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Posted by Ryan Blay on December 19th, 2011 in Bankruptcy Information, Chapter 13, Foreclosure - Saving Your Home, Illinois, Mortgage Foreclosure Defense, Mortgage Modifications, Uncategorized, Wisconsin
While each bankruptcy case is different we attorneys at Lakelaw see a common theme among many bankruptcy filers: the threat of losing a home in foreclosure. This post tries to explain some of the options debtors have when facing foreclosure.
The first question anyone must answer is whether or not to try and save the home. Someone wishing to walk away from their home without a final foreclosure could have two options: Attempting a Deed in Lieu of Foreclosure or agreeing to a Short Sale
In a Deed-in-Lieu, the offer is to give the home back to the bank to stop the foreclosure. However, mortgage defense attorneys have not seen much success with this lately. Due to so many homes already foreclosed (and those that are still going to be foreclosed on any day now), banks are often refusing to accept a Deed in Lieu of Foreclosure.
A second is a short sale. A short sale involves a homeowner, with the help of a realtor, finding a buyer who is willing to buy the home at a reduced value. The bank would then have to agree to waive the difference between what the home sold for and what was owed—the deficiency—or the homeowner would have to bring money to pay the difference at closing. Banks like the idea of having a waiting buyer instead of waiting through months of foreclosure, but they do not like the idea of walking away from the deficiency amount.
What if you want to try and keep your home? If you and your bank are working well with each other, a home modification could be an option. The bank would be willing to work with the borrower and try to find a payment plan that works. It should be noted that the Wisconsin branch of Lakelaw has seen some promise in mortgage modification within the Chapter 13 modification program set up in the Eastern District of Wisconsin bankruptcy court).
Another option is Chapter 13 Bankruptcy. This may be the best option a debtor has to save their home. When the debtor files a Chapter 13 bankruptcy an automatic stay goes into place. This means the bank must stop the foreclosure and the borrower can stay in the house as long as they are making payments to the trustee and a payment to the mortgage company after the bankruptcy filing. The goal is to find a way to cover the regular monthly mortgage payment plus an additional amount to catch up on the arrearage. A Chapter 13 bankruptcy is a difficult process and is different for each person, so it is always best to speak with an attorney about your particular situation.
If you have questions about saving your home, the professionals at Lakelaw are here to help. We serve our clients with Care, Kindness, Courtesy, Respect, Professionalism and Dedication. We can be reached at 1-800-LAKELAW in Illinois and 262.694.7300 in Wisconsin. Give us a call so we can help you with your finances and your home.
This post was drafted by Attorney Nicholas Strom
Posted by Ryan Blay on December 2nd, 2011 in Bankruptcy, Bankruptcy Information, Chapter 13, Chapter 7, Illinois, Wisconsin
Hiring a lawyer for any reason can be stressful. There are so many factors to consider – including the one nobody wants to talk about – cost. For people seeking bankruptcy protection, cost is an even bigger concern. Filing bankruptcy means financial distress. It means not paying creditors and barely getting by. The cost of an attorney is often the number one priority for a client. We urge anyone to consider the downside of hiring a bankruptcy attorney on the cheap.
Sometimes a basic bankruptcy attorney is all you need. Some people can even file simple bankruptcies “pro se”, without an attorney. This is fine if the bankruptcy is easy and there aren’t any problems or unusual issues that appear. However, if problems do arise or the bankruptcy is complex, a low cost, quick fix attorney is probably not qualified. We have had clients walk into our office after hiring a low cost bankruptcy attorney and see the consequences of their choices.
One couple came in to see us after hiring a cheap bankruptcy attorney who knew nothing about mortgage foreclosures. Because of the attorney’s lack of training, the clients are in a much worse position and will probably not be able to keep their house now. Another person came into our office after hiring a low cost attorney and asked why they were still getting mortgage payments in the mail at a high rate. The answer was simple: the quick fix attorney never took the proper steps to inform the mortgage company that the debtors and the mortgage company reached a deal reducing the rate. A third consulted us after failing to tell the courts in her bankruptcy papers that she had a personal injury lawsuit pending when she filed. Now she runs the risk of losing control over the settlement of the case and having the creditors take more than what they would have been entitled to if she had had an attorney tell her that she is responsible for listing any possible lawsuits or claims against anyone.
