We are moving!

We are moving!!
Here is our new contact information effective 12/18/2012:

Chicago, IL Office
205 W. Randolph Street
Suite 1240
Chicago, Illinois 60606
Ph. 312-346-7400
Fax 312-346-7401

CHAPTER 13 BANKRUPTCY CAN STOP FORECLOSURE SALE

Faced with a sale date on your property? Think all is lost? It isn't! You can stop a foreclosure sale before your home is gone for good with a chapter 13 bankruptcy.

A chapter 13 can cure your mortgage default, get you a better deal on most financed items, including cars, and can discharge your unsecured debts, often at pennies on the dollar!

The bankruptcy code gives debtors who ran into a rough patch the ability to right the ship and get back on track with a chapter 13 repayment plan. The plan focuses on the value of assets, and your current monthly disposable income to create the repayment plan. The plan usually runs for 36-60 months in most cases, and debtors are usually debt free at the end (aside from the regular mortgage payment, ongoing child support and student loans).

If you are in Illinois, call Leeders & Associates today at 312-427-7400 to get information on chapter 13. We offer free consultations and roll much of our fees into the repayment plan too!

As of April 1, 2010 there are new debt ceilings for chapter 13.

Secured Debt Limit $1,081,400
Unsecured Debt Limit $360,475

If your debt for either category exceeds the above amounts, then you are not eligible for a chapter 13. You should then consider chapter 7 or chapter 11.

Talk to a local bankruptcy attorney to review your case and help you decide which option would then be best for you. We offer free consultations, so contact us today.

Leeders & Associates, Ltd.
312-427-7400
www.leederslaw.com
we have both city and suburban locations around Chicago.
As always, we offer free consultations and payment plans as well.
Terry

Let's get your car back by filing a chapter 13 bankruptcy

Here is a recent decision involving a case where a vehicle was repossessed prior to a chapter 13 bankruptcy. With Chapter 13 filings, the creditor must return vehicle to debtor, otherwise it is a violation of the automatic stay provisions. Now, a bankruptcy must be filed within 21 days of the repossession or the vehicle is sold at auction, and then it would be too late. But here, the Court, on appeal, ordered that the debtor's motion for sanctions should be granted for failure to give the vehicle back timely.


7th Circuit Cases
Civil - Bankruptcy
Thompson v. General Motors Acceptance Corp., LLC, No. 08-2077 (5/27/09). Appeal, N.D. Ill., E. Div. Reversed and remanded.
Bankruptcy Ct. erred in denying debtor's motion for sanctions based on creditor's retention of debtor's vehicle, which had been seized prior to debtor's filing Chapter 13 bankruptcy petition. Debtor had equity interest in seized vehicle, and creditor's refusal to return seized vehicle prior to debtor establishing ability to provide adequate protection of creditor's interest in said vehicle violated Bankruptcy Code's stay put provisions. As such, creditor was required to immediately return seized vehicle to debtor's estate upon debtor filing Chapter 13 bankruptcy petition and then seek protection from Bankruptcy Court.

Mortgage foreclosure relief is the next item of business....

President Obama is expected to lay out his strategy this Wednesday to help curb home foreclosures through Chapter 13 loan modifications. He is slated to address this and other factors of the housing crisis that sparked the financial sector meltdown.

Foreclosure help?

It will be interesting to see if the bankruptcy law that is being considered in Congress will pass.
It seeks to allow a bankruptcy judge modify a mortgage contract.
It will have a huge impact on many loans, and could push more people into Chapter 13 bankruptcy.
Also, it is being said that Obama may sign a moratorium on foreclosures for 90 days. This will be interesting as well.
http://chicago-bankruptcy.blogspot.com/

Vehicle ownership deduction for means test

This is good news for debtors. Debtors are allowed to take the standard ownership deduction on the means test calculation for vehicles that are paid in full.
7th Circuit Cases
Civil - Bankruptcy
Ross-Tousey v. Neary, No. 07-2503 (12/17/08). Appeal, E.D. Wisc. Rev'd and rem'd.
Dist. Ct. erred in finding in Chapter 7 bankruptcy proceedings that debtors who owned cars outright could not take Local Standard transportation ownership deduction for purposes of calculating means test under sec. 707(b)(2)(A)(ii)(I) when determining under Bankruptcy Abuse Prevention and Consumer Protection Act whether debtors must repay portion of their debt or whether debtors were entitled to complete discharge of debt. Debtors are entitled to said deduction, but remand was required to determine whether under totality of circumstances, debtors' financial situation demonstrated abuse under section 707(b)(30(B).