If you’re thinking about bankruptcy, you probably don’t have very much spare cash.  On the other hand, you may have plenty of credit.  Many of our clients have very high credit scores and have been paying the balances on their credit cards for years.  Credit cards often send these people “convenience checks.”  This allows the card-holder to write a check and borrow money at very high credit card rates. If you do that anytime close to bankruptcy, you can be very sure that the credit card will want you to pay the money back even though you declared bankruptcy.  If you file a bankruptcy case, cash advances made within a few months of the filing will be highly suspect.  In fact, you would have to prove that you actually intended to pay the money back.  The court will assume that you did not.  

That will put you in the very bad position of having to pay back a debt even though you filed a bankruptcy case and thought you would discharge it.  It’s a much different case than using your credit card to buy a week’s worth of groceries or paying a medical bill.  And it’s different than buying a car before bankruptcy while you still have credit and intending to keep the payments up afterwards.

When you first visit your bankruptcy attorney, be sure to find out what you can do and can’t do until you actually file your bankruptcy case.  What you don’t know can hurt you very badly.

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A new Illinois statute, effective January 1, 2009, requires that lenders give homeowners special notices in forclosure cases, both in English and Spanish.  Click here to read the Illinois Mortgage Foreclosure Law.  These notices must inform the defendant that:

• As lawful occupants, they have the right to live in the home until a judge enters an order of possession
• The homeowner continues to own the home until the court rules otherwise
• Homeowners can get professional guidance from a lawyer or certified housing counsellor but should PROCEED WITH CAUTION when dealing with others who say that they are offering help
• The mortgage company doesn’t really want to foreclose on the house if there is any way to avoid it

In addition, the name of the mortgage lender must be set out in large type.  The lender must provide a pay-off statement at no cost.  If the lender wilfully fails to deliver an accurate statement within 10 days, the lender is liable for actual damages or statutory damages not less than $500.

This statute gives borrowers important rights.  We at Lakelaw are ready, willing and able to help Illinois homeowners protect their rights and save their homes.

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