Illinois Bankruptcy Legal Questions

The car is the tricky part of the question. As you inquired about a filing, the assuption is that no refiling timeline needs to be addressed. If you have been sick and unable to pay bills, the presumption of abusive filing should not be made, thereby allowing the filing.  However, this determination is based on your last 6 months of FAMILIY income (are you married?is a third person servicing some debt of yours?how many people are in your household?), which needs to be reviewed.  Assuming no abuse, a BK7 can be filed.  The question then turns to exemptions and your car.  In Illinois, there are 2 main exemptions to apply to the equity of your car that does exempt most cars.  As to your situation, it depends.  If the car is not liened, the net equity is the fair market value, but, if there is a lien, that number is subtracted from fair market value to get the net equity.  There is the vehicle exemption of $2,400.00; and we can add any remaining exemption from the $4,000 "wild card" exemption.  This amount varies in the general rule of thumb recomm is about $1,500 is left.  However, this exemption can also apply to your tax refund, sports memerobilia. collectables, and furniture/electronics.  As a result, it may (or may not) result in your car being completely protected. It appears you really need a BK7 from your question, regardless of the car issue.  It is, therefore, highly recommended that a qualified Bankruptcy attorney be consulted.  There are a number af assumptions that need to be addressed.  These issues can be discussed with your car matter; and fees can be discussed as well.  Your local bar association is a good starting place for such an inquiry.... Read More

It depends on what is being filed and what was filed before.  Basically, there is 8 years between Chapter 7 filings.  If the prior filing was Chapter 13, the wait is 4 years.  The better advise is to consult a Bankruptcy attorney to verify as to your situation.  For example, there may be other orders entered by the Bankruptcy Court that forms a bar to any filing.  Also, where a move between states occurred, there are different time contraints for both venue and exemptions.... Read More

It is likely that either there is no time limit or that the time limitations for judgments apply. In Illinois a judgment can be enforced for 20-27 years. Although it must be revived after 7 years, courts have ruled that does not prevent a debt collector from asking you to pay, although this is still being litigated. To determine if the persons calling are authorized, check with the clerk of the court that ordered the payment.... Read More

The transfer of collateral (car) without the consent of the lender is an act of default under most contracts. However, if you are in default and can sell the collateral, the lender is obligated to respond in a commercially reasonable manner even if the sale is not enough to pay the debt. So if you can sell the car for $4200 cash in such a way that the lender is assured of payment, even though the debt is $6,000, the lender cannot refuse to take the $4200, repossess and sell the car at auction for (say) $2,000, and try to hold the consumer liable for the $4,000 difference. It is not possible to transfer liability to make payments to another without the consent of the lender.... Read More

It is not proper service unless someone over 13 was at home and refused to answer, or unless there is a court order permitting service in this manner. However, the process server will file a return stating he made proper service. You therefore need to hire an attorney and move to quash service. Ignoring the document will likely result in a judgment against you.... Read More

The simple answer is that a Bankruptcy attorney can be of assistance.  The devil is, however, in the details. Any BK - 7 or 13 - is only effective to existing debts at the time of filing.  From your details, it appears you received addition tickets post-filing.  They woulld not be included in the earlier filing.  There is also a question regarding the prior BK7 and if it really discharged the earlier tickets (as they may have been non-dischargeable).  In the Northern District of Illinois, many people choose to file a Chapter 13 [Wage Earners Plan] to obtain a discharge in 3 to 5 years with monthly payments resulting.  With either a BK7 or a BK13, there is a Stay issued, whereby you can obtain a new license.  A fee may be involved as well as an SR 22 proving insurance before any reinstatement.  The exact date of your filing needs to be established, but time passage seems to be an issue for another BK7 filing.  There is, by statute, an 8 year wait between eligibility for such filings, whereby a BK13 may be required. The starting point is the federal district where you reside.  It may be in the Northern District (i.e. Chicago and the collar counties) or it could be another District (e.g. Peoria).  If you did not move, it would be were the prior BK7 was filed.  Whether you can fund a Plan also needs to be determined; it may also be for cents on the dollar.  That depends on both the debts and your assets.  Hence, there appears to be a need for an attorney.  The suggested starting point for any such call is your County Bar Association.  It should know the District (if that remains a question) and may be able to refer you to attorneys in the area that practice Bankrupcty.  You can then check out the attorneys via there websites, make an appointment, and then discuss your situation in detail.... Read More

