Peter Francis Geraci A Bankruptcy Blog - Chapter 7 & 13

A woman called Geraci Law because she was being chased by the repo man. She had fallen behind on her car note because of adjustable interest rate spikes and job loss.  She started a new job and her financer refused to accept any payments.

 

She met with Wisconsin bankruptcy attorney Brent Berning and he was able to file her case the same day.  The repo man was sitting outside and she was able to provide her case number to stop the repossession. Her Chapter 13 payment is the same as her car payment and includes her other debt. Without the help of Geraci Law, the woman would still be driving in circles. 

A man came into Peter Francis Geraci’s Crystal Lake office and met with bankruptcy attorney Jason Nielson. Like so many people, he was laid off from work and fell behind on his mortgage payments. He applied for a loan modification through his mortgage company. He was denied a lower mortgage payment and help from his financer.

 

The client returned to work and could afford the house but not the arrears. His house was to be sold at a sheriff sale the following day. His mortgage company refused help so he called Peter Francis Geraci.

 

Illinois bankruptcy attorney Nielson met with the client drafted his paperwork and filed a Chapter 13 bankruptcy petition the same day. If you have a sheriff sale or are in foreclosure, Peter Francis Geraci attorneys can help you save your home. 

 

The state of Wisconsin has a law allowing debtors to combine debt into one payment. Chapter 128 is specific to the state of Wisconsin. A Chapter 128 does not discharge debt – meaning you are not eliminating what you owe. 

 

Chapter 128s can stop a garnishment but you will need to repay your debt. You are not qualified under federal protection like bankruptcy. A repayment plan can only be 36 months and if you are married both spouses must file.  You cannot include any debts with collateral meaning a Chapter 128 will not stop car repossession, a foreclosure, and most recently a utility shut off.

 

Recently, a Wisconsin Court held that We Energies could disregard a Chapter 128 filing. We Energies does not have to stop a disconnection or reconnect services with a filing. The only way to stop a shut off is with a bankruptcy!

 

If you have a shut off notice, call Peter Francis Geraci, Geraci Law. A Chapter 13 bankruptcy filing will prevent the shut off. You can put the debt and other bills into an interest free repayment.

A Peter Francis Geraci Law client wanted to file a Chapter 7 bankruptcy to eliminate his unsecured debt and attempt a loan modification. His modification failed and his mortgage company filed a foreclosure. A sheriff sale order was entered in case. The client met with Geraci Attorney Frank Hernandez and his case was converted to a Chapter 13.

 

Geraci Attorney Jill Luetkenhaus filed the client’s case and the sheriff sale was stopped. The client said Peter Franci Geraci and attorneys saved his life. Without the help of Geraci Attorneys, the client would have lost his house. Loan modifications are blinders, if you want to keep your house call Peter Francis Geraci. You can meet with experienced attorneys like Herandez and Luetkenhaus to get the best option to get out of debt.

Are foreclosure rates dropping?  Yes. What does that mean for you?  Nothing.  If you are behind, you are behind.

 

The Mortgage Bankers Association reports 6.3 million mortgages over 30 days past due.  If you are waiting for loan modification, keep dreaming.  Peter Francis Geraci of Geraci Law LLC says:  “Our clients are doing something about past due mortgages.  They are filing Chapter 13 repayment plans and working on their modification during the Chapter 13.  That lets you control your debt, and gives you added leverage with the mortgage company.  It is a little known secret that if you file Chapter 7 or 13, banks will work with you just as before, and your chances of success may be better.

 

The longer you wait to be proactive on your home, the further you get behind. In a Chapter 13, you are able to spread the back payments into a 3-5 year repayment plan. The farther you are behind, the higher the payment is going to be. Be ahead of the curve and call  Peter Francis Geraci Law in Illinois Indiana and Wisconsin for a Chapter 13 Debt Repayment Plan to stop foreclosure, and get your mortgage current, for as little as $274 to file in as little as one day.

 

My grandmother reads the financial section of the paper for anything related to debt and bankruptcy. Apparently after weeks of research, she came to the conclusion that articles about foreclosure do not mention bankruptcy.  I saw her recently and was given a stack of news articles related to foreclosure help and she was right. Not one journalist thought to contact a bankruptcy attorney as a source.

 

Most of the articles are wishy-washy and talk about contacting your mortgage company to ask for a loan modification. A particular favorite was the Chicago Tribune’s “Taking the Fear out of Foreclosure.” The author tells homeowners not to worry and there is help available. I do not think the author is behind on their mortgage because homeowners should worry!

 

Once a foreclosure judgment is entered, crossing your fingers will not save your home. It’s time to be proactive and look at ways to actually protect yourself and your property.

 

In the “Taking the Fear” article, the author writes, “Even years into the housing crisis, they still don’t have the manpower with the training and experience to handle the onslaught. So be patient – and keep trying and trying to reach your lender.”

 

This would be wonderful advice if there was no such thing as foreclosure. The more patient you are and the more you try to reach your lender, the more you get behind on your mortgage payment.

 

Another popular tip from the news media is to apply for a loan modification.  If you know anyone who has applied for a modification, then you understand it is not the seamless process portrayed by the media.

 

Loan modifications are rarely successful. Mortgage companies want current documents and will routinely deny modification applications if the most recent paystub is not sent in.  On average, a definitive answer will take at least eight months. Its eight months to get caught up on if you are denied for a modification.

 

More often than not, the people I speak to can afford their regular monthly mortgage payment. It is the thousands of dollars in late fees and penalties that they struggle to get current on. These people should be reading articles in the Trib about the wonder of a Chapter 13 bankruptcy.

 

A Chapter 13 will STOP the foreclosure. I do not want to provide the vague, useless information that most of these articles provide. If you are in foreclosure and you can actually afford your mortgage, then file a Chapter 13.

 

A filed case with an experienced law firm like Geraci Law will prevent the same ol’ song and dance of deferred payments and forbearance agreements.  If you were denied for a modification and receive the disheartening alternatives to foreclosure packet, do not feel defeated. A Chapter 13 will save your home.

I just finished reading “The Pale King,” David Foster Wallace’s recent novel. It was... good. Not great, merely good. It’s frustrating because the notes and addenda clearly indicate that it could’ve been something really phenomenal if Wallace hadn’t died (the circumstances of which the book avoids mentioning), but instead, it’s really just a hodgepodge of vignettes and set pieces.

