Chicago Bankruptcy Attorney Kevin Benjamin

Can a Mortgage Modification Stop Foreclosure in Illinois?

Thu, 30 Apr 2026 16:01:05 GMT

Can a Mortgage Modification Stop Foreclosure in Illinois?

If you’ve fallen behind on your mortgage payments, you may be facing one of the most stressful situations a homeowner can experience: foreclosure.

You may be asking:

Can a mortgage modification stop foreclosure in Illinois?

In many cases, the answer is yes — but timing and strategy are critical.

At Benjamin Legal Services , we help Chicago homeowners explore mortgage modification options and, when necessary, use additional legal tools to protect their homes.

What Is a Mortgage Modification?

A mortgage modification (also called a loan modification) is a permanent change to your existing loan terms. The goal is to make your monthly payments more affordable so you can stay in your home and avoid foreclosure.

Mortgage modifications may include:

Lowering your interest rate
Extending the length of the loan
Converting an adjustable-rate mortgage to a fixed rate
Adding missed payments to the loan balance
In some cases, reducing the principal

Lenders often prefer modification over foreclosure because foreclosure is expensive and time-consuming.

Does Applying for a Mortgage Modification Stop Foreclosure?

Simply applying for a mortgage modification does not automatically stop foreclosure .

However:

Many lenders pause foreclosure proceedings while reviewing a complete modification application.
Federal mortgage servicing rules may prevent “dual tracking,” meaning lenders cannot continue foreclosure while actively reviewing a loss mitigation application.
If a modification is approved and accepted, foreclosure proceedings typically stop.

The key is submitting a complete and accurate application with proper documentation.

When Is It Too Late to Seek a Mortgage Modification?

It is rarely too early to request a modification — but waiting too long can limit your options.

You may still apply:

After receiving a Notice of Default
After foreclosure has been filed
During the pre-foreclosure stage

However, if your property has already been sold at a foreclosure sale, modification is no longer an option.

Acting early greatly increases the likelihood of success.

Who Qualifies for a Mortgage Modification in Illinois?

Lenders generally look for two primary factors:

1. Financial Hardship

You must demonstrate legitimate hardship, such as:

Job loss or reduced income
Medical expenses
Divorce
Death of a spouse
Disability
Increased property taxes or housing costs

2. Ability to Make Modified Payments

You must show steady income sufficient to support the new, reduced payment.

Documentation is critical, including:

Pay stubs
Tax returns
Bank statements
Hardship letter

An experienced Chicago foreclosure defense attorney can help ensure your application is complete and properly presented.

What If the Bank Denies Your Mortgage Modification?

Loan modification requests are sometimes denied due to:

Incomplete paperwork
Insufficient hardship documentation
Income concerns
Lender guidelines

If denied, you may:

Appeal the decision
Reapply with stronger documentation
Explore other foreclosure defense strategies

Can Bankruptcy Stop Foreclosure if Modification Fails?

Yes.

If foreclosure is moving forward and modification efforts are unsuccessful, filing Chapter 13 bankruptcy can immediately stop foreclosure through the automatic stay.

The automatic stay:

Halts foreclosure proceedings
Stops collection activity
Allows you to catch up on missed payments over 3–5 years

For some homeowners, Chapter 13 provides more structured protection than modification alone.

Does a Mortgage Modification Affect Your Credit?

A loan modification may negatively affect your credit score. However:

The impact is generally less severe than foreclosure.
Foreclosure can remain on your credit report for seven years.
Modification may allow you to rebuild sooner.

In many cases, preserving homeownership outweighs the short-term credit impact.

Why Legal Guidance Matters

Mortgage modification applications can be complex and document-heavy. Errors, omissions, or delays can result in denial or continued foreclosure proceedings.

Benjamin Legal Services helps Chicago homeowners:

Prepare complete modification packages
Communicate directly with lenders
Prevent improper foreclosure actions
Evaluate bankruptcy as a backup strategy
Protect their homes and financial stability

Take Action Before Foreclosure Moves Forward

If you are behind on your mortgage payments, the worst thing you can do is ignore the situation.

The earlier you seek help, the more options you may have.

A mortgage modification can stop foreclosure in Illinois — but you must act strategically and quickly.

Speak With a Chicago Mortgage Modification Attorney Today

If you are facing foreclosure or struggling with mortgage payments, Benjamin Legal Services is ready to help.

How Can You Stop Car Repossession in Chicago?

Thu, 02 Apr 2026 16:00:48 GMT

How Can You Stop Car Repossession in Chicago?

For many Chicago residents, a vehicle is not a luxury — it’s a necessity. You rely on your car to get to work, take your children to school, attend medical appointments, and manage everyday responsibilities.

If you’ve received a repossession notice or fallen behind on payments, you may be wondering:

Can I stop my car from being repossessed?

The answer is yes — but time is critical.

At Benjamin Legal Services , we help individuals throughout Chicago take immediate legal action to stop repossession and, in some cases, recover vehicles that have already been taken.

How Car Repossession Works in Illinois

Under Illinois law, if you default on your car loan — even by missing one payment — the lender may have the right to repossess your vehicle.

Unlike other types of property, lenders are not required to give advance warning before taking your car.

However, repossession companies must follow strict legal rules:

They cannot “breach the peace” during repossession
They cannot break into locked garages
They cannot use force or threats
They must provide notice of the total amount due to redeem the vehicle

If these rules are violated, the repossession may be illegal.

Immediate Ways to Stop Car Repossession in Chicago

1. Catch Up on Missed Payments

If possible, paying the overdue balance plus any fees may stop repossession.

However, many borrowers facing repossession are already experiencing financial hardship and cannot make a lump-sum payment.

2. Negotiate With the Lender

Sometimes lenders are willing to:

Extend the loan term
Defer missed payments
Modify the loan agreement

But lenders are not required to agree — and negotiations may not move fast enough if repossession is imminent.

3. File for Bankruptcy (Most Powerful Protection)

For many Chicago residents, bankruptcy provides the strongest and fastest protection against repossession.

Once you file for bankruptcy, the court issues an automatic stay .

The automatic stay:

Immediately stops repossession
Prevents collection calls
Halts wage garnishments
Stops lawsuits
Pauses foreclosure

If your car has already been repossessed but not yet sold, bankruptcy may allow you to recover it.

How Chapter 13 Bankruptcy Can Help You Keep Your Car

Chapter 13 bankruptcy is often the most effective tool for stopping car repossession.

It allows you to:

Restructure missed payments into an affordable repayment plan
Spread out arrears over 3–5 years
Potentially reduce your loan balance to the car’s fair market value (in certain situations)
Stop collection actions immediately

Instead of paying everything at once, you make manageable monthly payments under court supervision.

