Bankruptcy In Illinois

Nowadays raising a child is incredibly a no laughing matter. By raising a child, you should be able to provide the kid’s basic needs and expenses, such as food, shelter, clothing and educational needs. Not only that, because there are also some miscellaneous stuff that you must be able to provide like pocket money for transportation and the like. In other words, it’s just like giving up a piece of your life for the sake of another being.

That’s why a lot of women are now getting into abortion so as to avoid these uncontrollable expenses that come in raising a child. Furthermore, another consequence of raising a child is that former spouses are often left by their exes being uncertain whether they would be able to stop making child-support payments the moment their ex files for bankruptcy.

In Illinois, spouses specifically ex-husbands, must always continue paying child support, including past due support owed to ex-spouse or to the State. Whether there is a chance that you can avoid paying alimony depends on whether you file a Chapter 13 Bankruptcy or a Chapter 7 Bankruptcy.

If you filed under Chapter 13 Bankruptcy, you may be able to stop paying child maintenance as long as you can provide evidence to the bankruptcy judge that the child support order is not really for your ex-spouse’s support but is part of a property division. This is not an easy thing to achieve and would require the assistance of an experienced bankruptcy lawyer.

The judge can consider your and your ex-spouses’ health, education and earning power in deciding whether the alimony is support or property division, whether payments stop or are reduced upon remarriage or a child turning 18, and whether there was a need for support at the time of the separation. If, as is often the case, the alimony order is designed to take care of your ex-spouse’s support and maintenance, then you must continue to pay the child maintenance.

If you filed under Chapter 7 Bankruptcy, you must continue to make all the payments you owe your ex-spouse as part of the divorce, including whatever you owe as part of a property division.

When you come right down to it, filing bankruptcy will not stop a court case for a divorce, to establish paternity, or to collect child support or alimony. If you file a Chapter 13 Bankruptcy, your repayment Plan cannot be confirmed (approved by the Bankruptcy Court) unless your child support and alimony payments are current. Once you fail to confirm a plan will result in the case being converted to Chapter 7.

In this time of economic depression, more and more people are now going bankrupt. The rise of unemployment here and there is probably one of the reasons why most people in this day and age are getting broke. Nowadays where the world is already getting highly competitive and fast-paced, joblessness is undeniably unavoidable. Although let’s say you already have a Doctoral degree. Yet this is still not an assurance that you’re going to get a better paying job and eventually laugh all the way to the bank. Simply put, greener pastures are unbelievably hard to find these days.

Actually, there are a lot of people these days that has a doctorate degree but are still on the breadline and living on the dumps. When you come right down to it, life is a game of chance. You cannot have everything at the same time. Even though you posses some higher doctorates in the land, values and people skills are still the ones that will get you farther in this carnival ride.

That it why, a lot of people these days are now going bankrupt than ever before. Just so you know having a 9-5 job is nowadays is really not enough for your everyday expenditure most especially if you have family. As a result, this is condition is merely enough to push people to the brink of financial despair. Lack of savings, high debt combined with low income is extremely a recipe for disaster that can end up filing for bankruptcy.

Nevertheless, under the new bankruptcy laws in Illinois, you don’t have to wait any longer until you lose all your money to any further extent before you file for bankruptcy. Generally, a debtor is allowed to keep even after filing bankruptcy. When you come to think of it, it is rarely a good policy to wait until all assets are absolved before filing for bankruptcy, as assets that normally would be exempt would now be lost. For this reason, it would be best to seek advice from a lawyer to determine which assets would fall under the exemptions chosen under the new bankruptcy laws.

In the Land of Lincoln, keeping your real property is possible just as long as you “reaffirm” your debt to the mortgage company throughout the case. In short, you have to notify the Home Equity Loan Company by getting in touch with them that you want a “reaffirmation agreement.”

That way, the mortgage company will know about it and will send you something for you to sign your name and file with the court. The reaffirmation agreement is actually a contract between you and the creditor that you are legally responsible and will pay the entire debt or a portion of the money due, even though the debt would otherwise be discharged in the case. And in return, the creditor promises not to take back or repossess your realty provided that you continue to make payments.

Moreover, it puts you back on the hook legally for the mortgage debt, and at the same time it allows you to keep your real estate. In other words, it lets the mortgage go through the bankruptcy without a scratch. Reaffirmation of a debt must be done before the discharge is entered in the case.