“The Pale King” centers on an IRS tax return examination center in Peoria, Illinois. It’s mostly stories about some of the examiners who work there. Some are funny, some are sad, some have little lessons, some look towards kind of a theme, one is memorably creepy, Cronenberg-style. Many are dense with jargon, tax code minutiae, and finance esoterica. And that brings me to my point, which is that, for a novel substantially about government policy and regulation, “The Pale King” totally fumbles on bankruptcy.

It’s a couple (literally, a couple) terribly minor errors. Bankruptcy is referenced only twice. On page 207 of the current edition, one examiner, Chris Fogle, says his mother wound down her feminist bookstore by way of a Chapter 13. Chapter 13 is exclusively for individuals who need the ability to repay their debt at a rate they could afford. Chapter 13 can stop foreclosure and garnishment and is super-great for lots of people – but it can’t wind down a business. As Fogle’s soliloquy isn’t exactly to-the-point – if his mom did her own chapter 13, he would’ve taken half a dozen extra words to say so – I’d chalk it up to a technical error on Wallace’s part. Especially considering:

On 265, David Foster Wallace (there’s a character by that name in the book, who is not the real David Foster Wallace) notes that the IRS is leasing a building from the proprietary trustees of a corporation that “vanished into the protections of UCC Ch. 7 in the mid-1970s.” And, well, no. A corporation can file a chapter 7 bankruptcy (whether they always should is a different matter; an S-corp or an individual’s d/b/a can often just be allowed to fade into the ether) but the UCC isn’t bankruptcy and UCC chapter 7 is actually a set of proposed regulations involving warehouse receipts and bills of lading.

I’m a fan of Wallace’s fiction and in love with his nonfiction - so it sits unwell for me that he botched something I know very well. Some of the book is clearly fiction (the IRS’ Peoria location does not have an edifice designed to look like a giant form 1040) but actual legal errors bring up a whole host of questions about Wallace’s rigor, whether there are other technical errors when he discusses tax law and regulations, his copyeditor’s research, and just how finished the beloved writer’s “final novel” might have been. And maybe his characters are unreliable narrators and everything was just as he intended. And maybe I’m way too concerned over a work of fiction and should just go ahead and relax. But I really want to know.

An Indiana woman came to Castleton office and met with Attorney Lacey Stier. The client wanted to file a Chapter 7 to eliminate debt.  The client had fallen behind on her minimum payments and was beginning to struggle with her mortgage. Before her appointment, the woman believed she was coming into a Geraci office to start a Chapter 7 bankruptcy filing.

           

After speaking with attorney Stier, the client decided to file a Chapter 13 bankruptcy.  By reviewing her options with a Geraci attorney, the client will be able to keep her home, her vehicle, and pay an affordable monthly payment on other debt.

 

The client was also advised by Stier - pending an appraisal - will be able to strip her second mortgage and lower the interest on her vehicle by 12 percent! After meeting with a Geraci attorney the client has a better plan for getting out of debt.

 

Without meeting with an experienced Geraci attorney, she would have never known her options.  If you would like a mini-consultation or to schedule an appointment with an experienced attorney for your options, please give Peter Francis Geraci, Geraci Law a call.

 

Geraci Law Peter Francis Geraci files almost a thousand bankruptcy petitions each month in Illinois, Indiana, and Wisconsin.  Unlike lawyers who take an occasional case, we’re almost every bankruptcy court every day. You pay the same approved attorney fee for every Chapter 13 whether it’s Geraci Law or a solo with one case per month.

 

Our attorneys do not need to ask for continuances because of schedule conflicts nor miss a court date because of distance. If you go to an inexperienced attorney who only has one case a week, it’s a big deal for them to answer a motion on your case.  For Geraci Law, it’s no big deal; we do it every day every week all the time and we’re always in court.  

 

For instance, this week in Kenosha/Racine Wisconsin 20 of the 54 Chapter 13’s are Geraci Law clients.  Geraci Law attorneys are always in court. You, as a client, are able to go to our local office near you, but still know another Geraci Law attorney is meeting your needs in court. 

  

Geraci Law Peter Francis Geraci attorneys are experienced and eager to help a client out.  

 

In Indianapolis, attorney Lacey Stier got a hug!  She writes: “Had some time after client’s 341 meeting so sat with her in hall for a while and let her “vent.”  Elderly woman whose son was in major surgery at that very moment in Florida. He’s her only son out of 7 kids and her “angel” and she was very nervous and worried. Wants to go down to visit him and was so happy when I told her this was all behind her and she was free to go take care of him that she hugged and kissed me.”

 

In Milwaukee, attorney Kathyrn McKenzie protected a house from creditors while another firm’s client lost his:  she writes “Client was early for 341 and witnessed one hearing where trustee might be taking a pif (paid in full) house because the guy had transferred it to his business less than a year ago with no compensation.  Client was worried that trustee would go after his house as well.  Assured client that his house is safe.  Client was relieved that we were able to protect his house.”

 

In Waukegan, attorney Jason Shimotake persuaded the UST to hear a case when an elderly Geraci Law client showed up confused on the wrong day, saving her trip to court.

 

Going above and beyond is our mission. Bankruptcy is a complicated process and knowing your attorney is there to help you through it is why you file with Geraci Law Peter Francis Geraci.

The housing bubble is going to burst – again. The big difference is the housing bubble is a foreclosure bubble. With the foreclosure rate slowing and the unemployment rate (in many states) rising, the burst is bound to happen soon.

 

Foreclosure rates could be slowing for numerous reasons. The biggest reason probably is the scrutiny of mortgage companies’ foreclosure process.  A person used to lose their home after being delinquent for 6-8 months. Now, it could take up to a year (s) for a homeowner to actually be evicted.  Mortgage companies are required to provide HAMP options and in some counties, mortgage counseling services before a foreclosure judgment can be entered. In some cases, a homeowner could be behind 9 months before being contacted by a foreclosure attorney.

 

The decrease in the amount of foreclosures filed does not mean there are fewer homes in trouble – it means there are more delays by banks to actually take homes. A loan modification application can delay a foreclosure for months (in some cases years). A mortgage company cannot foreclosure on a property without offering a HAMP modification opportunity and the backlog of applications and homeowners with arrears could delay even the most efficient of foreclosure attorneys.

