Suburban Legal Group – Legal Services FAQ

The answer is yes.

Wage garnishment is typically a final attempt for a creditor to collect the debts that are owed to them.

However, in order for a creditor to garnish wages, they must get a judgment entered against you. With that judgment there is only a certain amount that can be deducted or garnished from your wages.

The employer is not allowed to deduct from any of your weekly take home pay that is 45 times the federal or state minimum wage, whichever is greater. So if the State of Illinois’s minimum wage is $8/hour, then you would be allowed to take home at least $360.00 per week. If you make less than this, no wages can be deducted. If you make more than this, the creditor can garnish the lesser of the following two amounts:

a. 15% of your weekly gross income, or

b. the amount of take home pay above $360.00

It is important to remember that you can stop the creditor from garnishing your wages if you file for Chapter 7 Bankruptcy. 

Even if a garnishment has started, filing chapter 7 bankruptcy in Chicago can stop the garnishment. 

Sitting down with the Chicago bankruptcy lawyers with Chang & Carlin will give you the opportunity to review your finances with a bankruptcy expert. They can review your debts and evaluate your income to determine if filing bankruptcy is a good choice and if you will likely qualify for chapter 13 or chapter 7 in Chicago.

Sitting down with the Chicago bankruptcy lawyers with Chang & Carlin will give you the opportunity to review your finances with a bankruptcy expert. They can review your debts and evaluate your income to determine if filing bankruptcy is a good choice and if you will likely qualify for chapter 13 or chapter 7 in Chicago.

Wage garnishment is embarrassing. Once it is put in place your employer becomes aware of the situation because it has to do with your paycheck. They cannot fire you because of your financial debts thanks to the Consumer Protection Act.

The best way to avoid wage garnishment and bankruptcy is to communicate with your creditors and discuss repayment options. When faced with creditors many people are inclined to ignore debt collection attempts until it’s too late. The Chicago bankruptcy lawyers at Chang & Carlin, LLP recommend these methods of repayment:

 1. Make Payments – Offer to pay them in agreed upon installments and stick to those payments.

 2. Lump Sum – Consider offering your creditor a lump sum amount even if your debt is greater. They may accept the payment that is less than your total owing because partial re-payment is better than nothing. Just make sure they agree to forgive any remaining balance.

If your wages are currently being garnished Chicago bankruptcy lawyers can tell you what your rights are in bankruptcy and answer any questions you may have about the amounts that are being deducted from your paycheck.

It is a tremendous benefit to find Chicago bankruptcy lawyers who offer a Free Legal Consultation. This meeting will allow the attorneys at Chang & Carlin, LLP to determine what your rights are in bankruptcy and what the best course of action is for you.

The short answer to this question is “NO’. 

When you make the decision to work with Chicago bankruptcy lawyers, your financial situation has brought you to a place where bankruptcy is your best option. But losing your job or having difficulty getting hired should not be a result of filing for bankruptcy in Chicago. 

The bankruptcy code is set up to protect those who choose to file bankruptcy in Chicago and protect their jobs.

Section 525(b) of the bankruptcy code states in relevant part, “no private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title…solely because such debtor or bankrupt

1. is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act;

2. has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or

3. has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.

Additionally, if you have not filed for chapter 7 bankruptcy in Chicago but your debts have gotten to the point where creditors have begun garnishing your wages you are also protected. The Consumer Protection Act prevents employers from firing your after they find out about your debts from having your wages garnished.

Unfortunately if you are looking for a new job and your employer looks at your credit report, they will see your bankruptcy filing. Although they are not supposed to judge you on past bankruptcy filings they may choose to hire another equally qualified candidate who does not have bankruptcy in their credit history.

If you have recently been discharged in bankruptcy and are looking for a job, it is often best to be honest with your potential employer and the circumstances that caused it. Honesty can be a powerful tool for getting what you want after bankruptcy. However, if your employer just recently learned that you declared bankruptcy and subsequently dismissed you from your job, you may have a bankruptcy discrimination case. 

If you have been discharged of debts through chapter 7 you have to wait 8 years before you can file for chapter 7 bankruptcy in Chicago again.

