Category Archives: Bankruptcy
Chapter 7 Bankruptcy and Government Benefits: A Primer
Social Security, workers’ compensation, VA disability, and other government benefits are essential to the fresh start the Bankruptcy Code guarantees. Many families depend almost exclusively on government benefits to pay bills and they have no employment or other options. So, if a bankruptcy or other court takes away government benefits, it essentially takes away… Read More »
How Does Bankruptcy Affect My Security Clearance?
Bankruptcy discrimination, or making decisions based on a bankruptcy filing, is illegal. However, some financial problems are a legitimate concern. But the financial problems that cause bankruptcy filings rarely fall into this category. Furthermore, when debtors face their financial issues and file bankruptcy, good things normally happen, especially in terms of a security clearance…. Read More »
Overcoming Emotional Barriers in a Gray Bankruptcy
Overall, the biggest emotional barriers in these cases may be bankruptcy phobia. Many debtors, especially debtors over 55 (gray bankruptcy), have an irrational fear of bankruptcy. This legitimate and debilitating condition often prevents people from seeking the financial help they need and deserve. A Chicago bankruptcy lawyer is more than an advocate. A lawyer… Read More »
What Disqualifies You from Chapter 7?
Either dishonesty or good fortune could serve to disqualify people from bankruptcy. This legal debt relief program is only available to honest and unfortunate debtors. Dishonest debtors lie on official forms or don’t cooperate with the trustee (person who manages a bankruptcy for a judge). Dishonest debtors also have debts related to fraud or… Read More »
Is an IRS Offer in Compromise a Good Idea?
If you meet minimum qualifications and are truly in dire straits, an amended IRS offer in compromise under the Fresh Start Program is a good idea. We examine those minimum qualifications below. An IRS offer in compromise could slash your past-due income tax bill. However, taxpayers should be aware that an OIC could negatively… Read More »
Key Property Exemptions in a Chapter 7 Bankruptcy
Many people erroneously believe that Chapter 7 bankruptcy is a liquidation bankruptcy. In fact, Chapter 7 bankruptcy stops liquidation. The Automatic Stay prohibits adverse creditor pre-liquidation actions, such as foreclosure and repossession. Additionally, Illinois law includes generous property exemptions that put a force field around most property for the duration of a Chapter 7… Read More »
What is the Main Problem in Chapter 13?
Many people don’t know what they’re getting into when they file Chapter 13. Filing a voluntary petition is just the beginning. Chapter 13 is an exhaustive legal process that often includes adversarial actions, disputes with the trustee (person who manages the bankruptcy for the judge), and especially in a Chapter 13, modification and dismissal… Read More »
Bankruptcy Loopholes That Protect Your Home
Home protection is a key priority for many bankruptcy debtors. Many debtors file Chapter 7 or Chapter 13 to take advantage of bankruptcy’s Automatic Stay and stop home foreclosure. A pair of loopholes buried deep within the Bankruptcy Code may also apply in consumer bankruptcy cases. These loopholes often make a home more affordable… Read More »
Scheduling SS Benefits: What’s the Big Deal?
For most purposes, it doesn’t matter if a debtor lists Social Security benefits on Schedule A (Assets) or Schedule I (Monthly Income). Social Security benefits, and other government benefits as well, such as workers’ comp payments, are exempt in bankruptcy. But when the case goes to court, listing these payments as an asset or… Read More »
How Much Debt Disqualifies You from a Security Clearance?
Technically, any amount of debt disqualifies you from a security clearance, if that debt creates a security concern under Guideline F of DoD Directive 5220.6. This provision considers the amount of debt, but mostly focuses on the circumstances of that debt. Guideline F also includes some mitigating circumstances which, if proved, protect a security… Read More »