 

This is seemingly good news for struggling homeowners who can stay in their homes until they return to work (and file a Chapter 13 to get caught up on the arrears) or find a new living space. But at some point, the foreclosure bubble will burst and many will find themselves with an expedited foreclosure and a pending sale date.  This happens often after a loan modification is denied. After months of faxing, e-mailing, and mailing the same documents to a mortgage company, a homeowner could find a summons for foreclosure on their front door.

 

It is easy to ignore the collection letters and the notices – even when the notice is being handed to you by a process server. Since foreclosure generally takes over a year, a person can gather a hefty amount of mail from mortgage companies and attorneys. I have heard people say, “My mortgage company told me if I want a modification I should not make my mortgage payment.” The answer is your mortgage company is suing you because you are going into foreclosure! A loan modification can be denied and the default amount, late fees, court costs, and interest can add up to a substantial amount. At this point, your mortgage company is probably done working with you. Often, your mortgage servicer will demand the entire amount to stop the foreclosure proceedings.

 

Checking and actually reading your mail is important – especially if you want to save the house. Once the foreclosure attorneys get their ducks in a row, the number of foreclosures will start to match the increasing number of people with defaulted mortgage payments (in Chicago, the number of defaulted mortgages increased from last year, while the number of filed foreclosures decreased 20 percent).

 

Once the foreclosure attorneys work out the backlog, I predict there will be a storm of foreclosure filings and sheriff sale dates. You are able to stop a foreclosure sale by filing a Chapter 13 bankruptcy before the home is auctioned off. If your home is already sold, your Chapter 13 bankruptcy option is gone. Do not wait until the last second – contact Geraci Law LLC. If you have waited until the last second, Geraci Law can file your case in as little as a day to save your home.

 

A new mayor took office in Chicago this week and has some ambitious plans to curb the effects of foreclosure. Mayor Rahm Emanuel in the 2011 transition report called for the mortgage providers to develop a strategy to prevent foreclosures. In the report, the new mayor demanded an inventory of abandoned buildings and to invigorate older foreclosure programs.

 

Current foreclosure prevention programs are available to Chicago residents including foreclosure counseling available through HUD-approved agencies. In 2010, the city sponsored “Fix Your Mortgage” events (using $1 million in stimulus funds) and helped over 2,200 homeowners with foreclosure. The report does not indicate whether the homeowners kept their homes or vacated the property.  According to the Department of Housing and Urban Development (HUD)’s Web site, the events help homeowners find out if they are eligible for a HAMP modification. 

 

The 2,200 homeowners pale in comparison to the 25,000 homeowners with a foreclosure filed in 2010. The success rate of the event is pretty comparable to the national success rate of loan modifications. Many people who apply do not qualify from the onset and despite submitting documents for a modification – a foreclosure is still inevitable.

 

So the success rate is pretty terrible in the Chicagoland area.  The national mortgage deficiency decreased last year and Chicago’s increased! According to the Chicago Tribune, approximately 7.75% of Chicago homeowners are at least 60 days behind on their mortgages – compared to the national average of 6.19%.  The city is helping a minimal percentage with counseling – but what if you are in foreclosure? What if you want to save your home? These questions do not seem to be answered by the counselors or a loan modification application nor the 22,800 other people faced with foreclosure last year.

 

A foreclosure crisis is not going to be curbed by housing counseling. Most people do not find themselves in foreclosure because they never had housing counseling – most people fall behind because of loss of income, high amounts of debt, or they were never able to afford the house to begin with. Counseling a person on the foreclosure process is not going to help them save their homes or retain homes years from now.

 

Bankruptcy is the way to do so. A chapter 13 is a repayment plan – through the federal court – allowing a person to catch up on mortgage arrears.  Depending on your individual situation and value of your home, a chapter 13 could eliminate your second mortgage. How’s that for a modification? You could pay back a small percentage of what you owe to unsecured creditors (i.e. credit cards, medical bills, etc.) and eliminate your second mortgage. If you can afford your home, Geraci Law, LLC can help you save your home.

 

If you cannot afford your home, if you could never afford your home – counseling is not going to help. You are able to apply for a loan modification; however the major mortgage servicers do not consider unemployment to be income.  Often, an unemployed person will apply for a modification only to endure years of “we lost your documents” or “it’s been transferred to someone for review.” If you are receiving unemployment with few job prospects, the probability of you qualifying for a loan modification is almost nonexistent. 

 

Again, a bankruptcy could help you. A chapter 7 bankruptcy would eliminate all of your other debt including medical and credit card debt and protect you against a mortgage deficiency (if one were entered).

 

Good luck to our new mayor. He was elected to a difficult position in a city where mortgages are falling further and further behind. Mayor Emanuel governs an entire city – as an individual you need to look at what is best for you. If you want to save your home, contact Geraci Law, LLC to find out your best option to get out of debt.

When you hear the word bankruptcy, you probably think of Chapter 7 debt liquidation.  The assumption stems from a game like Monopoly where you go bankrupt when you have no more money, your assets have been borrowed against and you have nothing to do but admit defeat to your opponent, the battleship. But the little known cousin of consumer bankruptcy is Chapter 13 debt reorganization and realistically if you are working, Chapter 13 is probably your better option. A Chapter 13 bankruptcy could help you win the game!

 

So what is a Chapter 13? A Chapter 13 is a no-interest, no penalty repayment plan. Repayment plans are for people with steady income, if you are working part-time or are self-employed a promise to the bankruptcy court to make timely payments is unlikely.  But, if you are a salaried employee who is still up to date with minimum payments, a Chapter 13 will allow you to actually pay off the debt with out the crazy interest and penalties.  If you are paying back 10% of your debt, then at the end of your repayment plan, you will eliminate or discharge 90% (just like in a Chapter 7).

 

A Chapter 13 bankruptcy will keep your Chapter 7 option open if you were to lose your job or have some tragedy where a repayment plan would not work. Life happens and debt happens to anyone.  For example, you file a Chapter 7 while you were other else qualified for a Chapter 13 and eliminate your debt.  Then after your discharge you lose your job and have $30,000 in medical bills because of lack of insurance – you do not have a bankruptcy option for another eight years or until you find work and ultimately file a Chapter 13. 

