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The fourth blog in a four part series about filing for a Chapter 7 or 13 bankruptcy.
By Sara E. Cook
A discharge of most debts will be granted if you meet the requirements under the Bankruptcy Code and no one is objecting to the overall discharge, or the discharge of a specific debt. It happens at different times in each chapter and under different circumstances.
The third blog in a four part series about filing for a Chapter 7 or 13 bankruptcy.
By Sara E. Cook
By the time you file the Petition, the Petition Date, you have elected one of two possible Chapters under the Bankruptcy Code, either Chapter 7 or 13. By filing the Petition, under either chapter, you have caused an Automatic Stay to be put in place that requires that all creditors stop contacting you or trying to collect while your case is pending. This gives you relief from these actions while the Court considers your petition under either chapter and decides what relief is proper for you. Creditors who do not honor the Automatic Stay, even if they were unaware of it, will be required to stop contact immediately and participate in the bankruptcy proceeding instead.
The second blog in a four part series about filing for a Chapter 7 or 13 bankruptcy.
By Sara E. Cook
Having made the decision to file for bankruptcy, known as seeking protection from creditors, you need to work with your attorney to get the case prepared for filing. The filing that you will make is called a Petition in Bankruptcy, and the date you file is the Petition Date. This is the crucial date separating your pre bankruptcy life, from the post-petition phase where you can enjoy the relief from debt and your “fresh start.”
The first blog in a four part series about filing for a Chapter 7 or 13 bankruptcy.
By Sara E. Cook
Often when a large corporation files for bankruptcy, you will hear that it is the right business decision, it gives them a chance to right size, change direction, get rid of unprofitable businesses and on and on. There is no stigma, it is just another business decision, and often heralded as the right one. Individuals, however, often see an individual bankruptcy as a sign of their failure or inadequacy. They avoid even entertaining the idea for fear of the stigma, the perceived shame and guilt for not paying bills. But the very same conditions that afflict large corporations, afflict individuals and families trying to survive in a world of low pay, pandemic, high child care costs, medical bills, furloughs and on and on. For all the same reasons bankruptcy makes sense for a big business, it may make sense for an individual or family and it should not be a shameful or guilt filled decision.
During economic hardships, small businesses may need to utilize the oft option of filing for bankruptcy protection to reorganize their debt. Bankruptcy often is considered a last resort option. Yet, it provides a powerful mechanism for individuals and small businesses to reorganize and manage their debt. The Small Business Reorganization Act of 2019 (“SBRA”) added Subchapter V to chapter 11 of Bankruptcy Code to further assist qualifying businesses with debt relief. 11 U.S.C. §§ 1181-1195. The Debtor friendly provisions added to the Bankruptcy Code with Subchapter V of chapter 11, make reorganizing debt a more streamlined and less expensive process for small businesses.
Many individuals struggling with debt often do not explore the option of seeking financial relief under the U.S. Bankruptcy Code out of fear of losing a job or discriminatory treatment by an employer.
We compiled this practical blog to answer some of the most Frequently Asked Questions about bankruptcy.
Should I file for bankruptcy?
This is a difficult question with no easy answer. You may want to file bankruptcy if you answer “yes” to any of the following questions:
The daily challenges of operating a business in a competitive marketplace as a sole proprietor can become overwhelming. If you are a sole proprietor with more debt than you can comfortably handle, a Chapter 13 bankruptcy might offer you the debt relief needed to put things back in order.
The Bankruptcy Court of the Northern District of Illinois released an important message this week regarding a new telephone scam. The new scam, called “Caller ID Spoofing”, involves a scammer using an attorney’s phone number to call her or his clients asking for additional payments for creditors and directing the client to call a toll-free number to make the payments. Because this scam will list an attorney’s legitimate office number on caller ID, it may be difficult or impossible for a client to not be victimized. It is imperative that clients receive information about the scam, understand the payment process for creditors in bankruptcies. It also is necessary for attorneys to notify their clients about the spoofing scam. If you believe you have been victimized by Caller ID Spoofing, you should file a complaint with the FBI at the Internet Crime Complaint Center www.ic3.gov.
Verify your debt before paying any collection agency: There are many scam artists trying to collect non existent debts. They phone, they text, they email, and they use regular mail. Before you send money to a collection agency there a few simple steps you should take to obtain additional information about the debt to ensure that you are not being scammed.
If you are contacted by phone:
If they are unwilling to do these things, the legitimacy of the caller is in serious doubt.
If you are contacted by mail, email or text: make sure the letter indicates the amount of the debt, name of the original creditor, and information on how you can dispute the bill and/or request additional information. If these elements are missing or they are unwilling to provide the information, then the legitimacy of the collector is in doubt.
Remember that you are always entitled to receive information about the original creditor and amount owed after requesting that information in writing from the collection agency. That is an easy way to identify imposters.
For more information on debt collection and consumer protections see:
http://www.illinoisattorneygeneral.gov/consumers/debtcollection.html
http://www.consumerfinance.gov/complaint/
Legal advertisement. The content of this blog is provided for informational purposes only and is not intended as legal advice. McKenna Storer is not liable for any actions taken on the information provided and is not liable for any errors or omissions. McKenna Storer is a debt relief agency. We help people file for bankruptcy under the bankruptcy code.
