Illinois Bankruptcy Legal Questions

The lien survives bankruptcy. Ordinarily there is no obligation on the part of a creditor to repossess collateral. However, a creditor is obligated to minimize damages. Arrange to sell the vehicle for whatever you can get, for scrap if necessary. The creditor is entitled to the proceeds. Ask (in writing) that the creditor agree to send the title to the purchaser in exchange for the proceeds. If they refuse, you may have a claim based on its commercially unreasonable conduct.... Read More

You should try to avoid having a judgment entered, as you can be dragged in to answer questions about your assets, etc., for 20 years. If it is a debt buyer, they may not be able to prove anything. So you should definitely show up and demand a trial, and if the debt is large, hire an attorney If the plaintiff's lawyer knows you have nothing that can be attached, they may just give up, so you might point that out. You are not required to make payments from exempt assets, which Social Security and pension benefits are.... Read More

1. There is a $4,000 exemption applicable to a bank account. You need to file a motion to release the funds or appear on the return date. 2. If you were not served, obtain a copy of the court file and look at the "Return of service". If you can prove you were not served (corroboration is required for anything the process server could observe) then you should move to vacate the judgment, or hire an attorney for that purpose. 3. Consider filing bankruptcy.... Read More

Yes. You should document everything that you do. Submit the bill to your carrier in writing. Dispute the debt in writing. Most likely the medical provider erred and failed to submit it. Sometimes the collector claims that it is your responsibility, but if the provider undertakes to submit it and fails to do so properly, that is not correct. Check you credit report and make sure it is not reported.... Read More

In terms of time, there is an 8 year wait now between Chapter 7 filings.  Presuming that you filed a Non-payment Bankruptcy (i.e. a Chapter 7) in 1990, one can be again filed at any time. However, there is now a Means Test in place.  For 1 person, the annual figure is $49,682.00.  If your gross monthly pension is under $4,140.16 and you have no other income (as defined by the Statute), there would be no presumption of abuse and another BK7 can be filed. Since you also must do Credit Counselling before any filing and the forms recently changed, it is recomended that you speak with an attorney versed in Bankruptcy procedure.  Such an individual needs to practice in your District and, hopefully, can be found through a referral from you County Bar Association.  Any names given can then be previewed on the internet and an appointment set.... Read More

There is a lot in your question that needs to be reviewed. As to the Bankruptcy filing, you did not state that you had Power of Attorney or there was a Guardianship order.  Should that be true, you cannot file for her.  She is an independent individual, who needs to retain her own attorney and file for relief under Bankruptcy.  Although you can find a lawyer, she would need to be the client and review and sign any Petition. As to the Medicare denial, it may be time limited in that there was be a spend-down period found.  It may also be the result of a failure to submit documentation that her husband was deceased.  If you know he died in August, then a certified death certificate can be obtained confirming his death.  A referral to an Elder Law attorney is the best way to analize this matter.  The attorney can review the prior Application, the denial, and all relevant papers that you/she has.  There may be an entitlement to benefits - now or in the future. The debts of which you speak, may be only those of her husband.  His being deceased may end all collection upon the creditors being so notified.  Payment would be limited to his Estate.  Since there apparently was no such Estate, the debts can be discharged, but a Probate Estate may be required.  It also may not, which is another matter to address with your Elder Law attorney. As a practical matter, your Mother is in a nursing home and effectively (per your statement) judgment-proof.  There may be no reason for her to formally go through a Bankruptcy as no creditor may seek to collect from her.  This, however, is her decision and one to be made after consulting a Bankruptcy attorney.    ... Read More

A summons can be served 3 days before the "return date. Determine if the return date requires filing of an appearance or an actual appearance in court. This varies between Illinois courts. Call the clerk. Make sure you comply. Many lawsuits, particularly those by debt buyers, cannot be proven. You should be able to get a free consultation with an attorney that practices in this area to determine whether this is the case. Also, the statute of limitations on a credit card debt is 5 years in Illinois. It sounds like you are just at or beyond the statute. Exact dates of last payment and filing are necessary to tell. Your hardship story is NOT a defense. Telling it will admit liability. On the other hand, if you appear and demand a trial, there is a good chance the debt cannot or will not be proven. The appearance fee may be waived upon a showing of financial hardship, which you may qualify for. You have to go to the courthouse and fill out a form.... Read More

You do not indicate where the suit is pending. If it is filed in another state where you did not live or sign or deliver a note, consult an attorney about challenging personal jurisdiction. Unless there is a written agreement creating a security interest, there is no right to repossess. Whether transactions between family members are loans or gifts is a factual question, and usually a difficult one. Your statements suggest the car debt is a loan and the others are gifts.... Read More