 

Chapter 13 bankruptcies also protect your assets.  For example, if you inherited a house from a long-lost aunt, valued at $200,000 – a Chapter 13 will allow you to keep the property.  If you were to file a Chapter 7 bankruptcy, you risk losing your home.  When you file a bankruptcy, a bankruptcy trustee will look for anything of value to sell to pay your creditors. By filing a Chapter 13 repayment plan however, you are able to pay back your debt to protect your equity. Your attorney will protect as much as the law allows in a Chapter 7 but if your property cannot be protected, then a Chapter 13 repayment is for you. 

 

The best part of a Chapter 13 is the immediate relief.  A Chapter 13 bankruptcy with Geraci Law, LLC can be filed immediately.  Depending on your individual situation, you case could be filed for as little as the filing fee.  Attorneys do not require the bulk of attorney fees to be paid before filing unlike the Chapter 7.  If creditors are calling you constantly or if your wages are being garnished, quickly filing a Chapter 13 will stop the creditor harassment and the garnishment.

 

Chapters 13s also cover debt like taxes and parking tickets. You cannot discharge parking ticket debt with a Chapter 7 but you are able to consolidate and pay a portion back in a Chapter 13.  Debt from marriage settlement agreements can be taken care of in a Chapter 13.  Most importantly, a Chapter 13 bankruptcy can save houses and cars.  Because of the repayment, you are able to stop a car from being auctioned after repossession and you are able to stop a sheriff sale on your home. 

 

If you file a Chapter 13 bankruptcy, you are able to file immediately (with Geraci Law, LLC), pay back what you can actually afford to pay back, and protect and save your assets from repossession or liquidation by the Bankruptcy Court.  A Chapter 7 bankruptcy will just eliminate your debt and possibly your assets.  So the next time you are playing Monopoly, think twice about admitting defeat.  If you are working and have disposable income, think of a repayment plan.  A Chapter 7 will wipe out your debt and assets and I suppose you would lose, but a Chapter 13 could help you save your red hotels on Boardwalk and Park Place.

Recognizing you are in debt is the easy part.  I have spoken with many people who laugh about the severe amount of unsecured debt they accumulated. I’m missing to see the joke.  When you have a substantial amount of debt, it’s really not a laughing matter. Yes, creditor threats can be so ridiculous that it can seem comical. But, if collectors are calling you to the point of being afraid to actually answer your home phone – it’s time to put the comedy aside and do something about it.

 

With our current economy, a lot of Band-Aids for debt wounds are available. You can pay $10 per month minimum payment and sure the collection calls will stop but the debt wound still exists.  I have rescheduled more appointments for potential bankruptcy filers based on nothing more than “I don’t know if I want to file.” For most people contemplating bankruptcy, there is no reason not to file. With more debt than income, what are you supposed to do? Why spend the rest of your life, making minimum payments?  You are not moving forward – you are barely moving side-to side. I’m addressing the people with more than $10,000 in debt and are fully employed.           

 

For a working person, a Chapter 13 bankruptcy is a great solution.  You pay back what you can afford to pay back without the interest.  It answers the “moral” question of I spent it so I should pay it (is it moral for some creditors to slash your credit limit, increase your minimum payment, and charge you close to 30% in interest?).  Not to mention, a Chapter 13 repayment has no interest!  For people who are working and have credit card debt – the interest is what makes many people fall behind and get to the point of needing a bankruptcy. 

 

In a Chapter 13 you are able to protect all of your assets.  It’s a repayment plan so there’s no reason to lose your comic book collection or your Porsche 944. Depending on your individual debt, income, and assets you could be paying as low as 10 percent of what you owe.  A filed Chapter 13 bankruptcy allows you to keep your Chapter 7 option available – just in case. Life happens and having the safety net of Chapter 7 debt liquidation is comforting.

 

Realistically, if you have more debt than income in a month and you want to want to get a handle on things – bankruptcy is your best option.  It is the sane way of getting control of your situation.  I have heard more make-shift solutions for paying off debt and ultimately whether it’s today, tomorrow or five years from now, these people file a bankruptcy.  Debt is not a laughing matter; it can be a bar to your financial future.  Instead of doing the debt negotiating, money borrowing, ignoring dance of the debtor – file a bankruptcy and in a couple of months you can actually feel some relief.

 

I thought public schools were free? Public schools are not allowed to charge tuition but high fees for a public education can send anyone’s budget into a tizzy.  In Chicago for example, most public schools require fees to rent or purchase books and the amounts can climb (quickly) to $400 per child.  That number is not going down anytime soon, last year and for the third year in a row, Illinois cut the school budget for textbook costs. So if you have kids and debt, get rid of the debt so you can afford your kids.

 

There is a calculator at www.bankrate.com to calculate the cost of raising a child.  The average cost for a child age 0-18 is $190,528 and this amount does not include the costs of college tuition or health care.  For example, according to www.finaid.org, the average costs for students attending four-year public colleges and universities were $15,213 plus an additional $4,000 for textbooks. 

 

If you have young children, start saving now.  If you have to pay $400 per child in textbook rental fees and you have 3 children, you’re looking at $1,200 to pay for your child’s public education. It would be nice if that was the only other hidden charge but Illinois schools also charge for:

 

- Use of school property (lockers, towels, laboratory equipment)

- Field trips

- Uniforms and equipment

- Participation in extracurricular activities

- School functions, i.e. prom

- Participation in class, i.e. home economics materials, shop, etc.

- Graduation fees

- School record fees

- Driver’s education fees

- School health service fees.

 

Fixed incomes beware – kids are expensive. Even when public schools claim to be free, you are looking at some money to pay for your kid’s future. We all want the best for our children and being able to budget and pay for school costs would be a lot easier eliminating or consolidating the other debt.  The $400 minimum payment going to credit card interest could be the $400 payment charged to rent books at your child’s elementary school. 

 

You cannot blame the schools – with budget cuts you have to make due. But you should be cognizant and the costs of public education and your finances. Filing a bankruptcy would eliminate your debt and allow you to put money away for your child’s future. 

If a bankruptcy law office was like an all request line at a radio station for dischargeable debt, the number one request would be parking tickets.  When you have other debt and are already living paycheck to paycheck, the parking fines are moved to the back burner causing interest and penalties to add up – quickly.  If you ignore the ticket altogether, you may find yourself with a suspended drivers license and thousands of dollars in parking tickets.