What If Your Car Has Already Been Repossessed?

You may still have options.

If the vehicle has not yet been sold:

Filing Chapter 13 may force the lender to return it
You may be able to redeem the vehicle by paying its current value
You may be able to negotiate a reinstatement

Timing is crucial. Once the car is sold, options become limited.

Redeem, Reaffirm, or Surrender: Understanding Your Bankruptcy Options

If you file bankruptcy, you will generally have three options regarding your vehicle:

Reaffirm the Debt

You agree to continue making payments under a new agreement.

Redeem the Vehicle

You pay a lump sum equal to the car’s current value (often less than what you owe).

Surrender the Vehicle

You give the car back and discharge the remaining debt (in many cases).

An experienced Chicago bankruptcy attorney can help determine which option best protects your financial future.

Can a Repo Company Enter Your Driveway?

Illinois law prohibits repossession companies from breaching the peace.

They:

Cannot break locks
Cannot enter closed garages
Cannot use force
Cannot threaten or intimidate

If you believe a repossession company acted unlawfully, you may have legal remedies.

Why Acting Quickly Matters

Repossession can happen quickly — sometimes without warning.

The sooner you speak with a bankruptcy attorney, the more options you may have.

Delaying action could mean:

Additional repossession fees
Storage charges
Damage to your credit
Permanent loss of the vehicle

Protect Your Vehicle With Benjamin Legal Services

Your vehicle is essential to your livelihood. Losing it can make financial recovery even more difficult.

At Benjamin Legal Services , we help Chicago residents:

Stop car repossession
Recover repossessed vehicles
File Chapter 13 to protect assets
Reduce debt burdens
Build sustainable repayment plans

We offer flat fees and clear guidance so you know exactly what to expect.

Speak With a Chicago Car Repossession Attorney Today

If you are facing car repossession in Chicago, do not wait until it’s too late.

How Can You Settle IRS Tax Debt in Chicago?

Thu, 05 Mar 2026 17:00:40 GMT

How Can You Settle IRS Tax Debt in Chicago?

Owing money to the IRS can feel overwhelming. Between collection notices, wage garnishments, tax liens, and the fear of levies, many Chicago taxpayers feel trapped with no way out.

The truth is this: you have options .

If you’re struggling with IRS tax debt , there are legal strategies available that may allow you to reduce what you owe, stop aggressive collection efforts, and regain financial stability. The key is understanding which option fits your situation.

At Benjamin Legal Services , we help individuals and businesses throughout Chicago negotiate real solutions with the IRS.

Why IRS Tax Debt Doesn’t Go Away on Its Own

Ignoring IRS debt rarely works. In fact, it usually makes matters worse.

The IRS has powerful collection tools, including:

Wage garnishments
Bank levies
Federal tax liens
Property seizures
Passport restrictions
Ongoing penalties and interest

The longer tax debt remains unresolved, the larger it grows due to accumulating penalties and interest.

But the IRS is also open to negotiation — if you approach the process correctly.

Options for Settling IRS Tax Debt in Chicago

There is no “one-size-fits-all” solution. A skilled Chicago tax attorney will evaluate your financial situation and determine the most effective strategy.

Here are the most common IRS resolution options:

1. Offer in Compromise (OIC)

An Offer in Compromise allows qualifying taxpayers to settle their tax debt for less than the full amount owed.

You may qualify if:

You cannot realistically pay the full amount
Paying would create financial hardship
Your income and assets are limited

The IRS carefully evaluates income, expenses, and asset equity before approving an OIC. Proper preparation is critical — many applications are rejected due to errors or incomplete documentation.

2. Installment Agreements

If you cannot pay your tax debt in full, you may negotiate a monthly payment plan .

Types of installment agreements include:

Standard Installment Agreements
Partial Payment Installment Agreements (PPIA)
Streamlined agreements for smaller debts

This option allows you to avoid enforced collection actions while paying down your balance over time.

3. Currently Not Collectible (CNC) Status

If you are experiencing serious financial hardship, the IRS may place your account in Currently Not Collectible status .

This means:

Collection efforts temporarily stop
Wage garnishments may cease
Levies are paused

While penalties and interest continue to accrue, CNC status provides breathing room until your financial situation improves.

4. Penalty Abatement

The IRS may reduce or eliminate penalties if you qualify for penalty abatement .

Common qualifying reasons include:

Serious illness
Natural disasters
First-time penalty relief
Other reasonable cause circumstances

Reducing penalties can significantly lower your overall balance.

5. Bankruptcy and Tax Debt

In some situations, certain income tax debts may be dischargeable in bankruptcy under Chapter 7, Chapter 13, or Chapter 11.

However, strict eligibility rules apply. Timing, filing dates, and prior compliance matter significantly.

An experienced attorney can determine whether bankruptcy is a viable tax relief option.

Can You Stop IRS Wage Garnishment?

Yes — in many cases.

Once you hire a tax attorney, the IRS must communicate through your legal representative. Your attorney can:

Request a collection hold
Negotiate payment terms
Apply for hardship status
Challenge improper levies

Quick action often prevents further financial damage.

IRS vs. Illinois State Tax Debt

Chicago taxpayers may owe both the IRS and the Illinois Department of Revenue (IDOR).

While similar in some ways, state tax enforcement procedures differ from federal collection practices. A comprehensive strategy should address both obligations when applicable.

Why Hire a Chicago Tax Attorney?

IRS negotiations involve complex financial disclosures, strict documentation requirements, and procedural rules. Mistakes can delay resolution or lead to rejection.

Benjamin Legal Services provides:

Direct representation before the IRS
Audit and Tax Court representation
Appeals assistance
Wage garnishment defense
Lien and levy resolution
Criminal tax defense when necessary

Having an experienced tax attorney protects your rights and increases your likelihood of a favorable resolution.

Don’t Be Afraid of the IRS — Take Action

The IRS is powerful, but it is not unbeatable.

With the right legal strategy, many taxpayers in Chicago successfully:

Reduce their total debt
Stop collection efforts
Establish manageable payment plans
Protect their assets
Move forward financially

The worst thing you can do is nothing.

Get Help From a Chicago Tax Attorney Today

If you are facing IRS tax debt, wage garnishment, liens, levies, or audit concerns, you do not have to handle it alone.

Benjamin Legal Services is committed to helping Chicago individuals and businesses resolve serious tax problems efficiently and strategically.