The professionals at Lakelaw know bankruptcy inside and out and are willing to take the time to work with you all the way through the bankruptcy and other matters that may arise. We offer a free initial consultation and will give you the chance to discuss your personal situation and what you must do to stay strong. Lakelaw will treat you with Care, Kindness, Courtesy, Respect, Professionalism and Dedication. Call us at 1-800-LAKELAW or (262) 694-7300 in Wisconsin.
Attorney Nicholas Strom contributed to this post
Posted by Ryan Blay on October 25th, 2011 in Bankruptcy, Bankruptcy Crimes, Bankruptcy Information, Bankruptcy procedures, Illinois, Wisconsin
There are several different ways to prepare a bankruptcy petition in a bankruptcy court. The first is the most common – hire an attorney. Your attorney will be required to electronically file your bankruptcy schedules, plan (if you have a Chapter 11, 12, or 13) and other paperwork through your local court’s electronic service after helping prepare and review everything.
Courts also allow debtors without attorneys (“pro se” filers) to prepare and file the paperwork directly with the clerk of the Bankruptcy Court. This involves handing in the paperwork to a clerk, who will scan and input it into the court’s system. It’s a self-help system to allow people who cannot afford or do not want an attorney’s help to file.
Other non-attorneys called Bankruptcy Petition Preparers will charge a small fee to type the paperwork into bankruptcy software (or hand-write it in some cases). They advertise as being cheaper than attorneys and will claim to save time and skip the hassle of using an attorney. However, these preparers (sometimes called BPPs) can be more trouble than their fees.
The US Bankruptcy Court in Milwaukee has permanently barred 7 petition preparers from helping people out. They have been barred for a number of reasons, including passing themselves as real attorneys. They are not, and are barred by United States Law from giving legal advice or pretending to be lawyers. Other preparers have been ordered to attend court to explain their behavior to judges, but have not been barred. That step could come at any time.
As long as petition preparers disclose their fees in the schedules, sign the required forms, and avoid giving legal advice, the Bankruptcy Code allows them to help prepare petitions. But many times they fail to do so and lie to the courts, telling people not to inform the court that they were used to prepare the paperwork. Does committing a crime by lying to the court and your bankruptcy trustee sound like a good iea? It’s not.
The only source of legal advice is to see an attorney, preferably one with a long history of experience in bankruptcy. It is well worth the extra money to protect assets, stop creditors, and ensure a successful bankruptcy.
If someone charges you a fee to prepare paperwork and instructs you to hide that fact, do the smart thing and go see an attorney immediately. To contact Lakelaw and speak with a professional attorney with bankruptcy experience, please contact us at 866-LAKELAW, (262) 694-7300 in Wisconsin, or visit our website at www.lakelaw.com
Posted by Ryan Blay on September 22nd, 2011 in Alternatives to Bankruptcy, Chapter 7, Wisconsin
Until recently, a homeowner or renter who fell behind with Wisconsin Electric/WE Energies in Wisconsin for gas and electric service could file an action under Section 128.21 of the Wisconsin Statutes to prevent a disconnection.
The Chapter 128 filing is a common filing in Wisconsin and is an attractive alternative to bankruptcy in some cases. It is usually cheaper than a Chapter 7 bankruptcy, and very easy to file. All that is needed to begin is a petition asking the circuit court of the county of residence to accept the repayment plan. The plan will allow 36 months or less to repay a selected list of unsecured creditors (no car notes or mortgages) in full. It stops interest and fees from continuing and allows time to pay off debts without having to go into bankruptcy. It also creates an order preventing wage garnishments and other actions to collect on judgments.
However, thanks to a recent ruling from a Milwaukee county judge, WE Energies is no longer required to accept this payment plan to prevent a disconnection. Instead, consumers will have to call in to WE’s toll-free number (800-843-4565) to set up payment arrangements to prevent their service from being shut off.
§128.21 filings can still be appealing but may not be the solution when it comes to past due utilities. If you are a Wisconsin resident, you may be eligible. Please call us at (262) 694-7300 to discuss bankruptcy and Chapter 128 as options to solving financial crises, including outstanding utility bills.