 

So the not-so-good news - you cannot eliminate parking tickets with a Chapter 7 bankruptcy. But, you can consolidate the fines in a Chapter 13 to reinstate your driver’s license. Let’s say you’re a delivery driver and all of a sudden your driver’s license is suspended.  You will ultimately lose your job and be unable to pay on the debt.  However if you file a Chapter 13 bankruptcy you can get the license reinstated hopefully before your employer finds out there is a problem.  A Chapter 13 with Geraci Law, LLC can be filed for little to no money down in as little as one day.

 

There are four different payment plans with the city. The first is for people with less than $500 of parking or red light tickets. A person is required to put down at least half of the ticket amount as a deposit. You could file a Chapter 7 to get rid of any other debt and get on payment plan with the city for the tickets.

 

Another payment plan offered by the city is for people with over $500 in parking tickets. This payment plan requires a deposit of $500 or at least 25% of the parking or red-light fines (whichever is greater).  If you have a significant amount of parking tickets and other debt, you are much better off filing a Chapter 13. You can pay off your other debt and take care of the parking tickets.

 

So the last two payment plans were for debtors who still have valid driver licenses. The third payment plan is for people with booted cars and license suspensions. This would apply to the delivery driver example. To get on a payment plan, you would need to pay a $750 deposit or 50% of the tickets – whichever is more. File a Chapter 13 bankruptcy! You can file a Chapter 13 for less than $750 and get your license back. The repayment is interest and penalty free and again you can get your license back!

 

It is frustrating to get $100 ticket for being a minute late to pay the meter. But, do not let the tickets get out of hand. If you have a driver’s license suspension and stable income, do not fret. File a Chapter 13 and soon enough you’ll be back behind the wheel.

 

In this current housing market, the word foreclosure is becoming as popular of a dinner conversation as which celebrity is going to rehab this month.  Foreclosure (and bankruptcy) is not as taboo since you probably have a neighbor or a family member facing the big f-word.

 

Once most families hit the 90^th day of arrears (when most mortgage companies start reporting to the bureaus), most start thinking about whether the home is worth saving.  You think your children grew up at the home but you owe $250,000 and the house is worth $150,000.  So let’s look at some options to look at the big financial picture

 

Option 1. You want to save the house. You have invested too much blood, sweat and tears to let the house go and you are about even on what you owe and how much the home is worth.  But you are a couple of payments behind, your mortgage company has stopped returning your calls and you can afford the house.  Affording the house is key – you need to be able to make your mortgage payment and be able to buy food, water, gas, etc. So, you file a Chapter 13 bankruptcy. A filed Chapter 13 will stop all foreclosure proceedings and allow you to spread out the arrears of your home in a 3-5 year repayment without the crazy penalties imposed by your mortgage company.  You can save your home up to the day of the sheriff sale with a filed Chapter 13 bankruptcy.

 

Option 2.  You cannot afford your home because of a home equity loan you took out a couple of years ago. So now, you have a first mortgage payment with a balance of $250,000 and a second mortgage with a balance of $50,000 and your home was recently appraised at $200,000. You are able to make your first mortgage payment but live off of credit cards in order to stay current with your second mortgage. It is possible to strip the second lien – meaning you file a Chapter 13 bankruptcy consolidate the credit card debt and at the end of the repayment plan the balance of the second mortgage could be eliminated. Now, there are no guarantees here and you would need to meet with an experienced bankruptcy attorney to possibly get rid of the second mortgage.

 

Option 3: You cannot afford the house but you cannot afford to move quite yet.  Maybe there was job loss or an income reduction but you are choosing between food and your mortgage payment each month.  You have tried working with your mortgage company and the idea of a loan modification is laughed at by your lender. The silver lining is foreclosure takes time – stay at the house, keep it insured and you have free rent. Think about it – the $1500 mortgage payment you are struggling to keep current each month could go toward getting back on your feet. The average time foreclosure takes 17 months. You have 17 months of free rent – that is $25,500 of mortgage payments that could go to getting yourself back on stable financial ground. Your bank took advantage of you so why not take advantage of the bank. I constantly get asked about the morality of staying in a home rent free. My answer is – is it moral for a bank to give you a $350,000 mortgage loan with zero money down when your annual income is $30,000?

 

Deciding the future of your home is not an easy decision. When you are faced with financial hardship, it is difficult to stomach the loss of an investment. But what are you supposed to? Geraci Law, LLC are professionals at saving homes or providing legal resources to homeowners struggling with mortgage payments.

On Check N' Go's Web site there is an advertisement of a young hound puppy with the phrase, "Life can be unpredictable. For those times we're here. Quick approval time. Less than perfect credit. Pay back on your next pay period" The ad also includes a quaint sign stating "Veterinary Hospital."  Way to play on emotions, Check N' Go.

Payday loans can be considered a necessary evil – when you need money for food, rent, Fido’s check up, etc. and have no where else to turn a payday loan seems like a good option. When you're desperate, it is easy to skim the lines of the contract and mindlessly hand over a check. But, the payday loans will make you pay, and then pay, and then pay some more.

 

The consequences seem to heavily outweigh the actions of taking a payday loan. For example, you are short on rent and need some extra cash for your landlord.  You take out a payday loan for $500 and with an APR of 842.31% in as little as 13 days the bill will go to $650.00 if all payments are made on time. If you need to extend the loan, it is an additional charge for the extension. If you miss a payment, the lender can take the money from your bank account or proceed with a wage assignment and deduct the funds directly from your paycheck. It’s a vicious cycle – often to stay current with payday loan payments, you take out another payday loan, and another and another….

 

Filing a bankruptcy will stop payday loan harassment. A chapter 13 bankruptcy will stop the crazy 1000% interest on some payday loans and a chapter 7 will just eliminate the debt.  Geraci attorneys can send over notice to your payday loan lenders to stop the deductions from your account before your case is even filed.  If you have zero debt then you should be able to afford a vet visit without the payday loans.

 To see full ad, please click here.