How Foreclosure Defense Attorneys Help Chicago Homeowners Fight Back

Thu, 05 Feb 2026 17:00:26 GMT

How Foreclosure Defense Attorneys Help Chicago Homeowners Fight Back

Facing foreclosure can be one of the most stressful experiences a homeowner can endure. Threatening letters, legal notices, and pressure from lenders can make it feel like losing your home is inevitable. But foreclosure is not automatic—and homeowners in Chicago have powerful legal rights.

At Benjamin Legal Services , our foreclosure defense attorneys use decades of experience to help clients fight back, challenge improper bank actions, and pursue solutions that protect their homes.

Foreclosure Is a Legal Process—Not an Immediate Outcome

In Illinois, foreclosure must proceed through the court system. That means lenders are required to follow strict legal procedures before taking your home. If they fail to do so, foreclosure can be delayed, challenged, or even stopped.

A foreclosure defense attorney ensures your rights are enforced at every stage of the process and that the lender is held accountable under the law.

Making the Bank Prove Its Right to Foreclose

One of the most effective foreclosure defense strategies involves forcing the lender to prove it actually has the legal right to foreclose.

Many mortgages have been:

Bundled with other loans
Sold to investors
Transferred multiple times through securitization

These transfers often create gaps or errors in the chain of title . If a bank cannot clearly establish ownership of the loan or proper standing, its foreclosure case may be weakened or dismissed.

At Benjamin Legal Services, we thoroughly investigate:

The chain of securitization
Assignment records
Compliance with Illinois foreclosure laws

This scrutiny alone can significantly improve a homeowner’s negotiating position.

Aggressive Defense in Illinois State Court

Foreclosure defense is not passive. Our attorneys actively:

File formal responses to foreclosure complaints
Raise procedural and legal defenses in court
Challenge improper documentation
Demand strict proof from lenders

By actively defending foreclosure cases in state court, we often create leverage that encourages lenders to consider alternatives such as loan modifications or settlement options.

Using Bankruptcy to Stop Foreclosure

In some cases, bankruptcy can be a powerful foreclosure defense tool.

Chapter 13 Bankruptcy

Immediately stops foreclosure through the automatic stay
Allows homeowners to catch up on missed mortgage payments over time
Helps protect equity and keep the home

Chapter 11 Bankruptcy

May be appropriate for certain homeowners with complex financial situations
Can provide structured debt reorganization

Our attorneys help determine whether bankruptcy is a strategic option and guide clients through the process while protecting their long-term financial interests.

Loan Modifications and Alternative Solutions

Foreclosure defense often opens the door to alternatives that allow homeowners to remain in their homes, including:

Loan modifications
Mortgage workouts
Short sales when staying in the home is no longer feasible

By challenging the foreclosure and increasing the lender’s burden of proof, homeowners may gain leverage to negotiate better terms.

Why Experience Matters in Foreclosure Defense

Lenders and loan servicers often rely on intimidation tactics and hope homeowners will not fight back. An experienced foreclosure defense attorney levels the playing field.

At Benjamin Legal Services , we stand out because:

We actively defend foreclosure cases in court
We investigate securitization and title defects
We force lenders to prove their claims
We offer clear, upfront fee structures

Since 1989, our attorneys have helped Chicago homeowners protect their rights and fight unfair foreclosure practices.

Take Action Before It’s Too Late

If you are behind on mortgage payments or facing foreclosure, time is critical. The earlier you seek legal help, the more options may be available.

Struggling With Student Loan Debt in Chicago? Your Legal Options Explained

Thu, 08 Jan 2026 17:00:21 GMT

Struggling With Student Loan Debt in Chicago? Your Legal Options Explained

For many Chicago residents, student loans were meant to open doors—not create lifelong financial stress. Unfortunately, rising balances, interest, and rigid repayment terms leave many borrowers struggling to keep up. If your student loan payments feel unmanageable, you are not alone—and you do have legal options.

At Benjamin Legal Services , we help individuals explore practical, lawful strategies to regain control of their student loan debt and move forward with confidence.

Why Student Loan Debt Becomes Overwhelming

Most borrowers rely on federal student loans to finance their education, expecting stable employment after graduation. But life does not always follow that plan. Job loss, underemployment, medical expenses, or additional debt can make standard repayment plans unrealistic.

Many borrowers discover that after making monthly payments, they still cannot save for major milestones like buying a home, purchasing a car, or building an emergency fund.

Federal Student Loan Repayment Options

If you do not contact your loan servicer before repayment begins, you are typically placed on the standard 10-year repayment plan . For borrowers with large balances, this can mean hundreds of dollars per month.

Fortunately, federal student loans offer alternative repayment plans that may reduce monthly payments:

Income-Driven Repayment Plans

These plans adjust your payment based on income and household size:

Income-Based Repayment (IBR)
Income-Contingent Repayment (ICR)
Pay As You Earn (PAYE)
Revised Pay As You Earn (REPAYE)

For borrowers with limited income or significant expenses, these plans can provide much-needed relief.

Extended and Graduated Repayment Plans

These options lengthen repayment terms or start with lower payments that gradually increase over time.

Each plan has advantages and drawbacks, and the right choice depends on your financial goals and long-term strategy.

Student Loan Consolidation

If you have multiple federal loans with different interest rates and due dates, direct loan consolidation may simplify repayment.

Benefits of Consolidation Include:

One monthly payment instead of several
Fixed interest rates
Extended repayment terms
Access to income-driven repayment and forgiveness programs

Consolidation does not eliminate debt, but it can make repayment more manageable.

Student Loan Rehabilitation for Loans in Default

If you have fallen behind and your loans are in default, rehabilitation may offer a path forward. Rehabilitation allows borrowers to:

Remove loans from default
Stop collection actions
Restore eligibility for repayment plans

This process requires careful coordination with loan servicers, and you typically have only one opportunity to rehabilitate federal student loans.

Student Loan Forgiveness and Assistance Programs

Some borrowers may qualify for repayment assistance or forgiveness programs , especially those working in public service or certain professions such as:

Teachers
Nurses
Doctors
Attorneys
Military members

Eligibility requirements vary, and documentation must be handled correctly to avoid delays or denials.

Can Bankruptcy Eliminate Student Loan Debt?

Contrary to common belief, student loans are not always immune from bankruptcy discharge . In limited circumstances, borrowers may qualify to discharge student loan debt by proving undue hardship .

While the standards are strict, Chapter 7 bankruptcy may provide relief when:

Repayment is impossible despite good-faith efforts
Financial hardship is likely to continue
No reasonable repayment plan exists

An experienced bankruptcy attorney can assess whether this option applies to your situation.