However the answer to this question Yes, you can file bankruptcy before the 8 years is up. Depending on the situation, you can file Chapter 13 Bankruptcy. Chapter 13 Chicago can help you stop foreclosure and garnishments even if you have already had another bankruptcy within the last 8 years.

Chapter 13 bankruptcy allows you to restructure your finances so that you can keep your assets. 

It may make sense to file for Chapter 13 Chicago for several reasons:

1. You may be able to keep your assets – Chapter 13 bankruptcy allows you to set up a payment plan with your creditors for a set period of time. Upon completing the payment plan you will be discharged of the remaining debts and allowed to keep your assets.

2. You make too much money – You have to qualify to file chapter 7 bankruptcy by taking a means test. For those who make more than the median income filing chapter 13 Chicago is their only choice.

3. Save your home from foreclosure and your car from repossession – When you fall behind on your bills you may begin to feel threatened by foreclosure and car repossession. Making the decision to file chapter 13 Chicago gives you the opportunity to stop foreclosure and repossession.

Everyone’s financial situation is different. If you have already filed for chapter 7 bankruptcy in Chicago consider talking with Chicago bankruptcy lawyers about what your options may be. Request a Free Legal Evaluation and find out what your options are.

When you file for chapter 7 bankruptcy in Chicago it is important to realize that during the process all unprotected assets you have will be liquidated and used to pay off your debts. Depending on the time of year, your tax refund may be included in these assets.

When filing chapter 7 during the first quarter of the year your tax refund will be considered an asset along with the money in your bank account.

When working with Chicago bankruptcy lawyers they can assist you in utilizing your wildcard exemption of $4,000 to protect your anticipated tax refund. There is also a possibility that if a portion of your refund is Earned Income Credit and may be protected under a separate exemption.

Should your refund exceed $4,000 the extra would be considered an asset and would be used to pay back a portion of your debts. Working with experienced Chicago bankruptcy lawyers from Chang & Carlin can help you understand the law and find a way to keep your refund and eliminate debt.

Even if you file for chapter 7 bankruptcy several months after receiving your tax refund you may be asked to produce it during bankruptcy. One way to keep the money safe is to spend it. Just make sure you spend it on approved expenditures:

1. Rent or Mortgage – the cost of housing 

2. Condo fees 

3. Food, clothing, utilities and other necessities 

4. Medical and dental expenses 

5. Car payments as well as maintenance and repair costs 

6. Repairs to the home including necessary improvements 

7. Tuition or educational expenses 

One interesting point arises in the situation of a married couple where only one spouse is filing chapter 7 Chicago alone but they file their taxes jointly. Would the entire tax refund become the property of the bankruptcy estate? One court in New York found that, “spouses filing joint returns who equally share the liability for payment of the taxes should equally share the benefit of any tax refund.” In this case, the court found that only half of the refund was considered to be property of the estate and the other half was given back to the debtor’s spouse.

If you are in a situation where you are about to filing bankruptcy and are expecting a tax refund, contact one of the Illinois bankruptcy attorneys at Chang & Carlin, LLP to discuss how we can help you. Our experience in filing bankruptcies in Illinois allows us to give you valuable advice on how to help you protect your assets and get the fresh start you deserve.

When paying bills becomes a struggle and creditor phone calls become constant, bankruptcy may be your best option. When filing for chapter 7 bankruptcy in Chicago you want to include all of your unsecured debts. You cannot pick and choose the debts you wish to include. Store credit cards will be included with your bankruptcy filing.

Chapter 7 bankruptcy is often referred to as liquidation. This term comes from how unsecured assets are liquidated in chapter 7 Chicago and the money garnered is used to repay debts to creditors.

It is a well known fact that filing chapter 7 bankruptcy in Chicago will effect your credit score and make it a challenge to obtain new credit cards afterwards. Trying to keep your store credit cards out of bankruptcy is not a solution, but there are several things you can do after bankruptcy to obtain a new credit card.

• Obtain a secured credit card – A secured credit card is a card where you have to make a payment up front that will become your credit limit. A secured credit card is also a great way to build credit.
• Contact your credit union or bank – If you talk to your bank they might be willing to give you a chance with a credit card. You should ask for the lowest interest rate possible and be prepared for a very low credit limit.
• Get a co-signer – If you have a friend or family member with good credit you can ask them to become a joint applicant on your credit card application. This can be a good solution however if you miss payments the debt becomes the responsibility of your co-signer.