Retirement. I cannot wait to relax and enjoy the well-deserved rest after years of waking up to an alarm and living by deadlines. I have years to go but many people are getting closer and closer to the golden years. With social security going - well bankrupt, many soon-to-be retirees need to take a good hard look at their 401Ks, IRAs, and pension accounts once they shut the door on full-time work.

A study done by Boston College called, “The New Unemployables,” found 30 percent of people ages 55+ owed more in credit card debt than saved in retirement accounts. So continuing the minimum payments (getting them no where) means come retirement, the person has more credit card debt and less income. If you’re working full-time and are struggling with the credit card debt, paying the debt off or down will not get easier with retirement – actually with less income and potential increases in medical expenses will make payments more difficult.

Most experts agree using retirement savings to pay off credit card debt is a bad idea. More often than not, a person will take a 401K withdrawal only to pay a portion of the debt. This is problematic because debt still exists and the minimum payment is still due the following month. Not to mention, the tax penalties for early withdrawals. Unless you qualify for a tax exemption for the withdrawal, you are subject to an early distribution penalty of 10% additional tax.

Moral of the story is to file a bankruptcy before thinking about retirement. Filing a Chapter 7 bankruptcy will eliminate all of the debt so you are able to readjust to your new income. While you're working, a Chapter 13 repayment plan will pay off your debt in 3 – 5 years, protect all of your assets so you are debt free before your retirement party.

You’re going into retirement – you are supposed to enjoy it. Spend time with the grandkids and go on sunny vacations. You do not need the sleepless nights and headaches of creditor harassment and 30% interest rates.

To read the study by Boston College, visit http://www.bc.edu/content/dam/files/research_sites/agingandwork/pdf/publications/IB25_NewUnemployed.pdf .

Earlier this week, there was an article on MSNBC’s Web site addressing how bankruptcy can save your home.  This is a national news service advertising the numerous benefits of a bankruptcy.  In the article, journalist John W. Schoen said, “Bankruptcy laws, after all, were established to provide an orderly process for people in financial trouble to reorganize their debts, start fresh and rebuild their lives.”

 

Schoen’s article focused how a Chapter 13 bankruptcy can save homes from foreclosure. Homeowners who were out of work for a couple of months and are getting back with a steady income can save their homes. If you can afford your home, you can keep your home. Let me repeat, if you can afford your home, you can keep your home. File a Chapter 13 bankruptcy and stop the foreclosure proceedings. 

 

If you every tried contacting your mortgage company about a missed payment or modifying a loan, you are well aware that stopping a foreclosure without a Chapter 13 is nearly impossible.  Most mortgage companies will not accept payments once a foreclosure has been filed – even if you have money to pay on the arrears. A chapter 13 is your solution! Your mortgage company cannot proceed with a foreclosure if you have a filed Chapter 13 bankruptcy.

 

I am not a statistician but I think you can link the increase of bankruptcy filings and the decrease in foreclosures. For example, in Illinois in February, there were 109,178 bankruptcy filings. This number can be attributed to using tax refunds to pay for bankruptcy filings and other numerous causes for the jump from January. However, the number of foreclosures in Illinois also declined. According to RealtyTrac, there were 9,592 foreclosure filings. This number is 45% lower than February of last year.  So more bankruptcies were filed and fewer foreclosures were filed – coincidence? I think not.

 

It’s hard to argue the numbers are not related. The negative stigma of bankruptcy is being replaced by the benefits to struggling consumers. Articles like Schoen’s can replace the negativity around bankruptcy. The ongoing joke is if you walk into a party and say you filed for a bankruptcy, half of the room would say they filed also. Everyone needs a little help especially when it comes to your home. Just a reminder, if you can afford your home, you can keep your home – examine your Chapter 13 options.

To read the article click here

Below is a list of rules created (and enforced) by the Federal Trade Commission (FTC) for debt settlement or debt relief. If you are currently enrolled in a debt relief program, look at the list maybe the agency you hired isn't meeting the standards. Filing a bankruptcy can eliminate your debt or you can file a Chapter 13 repayment plan through the court. A bankruptcy works within the law to provide you with a fresh start. Attorneys have an ethical obligation to do what’s best for their clients and you have the bankruptcy code on your side.

In 2010, the FTC amended the Telemarketing Sales Rule to prohibit debt relief firms from collecting fees before certain guidelines are met. An organization offering to settle a debt for a fee cannot collect said fee until the following guidelines are met:

- The debt relief service successfully settles or changes the terms of at least one of the consumer's debts

- There is a settlement agreement debt management plan, or other agreement between the consumer and the creditors that the consumer has agreed to; and 

- The consumer has made at least one payment to the creditor as a result of the agreement negotiated by the debt relief provider.

Information courtesy of the FTC

Many of these organizations require debtors to have a "dedicated account" to put in funds to pay creditors. The Better Business Bureau (BBB) has received numerous complaints regarding access to these funds. To have a dedicated account the organization must meet the following guidelines:

- the account is maintained at an insured financial institution

- the consumer owns the funds including any interest

- the consumer can withdraw from the debt relief service at any time without penalty and will receive all unearned fees within 7 business days 

- the provider is not affiliated with the bank nor receives referral fees.

Information courtesy of the FTC

Now you have some of the regulations for a debt relief agency. The reality is the majority of agencies do not meet these guidelines. In a study done by the FTC, only 10 percent of consumers in a debt relief agency actually succeed despite the majority of advertisements claiming 100% success rates. Knowledge is power - if it sounds too good to be true, it probably is.

There is a great article called "Knee Deep in Debt" on the FTC's Web site. To read the article, click here.

Apparently everyone is having money trouble. Our elected officials are having as difficult of a time as you or I creating and maintaining a budget. The big difference is when the federal government can't create a budget, the government stops.  Federal employees do not go to work because there potentially is no money to pay them.  Despite a budget extension to March 18th, the federal government is hitting the bomb shelter and preparing for a shutdown, including the federal courts.

When there is a shutdown, the costs charged with almost every filed bankruptcy petition can actually fund the adminstration of the majority of courts - not just the bankruptcy court. However, the funds could simply run out. The money spent by bankruptcy petitioners is actually funding other courts...the irony.

If the court were to shutdown and if the pool of money from court costs were to dry up, it is possibly bankruptcy attorneys could be affected. If there is no money to fund PACER (an electronic filing system used by attorneys to process bankruptcy petitions - including Geraci Law, LLC), the system could be shut down.