You will need to provide title assurance to a prospective buyer anyway, so your closing attorney will simply want to go ahead with a title order. Your attorney will want to consider the title work that you received in 2008. If everything was properly taken care of in 2008 and there have not been any new issues since, there should not be any issues. If, however, anything comes up now that existed back then, your policy should provide you coverage.... Read More

When you bought the car, you signed a contract saying you would pay for it and how much you would pay for it. Read the fine print, if the dealer cannot get you financed, I am sure it provides for repercussions. I guarantee you did not get a free car because Wells Fargo will not approve your financing. Even auto dealers are not that dumb.... Read More

Not every creditor subscribes to the credit reporting agencies. No creditor is required to report to the credit reporting agencies. You are not a subscriber to any credit reporting agency and therefore cannot provide credit history to them about yourself. Subscribing to a CRA can cost thousands of dollars every month, so you are barking up the wrong tree here. There are plenty of other ways to increase your credit score but you are trying to accomplish the impossible.... Read More

Unemployment is specifically exempt from garnishment under the Code of Civil Procedure. For limitations on garnishment, you can probably find wage garnishment forms on several of the circuit clerk websites that would allow you to plug the figures in yourself to determine whether any wages can be garnished and, if so, how much. Any county's forms should yield the same results. I recommend that you consult with an attorney concerning bankruptcy options, the possibility of making a fresh start. I find that people in your circumstances, finding themselves in difficult situations, often do not realize the options available to them, even if they have filed bankruptcy before. Then, they end up filing down the road after exhausting resources, allowing their property to deteriorate, struggling with stress and, often, tapping into exempt assets, such as retirement. The scope of this space does not afford an opportunity to assess the situation and advise you. I recommend you assemble for legal consultation: (1) household income information for March 2015 through the present, including wages and unemployment during that period; (2) all your bills and collection notices (copies neatly assembled, back pages included); (3) last two years? tax returns; (4) a credit report (use www.annualcreditreport.com to obtain free report if not requested in last year); and (5) other information that may apply, such as copies of lawsuits. Call at your earliest convenience to afford the most opportunity in which to be advised about your best course. I do not recommend filing bankruptcy on your own. There are too many complex issues. I have seen several posts on this site for debtors who filed on their own and are seeking counsel concerning complications. Most of them will have a hard time finding an attorney to get involved to unwind the mess without the attorney charging several times what would originally have been paid.... Read More

The key is you "signed for two new auto leases."  You should (or, better, have an attorney) review those documents.  It is likely that you are either the Maker of the loans or the Co-maker/guarantor of the Loans.  The documents would show the answer. If we presume that you, too, are personally liable, that means that any BK7 filed by the business would leave only you are the party liable for payments and any Defendant for monies due.  There may be a BK11 contemplated and the liens may be paid [as the question did not state whether the business was being shut-down or reorganized].  This is something that also needs to be discussed with the business. As to your credit, that will be adversely affected.  It may be nominal as merely related to a BK filing or it may be worse.  If no payments are made, the vehicle can be repossessed and any deficiency will ultimately result in a Judgment against you.  Repayment can be compelled via wage deduction or bank accounts seized.  This would have both a direct impact on your credit rating and an indirect impact by rendering you unable to pay other obligations. A conference with an attorney is in order.  You need to determine your initial liability and a strategy for minimizing this effect.  It may be that a return is in order.  A payment from the business (or you) may be required.  Also, a BK7 or BK13 for you may be the result.  Accordingly, you need to have all this reviewed by an attorney.        ... Read More

Your question does not clearly indicate what has occurred. If your parents are not responsible, then dispute it with a vengeance. If the creditor is simply trying to bully your parents into paying your brother's loans, your parents need to clearly express that they are not responsible and ask to be left alone. If the creditor continues to harass them, then debt collection or other consumer claims can be pursued with legal representation. If they are, on paper, "responsible" because of fraud committed by your brother, they need to assert that and have it investigated by the creditor. They should request copies of the promissory notes or loan guarantee documents containing their signatures. Then, they should deny the validity of those documents. If, however, they did take out loans, co-sign or guarantee for your brother, then they will have a difficult time. Bankruptcy is usually the first thought that is considered, but student loans are difficult to discharge, even when the loan relates to a child. A bankruptcy attorney can take a look, but the expectation would be that your parents' responsibility would not be dischargeable unless their circumstances are extraordinary. If there is any point, such as your brother having left assets behind, your parents could consider a lawsuit against your brother to get to those assets through a judgment.... Read More