Once you begin to rebuild your credit and show that you are making timely payments you will find that it gets increasingly easier to qualify for credit cards. Credit card companies may see you as a risk for a little while but if you can get a card with a low credit limit you can request credit increases overtime.

If you are considering bankruptcy but want to exclude some of your debt then it is best you discuss your financial situation with Chicago bankruptcy lawyers. They can help you determine the best course of action for you.

It is a common misconception that if you are current on all of your credit cards, loans and other bills that you cannot file for bankruptcy in Chicago. This is not the case and in fact, it may actually benefit you to file before you begin defaulting on your loans. 

With fluctuating interest rates on credit cards and loans there can be some anticipation of increased payments. You may know that the next month you will have to choose which bills you can pay and ultimately miss a payment. Talking with Chicago bankruptcy lawyers in these early stages puts you in a better position for the process.

Once you have defaulted on your loans or become late on your credit cards, it will begin to affect your credit score. The sooner you recognize the need to file bankruptcy the easier it will be to prevent the credit score blemish of late payments. Being proactive may lessen the effect bankruptcy has on your credit score in the long run.

It is important to remember that if you are not behind on payments you need to make sure you have not paid too much to one creditor. If you have paid too much to one creditor and not paid another, this might qualify as a preference. The trustee may then have a right to recover that money in your bankruptcy. 

When you file bankruptcy in Chicago it is important that you know there are some debts that cannot be discharged.

• Student loan debt
• Child support debt
• Most tax debt

It is important to stay current on these debts as they will remain your responsibility even after bankruptcy. 

Most Chicago bankruptcy lawyers will offer a Free Legal Consultation. This is a great opportunity for a bankruptcy expert to evaluate your situation and offer their suggestions. This is important for anyone filing bankruptcy including someone who has no yet missed a payment or defaulted on a loan.

Your bankruptcy trustee is paid $60 to hear your case. It is their job to gather your assets and depending on what assets you have they will receive a commission that is based on a sliding scale statutory formula which is set by Bankruptcy Code section 326.

The trustee has the responsibility to handle the communications with your creditors but their role differs from chapter 7 to chapter 13 bankruptcy. 

When filing chapter 7 Chicago it is the job of the trustee to take all of the assets and liquidate them into cash. That cash will then be used to pay off creditors as well as to provide the person filing with some money for living expenses.

Should you be filing for chapter 13 Chicago then your trustee would have a different role in the process. The trustee will still review your assets and calculate how much debt you have but then they will work with you and your creditors to develop a payment plan that is reasonable and that you can stick to. You will need to make these payments for a period of 3-5 years. After this time if all payments have been made on time you will be discharged of any remaining debts. Once you complete the chapter 13 bankruptcy process you are able to keep all of your assets.

There are several reasons to file for chapter 13 Chicago:

• You’ve already filed chapter 7 – If you’ve filed chapter 7 bankruptcy you have to wait 8 years before you can file again. You do not have to wait as long to file for chapter 13.
• You make too much money – If your income is too large you will be required to file for chapter 13 rather than chapter 7 bankruptcy.
• You have a lot of assets – If you have a significant number of assets you will want to file chapter 13 bankruptcy so that you can hold onto them.
• It stops foreclosure or repossession – When circumstances cause you to default on your loans you will find yourself threatened with foreclosure or car repossession. Deciding to file for chapter 13 Chicago puts an end to that and keeps your assets safe.

Ultimately you cannot avoid paying the bankruptcy trustee or your Chicago bankruptcy lawyers. However in filing for bankruptcy the debt you will be discharged will be life changing. The fresh start makes the legal fees seem extremely reasonable.

Not necessarily. There are a few factors that would effect how a house with significant equity would be handled during bankruptcy.

1. How was the title written when you purchased the house?

If you have questions about how the title was done when you bought your home it might be helpful to consult with a Chicago real estate attorney. They can educate you on what the title means and you can translate that to find out what will happen during bankruptcy.

2. Are you filing for bankruptcy as an individual or jointly?

Bankruptcy can be filed in different ways and it is possible for one person in a marriage to file alone. When this happens assets that are considered joint are typically split. For example, the joint tax refund that the couple receives would be split. Then the portion that goes to the person filing for bankruptcy is subject to being used by the trustee to pay off debts.