What does this mean to you - potential bankruptcy filer? You want an attorney who can survive the shutdown! Peter Francis Geraci and Geraci Law, LLC have been in practice for the last 35 years.  When there were other government shutdowns in the mid-90s, the firm survived and ensured petitions were filed.  

When you are considering a bankruptcy, keep in mind our towns, our states, and our federal governments are in similar positions. There is simply no money left over at the end of the month to pay the bills.

People who file for Chapter 7 and Chapter 13 bankruptcies are relieved to find out that the majority of their household goods and personal property can be protected by exemptions (that vary depending on each state). That means you won’t need to expect the trustee to march into your home, have some breakfast, and walk out with your blender and DVD collection. But what worry a lot of filers are those “priceless” bands they wear around their fingers. Those are exempt…or are they? The short answer is no, there is no automatic exemption for sentimental value. However, there are ways to determine and even protect valuable assets like engagement and wedding rings.

Here’s a question: “Can I just pretend I don’t have any?” Now ask yourself this: would you swear to this lie in front of a judge, knowing it can land you in an even bigger mess? Remember that bankruptcy is a solution only for honest people. It’s both smart and constitutional to be up front about your assets so that we at Geraci Law can help you. Let your attorney know your concerns. He or she will probably recommend one of two things: one, get a low, trade-in valuation at a place like a pawn shop. You may be shocked to find that wedding and engagement rings won’t bring in more than several hundred dollars. Don’t take it as an insult, however; the lower the value, the easier it will be to protect your priceless asset. If it turns out that your jewelry is worth more than what our exemptions can protect, you may be able to “buy out” the equity of the rings from the trustee. And if all else fails, you can always file a Chapter 13 bankruptcy to save your assets.

A final suggestion: don’t wear anything excessively sparkly or obviously expensive to your meeting of creditors. It is not unheard of for the trustee to demand those assets right then and there! A bankruptcy court hearing isn’t Studio 54 or the opera: it certainly is not the place to show off what you have when you’re convincing people you can’t pay your debt.

“I love romantic walks on the beach, bubble baths, and losing sleep over my $10,000 in credit card debt!” …not a likely response you’ll hear on The Dating Game, is it? According to a 2009 survey issued by Credit Card Statistics, people are more likely to discuss classically taboo topics like their weight and political views before they admit to how much they owe. Those recognized off-limits topics hold the same possible consequence as debt: rejection. So, why is it that Bachelor #1 would rather dish the saga of his man gut or his political crush before ever admitting that he – like most Americans – gets the occasional call from a bill collector?

For one, debt is hardly something to brag about. Even saying that you’re paying down a debt sets off the red flag that you owe at least one creditor money; do you think your date wants to stick around to find out how many more you owe? The fact alone that people are keeping this dirty little secret hidden under the rug indicates they’re not only ashamed of it, but they’re scared of it. And yes – debt is scary. It means constant harassment from creditors, lawsuits, garnishments, foreclosures…the future is long and grim when you’re buried with debt. Unlike weight and political association, which fluctuate by the day, debt either goes down at a snail’s pace or grows quietly and ominously like a tumor. “So, can I call you later?” No, thank you.

Fortunately, there is a way to clear one’s debt faster than it took President Bush to leave office, and definitely more efficiently than a liquid-only diet. For those who qualify for a Chapter 7 bankruptcy, they can go from debt-stressing to debt-free in as little as four months. With a Chapter 13 bankruptcy, people start seeing their debt drop consistently every month – beat that, Biggest Loser! Before you know it, your debt will be the last of your problems and then the only numbers you’ll be paying attention to will be the ones on your phone, and not on your credit report.

Continuing Attorney Curtis entry, "Selecting the Right Bankruptcy Attorney for You - Experience Counts," the right attorney is one who will file your case in a timely matter and correctly the first time. When the economy turned, attorneys who file bankruptcy are appearing like campaign ads in November. These attorneys are ones who quote $400 bankruptcy fee and disappear after the case is filed. You know the saying you get what you pay for.

Recently, two Illinois bankruptcy attorneys have been charged with several counts of bankruptcy fraud. Including lying under oath, filing false documents, and hiding case dismissals from clients. This attorney also allegeldy collected fees to file for Chapter 13 bankruptcy protection with the promise to put the money toward the mortgage. However, the court alleges they used the money for their own benefits. When it comes to your financial situation you want an attorney to file your case correctly - and legally - so you are not paying an attorney to get you further in the hole.

When considering an attorney, it is important to look ahead to the future. A Chapter 13 bankruptcy can range anywhere from three to five years meaning you want to know your attorney will be around for the next three to five years. Peter Francis Geraci and his firm have been practicing for 35+ years helping numerous people get out of debt. When a previous client calls needing a reprint of bankruptcy information, a person answers the phone instead of a dial tone for attorneys who have closed up shop.

You can read more about the indictment in today's Chicago Sun Times.  

One in four people do it…Facebook stalking, that is. Over 500 million people actively use Facebook today. They’re checking out photos of family vacations, commenting about their friend’s beautiful new Corvette, even doing a little updating of their own. Since 2004, the world’s population has been at your fingertips…and at your debt collectors’, too.

Facebook is a debt collector’s dream: not only is it free, it can potentially give them unlimited access to personal information like your job, family contacts, hobbies, recent purchases, vacations…are you scared yet? These days, your debt collectors don’t have to be secret agents to uncover evidence against you and legally force you to pay your debts.

What you can do to protect yourself? First of all, know your privacy settings and adjust them to the highest levels. Second, be careful whose “friendship” you accept. You may see a good-looking person with a conventional name from your old school and assume you once knew them. Don’t be fooled! That may very well be Joe Creditor, the scum-sucking collector terrorizing your home phone and family members. Lastly, it’d be smart to go through all of your photos, status updates, and personal information so as not to reveal anything you wouldn’t want your debt collectors to know…

Start considering your debt collectors as dangerous and ruthless as identity thieves – they’ll go anywhere and do anything to get your money. Debt collectors are not your friends – especially not on Facebook.

