Feedback

Here is some feedback that I have gotten recently based on information and answers I provided about bankruptcy topics.

Recent Reviews from Users
Knowl Clarity Time Politeness Date 10 10 10 10 05/28/08 10 10 10 10 05/27/08 10 10 10 6 05/22/08 10 10 10 10 05/22/08 10 10 10 10 05/20/08
User Comments
you have helped me a lot. I didn't know that we could go back and change anything in a br. Also that i can filed a chp7 after filing br, thanks. (Jada on 05/28/08)
Thanks! (David on 05/27/08)
Very quick, had the answer within 5 minutes (Geoff on 05/22/08)

Audits Are Back

May 9, 2008
As mandated in Section 603(a) of Public Law 109-8, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, the United States Trustee Program (USTP) established procedures to audit petitions, schedules, and other information in consumer bankruptcy cases filed on or after October 20, 2006. Pursuant to 28 U.S.C. § 586(f), the USTP contracted with independent accounting firms to perform audits in cases designated by the USTP.

In January 2008, the USTP temporarily suspended its designation of cases subject to audit for budgetary reasons. The USTP is preparing to resume its designation of cases, although random audits will now be conducted in 1 out of 1,000 cases (as opposed to 1:250 cases) filed in a judicial district. The USTP will resume its designation of cases subject to audit effective May 12, 2008.

bankruptcy statistics for the Northern District of Illinois

2008	Jan	Feb	Mar	Apr	Total
Ch7	1602	1951	2296	2502	8351
Ch11	10	10	11	47	78
Ch13	964	962	961	1124	4011
Total	2576	2923	3268	3673	12440
increase	35%	37%	29%	54%
from 2007

Here are recently published figures for bankruptcy filings for Chapter 7, Chapter 11, Chapter 13 in the Northern District of Illinois. (no chapter 12 cases were filed)
As you can see, the numbers have bounced back and increased significantly over last years figures. This can be associated with increased foreclosures, downturn in the economy, and the increasing unemployment rate.

Chicago Bankruptcy statistics

2008	Jan	Feb	Mar	Apr	Total
Ch7	1602	1951	2296	2502	8351
Ch11	10	10	11	47	78
Ch13	964	962	961	1124	4011
Total	2576	2923	3268	3673	12440
increase	35%	37%	29%	54%
from 2007

Here are recently published figures for bankruptcy filings for Chapter 7, Chapter 11, Chapter 13 in the Northern District of Illinois. (no chapter 12 cases were filed)
As you can see, the numbers have bounced back and increased significantly over last years figures. This can be associated with increased foreclosures, downturn in the economy, and the increasing unemployment rate.

interactuve chicago area foreclosure report

Crain's Chicago business recently posted a page where users can see what foreclosures have been filed in the area, searchable by zip code. Check out their interactive foreclosure report here.


Chapter 13 bankruptcy can stop foreclosure action up until the sale date. The Chapter 13 bankruptcy will be designed to cure your mortgage arrears over the next 3 to 5 years, while consolidating your other debt, by paying your secured debt off, and paying your unsecured debt from between 10% to 100% of the total.

Contact me for a free bankruptcy evaluation.

How long after chapter 13 can I get a mortgage?

I was recently asked the question in the title by a former client.

There is no official time frame that a chapter 13 debtor has to wait to get a mortgage after a discharge in chapter 13 (or after a chapter 7), it will be up to the lenders to qualify the purchaser. Since the mortgage lenders are going thru some rough patches, (even bankruptcy themselves!) a borrower may have to put a greater down payment down, (10-20%) or may have a higher interest rate. I would say perhaps within 6 months to a year should be the average time table to get a mortgage, but I do stress that it is up to the lenders to qualify the borrower based on their current financial situation. Start looking now, talk to a few lenders to see what time frames they say, and what type of requirements they will have so you can start to prepare. Remember, there is no official time frame that you have to wait after a bankruptcy case.
Good Luck.

Even Pro basketball players can get Bankruptcy Relief

Here is an article that I stumbled upon to show that even pro ball players have bankruptcy issues....although, he brought this on himself...at least he is taking steps to cure the problem...read on..

From the Press Register

Woman in court in Caffey case

Mother of ex-NBA player's son accused of violating court order

Wednesday, April 16, 2008

By BRENDAN KIRBY

Staff Reporter

An Atlanta woman entitled to tens of thousands of dollars in child support from a former professional basketball player went to federal court in Mobile on Tuesday to battle a $40,000 judgment entered against her for violating the player's bankruptcy.

Tuesday's hearing repre sented the latest twist in a saga that has seen former Chicago Bulls power forward Jason Caffey -- who is from Mobile and was a star player for Da vidson High School -- go from admired millionaire athlete to an alleged deadbeat dad who claims he cannot make court-ordered payments to seven women who have had at least eight of his children.

Karen Russell, who has been fighting Caffey for years over payments for their 15-year-old son, did win a small victory in that Tuesday hearing.

U.S. Bankruptcy Judge Margaret A. Mahoney decided that Russell, who now lives in Atlanta, should be able to appeal the $40,000 order, even though the normal 10-day window for doing so has closed.

Earlier this year, Mahoney had ordered Russell to pay after determining that she violated a freeze on debt collection mandated by Caffey's bankruptcy.

Russell said outside the courtroom that she was stunned when she learned that Mahoney had entered the judgment against her.

"It's surprising to me that they would even allow him to file bankruptcy to get out of paying child support," she said.

Under federal law, a bankruptcy judge cannot wipe away Caffey's child support obligations. But all creditors -- including the mothers of his children -- are supposed to stop all efforts to collect their debts while Caffey works out a bankruptcy plan with the court.

Still to be resolved is Caffey's demand that Russell pay his attorneys' fees. Mahoney set a hearing next month for that matter and suggested that Russell might want to hold off on her appeal until a final decision is made then.

Tuscaloosa County Circuit Judge Herschel T. Hamner Jr. found Caffey in contempt in July for not paying child support, and an arrest warrant was issued in August.

Caffey filed for bankruptcy protection that same month, yet Hamner issued the arrest warrant shortly afterward.

Mahoney ruled that Russell had a duty to put an end to the proceedings once the bankruptcy was filed. Not only did Russell not do so, the judge ruled, but she accepted money in October as part of a settlement Caffey's lawyer negotiated in order to get his client out of jail.

Russell, meanwhile, claims that she never knew about the bankruptcy order. She said an address where the notice was mailed is a Montgomery post office box that she set up to receive child support payments.

Lawyers who were representing Russell at the time have said they did not receive notice, either, despite testimony that Caffey's lawyers left phone messages and sent copies of the order by fax and e-mail.

Russell, who works for a chemical company, said she met Caffey when both attended the University of Alabama. They did not date exclusively or for very long, she said, but the relationship produced a son. She said she began having problems getting Caffey to pay within months of a child support order in 1995.

The only time Caffey regularly paid, Russell said, was when it was automatically deducted from his paycheck from the NBA. Court records put the child support debt at more than $82,000; Russell said it exceeds $100,000 when attorneys' fees are included.

Russell's lawyer, Penny Douglass Furr, said the $40,000 judgment against her client is separate from the money Caffey owes, meaning she could not simply deduct the amount.

"That's basically a year's salary for Karen."