• Credit reporting mishaps cause unwarranted foreclosures

    There are a variety of reasons why an individual files for bankruptcy .  Usually the main cause is the person’s inability to handle debt. Other times the main cause is unemployment.  But there are occasions when no person is to blame.  Sometimes it is the banks that are solely to blame.

    A large majority of people in Chicago, the state of Illinois, and nationwide, are at the mercy of banks and their credit reporting practices.  Take for example the tale of a Chicago business owner who recently filed for bankruptcy.  She was in the business buying and flipping houses, when her bank began double- reporting her loans to credit bureaus.  The action made it appear she was overextended and seriously in debt. With a plummeting credit score, she was unable to refinance her homes. With her savings completely depleted, she could not make any of her credit payments.  She was forced to file for bankruptcy.

    What was the cause of the doubling dipping on her credit report? “Bank A acquires Bank B, and during the absorbing of Bank A something goes awry and accounts get misreported to the credit bureaus,” said one credit reporting expert.  That is exactly what happened to this unfortunate Chicago resident.

    The result has led many Chicago bankruptcy and credit report audit attorneys to start investigating further the exact cause of their client’s financial woes.  What the attorneys are beginning to notice is that their client’s problems may have been caused by forces outside their control, such as the double reporting of debts to the credit agencies.

  • Pasquinelli Homebuilding Files for Chapter 7 Bankruptcy

    Pasquinelli Homebuilding, the once large and lucrative Chicago-based national homebuilder, has just filed Chapter 7 bankruptcy.

    Pasquinelli started building in Chicago in 1956; the company eventually expanded into Indiana, Ohio, North Carolina, South Carolina, George, Florida and Texas. As of 2006, the company’s annual revenues had eclipsed the $500 million mark.

    According to the Chapter 7 petition filed by Pasquinelli’s Chicago bankruptcy lawyer , the homebuilder currently has more than 10,000 creditors and $10 million to $50 million in liabilities. Despite this crushing debt, the company only has $500,000 to $1 million in assets.

    The bankruptcy petition will stay all current litigation. It will also prevent Harris Bank from going forward with its claim that Bruno and Anthony Pasquinelli illegally appropriated $87 million in revenue from Pasquinelli Homebuilding between 2005 and 2009. Harris Bank filed a complaint against the Pasquinelli’s last year in Cook County, Illinois. The court dismissed the complaint. Harris had planned to re-file the suit, but that will have to wait until the bankruptcy is final.

    The Pasquinelli petition adds to a long list of homebuilders whom have vanished from the Chicago construction market. As the number of petitions increase, the demand for Chicago bankruptcy attorneys will rise.