3. Will you be filing chapter 13 or chapter 7 bankruptcy in Chicago?

Chapter 7 Chicago is also sometimes referred to as liquidation. This means that assets are collected and sold and the cash is used to pay creditors. If your home has significant equity it is likely to be used to pay off debts.

Traditionally if you’re filing for chapter 13 bankruptcy in Chicago you will have the opportunity to keep your assets however you will have to commit to a 3-5 year payment plan. Once the payment plan is completed remaining debts will be discharged.

If you have a home with significant equity it is wise to speak with Chicago banruptcy lawyers as soon as possible. They can advise on the course of action that makes the most sense for you and educate you on the fate of your home with each choice.

Despite sounding very similar, there are very distinct differences between these three main forms of ownership on a title. The differences can drastically change what creditors, and heirs to the property may be able to obtain from the property in the future.

• Tenancy by the Entirety – This is the most common form of title ownership for married couples that are buying a property with the intention to use if for their primary residence. When you choose this form of ownership, creditors trying to collect on the debt of one spouse cannot place a lien on the property owned jointly. Additionally, if one spouse passes away, the other spouse gains full ownership of the property without having to go through probate, which can save considerable costs.

In one example, if one spouse has a credit card with Chase, Chase cannot put a lien on the house for that debt since the lien would impede on the ownership interest of the other spouse. This also becomes a benefit during bankruptcy if there is a lot of equity in the property and only one spouse is filing. With Tenancy in the Entirety, the equity does not make a difference as the bankruptcy court cannot attach to any interest in the house.

• Joint Tenancy – Joint Tenancy is usually chosen by close relatives who buy or live in a property together. While the benefits of creditor attachment do not exist, the property does pass to the other titleholder upon death free and clear of any claims against the descendant’s estate without having to go through probate.
• Tenancy in Common – This form of title gives people who each want their divided interest in the property the flexibility to do just that. This is typically used when friends or roommates invest in a property together. Each owner can assign their interest to an individual heir and the full Title to the property does not pass to the surviving individual on the title. Although unusual, Tenancy in Common can also be used by married couples who want this type of flexibility without much concern about protection from creditors.

If you have questions about title ownership discuss your situation with a Chicago real estate attorney. They can help you navigate these differences and determine what type of Title ownership makes the most sense for you in the long term.

I can’t afford my home/condominium anymore. If I file bankruptcy on my real estate property, how long can I stay in my home after I file?

If you have decided you don’t want to try and stop home foreclosure in Illinois and if you’re filing bankruptcy, the actual filing protects you when your lender sues you for any funds you may owe after your property is sold. The foreclosure process, however, will run its course independent of the bankruptcy. Thus, from the time you stop paying for your mortgage, it will probably take the mortgage company on average four to six months to commence foreclosure proceedings.

Then, from the time the court actually puts in a judgment against you in order to allow the mortgage company to start foreclosure proceedings to the time when the property will be sold at auction, it may take on average another seven months to a year. During this time, you will be able to stay in your home rent-free.

The main thing to look out for is your Foreclosure and Sale Date notice in the mail. Once you receive a Sale Date notice, you have 30 days before the property is sold, and you should be out of the property at least a day before the sale date. Therefore, it may be a year or more between the time you stop paying your mortgage and the time that you have to move out of your property if you’re filing bankruptcy, irrelevant of when the filing actually occurs.

The number of foreclosures pending can also effect the timing of your foreclosure process. When there is a rush of people who have been unable to stop home foreclosure in Illinois the process can be slowed down for everyone thus allowing you to stay in your home even longer.

While you can stay practically rent-free in a foreclosed home or condominium until the Sale Date, if you have Homeowner’s Association due, those have to be paid or you do risk being evicted from the property even if you’re filing the bankruptcy. If you are no longer staying at the property, you will only be obligated for the assessments that are due after you file bankruptcy.

If you have received a foreclosure notice and want to try to stop home foreclosure in Illinois it is wise to set up a Free Legal Consultation with a foreclosure attorney in Chicago. They can review your individual case and help you determine the best course of action to save your home from foreclosure.