The reaffirmation agreement must be signed and filed with the court. After that, the judge will reach a verdict if the reaffirmation agreement is accepted. The court must find that the reaffirmation does not cause unwarranted hardship on you or your dependents and that it is in your best interest.

Reaffirmation agreements are free. If you agree to reaffirm a debt and fail to make the payment necessary, the creditor can take action against you so as to recover any property and you may remain personally held responsible for any remaining debt that you have reaffirmed.

So in order for you to keep your property while in Chapter 7 bankruptcy, make it a point that you are up-to-date when it comes to the mortgage and check. Also, make sure that you are within the amount of equity that you are allowed to have in the Prairie State.

When you come right down to it, being up-to-date on your payments at the time of the bankruptcy filing, through the bankruptcy process, and beyond the bankruptcy discharge is the only condition if you want to keep your real estate during your Chapter 7 bankruptcy. Or else, there is a possibility that the automatic stay will be lifted regarding that property and foreclosure proceedings initiated before the bankruptcy is even complete.

Illinois was the twenty-first state to be admitted to the Union, in 1818. Although Illinois is now known as “Land of Lincoln,” its former name, “Prairie State,” gives a reasonably accurate description. Much of it is level, and in its natural state was covered with prairie grass.

On the other hand, selling your property prior to filing for bankruptcy in Illinois is really possible only that it’s incredibly challenging and easier said than done. As there are specific rules that you have to follow in order to remain compliant with the law and with bankruptcy proceedings.

If truth be told, most real estate agents will not work with individuals that currently have an active bankruptcy in selling their property because it is prohibited by law. Despite that, it is possible to sell your property even after filing Chapter 7.

In the Prairie State, selling your home before filing a Chapter 7 bankruptcy may or may not be really a brilliant decision as it still depends on various major factors. That is why before you eventually make a decision, it’s imperative to consider these factors in order to for you to have knowledge of what to do:

Do you have a considerable amount of equity in your home? Just so you know when you put up your home for sale and spend the equity ahead of filing for bankruptcy, it could cause problem for your bankruptcy case depending on how recently the money was spent.

Would you prefer to stay in your home? If you are considering selling your home before bankruptcy because you don’t think you can save it, it is best to basically speak with a bankruptcy lawyer about how bankruptcy can keep you in your home.

Do you have another place to live? Basically, it is very important that debtors who are considering selling their home before bankruptcy make sure that they have a place to go.

Remember, if you sell your home with little or no equity in it, you will not make a profit off the sale which can leave you financially unable to secure another place to live. If you are incapable to raise the money needed to rent another home, you may want to consider filing bankruptcy before selling the home or surrendering it to the mortgage lender.

Illinois was the twenty-first state to be admitted to the Union, in 1818. Although Illinois is now known as “Land of Lincoln,” its former name, “Prairie State,” gives a reasonably accurate description. Much of it is level, and in its natural state was covered with prairie grass.

There are a few areas low, rolling hills, and a few sections of natural forest. Actually, filing bankruptcy in the state of Illinois can seem like an overwhelming process. But the United States Bankruptcy Court District of Illinois provides loads of resources to make the process easier to take the helm. Not only that, as filing fees aren’t too expensive. It only range from $200 to $300 when you add it all together.

When you come right down to it, once you’re already weighed down by too much debt, there are actually two major types of consumer bankruptcy that you may be able to file. Chapter 7 and Chapter 13 bankruptcy.

In Chapter 7 bankruptcy, it allows you to achieve legal forgiveness of nearly all debts, although with some exceptions such as most student loans and child maintenance. On the other hand, Chapter 13 is a debt repayment plan where consumer debts are simplified and lowered in some cases. Actually, there are limits on how often people can file bankruptcy, depending on what type of case they pursue.

If you only pursue Chapter 13 bankruptcy, you can file a new case every couple of years. On the contrary, people who are only interested in Chapter 7 can file new cases every eight years. Furthermore, if someone files a Chapter 7 case and then he finds out that he is more financially trouble, he can file a Chapter 13 case within four years of the conclusion of the Chapter 7 bankruptcy proceeding.

Moreover, a person with a recent Chapter 13 case may be able to declare Chapter 7 bankruptcy without delay if his or her circumstances have greatly changed. This is typically at the law court’s discretion. Then again, every Chapter 7 case stays on a credit report for a about 10 years, whereas Chapter 13 filings are reported for seven years.