You file a bankruptcy, your debt is eliminated and now what? Being debt-free is a great thing and you want to rebuild your credit but maybe you don't know how? Post-bankruptcy brings credit cards and financing options but with higher interest rates. Creditors want you to be in debt - if you apply for one of these credit cards and get overwhelmed again, the safety net of a Chapter 7 bankruptcy is not an option again for eight years.  It is easier said then done to create a budget and save money. Many people are not educated in handling finances and bankruptcy can eliminate the old debt but to manage future debt they need the tools to succeed.

When the bankruptcy laws changed in 2005, certification of credit counseling and debt management became mandatory for a case to filed and a case to be discharged. The debtor is required to spend time learning financial management to receive his certification. The credit counseling course focuses on reasons a person gets into debt and possible solutions. So, a person filing for a bankruptcy completes the course and can identify possible reasons as to how they got into debt in the first place. The debtor education course outlines short term and long term goals along with creating a budget so post-bankruptcy, the debtor has background in financial management.

The courses are important. The majority of bankruptcies are filed due to factors like divorce and medical problems.  But, there are people who used credit and were possibly not educated in the ramifications of missed payments, high interest, etc. For a person who is overwhelmed by their debt, these courses can provide the tools for a better financial future.

The idea of filing for bankruptcy is a scary one for most people. So, when you have made the decision to file for bankruptcy protection, you want to be certain you find the right firm to help you. Not all bankruptcy lawyers and law firms are the same, and having an experienced bankruptcy lawyer is a huge benefit.

Attorneys with a larger number of bankruptcy filings are usually more familiar with the different types of bankruptcy, and the various issues that can arise in a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. They are more familiar with the bankruptcy trustees and the procedures used in the local US Bankruptcy Court. More experienced attorneys can answer your bankruptcy questions, go over your bankruptcy alternatives, and ensure you receive the bankruptcy help you are requesting. Having a less experienced law firm file your bankruptcy could lead to loss of property in a Chapter 7, or a dismissal of your Chapter 13.

Peter Francis Geraci and his law firm Geraci Law L.L.C. have been representing debtors in consumer bankruptcy (personal bankruptcy) for almost 35 years. The experienced attorneys are familiar with all aspects of the new bankruptcy laws and can ensure the best result for you in your time of financial distress. Filing bankruptcy is such an important decision. Make sure you have the right people helping you.

It’s very complex to discharge student loans in bankruptcy. Section 523(a)(8) of the Bankruptcy Code requires a separate process in the bankruptcy and a finding of undue hardship – basically, the inability to make any payment ever. There are too many client-specific particulars, multi-part tests, and litigation strategies for anyone to address in a (hopefully) pithy blog post. Our firm has repeatedly overcome these hurdles on behalf of educational borrowers, but it’s not easy and can never be guaranteed.

 

There’s currently a measure of hope out there for those with sizable student loans, however. Two laws have been introduced to expand the ordinary bankruptcy discharge to include some educational debt.

 

But first a tiny bit of context: By 2014, the government is going to be the originator of all student loans, unless the college itself is doing the lending. The changeover has already started, but for now, there are two types of student loans: public (originated by the government or nonprofit educational institutions) and private (originated by the big banks or for-profit educational institutions).

 

Even after 2014, though, borrowers who have already borrowed would be saddled with their debts as they are. The House’s Private Student Loan Bankruptcy Fairness Act (H.R. 5043) and the Senate’s Fairness for Struggling Students Act of 2010 (S. 3219) would treat private student loans the same as other loans – these debts would be easily dischargable in bankruptcy alongside (for example) credit card debt and medical bills.

 

Both proposals were first presented last year, but because the new Congress is now in session, they'd need to be reintroduced. If you, or someone you love, would be helped by this reform, please contact your legislators and make sure your voice is heard.

Will it ruin my credit?

- You probably don’t have great credit now! Filing a bankruptcy can eliminate your debt and provide you with the opportunity to rebuild your credit. Even if you have a 700+ credit score, having too much credit is not good credit.

 

Will I lose my house?

- Not if you don’t want to. To keep your house, you must stay current with your mortgage payments. The attorney you meet with will determine which bankruptcy will allow you to keep your home. Geraci Law has not lost a house in over 35 years and doesn't want to start with yours.

 

Do I have to include all of my credit cards?

- You cannot pick and choose your debt and why would you want to? Filing a bankruptcy can eliminate all of your debt giving you an opportunity for a fresh start.   

 

Can I keep my boat/motorcycle/rocket ship?

- You can keep your assets if you can afford to keep them. The attorney you meet with will determine which bankruptcy will protect all of your assets.

 

Do I have to be behind on my bills to file for bankruptcy?

 

- No! You can be up to date with the minimum payments and still have a tremendous amount of debt. Making the minimum payments is probably not getting your anywhere close to being debt free. For example, if you have $2,500 in credit card debt with 21% APR and you are only making the minimum payment – it will take you 40 years and 8 months to pay back the original charge of $2,500!

 

How much is it going to cost?

- Going and meeting with an attorney is like going to the doctor. A lawyer like a doctor needs to diagnose what the problem is and assess the amount of work to be done to fix the problem. After filling out our forms and meeting with a lawyer, your fee will be quoted to you. Our fees can be done in payment plans and will be based on your case and your financial situation.

 

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What is really surprising is that only 1 of 100 people who should file bankruptcy, actually do! Example: You get a foreclosure notice. Instead of filng Chapter 7 or Chapter 13, to get rid of credit cards and other debt, so you can afford your mortgage, you just keep on paying your credit cards, and worse yet, abandon your home. Another example: You get sued by a creditor for $3,000 money you owe, for an uninsured accident, or credit cards, or medical bills. Instead of taking care of it and either eliminating it in Chapter 7, or getting a low payment you can afford for all bills in Chapter 13, you do nothing, your drivers' license gets suspended, your checking account is subject to garnishment, and so are your wages. Both are sad. Creditors are so so happy when you do nothing.

Under Chapter 13, you file a similar list of assets and debts, but at the first meeting of creditors, the purpose is to examine your proposed repayment plan.  After that, the Bankruptcy Judge holds a hearing to approve or "confirm" your plan. Then, you simply make the payments until the plan is complete, and then the Court issues a discharge.

So, while there is ya lot of work in figuring out what to do, preparing your petition, and dealing with your creditors, almost all of that is done by your attorney.  All you have to do is show up where you are supposed to, and, for Chapter 13 cases, make your payments in full and on time.