There are a few things you can do to stop foreclosure. Depending on your financial situation receiving notice that the foreclosure process is starting does not mean that you are definitely going to lose your home. If you are trying to stop foreclosure you have a few options:

• Pay your debt and become current on your loan – When foreclosure starts there is still time to pay off your overdue balance and late fees and become current again.
• File chapter 13 bankruptcy – Chapter 13 Chicago allows you to make payments towards your debts for a period of 3-5 years. After this time you will be discharged of remaining debts. If you are considering filing chapter 13 to stop foreclosure make sure you can afford to continue to pay your current payment as well as another small payment to catch up on what is past due.
• Mortgage modification – Your lender may be open to changing the terms of your loan to make the monthly payments more manageable. The benefit for them in this scenario is saving the cost of processing a foreclosure so it’s best to try for loan modification as soon as you begin to struggle.
• Federal Assistance Programs – The government will often offer assistance programs for those struggling with home mortgage debt.

Owning a home can be emotional. When faced with foreclosure there can be a strong feeling of panic at the thought of losing the home. It is important to consider the options available to you alongside what is financially reasonable. The sooner you contact a foreclosure attorney in Chicago, the more likely it is that they can help save your home.

If you want to stop foreclosure but accept the fact that you can no longer afford your home you have other options.

• Short sale – Your lender may agree to let you sell your home for less than you owe on it. This is particularly common when home values have dropped and the mortgage is upside down.
• Deed-in-lieu – You can discuss the option of deed-in-lieu of foreclosure with your lender. If they were to agree you would hand over your home as collateral for your debts and no further payments are required. A lender will only agree to this if they are confident you can no longer afford payments.
• Short refinance – This is when your lender agrees to reduce the principal amount so that you can refinance with another lender. This would only happen if the homeowner doesn’t have enough equity to refinance otherwise and is likely to default without the refinance.
• Cash for keys – This modification type is similar to deed-in-lieu however in this case the creditor would actually pay the homeowner to leave their home quickly without damaging the property. This can save the lender money in avoiding eviction costs and any damages that might occur from disgruntled homeowners. 

There is a lot of consider when you are trying to stop foreclosure. Speaking with a foreclosure attorney in Illinois will help you determine the best course of action for you.

Filing for bankruptcy in Chicago is a personal decision and should only be considered after weighing all possible options. There are some warning signs that bankruptcy might be a good option for you: 

• Behind on your bills – Paying bills in full is a struggle and you are always behind.
• Late – Are you constantly worried you won’t have the money to make bill payments on time?
• Lawsuits – Currently being sued by a creditor trying to collect debts?
• Harassment – Creditors are constantly calling and harassing you about your debt.
• Facing foreclosure – The foreclosure process has started on your home.
• Facing car repossession – Car payments are behind enough that it is likely your car will be repossessed.
• New Debts – Are you struggling with recent unforeseen expenses that are hard to maintain?
• Job loss – An income in your household has been lost due to job loss and it has been a challenge to find a new job.
• Minimum payments – Are you only making the minimum payments towards credit card debt? If that is all you can afford and you continue to use the cards it will be nearly impossible to ever pay off the debt.

If you can relate to some of all of these warning signs it might be time to talk about your options with a bankruptcy attorney in Chicago that offers Free Legal Evaluations. They can review your situation and outline what bankruptcy options might make the most sense for you. This is a risk free way to obtain free advice on your situation and get a feel for the bankruptcy attorney you are considering working with.

They can help you determine if chapter 13 bankruptcy or chapter 7 bankruptcy in Chicago makes the most sense for you. If you are trying to save your assets and you have a reliable income coming in then chapter 13 might make the most sense for you. However if you have mostly unsecured debt like credit card debt than chapter 7 may be your best option.

If you make the decision to file for bankruptcy there are a few things you can gather that will be required documentation by your Chicago bankruptcy lawyers and the bankruptcy court. These items include:

• Copies of your most recent tax return
• A few current pay stubs
• Documentation of all secured debt (including car and home loan documentation)
• Your license or any state issued identification card
• Social security card

Whatever you’re leaning towards it will be your Chicago bankruptcy lawyers that can provide their expert advice on your personal situation. Filing for bankruptcy is not something you should enter into alone. An attorney will make sure all paperwork is filed correctly and on time and relieve a lot of extra stress from their client during the bankruptcy process.

