• Q&A With A Chicago Bankruptcy Attorney

    Q:         I recently lost my job, and my wife has been out of work for almost a year. I believe I may need to file for bankruptcy , but I am worried about losing my home and vehicles. Is it possible to file for bankruptcy and keep both?

    A:     Great question-these are common questions for people that are considering filing bankruptcy. There are two different types of consumer bankruptcies-a Chapter 7 and a Chapter 13.

    In a Chapter 13 bankruptcy, you will organize a plan to repay some of your debts. You and your creditors will agree to a “financial reorganization,” which is supervised by a bankruptcy court. A Chapter 7 bankruptcy , on the other hand, is when an individual liquidates non-exempt assets to repay creditors. A Chapter 13 will allow you to keep your car and house, although both types will stop a foreclosure.

    A Chapter 13 bankruptcy can protect your house and car, but you need steady income. A Chapter 7 will wipe out your debt, but you may need to surrender you house, your car or both.

    Bankruptcies are different for each individual and family, seeing as how everyone has different circumstances and financial obligation. Please contact our firm for a free consultation if you are struggling with debt.

    Benjamin Brand Services- Chicago bankruptcy lawyer .

  • Chicago Bankruptcy Attorney Weighs in On Decreased Filings

    One particular region in Ohio has seen a sharp decline in the filings of personal bankruptcies, according to the Dayton Daily News. Throughout the first half of 2012 personal bankruptcies in the Dayton, Ohio region fell to 3,265-a 13 percent decline in a region that was hit hard by the recession. From 2006 to 2010, bankruptcy filings in the area increased in the first half of the year every year. Many experts are divided on what this exactly means about the economic climate of the region.

    “Fewer people are working right now, so you aren’t going to have as many wage garnishments if there aren’t that many wages,” says Russ Cope, a bankruptcy attorney in Centerville. “There is no point in filing bankruptcy unless you absolutely need to, and right now, many people are uncollectable.”

    The driving force behind people filing for bankruptcy is debt, so when the recession hit, fewer people had access to credit than before. This could be one part of why filings are down, particularly in the Rust Belt, where the recession hit hard.

    “Oddly, bankruptcy goes up when the economy is doing well and people are spending freely on credit,” said Jean Braucher, a professor at the University of Arizona and Vice President of the National Consumer Bankruptcy Center. “People can then suffer reverses, such as job loss or divorce or uninsured illness, but once they recover from the setback, they can use bankruptcy to shed debt they took on during a bad patch.”

    Please contact our firm for a free consultation if you find yourself struggling with debt.

    Benjamin Brand Services- Chicago bankruptcy lawyers.