Residence or Domicile – what’s the difference? Chicago Mayor Issue

Posted by David Leibowitz on January 26th, 2011 in Uncategorized

People in Chicago have themselves all in a knot. Can Rahm Emanuel run for Mayor? At issue is whether he remained a resident of Chicago while he was living in Washington DC serving as President Obama’s chief of staff.

People who don’t like Rahm are sure that he is evading the law. People who like Rahm thinks that the courts are fixed and that this is just so much political chicanery of the opponents.

We seem to be forgetting a big difference between two legally related terms – terms which sometimes make a difference for the purposes of bankruptcy. These terms are “residence” and “domicile”. “Domicile” is the place where you sleep at night. “Residence” is the place you call home. It’s not that complicated.

A soldier who resides in Illinois in Afghanistan is domiciled there – at least temporarily. Or he might be domiciled at his military base in North Carolina or Georgia if Afghanistan is his temporary duty assignment. All the while, however, he retains his Illinois residence. He can vote in Illinois. He will have an Illinois drivers’ license. He pays Illinois taxes as a resident.

Domicile is a question of fact. Residence is a question of intent. Rahm owned his home in Illinois. Sure he rented it out to pay some expenses while he was working in Washington. But he intended to return. It is his home. It’s been his home for years and he intended to keep it that way.

People can file bankruptcy cases where they reside, where they transact business or where their assets are located. So residence is important.

A snow-bird from Illinois can spend many months a year at a home in the sunshine. However that does not detract from permanent residency in Illinois. Temporarily, that person is domiciled in Arizona, Florida or Hawaii. However, continuously, that person resides in Illinois.

I expect the Illinois Supreme Court to come to this common sense conclusion.

Milwaukee Archdiocese has filed for Bankruptcy under Chapter 11

Posted by David Leibowitz on January 5th, 2011 in Uncategorized

Even the Roman Catholic Church has been to bankruptcy court.  The Milwaukee Archdiocese of the Roman Catholic Church has filed for protection under chapter 11. If you, or someone you know, has a claim in this matter, it probably will be far more complex than the typical claim in the typical bankruptcy case. And this sort of claim will have to be handled with sensitivity and care not typically found in the typical bankruptcy firm.

Lakelaw represents people with care, kindness, courtesy, respect, professionalism and dedication.  These traits will be of particular importance in a matter which requires not only professional expertise but also exquisite sensitivity.

If you or someone you care about has a claim in this unique matter, Lakelaw invites you to contact us – we’ll treat your case and your claim with the care and discretion you need and deserve – and that includes – if necessary – sealing all records concerning your claim to maintain your privacy.

Call me, David Leibowitz, or my associate, Ryan Blay, at our Kenosha office, 262.694.7300 or toll free at 1.866.LAKELAW (525-3529)

Illinois Law Now Prohibits Job Discrimination on Account of Credit – Bankruptcy

Posted by David Leibowitz on January 1st, 2011 in Life After Bankruptcy, Uncategorized

Happy New Year!

And for Illinois job-seekers with credit problems or who have filed for bankruptcy before, it really is a Happy New Year.

Effective January 1, 2011, it is against the law to discriminate in employment in Illinois based on credit except in limited circumstances.

This Act prohibits discrimination on account of credit history in employment decisions except in the following circumstances:

• State or federal law requires bonding or security for the position
• The position includes unsupervised access to cash or assets worth more than    $2500
• The position involves signatory power over more than $100 per transaction
• The position is a managerial position which involves setting the direction or control of the business
• The position involves access to personal or confidential information, trace secrets or State or national security information
• Department of Labor criteria demonstrate that credit history is a bona fide occupational requirement
• Credit history is other wise required by or exempt under federal or state law.

So the bad news is that quite a few jobs still might allow for credit checking. But most won’t.

Keep in mind that the Act nevertheless allows for a thorough background check which can include information about the job-seeker – without credit history.

If you feel you have had an issue with this, call Lakelaw.  You may be able to recover damages as well as attorneys fees.