Why Legal Guidance Matters

Student loan laws and repayment programs are complex—and mistakes can be costly. A student loan attorney can:

Analyze your loan portfolio
Identify the most effective repayment strategy
Communicate with servicers on your behalf
Protect you from unnecessary defaults or garnishments
Explore bankruptcy options when appropriate

At Benjamin Legal Services , we provide clear guidance and personalized solutions tailored to your financial situation.

Take Control of Your Student Loan Debt Today

You do not have to face student loan debt alone. With the right strategy, relief is possible—and your financial future can improve.

Chapter 7 vs. Chapter 13 Bankruptcy: Which Is Right for You?

Fri, 12 Dec 2025 21:45:00 GMT

Chapter 7 vs. Chapter 13 Bankruptcy: Which Is Right for You?

If you’re overwhelmed by debt, bankruptcy may offer a path toward financial relief—but choosing the right type of bankruptcy is critical. For individuals in Chicago and throughout Illinois, the two most common options are Chapter 7 bankruptcy and Chapter 13 bankruptcy . While both are designed to help people regain control of their finances, they work very differently and are suited to different financial situations.

At Benjamin Legal Services , we help clients understand their options and choose the bankruptcy solution that best protects their future. Below is a clear comparison to help you decide which chapter may be right for you.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is often referred to as a “fresh start” bankruptcy . It is designed to quickly eliminate unsecured debt for individuals who qualify based on income and financial circumstances.

Key Features of Chapter 7 Bankruptcy

Eliminates most unsecured debts, including credit cards, medical bills, and personal loans
No repayment plan required
Typically completed within a few months
Available once every eight years
Requires passing the means test based on Illinois income limits

In some cases, non-exempt assets may be sold by a court-appointed trustee to repay creditors. However, many filers are able to protect essential property using Illinois or federal bankruptcy exemptions.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a repayment-based bankruptcy designed for individuals with steady income who need time to catch up on debts.

Key Features of Chapter 13 Bankruptcy

Involves a court-approved repayment plan lasting 3 to 5 years
Allows you to keep your property while repaying a portion of your debts
Can help stop foreclosure, repossession, and wage garnishment
Suitable for individuals who do not qualify for Chapter 7
Has debt limits for eligibility

Chapter 13 is often used to manage mortgage arrears, car loan balances, or tax debt that cannot be discharged under Chapter 7.

Key Differences Between Chapter 7 and Chapter 13

Debt Discharge

Chapter 7: Most unsecured debts are discharged entirely
Chapter 13: Remaining eligible debts may be discharged after completing the repayment plan

Timeframe

Chapter 7: Usually completed in 3–6 months
Chapter 13: Requires 3–5 years of monthly payments

Income Requirements

Chapter 7: Must pass the means test
Chapter 13: Designed for higher-income earners or those with steady income

Asset Protection

Chapter 7: Some assets may be liquidated if not exempt
Chapter 13: Allows you to keep assets while repaying creditors over time

Which Bankruptcy Option Is Right for You?

You may be a good candidate for Chapter 7 bankruptcy if:

Your income is below the Illinois median or you pass the means test
Your debts are mostly unsecured
You need fast debt relief
You have limited assets to protect

You may benefit from Chapter 13 bankruptcy if:

You earn too much to qualify for Chapter 7
You want to stop foreclosure or repossession
You need time to catch up on missed payments
You want to protect valuable property

Every financial situation is unique, and the right choice depends on your income, debt type, assets, and long-term goals.

Why Legal Guidance Matters

Bankruptcy laws are complex, and filing under the wrong chapter can lead to unnecessary complications or dismissal. An experienced bankruptcy attorney can:

Evaluate your eligibility
Explain how Illinois exemptions apply to your assets
Help protect your property
Guide you through the process from start to finish

At Benjamin Legal Services , we take the time to understand your circumstances and provide personalized guidance every step of the way.

Speak With a Chicago Bankruptcy Attorney Today

If you’re struggling with debt and unsure whether Chapter 7 or Chapter 13 bankruptcy is right for you, professional guidance can make all the difference.

Struggling with Wage Garnishment? Here’s How Bankruptcy Can Help

Thu, 06 Nov 2025 05:00:19 GMT

Struggling with Wage Garnishment? Here’s How Bankruptcy Can Help

Wage garnishment can be a distressing financial burden that limits your ability to pay for daily expenses, rent, or support your family. If a creditor has obtained a court order to garnish your wages, you might feel like you're out of options—but legal remedies are available. At Benjamin Legal Services , our experienced wage garnishment attorneys help clients in Chicago stop garnishment in its tracks through strategic bankruptcy filings and legal protections.

How Bankruptcy Stops Wage Garnishment

The moment you file for Chapter 7 or Chapter 13 bankruptcy , an automatic stay goes into effect. This is a court-ordered injunction that immediately halts most collection activities, including wage garnishment, lawsuits, phone calls, and repossessions. Creditors must legally stop garnishing your wages as soon as your bankruptcy case is filed.

However, garnishments for child support or spousal support are exempt from the automatic stay, and these obligations will continue.

Recovering Garnished Wages

Not only can bankruptcy stop future garnishments, but in many cases, it may also allow you to recover wages that were taken in the 90 days prior to your filing—if the amount meets certain thresholds and exemption rules under bankruptcy law. Our team at Benjamin Legal Services leverages aggressive litigation tactics to protect your income and explore avenues to recover funds already lost to garnishment.

Exemptions That Protect Your Assets

The bankruptcy code allows for various exemptions , including protections for home equity, vehicle equity, and wages. We assess your case carefully to determine how best to use these exemptions to your advantage and minimize your out-of-pocket exposure while resolving your debts.

Why Work with Benjamin Legal Services?

Since 1989, our attorneys have helped countless clients across the Chicagoland area regain financial stability. With flat-fee pricing and personalized guidance, we provide peace of mind through clear, honest, and effective legal counsel.

Civil Tax Violations Attorney in Chicago, Illinois

Thu, 09 Oct 2025 04:00:14 GMT

Civil Tax Violations Attorney in Chicago, Illinois

Civil tax matters can be incredibly stressful—fines, audits, liens, levies, and aggressive collection actions can leave even the most diligent taxpayer feeling overwhelmed. At Benjamin Legal Services , we specialize in navigating these treacherous waters for clients, helping both individuals and businesses defend against civil tax violations and seek fair resolutions.

What Counts as a Civil Tax Violation

Civil tax violations in Illinois cover a broad spectrum of issues, including:

Failure to file returns or pay taxes
IRS audits, investigations, and disputes
Liens from unpaid taxes or tax delinquencies
Levy actions, wage garnishments, or bank account seizures
Penalties for negligence, underpayment, or fraud KTS Law Illinois Department of Revenue
Disputes over income, employment, estate, or business taxes

Whether the issue stems from overlooked filings or complex business tax audits, understanding the nature of the violation is the first step toward effective defense.