When you think of chapter 7 bankruptcy in Chicago you think of liquidation. Having all your assets sold to pay creditors. In contrast chapter 13 bankruptcy means you can keep your assets. However it is possible to keep your car and file for chapter 7 bankrkuptcy.

Many people who file for chapter 7 in Chicago do not have a lot of assets. However it many people do have a car. Without a vehicle life can become more challenging. You may not be able to get to work which can make it harder to pay bills.

Here are 5 things you can do with your car when you file for chapter 7 bankruptcy in Chicago:

• Give the car back — It is an option to surrender the vehicle back to the creditor as collateral towards your debt.
• Reaffirm your car — Reaffirmation basically means entering into a voluntary agreement with your current creditor to have that debt survive the bankruptcy. The terms of the reaffirmation agreement are normally the same as they were before you filed bankruptcy. 
• Keep the car and continue making the payments — This option may be the best option for most clients. The reason being, if you cannot make your payments 6 months down the line, you can still surrender the vehicle back to the creditor and not owe any money on it. Most creditors will allow you to keep the vehicle as long as you are making the payments, however they will not send you a statement or report current payments to your credit report. 
• Redeem the car with a new lender — One of the advantages of filing Chapter 7 in Chicago is it allows you to redeem the vehicle for the fair market value. What that means is if you owe $20,000 on a car that is worth $10,000, you can refinance the car for $10,000 and eliminate the balance in your chapter 7 bankruptcy. 
• Negotiate directly with the lender — This option is not typically very successful. However, if all else fails, this may be an option for you.

The important thing to realize is that if you are filing chapter 7 bankruptcy in Chicago, you don't have to hand over all your assets. You have options and speaking with Chicago bankruptcy lawyers will help you figure out what solution will work best for you. If it makes sense it is possible to keep your car and still file for chapter 7 bankruptcy.

Find a bankruptcy attorney that offers a Free Legal Evaluation. This gives you an opportunity to find out if you want to work with the attorney and they will give you some legal advice for free.

When you file for chapter 7 bankruptcy in Chicago you will be assigned a bankruptcy trustee. It is the trustee’s job to complete the following tasks:

• Examine schedules, assets and statement of financial affairs.
• Collect all unsecured assets and liquidate them.
• Make sure you take the opportunity to reaffirm any debts.
• Communicate the bankruptcy filing with the creditors involved.
• Distribute the cash garnered from liquidation to your creditors.
• Review proofs of claim in your case and object if necessary.
• Give notices to anyone you are providing alimony or child support to.

Ultimately your bankruptcy trustee has to guide your case through the process and make sure everything is taken care of. It is a sizeable job when you consider that in a chapter 7 bankruptcy case in Chicago that has no assets the bankruptcy trustee is paid a mere $60.

If the case involved the liquidation of assets the trustee will receive a commission based on a sliding scale statutory formula which is set by Bankruptcy Code section 326.

A trustee is a required when filing for chapter 7 bankruptcy in Chicago. They play a necessary role in the process. The role of the trustee does not replace the job done by Chicago bankruptcy lawyers. A trustee will ensure that everything is taken care of during bankruptcy however it is your chapter 7 bankruptcy attorney that will make sure everything is filed correctly and in a timely manner.

Chicago bankruptcy lawyers can also help you decide if you should file for chapter 13 bankruptcy or chapter 7 in Chicago. They can also evaluate your situation and tell you if it makes sense for you to file bankruptcy at all.

A good sign that you may need to file for bankruptcy is if:

• It is a challenge to pay anything more than the minimum payment on your credit card debt.
• You struggle to pay your bills on time every month.
• You have fallen behind on your payments.
• Creditors call daily demanding payment.
• You have received notifications that the foreclosure process is going to begin on your home.
• You have received notifications that your car is going to be repossessed.
• You’ve lost your income and it is proving difficult to find a new job.

These are the warning signs that it is definitely time to speak with a bankruptcy attorney in Chicago about your situation. They can advise on chapter 7 vs. chapter 13 bankruptcy and begin the filing process if you decide together that it is the best option for you.