Posted by Ryan Blay on September 20th, 2011 in Bankruptcy, Bankruptcy Legislation, Bankruptcy procedures, Business Bankruptcy, Chapter 11, Chapter 13, Chapter 7, Illinois, Wisconsin
Who is the Judicial Conference of the United States? It is a group of judges and other policy members who help shape how the courts run in our country. You may not have been aware of the Conference until today, but one of its recent decisions will affect thousands of bankruptcy filers each year.
Right now, the filing fee owed to the courts for filing a Chapter 7 bankruptcy petition is $299. The Chapter 13 filing fee is $274. There are also fees for certain actions taken during a bankruptcy – scheduling additional creditors ($26); filing an adversary proceeding ($250); filing an appeal ($250); and a creditor filing a Motion for Relief from the Automatic Stay ($150).
As of November 1, these fees are all set to rise. Chapter 7 and Chapter 13 fees will go up by $6, and the other actions will increase as well. These fees will allow the courts to balance their own budgets and handle the large number of bankruptcy cases filed each year.
With the costs of bankruptcy set to rise, now is a good time for both bankruptcy filers and for creditors to discuss how these news laws will affect them. For more information on bankruptcy and its filing fees, call Lakelaw at 1-800-LAKELAW or (262) 694-7300 in Wisconsin.
Posted by David Leibowitz on June 27th, 2011 in Bankruptcy, Chapter 11, Uncategorized
The Los Angeles Dodgers couldn’t make payroll. The McCourts, their owners, are involved in a nasty divorce. They are having trouble with their franchisor – Major League Baseball. This is making headlines. But it could be anyone’s story. Divorce, cash flow difficulties, franchisee problems and an inflated payroll have been the downfall of many businesses. But when it happens to a major league baseball team, it’s a big story.
What does the Dodger’s chapter 11 mean to you?
Look how this plays out with the Dodgers. Divorce is frequently accompanied by financial stress. It’s certainly a distraction to the management of any business. The McCourts don’t seem to have their eye on the ball, figuratively or literally. They have a great big contract with Manny Ramirez. It doesn’t seem like he is going to perform up to the standards set for him. But the Dodgers still have to pay.
They say that all they need is to sign up their $3 Billion (that’s with a “B”) television contract and everything will be OK. Of course, this TV contract seems not to be OK with the franchisor, Major League Baseball.
What lessons can we learn? Big business frequently has the same problems as little ones.
Chapter 11 may be a good answer for the Dodgers. Small businesses can take advantage of chapter 11 too. In order to be successful, you need counsel who knows how to deal with small businesses in chapter 11, one who will work efficiently and cost effectively. David Leibowitz has close to 40 years of experience representing debtors large and small.
Posted by Ryan Blay on March 25th, 2011 in Bankruptcy, Bankruptcy Information, Chapter 13
Lakelaw is familiar with Chapter 13 Bankruptcy plans. During the three to five year plan, your finances can change, for the better - and for the worse. If anything big happens – a job loss, a big raise, the birth of a new child, emergency expenses – the most important thing you can do is give your attorney a call immediately.If we know about changes set to happen, we can contact the Chapter 13 Trustee and the Bankruptcy Court and explain the situation. We can ask for an increase or decrease in plan payments, a temporary (one month) suspension of the payments, or, in extreme situations, we can convert your case to a Chapter 7 or try to get an early discharge due to a hardship.
Suppose, for instance, your governor and legislature decide that as a state employee, you should have to contribute more to your insurance and retirement plans. Your net income on every paycheck will go down. Before missing your mortgage payment or Chapter 13 plan payment, call your attorney and see what we can do to show your changes on your budget schedules (Schedules I and J) and propose a different plan.
Chapter 13 can be complicated and stressful, but it does not have to be torture or a debtor’s prison. You are paying for the services of an attorney for the full life of the plan, and you should make use of that attorney before it becomes too late to save your plan. If you are in Chapter 13 and you have experienced a major change in income or expenses, call us at 866-LAKELAW or 262-694-7300 in Wisconsin.