Your Legal Options in Illinois

Offer in Compromise (OIC)

An Offer in Compromise allows you to settle tax liabilities for less than the total amount owed—when full payment would cause undue hardship or isn’t collectible IRS Wikipedia
Illinois has its own OIC process managed by the Department of Revenue, ideal for taxpayers with demonstrable financial hardship Get Tax Relief Now

Installment Agreements

Set up a manageable monthly payment plan to resolve tax debts over time Illinois Department of Revenue taxplanning
These agreements help pause collection actions such as levies or garnishments.

Non-Collectible Status & Penalty Abatement

If it's proven that you cannot pay now or in the future, the IRS may classify your status as Currently Not Collectible (CNC) Fresh Start Tax Relief
Penalties imposed for late filing or payment can sometimes be waivered if you demonstrate reasonable cause —such as illness or reliance on incorrect written tax advice National Law Review KTS Law

Tax Court & Appeals

Disputes may be pursued through administrative hearings with the Illinois Department of Revenue or further in state courts if necessary KTS Law
You have avenues to challenge both substantive and procedural aspects of the case.

Why You Need Our Expertise

Civil tax violations intersect complex tax laws, intricate financial disclosures, and aggressive government collection tactics. At Benjamin Legal Services, we:

Tailor your defense strategy to your specific case
Represent you before the Illinois Department of Revenue and in state courts
Prepare and negotiate OICs or installment agreements
Seek penalty abatement or classification as CNC where appropriate
Navigate appeals or litigation when needed

In most cases, time is of the essence—prompt action can make the difference between settlement and enforcement.

Foreclosure Defense Attorney in Chicago, Illinois

Thu, 11 Sep 2025 04:00:17 GMT

Foreclosure Defense Attorney in Chicago, Illinois

When you’re facing foreclosure, the threat of losing your home can feel overwhelming. At Benjamin Legal Services , we’ve been helping homeowners in Chicago fight back against foreclosure since 1989. With deep legal experience and a sharp understanding of the mortgage industry’s complexities, our attorneys work relentlessly to protect your home, your rights, and your financial future.

Why You Need a Foreclosure Defense Attorney in Chicago

Foreclosure proceedings are complex, and banks don’t always play by the rules. Mortgages are frequently bundled into securities and sold repeatedly, making it hard to determine who actually holds the legal right to foreclose. Our team focuses on holding mortgage lenders accountable, forcing them to prove they have the legal standing to foreclose—something they often struggle to do.

When we take on your case, we act quickly to:

Respond to and actively defend the foreclosure complaint in state court
Investigate the chain of title and securitization to find errors or gaps
Challenge improper assignments or missing documentation
Pressure lenders into meaningful loan modifications

We turn the pressure back on the banks by making them prove their legal right to foreclose—and if they can't, you may be able to keep your home or negotiate better terms.

Common Foreclosure Defense Strategies

Benjamin Legal Services uses aggressive legal tools to defend against foreclosure, including:

1. Chain of Securitization Challenges

In today’s mortgage marketplace, your loan may have changed hands multiple times. If the bank cannot provide a complete and accurate chain of ownership, they may lack the legal standing to foreclose.

2. Loan Modification and Negotiation

We use our legal leverage to negotiate with lenders. When banks realize they may struggle to prove their case, they are often more open to modifying the loan terms in your favor.

3. Short Sale, Loan Workout, or Mortgage Modification Options

We help explore all available options that can reduce your mortgage burden and potentially avoid foreclosure altogether.

4. Filing for Bankruptcy to Stop Foreclosure

Filing for Chapter 13 or Chapter 11 bankruptcy may stop foreclosure proceedings immediately, allowing you time to reorganize your finances. We help determine whether this strategy is right for your unique situation.

Chapter 13 or Chapter 11: A Tool to Halt Foreclosure

Bankruptcy is not for everyone, but in many cases, it can provide immediate relief from foreclosure. Filing under Chapter 13 or Chapter 11 puts an automatic stay on all collection actions, including foreclosure. If approved by the court, a repayment plan allows you to catch up on missed mortgage payments over time. Our attorneys guide you through this process with transparency and care.

Why Choose Benjamin Legal Services?

At Benjamin Legal Services, we do more than just file paperwork—we go to court, challenge the banks directly, and fight to keep our clients in their homes. Here's what sets us apart:

��️ We actively defend foreclosure complaints in state court
�� We investigate violations in the securitization process
�� We challenge banks to prove their legal right to foreclose
�� We negotiate directly with lenders to explore real solutions
�� We help homeowners keep what matters most—their homes

Don’t Wait—Start Building Your Defense Today

Time is critical in a foreclosure case. The earlier you contact our firm, the more options you have to stop the process and protect your home. Whether you're already in foreclosure or you've just received a notice, Benjamin Legal Services is here to help.

What to Expect When You Stop Making Student Loan Payments: Legal Implications and Next Steps

Thu, 03 Jul 2025 21:30:01 GMT

What to Expect When You Stop Making Student Loan Payments: Legal Implications and Next Steps

For many graduates and former students in Chicago, student loan payments can feel overwhelming. Life events like job loss, unexpected expenses, or simply the high cost of living can make it hard to keep up. But what really happens when you stop making payments on your student loans? And more importantly, what can you do about it?

In this article, we’ll break down the legal consequences of missing payments on your federal student loans and offer practical steps to take control of your financial future.

The Legal Consequences of Missing Student Loan Payments

When you stop making payments on federal student loans, the timeline of consequences begins to unfold quickly. Here’s what to expect:

Delinquency Begins

Your loan is considered delinquent the first day you miss a payment. If you miss a single payment, your loan servicer will usually contact you with reminders. However, the longer the delinquency continues, the more serious it becomes.

Credit Score Damage

After 90 days of non-payment, your loan servicer reports your delinquency to the credit bureaus. This can significantly lower your credit score, making it harder to qualify for other loans, rent an apartment, or even get a job.

Default Status

If you go 270 days (about 9 months) without making a payment on federal loans, your loan enters default. This status can trigger the entire unpaid balance becoming due immediately, along with additional fees and penalties.

Collections and Legal Actions

Once in default, the government has strong collection tools at its disposal, including:

Wage garnishment – taking a portion of your paycheck automatically.
Tax refund offset – seizing your federal tax refund.
Social Security offset – deducting a portion of your Social Security benefits (if applicable).
Collection agency involvement – adding fees and persistent calls.

Loss of Federal Benefits

Defaulting on your federal student loans makes you ineligible for:

Deferment or forbearance.
Access to repayment plans based on your income.
New federal student loans or grants.