A Bankruptcy is a federal action.  Per the Illinois statutes, only Illinois exemptions are allowed.  However, those are in the Illinois statutes and, as such, applicable to being asserted in any state action, such as collection.  Therefore, a Bankruptcy is not needed to assert the exemption.  Whether or not that applies to your situation is another question. ... Read More

As you have said, it appears that BK7 is your only option.  There seems to be a lot of debt and you have no ability to service that debt.  A chapter 13 needs regular income, which does not exist at present.  Unfortunately, that also impacts your your ability to pay the car note. So:  the real question is two-fold.  1. Can you exempt the car so it can be kept? and 2. Can you reaffirm the car note?  A reaffirmation is an agreement that, in spite of the Bankruptcy, you will remain liable on the Note; and, thereby, you will keep possession of the car, but you retain responsibility on the car note.  The kicker is the the BK Court needs to approve that agreement and insure you have the ability to pay this debt. This brings us to the first question.  The car needs to be valued. There is a $2,400 car exemption; and any remaining "wild card" exemption can be used as well on the car.  Should the total exemption claimed plus the total amount due on the car note be either equal to or greater than the value, the car can be properly exempted on the BK Petition and, as such, free of any turn-over to the Trustee.  Hopefully, there is sufficient equity to tell the Court that you will make the payments as due, but, if you are unable to pay, the vehicle can be sold and the Note paid in full.  Provided the payments can be made (and the Court concurs that the desired reaffirmation is truly in your best interests), you can file Bankruptcy and keep the car. Although you can file Bankruptcy by yourself, the suggestion is to consult with an experienced BK attorney.  This is a complicated matter that seems to require legal advice/review and, quite probably, legal representation.  As stated above there are valuation issues (i.e. both the car and your remaining personalty) and the need, if possible, to format the reaffirmation so it can be approved.  This presumes both the need to file a chapter 7 and the ability to exempt the car, both of which should be verified by an experienced BK attorney. One can be found via an internet search, but a referral from your local Bar Association would be a good starting point.  Then a website review can be more focussed and followed by a call.  An appointment can then be set with your options and the fee and costs can be discussed.... Read More

First, the July, 2017 date may not be a true deadline.  Yes, the income would be combined on the CMI, but that is for 6 months prior.   Depending on your respective incomes and dependants, this might not pose any "legal barrier" to a BK7. However, he may wish to have a "fresh start" to begin his life with you.  The ring would need to be desclosed as a gift [on SAFA as in the possession of another person], but there is still money do on it. He should disclose the debt. The resulting equity (?) needs to be discussed' and it may be such that he can use exeptions with a listing on Schedules B. C. and D, coupled with a generic disclosure of wedding rings on those schedules with money due and protect/insulate the ring from the Trustee. The correct listing turns on the facts, which need to be truly and fully examined. There is the additional question  regarding value - has the ring appreeciated or depreciated?  This would go to the question of the Trustee's practical interest as well. The bottom line is that he should speak with a Bankruptcy attorney.  The issues of wages. budget, and there impact, if any, on a filing date can be reviewed.  The likely outcome of any filing can also be discussed.  For example, it may be that a BK7 is needed to insure you both have a "fresh start," regardless of whether orv not the ring can be exempted (i.e. protected).... Read More