Posted by Ryan Blay on March 21st, 2011 in Bankruptcy, Bankruptcy and Taxes
This year’s April 18th deadline for filing taxes is almost here, and that means many of us have already filed our state and federal taxes and – hopefully – received a refund. Sometimes we will meet someone who had the good luck to get back $4,000, $6,000 or even $8,000 back from the IRS. But that money isn’t always enough to balance their finances, and they still need to file for bankruptcy. What to do about that spent refund when the trustee asks about it?
Our first piece of advice is always to keep track of where the money went. Usually there is a very simple answer for why that $6,000 refund is down to $500. $3,000 went to property taxes. $500 went to badly needed car repair. $1,000 was spent on fixing the leaky roof. And $1,000 went to catching up with the gas and electric bills. That sounds more reasonable than “It’s all gone”, because every dollar is accounted for. The second thing to remember is to hold off on paying back close friends and family members for loans. It sounds unfair to wait when the money is finally in front of you, but repaying family in large amounts (especially $500 or more) is considering making a “preference” to one creditor over all others. That money can be recovered from a trustee, so that $2,000 repayment goes back to your creditors instead of your parents.
Finally, waiting can be the best answer. Sometimes, waiting a few months is a good way of showing that your tax refund wasn’t enough to take care of all the medical bills, credit card debts and other bills. If you are expecting a large refund, or have already received one, call the attorneys at Lakelaw to discuss your financial options.
Posted by David Leibowitz on February 11th, 2011 in Bankruptcy, Chapter 11, Uncategorized
Thomas Edison was one of America’s greatest inventors ever. His work with the electric light bulb was so legendary that a bulb illuminating is universally recognized as the symbol of a great new idea. He invented the kinetescope – the precursor to modern motion pictures. And he was deeply involved in the invention of the phonograph – the precursor to all modern music reproduction systems including the iPod.
By all accounts, Thomas Alva Edison died a very rich man. But the road to fame and riches was also marked by a visit to the bankruptcy court.
Back in 1894, Thomas Edison declared bankruptcy against the North American Phonograph Company. The story could have been written today. He had become the company’s largest creditor. He didn’t like the way the management of the company had been running the company. So he filed an involuntary bankruptcy petition against the company and then credit bid his debt so as to become the company’s new owner. Doesn’t that sound complete fresh and contemporary?
Creditors are still the “elephant in the room” in bankruptcy proceedings.
If your company is facing bankruptcy, you need a team that knows how to deal with creditors so that you have a fighting chance to reorganize. Our Lakelaw team has represented creditors in the past. So we know how to deal with them today. Give yourself a fighting chance to reorganize in Chapter 11. Rely on Lakelaw to help you in Illinois and Wisconsin in your real estate chapter 11, your small business chapter 11 or your corporate reorganization. Call David Leibowitz or Jonathan Brand at Lakelaw for immediate assistance.
Posted by David Leibowitz on January 21st, 2011 in Bankruptcy, Chapter 13, Chapter 7, Foreclosure - Saving Your Home
Just because you file a bankruptcy case, you don’t necessarily lose your house in bankruptcy. There are several considerations;
If you are not behind in your mortgage, you can file a bankruptcy, even in chapter 7 if you are eligible, keep on making the payments on your house and stay in your house as though nothing ever happened.
If you are behind in your mortgage, or even if you are in froreclosure, you can file a chapter 13, stop the foreclosure, catch up on the mortgage payments, and even fight the mortgage company’s claim in some cases.
If you can’t catch up, and even if you are in foreclosure, bankruptcy will slow down the foreclosure for a little while. An Illinois mortgage foreclosure takes almost a year to complete from start to finish. So you probably will have enough time to get ready to move to another residence if you have to file a bankruptcy case in Illinois.
If you are in trouble with your home mortgage and thinking about bankruptcy, contact the experienced attorneys at Lakelaw. We have the answers to all your questions.
And for more information, visit our Mortgage Defense and Modification pages at lakelaw.com
Illinois Lawyer David P. Leibowitz handles business law, estate planning, probate, asset
protection, consumer bankruptcy, business bankruptcy, real estate, elder law, guardianships, identity theft, consumer protection, commercial collections and foreclosure defense matters from Chicago to Milwaukee with offices in Chicago, Skokie, Waukegan, Lake County and Kenosha.
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