Practical Steps to Regain Control

The good news is that there are options available to help you get back on track, even if you’re in default. Here’s what you can do:

Loan Rehabilitation

This one-time opportunity allows you to make a series of affordable payments (usually over 9-10 months) to bring your loan out of default. Once completed, your loan status is restored, and the default is removed from your credit report.

Loan Consolidation

If you have multiple loans, consolidating them into a Direct Consolidation Loan can bring your loans out of default and set you up for affordable repayment options. Keep in mind that consolidation doesn’t remove the default from your credit report, but it stops collections and allows you to move forward.

Contact Your Loan Servicer or Attorney

If you’re struggling to manage the process, contacting your loan servicer is crucial. They can guide you through rehabilitation or consolidation steps. At Benjamin Legal Services, we can also assess your situation and help you explore legal solutions, including potential bankruptcy options for qualifying cases.

Can Bankruptcy Help?

While it’s true that most student loans aren’t easily discharged in bankruptcy, there are certain cases where this may be possible. If you can prove undue hardship under strict criteria, you may be able to include student loans in a Chapter 7 filing. We can review your case and determine whether this option applies to you.

Don’t Wait—Take Action Now

The sooner you address missed student loan payments, the better. Waiting too long can lead to wage garnishment, tax refund seizure, and long-term credit damage. Reach out to Benjamin Legal Services today to schedule a consultation. We’ll work with you to understand your situation and create a plan to help you move forward.

Call us at 312-945-0021 or visit our website to get started.

What Is IRS Penalty Abatement and How Can It Help You?

Thu, 05 Jun 2025 19:45:00 GMT

What Is IRS Penalty Abatement and How Can It Help You?

If you’ve received a letter from the IRS notifying you of penalties for late filing, late payment, or other tax issues, you might be wondering what your options are. One potential path for relief is IRS penalty abatement—a process that could significantly reduce the amount you owe. At Benjamin Legal Services, we help Chicago-area taxpayers understand their options and take action to get back on track.

Understanding IRS Penalty Abatement

IRS penalty abatement allows taxpayers to request the removal or reduction of certain penalties assessed by the IRS. Penalties are typically imposed for reasons such as:

Filing your tax return late
Failing to pay your taxes on time
Errors or inaccuracies on your return
Failing to deposit certain taxes (for businesses)

While the IRS has clear guidelines for assessing penalties, it also recognizes that circumstances beyond your control can lead to these issues. That’s where penalty abatement comes in.

Types of IRS Penalty Abatement

There are a few common ways taxpayers can request penalty abatement:

First-Time Penalty Abatement (FTA)

If this is your first major IRS issue and you have a good compliance record for the past three years, you may qualify for a one-time removal of certain penalties. This is called the first-time penalty abatement. It’s a way to reward taxpayers who generally comply but made a one-time mistake.

Reasonable Cause Abatement

If your failure to file or pay taxes was due to circumstances beyond your control, such as a serious illness, natural disaster, or unavoidable absence, you may qualify for penalty abatement based on reasonable cause. In this case, you’ll need to provide a detailed explanation and supporting documentation showing why you were unable to meet your tax obligations.

Administrative Error Abatement

Sometimes, the IRS itself makes errors in assessing penalties. If the IRS incorrectly calculated your taxes or misinterpreted your actions, you can request abatement to correct the mistake.

How Can Penalty Abatement Help You?

The benefits of IRS penalty abatement include:

Reducing the Amount You Owe: If your request is approved, the penalties (and possibly related interest) will be removed, lowering your overall tax debt.
Protecting Your Finances: Penalties can add up quickly, especially if they’re combined with interest charges. Abatement can prevent the situation from snowballing.
Peace of Mind: Knowing you’ve taken steps to correct the problem can relieve stress and help you move forward.

How to Request IRS Penalty Abatement

To request penalty abatement, you’ll need to submit a written request to the IRS. This request should:

Clearly explain the reason for your request
Include documentation supporting your claim (such as medical records, natural disaster declarations, or other relevant proof)
Be timely—delaying your request can reduce your chances of success

If the IRS denies your request, you have the right to appeal. At Benjamin Legal Services, we can assist you with both the initial request and any necessary appeals.

Why Choose Legal Guidance for Penalty Abatement?

Navigating the penalty abatement process can be challenging. The IRS requires detailed information, and the rules can be difficult to understand. Having a legal team on your side can make a significant difference. We can help you:

Assess whether you qualify for penalty abatement
Gather and present the necessary documentation
Communicate with the IRS on your behalf
Prepare and submit appeals if your initial request is denied

Contact Benjamin Legal Services Today

If you’re facing IRS penalties, don’t wait to explore your options. Penalty abatement may offer the relief you need. Contact Benjamin Legal Services today at 312-945-0021 or visit benjaminlaw.com to schedule a consultation. Let’s work together to resolve your tax issues and give you peace of mind.

How to Successfully Negotiate a Loan Modification with Your Lender

Thu, 08 May 2025 17:00:11 GMT

How to Successfully Negotiate a Loan Modification with Your Lender

Financial hardships can make it difficult to keep up with mortgage payments, putting homeowners at risk of foreclosure. A loan modification offers a way to adjust your mortgage terms, making payments more affordable. However, negotiating with your lender requires preparation and the right approach. Here’s how to improve your chances of securing a loan modification that works for you.

Gather Essential Documents

Before reaching out to your lender, it’s important to have all necessary financial documents ready. This typically includes recent pay stubs, tax returns, bank statements, and a hardship letter explaining your situation. Lenders want to see proof of income, expenses, and any financial difficulties impacting your ability to pay. Being prepared with detailed documentation shows that you are serious about modifying your loan.

Communicate Clearly and Proactively

Lenders are more likely to consider a loan modification if you initiate contact before falling too far behind on payments. When speaking with your loan servicer, be honest about your financial challenges and explain why a modification is necessary. Keep records of all communications, including dates, times, and names of representatives you speak with. Prompt responses to lender requests can help speed up the process.

Understand Available Loan Modification Options

Loan modifications can take different forms, such as reducing the interest rate, extending the loan term, or adding missed payments to the balance. Some lenders may also offer principal reductions in rare cases. Knowing the different options allows you to discuss terms that best suit your financial situation. Be sure to ask about government programs that may provide additional assistance.

Review and Negotiate Terms Carefully

Once your lender offers a modification, take the time to review the new terms before agreeing. Make sure the revised payment plan is truly affordable and sustainable. If the proposed terms don’t work for your budget, don’t hesitate to negotiate. Requesting a lower interest rate or a longer repayment period could make a significant difference in monthly payments. Consulting a legal professional can help ensure that the agreement is in your best interest.

