover its loans. After a quick restructuring process, the company was able to emerge from bankruptcy protection exactly 41 days after it first filed. The corporation survived the recession and is now profitable, due to its smart use of the corporate bankruptcy provisions. Chrysler is a good example of the positive effect that a discharge can have on your future.  

WorldCom
This telecommunications company was engaged in large scale accounting fraud, often reporting that their assets were worth much more than they were. When the company filed for bankruptcy in 2002, it was worth 103 billion; its CEO was subsequently sentenced to 25 years in prison for violating a number of federal laws.

Lehman Brothers
In terms of total worth, this may have been the largest bankruptcy in U.S. history. When this company filed for government protection during the height of the last recession, it had more than 691 billion dollars in assets. Eventually, the corporations’ holdings were liquidated and bought up by other banks.

Millions of Americans file for bankruptcy every year—and you don’t have to owe billions of dollars to qualify. However, only an experienced bankruptcy attorney can help determine which path is right for your specific situation. Chicago-area debtors should call the law office of Cutler & Associates by dialing (847) 868-2265. Our Schaumburg office provides free initial consultation to all clients, so call today!