Thanksgiving and Gratitude

Posted by David Leibowitz on November 25th, 2010 in Uncategorized, Grateful to serve

Lakelaw is grateful and expresses thanksgiving for its opportunity to serve people and businesses in Illinois and Wisconsin in bankruptcy and mortgage foreclosure defense

Removing Judgments from Court Records – Why Lakelaw Takes the Extra Step

Posted by Ryan Blay on November 10th, 2010 in Uncategorized, creditor, Discharge, judgments, liens, title

Suppose you’ve filed your Chapter 7 Bankruptcy, attended your Section 341 meeting of creditors, completed your financial management course requirements, and received that piece of paper from the court called “Discharge of Debtor”. Congratulations, you are out of your bankruptcy and this discharge will be effective the date the judge enters the order.

Now let’s say you want to sell your home a few years later, and you are preparing for closing. A title company will do a search of any liens on your home and find a judgment lien from creditor ABC Company on your house. Why is that still there? Your bankruptcy attorney told you the debt would be wiped away in Chapter 7.

Well yes and no. You are no longer required to pay on the debt. But if a creditor received and docketed a judgment in your local circuit court because you defaulted on a credit card or couldn’t pay a hospital bill, that judgment is still on the court records. And it won’t be removed merely by filing a bankruptcy. There is another step to take.

We would take a copy of that bankruptcy discharge paper, attach a copy of the old judgment, write a respectful letter to the clerk of courts and ask that the judgment be cleared. The total fee for this: $5.00 plus a stamp. Send a courtesy copy to the old creditor and their attorneys and you should have little problem getting this done. If the creditor objects, they may be subject to violations of the bankruptcy discharge.

This extra step is important. Our offices received a call from a broker recently where a homeowner was facing this very problem in selling his home. He had filed bankruptcy over five years ago, yet he and his attorney didn’t take that final step. So he has had to postpone the closing to let us put this old matter to rest. If you want an attorney who will take that extra step and avoid these troubles years later, you will want to call 1-866-LAKELAW or 262-694-7300 in Wisconsin.

Illinois Bankruptcy Filings at a Record Level

Posted by David Leibowitz on September 12th, 2010 in Uncategorized

For the fiscal year ending June 30, 2010, 63,348 bankruptcy cases were filed in the Northern District of Illinois.  This is the largest number filed during the past 40 years, and probably even beyond that.  Of these cases, more than 96% of the cases were chapter 7 cases or chapter 13 cases.  This level of filing is 30.2% in excess of the already elevated level of cases filed in fiscal year 2009 ending June 30, 2009.

What does this mean?  Several factors:

• The economy stinks
• High unemployment rates persist
• Mortgage foreclosures are running rampant
• Collection of credit card and medical debt is more aggressive than ever.

Remember, creditors have rights but debtors have remedies.  Bankruptcy is the most important remedy which you have as a debtor facing economic hardship. Bankruptcy is not shameful. It is your right.  It’s built into our constitution, which these days is a matter of paramount concern to many people.  Check it out in Article 1 Section 8 Clause 4.

And Congress has granted people the right to file bankruptcy pursuant to its constitutional authority to do so.

So, if you need bankruptcy help, call us at Lakelaw 1 866 LAKELAW (525-3529).  We’ll help you exercise your constitutional right to a fresh start after bankruptcy.  Now.

Dear Readers, what do you think?

Posted by David Leibowitz on August 11th, 2010 in Uncategorized

Dear readers:

Lakelaw has been blogging for almost 2 years now.  We’ve written about quite a few topics.  Mostly, we write about bankruptcy, mortgage foreclosure defense, mortgage rescue scams, financial rescue, business bankruptcy, chapter 7, chapter 11 and chapter 13.  Sometimes we write about the politics of debt too.  Sometimes we write about social issues relating to debt.

Today, I’m trying something new.  I’m asking you, our readers, to tell me what’s on your mind.

What is troubling you about the economy?

What do you look for in a bankruptcy lawyer, a mortgage defense lawyer, a consumer advocate in Illinois or Wisconsin?

Do you like what we are doing?  Or not?

Would you refer us to your friends, family or business associates or not?

What should we change?  What should we keep?  Do you like our website?  Or not?  What should we change? Or keep?

We get a lot of spam.  If you are a spammer, please disregard this post. If you are a reader, we really want to hear from you.

With Care, Kindness, Courtesy, Respect, Professionalism and Dedication

The People at Lakelaw – Representing people and business in bankruptcy and mortgage foreclosure defense from Chicago to Milwaukee.