Securing a Loan Modification for Long-Term Stability

A well-negotiated loan modification can provide the financial relief needed to keep your home and regain stability. By preparing your documents, maintaining clear communication, exploring available options, and reviewing the terms carefully, you increase your chances of a successful outcome. If you need guidance during the process, Benjamin Legal Services in Chicago, Illinois, can provide legal support to help you achieve the best possible results.

The Brunner Test in Illinois: When Student Loans May Be Dischargeable in Bankruptcy

Thu, 03 Apr 2025 17:00:05 GMT

The Brunner Test in Illinois: When Student Loans May Be Dischargeable in Bankruptcy

The Brunner Test is a legal standard used by courts to determine whether a person qualifies for student loan discharge in bankruptcy. Named after a 1987 court case, this test requires borrowers to prove that repaying their loans would create an undue hardship. While student loans are generally exempt from discharge, meeting the Brunner Test could provide a path to relief.

The Three Parts of the Brunner Test

To discharge student loans, a borrower must satisfy three strict conditions. First, they must show they cannot maintain a minimal standard of living while repaying their loans. Second, their financial hardship must be expected to continue for a significant portion of the repayment period. Finally, they must have made good-faith efforts to repay the debt. Courts analyze these factors carefully to determine whether the borrower’s situation qualifies.

How Illinois Courts Apply the Brunner Test

Illinois follows federal bankruptcy rules when evaluating student loan discharge requests. Judges assess the borrower’s income, expenses, job prospects, and overall financial situation. Unlike other types of debt, student loan discharge requires filing an additional legal action known as an adversary proceeding. This means the borrower must present evidence proving they meet the Brunner Test requirements.

Challenges of Discharging Student Loans in Bankruptcy

Because courts interpret the Brunner Test strictly, many borrowers struggle to meet all three conditions. Judges often look for extreme financial hardship, such as long-term unemployment, medical issues, or other serious obstacles to earning a stable income. Even if a borrower’s situation is difficult, they may still be denied discharge if they do not prove that hardship will persist for years to come.

Exploring Alternatives to Student Loan Discharge

For those who do not qualify under the Brunner Test, other debt relief options may be available. Income-driven repayment plans, loan consolidation, or negotiating with lenders could provide financial relief. Additionally, some borrowers may benefit from filing for bankruptcy to eliminate other debts, freeing up income to manage student loan payments more effectively.

While student loan discharge through bankruptcy is difficult, the Brunner Test offers a potential solution for borrowers facing severe financial distress. Illinois courts evaluate each case based on strict criteria, making it crucial for those seeking relief to present strong evidence. Understanding the legal requirements and available alternatives can help borrowers determine their best course of action.

For more information on student loan debt and bankruptcy, contact our office today.

Creating a Successful Chapter 13 Payment Plan

Thu, 06 Mar 2025 18:00:04 GMT

Creating a Successful Chapter 13 Payment Plan

The Importance of a Well-Structured Chapter 13 Payment Plan

Filing for Chapter 13 bankruptcy allows individuals to consolidate debts into a manageable repayment plan. Unlike Chapter 7, which involves liquidating assets, Chapter 13 focuses on restructuring payments over time. A well-structured plan ensures that secured debts, priority obligations, and discretionary income are allocated properly, increasing the likelihood of court approval and financial recovery.

Assessing Income and Expenses for an Affordable Plan

A Chapter 13 payment plan must be based on realistic financial expectations. Courts require filers to demonstrate a stable income sufficient to meet monthly obligations. Reviewing income sources, necessary expenses, and outstanding debts helps determine a payment amount that aligns with disposable income. Overestimating financial capacity can lead to plan failure, while underestimating can result in objections from creditors or the court.

Prioritizing Debts for Compliance and Success

Not all debts are treated equally in Chapter 13. Secured debts, such as mortgage or car payments, typically take precedence, while priority debts, including taxes and child support, must be fully repaid. Unsecured debts like credit cards or medical bills receive payment based on available disposable income. Properly categorizing and prioritizing obligations helps ensure compliance with bankruptcy laws and improves the likelihood of successfully completing the plan.

Adjusting and Maintaining the Payment Plan Over Time

A Chapter 13 plan typically lasts three to five years, and financial situations may change during that period. Job loss, medical emergencies, or other unforeseen events can affect the ability to make payments. Courts allow modifications in certain cases, but staying proactive by adjusting discretionary expenses and maintaining an emergency fund can help avoid default. Regularly reviewing the plan ensures it remains sustainable throughout the repayment period.

Successfully completing a Chapter 13 payment plan provides a fresh financial start. Rebuilding credit, establishing responsible spending habits, and maintaining an emergency savings fund help prevent future financial struggles. Many individuals qualify for new credit opportunities shortly after completing their plan, making it essential to use them wisely to avoid falling back into unmanageable debt.

Benjamin Legal Services in Chicago, Illinois, assists individuals in structuring repayment plans that meet court requirements while ensuring financial stability. If you are considering Chapter 13 bankruptcy, contact our firm to discuss your options.

Last-Minute Options to Prevent Car Repossession Through Illinois Bankruptcy Protection

Thu, 06 Feb 2025 18:00:03 GMT

In Chicago, keeping up with car payments can sometimes slip through the cracks. The cost of living in the city is no small feat, and unforeseen financial hardships can leave you scrambling for options when it comes to keeping your vehicle. For many Chicago residents, a car isn’t just a mode of transportation; it's essential for daily commuting, running errands, or even as part of your livelihood. If you find yourself on the brink of losing your car due to missed payments, don't panic just yet. Benjamin Legal Services is here to guide you through some last-minute strategies that could save your vehicle from repossession using Illinois bankruptcy protection laws.

Car Repossession in Illinois

Car repossession is a serious concern for those facing financial struggles. In Illinois, lenders can repossess your vehicle if you're behind on payments or have breached your loan agreement. This can happen quickly, often leaving you without your primary means of transportation overnight. Understanding this process is important so you can explore solutions before it's too late. Lenders must follow legal procedures during repossession, like not breaching the peace. However, this offers little comfort if you might lose essential mobility. Bankruptcy protection could be a solution to consider.

How Bankruptcy Can Halt Repossession Efforts

Filing for bankruptcy may seem extreme, but it offers immediate relief through an "automatic stay" that stops all collection activities, including car repossession, once you file. Chapter 7 or Chapter 13 bankruptcies are options for those wanting to protect their vehicles. In Illinois, Chapter 7 may allow you to keep your car if its value is under a certain threshold. Chapter 13 lets you reorganize debts into manageable payment plans, potentially catching up on overdue car payments without losing your vehicle.