Once we get beyond the generalities, there are specific findings and information that applies to each Chapter (as stated below).  It is really a question that does require legal analysis as to specific application, but there are some things unique to each Chapter that can be stated. Each Chapter has basic, shared obligations.  An examination (called a "1st meeting") is required in all Chapters.  All property and debts are to be listed.  The Petition is to be signed by the Debtor under penalties of perjury.  There also may be a requirement of the filing of a pre-filing Certificate of the non-preparation of a payment plan. A Chapter 7 is a complete BK. There is an income limitation to avoid high income debtors from filing, but any such statutory finding can be rebutted.  Such a BK is final quickly and generally without payment.  There is, if there are no unexempt assets, a keeping of all property without any turn-over [as it was all subject to various allowable exemptions].  A discharge would enter in about 4 months or so that would effect all creditors.  However, there may be something that you would like to keep, such as a vehicle, that has a lien; and a reaffirmation of that debt would then be sought from the Court to allow you to both pay debt and keep the property.  Any such reaffirmation does require court approval prior to the entry of any discharge order. A Chapter 13 is commonly known as a "wage earner's plan."  The income earned must be more than monthly expenses with the balance funding the Plan. There are, however, income restrictions (i.e. changing debt ceilings) that apply. If elgible, a Plan can last up to 60 months and requires monthly payments to a Trustee.  A Plan is proposed that, if made properly, will be granted by the Court and all parties are bound thereto.  This is typically used by people inelegible to file a BK7, need time to get their house payment current, or are protecting unexemptable assets. A good example is the payment of past due, non-dischargable taxes that stops both accruing interest and collection. A Chapter 11 is generally filed by businesses wishing to continue operations (as they cannot file a BK13).  Individuals that cannot meet the BK13 standards may elect to file a BK11.  A Plan is ultimately submitted for Court approval.  There are many unique situations here - the usage of a Debtor-in-possession account, the oversight of a Creditors committee, the drafting and approval of any Plan, the need for Court orders of employment, the existance of time constraints, etc. This is a complicated question as evidenced above.  Hopefully, the differences are clear, but the personal applicability should be discsussed with a knowledgable Bankruptcy attorney,... Read More

If you have paid over 30% of the total of payments, you are entitled to reinstate the contract once by tendering the missed payments and repossession expenses. The creditor has 5 days to notify you in writing of (1) proposed transfer of title, (2) right to reinstate, (3) plan for proposed sale of vehicle. Notice is sent to your last known address, so I suggest that you notify them immediately of same, and follow up in writing.... Read More

If you or a family member is present and refuse to open the door, the documents may be left; otherwise, not. However, if the process server files a return of service claiming service and it is not true, you should NOT ignore the matter; you need to appear and move to quash service, or you will have a judgment against you.... Read More

The answer is probably. More than the existence of debt goes into a BK determination.  There is also the question of exemptions (a determination of what property, if, any, may be subject to turn-over to theTrustee).  Income is another issue: Is the money so great as to be an issue (a Chapter 13 Plan may be the result)?  Also, any BK needs to include all property and all debts, whether they are to be disccharged or not.  Further examination is, therefore, needed. The BK Code was amended in 2005 for this situation of only the lower income spouse filing.  A "Means Test" was created that looks to the household income, which would include the spouse's income, but not the spouse.  Since he would not be filing, this should mean the inclusion of your husband's net wages less any inherently personal obligations.  An example of this would be his vehicle payment and insurance on it; should the vehicle be titled jointly, this analysis would not be correct. Since you gave no specifics, the answer cannot be given here, but is easily determined.  A trained BK attorney should examine your family income, debts, and payments.  You may be below the income threshhold (or rebut any such presumption) and you may be able to exempt all of the property under the allowed Illinois exemptions.  If this proves to be the case, a BK7 can be filed and a discharge obtained.  Such an attorney can be found via your County's Lawyer Referral Program.  You can call and obtain names and then review the attorney's websites before making any selection for a consultation.... Read More