Chapter 13 – The Best Debt Consolidation Deal Ever

Posted by David Leibowitz on July 18th, 2010 in Chapter 13, Uncategorized, debt consolidation

You see adds on TV – “Don’t Go Bankrupt – Use Debt Consolidation Instead.”  I’ve got news for you. Chapter 13 is the best debt consolidation deal ever.  Why?  Here’s why chapter 13 is your best bet for debt consolidation in Illinois or debt consolidation in Wisconsin

1. You pay your disposable income for 3-5 years, no more than that.
2. You pay no interest
3. Your fees are limited to one attorneys fee and a small percentage to the chapter 13 trustee
4. You get the benefit of the automatic stay
5. All lawsuits stop
6. All garnishments stop
7. You can object to claims in chapter 13
8. You can eliminate totally unsecured mortgages in chapter 13
9. Unlike debt consolidation programs – most of which have been found by the FTC to be scams – chapter 13 is backed by the full faith and credit of United States Bankruptcy Courts.

If you want a real debt consolidation – go with chapter 13 and call Lakelaw today 1 866 LAKELAW (525-3529)

Are you being hassled by hospital bill collectors in Illinois?

Posted by David Leibowitz on March 22nd, 2010 in Uncategorized

Our client’s mother was being hassled for by a law firm trying to collect $20,000 for a hospital bill.  Our client’s mother had no money. She had been visiting the United States from a foreign country to see her grandchildren when she needed emergency medical care.

No questions were asked.  She was attended to and got better.  She returned to her homeland.

Now she is being dunned for $20,000 in medical bills.

Nobody told her she could get care if she was unable to pay.  Nobody tried to give her a payment plan. Nobody offered her any help at all.

This is against the law in Illinois.

What are the Benefits of a Single Asset Real Estate case? (Third in a Series of Three)

Posted by Jonathan Brand on March 22nd, 2010 in Business Bankruptcy, Chapter 11, Illinois, Real Estate, Uncategorized, Wisconsin

Now that we have explored the characteristics of a Single Asset Real Estate debtor in bankruptcy (see the First and Second blawgs in this series), it is time to look at the advantages of filing a chapter 11 case for a Single Asset Real Estate debtor.  

One significant benefit of a Single Asset Real Estate entity filing chapter 11 is the automatic stay.  The Bankruptcy Code provides that all foreclosure and collection activity must stop when a debtor files bankruptcy. If your company  is facing an imminent Motion to Appoint a Receiver or a Foreclosure Sale in a state court case, filing chapter 11 will temporarily stop the state court action from moving forward. 

The automatic stay will also provide the Single Asset Real Estate debtor some flexibility to develop cash if the property has tenants and is producing cash flow or rental income.  If there is sufficient cash flow, a Single Asset Real Estate Debtor will be more likely to develop cash when the value of the loan is worth less than the value of the property.    

While the automatic stay is beneficial for many debtors, the automatic stay has a limited shelf-life in a Single Asset Real Estate case. The automatic stay is limited to a 90-day period in Single Asset Real Estate case.  At the conclusion of the 90-day period, the Single Asset Real Estate debtor must propose a plan of reorganization or begin to tender monthly payments due to the lender(s) of the debtor. 

Lakelaw understands how to plan so this deadline can work in favor your chapter 11 case.  The key to success is pre-bankruptcy planning.  Through planning prior to filing for bankruptcy, Lakelaw can prepare for the difficulties presented by the limited application of the automatic stay.

Despite the abbreviated period for the application of the automatic stay, a Single Asset Real Estate case still has  benefits. Generally, with proper planning, a Single Asset Real Estate debtor may be able to successfully cram down a lender.  A cram down, under the Bankruptcy Code, allows a debtor to modify the monthly payments (and the amount of principal) due to a lender under  loan.  If a Single Asset Real Estate debtor can propose a feasible chapter 11 plan of reorganization, then it is more than likely that the entity can:

• Reduce the monthly payments which may have caused the entity problems prior to filing bankruptcy; and
• Allow the debtor (or its investors) to enjoy any appreciation in the value of the property after the chapter 11 plan is confirmed.

To be clear, while there are some risk in filing a Single Asset Real Estate case; with the right counsel, strategy and planning, there are many rewards which may be realized by an entity (or its investors).  

Lakelaw appreciates and understands the complexities of the Bankruptcy process.  We can help you or your company successfully maneuver through the bankruptcy process.  With over 35 years of experience in evaluating Single Asset Real Estate cases, Lakelaw can identify what is the best option for your company.  Lakelaw serves clients with financial restructuring needs throughout Illinois and Wisconsin.