This is a tricky situation.  The house may be fully liened (through the reverse mortgage) and left with less than $15,000 of equity [the amount you are allowed to protect via statute], but it may have some exposure.  You did not give an amount or a value.  That the Mortgage was incurred over 90 days ago is helpful (under statuute), but the Trustee may assert under the uniform act that he can go back one year [not merely 90 days] to set that transaction aside. There is also the question as to what happened with that money; I am guessing (as you inferred) the money went to a third party under an internet scheme. That needs to be verified as to when, to whom,  and in what amounts. The BK7 is not based on debts.  There is also an income component that may render your filing impermissable or, at least, rebuttable.  This is referrred to as the "CMI test." A review of your household wages, the number of people in that household, and the nature of your debt is needed.  Maybe this will also include the review in light of the statutory budget in a CMI test. As such, a consultation is needed to first determine whether or not such preclusion exists.  Then, a review of your situation, assets, and liabilities needs to happen.  At that time, a review of your Reverse Mortgage can occur and an opinion be given as to the liklihood of any Trustee's attack.  A decision of File vs. Not File can then be made. The first step is to contact an experienced Bankruptcy attorney.  One can be found by your local County Bar Association, which should have a referral network in place.  The attorneys can also be "screened" by your review of their websites.  An appointment set and all relevant facts discussed.... Read More

Short answer: Maybe, but the effectiveness of any filing as to you or the LLC cannot be known. The $35,000 in your bank account suggests an asset filing [as this is over an Illinois exemption].  There is, however, much left unstated in your question.  Exactly who owes, for what, and over what period is important.  The income recieved and still (?) being recieved is important.  Any other debts to and property owned by the LLC or personal are also important matters to consider.  Also, there is a personal repayment option (Chapter 13) as traditional Bankruptcy (Chapter 7) may be ineffective as to the IRS.  Are the debt owed within the Chapter 13 debt limitations?  These are issues to address.  There is the question of when the LLC was formed, what assets were used, etc.  In short, a full review of your personal and LLC history is needed. What is, therefore, needed is a consultation with an experienced BK attorney.  If you do not know one, a good starting place is the local county bar association.  You can then cross-check any referral with their individual websites.  An appointment can then be made. The facts can be fully presented; options then discussed.  A determination can then be made as to if you, the LLC, or both OR neither should file for Bankruptcy (and when).  The various Chapters can then be discussed as well.... Read More

You did not give any information other than you filed.  This could be an individual or a corparate filing; and the case may be stalled or it may be slowly proceeding.  There should be an attorney representing you, whereby you should be able to sit down with the attorney and have "it" all explained.  Should you feel that attorney is no longer suited to act as your counsel, the attorney can be replaced.  The local bar association is a good place to begin a referral search. What is needed apparently is a review of the case docket.  The attorney of record can do this as well as give statements of personal knowledge, which is why that person was suggested.  However, the docket with all orders and pleadings may be available on-line to other attorneys.  Another attorney may be able to both quote a retainer and discuss what is required for completion of the 11.  Hence, a review of the docket may lend to answers to your questions.  Another option is to simply go to the Clerk's office and view the file (and docket) for yourself.... Read More

VA, Social Security, SSI, and pension benefits are exempt. The exemption continues if the funds are placed in a savings account. An account opened by a veteran containing only nonexempt funds is not exempt because of veteran status. There is a "wildcard" exemption that can be applied to $4,000 in any account.... Read More

There is law regarding conversions.  The general rule is 8 years for bk7s and a 4 year wait for a BK13.  The question as when the cases were filed, but you may be eligible to convert.  However, there is a difference between being able to convert and beneficial to convert.  An attorney, such as the one you retained, is best able to address this issue. Should you feel that you are not receiving good representation, it may be possible to change attorneys and seek our a different lawyer.  The starting place would be your Retainer.  You may also call the Trustee handling your case as some light may be shed on both the case and any change of attorneys.... Read More