Chapter 13 Bankruptcy for Asset Protection

For many Chicago residents facing repossession, Chapter 13 bankruptcy is an effective way to keep their vehicles. Unlike Chapter 7, which liquidates assets to pay creditors, Chapter 13 restructures debt, giving debtors financial breathing room. Over three to five years, you can propose terms to catch up on late payments while keeping crucial assets like cars or homes. This restructuring helps reduce stress from financial pressure, offering time to achieve long-term solvency.

Knowing Your Rights & Seeking Professional Guidance

Navigating the intricacies surrounding bankruptcy filings necessitates informed decisions backed by professional guidance only seasoned professionals like those at Benjamin Legal Services can provide confidently. Scheduling a consultation with our Illinois bankruptcy attorneys is the first step towards exploring the full spectrum of legal options available to you in your specific circumstances.

Facing the threat of car repossession can be overwhelming, but it's crucial to remember that you have options. Utilizing Illinois bankruptcy protection laws, especially through Chapter 13, offers a pathway to safeguard your vehicle while managing financial burdens more effectively. By restructuring your debts and working towards manageable repayment plans, you can retain ownership of your essential assets and work towards regaining financial stability. The expertise and support of professionals like those at Benjamin Legal Services can be instrumental in navigating these complex processes, and ensuring your rights are protected. Don't let repossession dictate your future; explore your options and take proactive steps to secure your financial well-being today.

Hidden Dangers of DIY IRS Audit Defense: What Illinois Taxpayers Risk

Thu, 02 Jan 2025 18:00:03 GMT

In today's digital age, the internet is abundant with resources that promise to simplify our lives. The allure of do-it-yourself (DIY) solutions has become a cultural phenomenon, sweeping across every aspect of life — from home improvement projects to legal and financial matters. However, when it comes to dealing with an IRS audit, especially for residents in Chicago and throughout Illinois, the DIY approach may not be as beneficial as it appears. While the thought of saving money on professional fees is enticing, the risks associated with handling your own IRS audit defense can far outweigh any perceived benefits. Here we will discuss the hidden dangers of DIY IRS audit defense that Illinois taxpayers need to be aware of.

Complexity of Tax Laws

Chicago residents attempting a DIY approach to IRS audits often struggle with the intricate and constantly changing web of tax laws and regulations. Federal tax codes are complex, and each state, including Illinois, has its own set of rules, making it challenging for those unfamiliar with legal terminology. Without guidance, navigating both state-specific and federal requirements can be overwhelming. Unfortunately, even minor mistakes or misunderstandings can lead to significant consequences, such as increased penalties or even criminal charges.

IRS Experience

Professional tax attorneys at Benjamin Legal Services have dedicated years to mastering the art of negotiation with the IRS, all while protecting your rights as a taxpayer. Most individuals lack the depth of knowledge and experience needed for an effective audit defense. Without experience in preparing financial documents or presenting persuasive arguments during negotiations, you might unintentionally weaken your case against potential IRS claims.

Emotional Stress and Time Commitment

Handling an IRS audit alone is both technically challenging and emotionally draining. The stress of collecting comprehensive documentation under tight deadlines can be overwhelming, especially if you're unsure about what counts as relevant evidence or how to present it systematically to auditors who scrutinize every detail. Balancing these tasks with personal commitments can lead to burnout before reaching a satisfactory resolution on disputed taxes.

Consequences of Mistakes

Errors during self-managed audit defenses, such as incorrect filings or failing to provide supporting evidence for claimed deductions, can result in costly penalties. These repercussions can range from hundreds to thousands of dollars, depending on the severity of the discrepancies. Such outcomes can be financially disastrous, necessitating urgent corrective action to salvage the situation and prevent similar issues in future filings.

Professional Representation Matters

Entrusting your case to experienced professionals ensures optimal results are achieved efficiently and promptly. Benjamin Legal Services prides itself on delivering unparalleled service, safeguarding your interests with proactive measures and intervention whenever necessary. Our team personalizes solutions to mitigate potential risks and achieve the best possible outcome with minimal stress, time, and cost.

In the face of an IRS audit, the decision between a DIY approach and professional representation can significantly impact your financial future. While it may be tempting to handle the process independently, the complexities of tax laws, coupled with the potential for costly mistakes and emotional strain, underscore the value of seasoned guidance. At Benjamin Legal Services, we are committed to guiding you through the audit landscape effectively, ensuring that your rights are protected and that you achieve a favorable outcome. Trust in our experienced team to manage the intricacies of your case, so you can focus on what matters most to you with peace of mind.

Is a Short Sale Right for Your Chicago Property? Key Factors to Consider

Thu, 05 Dec 2024 18:00:01 GMT

When facing financial hardship or market downturns, you need guidance for real estate decisions. For many homeowners in Chicago, one option that might surface is a short sale. But is this route the best fit for your situation? Before diving into this decision, it’s crucial to understand what a short sale entails, the potential benefits and drawbacks, and how it could impact your financial future. Here we will note some key factors to consider if you're contemplating a short sale for your Chicago property, with insights from Benjamin Legal Services.

Understanding Short Sales

A short sale occurs when a homeowner sells their property for less than the amount owed on their mortgage. This typically requires lender approval since they must agree to accept less than the full repayment. For residents of Chicago facing financial difficulties or an underwater mortgage (owing more than the property's current value), a short sale can provide an alternative to foreclosure. However, it’s essential to grasp that this process isn’t just about selling below market value; it involves negotiating with lenders and navigating legal complexities.

Evaluating Financial Implications

One of the most critical factors in considering a short sale is understanding its financial implications. While avoiding foreclosure can prevent immediate damage to credit scores, a short sale will still affect your credit report negatively, though often less severely than foreclosure would. Additionally, there may be tax consequences if a forgiven debt is considered taxable income by federal or state authorities—a scenario where professional legal advice becomes invaluable. Consulting with us at Benjamin Legal Services can help clarify these potential outcomes and ensure you’re prepared for all scenarios.

Market Conditions in Chicago

The local real estate market plays a significant role in deciding whether a short sale is viable or advantageous. Chicago's market has its own dynamics influenced by neighborhood trends, economic conditions, and even seasonal variations. Understanding these elements can help gauge whether home values are likely to recover soon or continue declining, impacting the timing and feasibility of a short sale. Keeping abreast of current data and projections helps make informed decisions about listing prices and negotiations with potential buyers.

Legal Considerations and Documentation

Short sales involve substantial documentation and legal intricacies that differ from traditional home sales—another reason why professional guidance is essential. From obtaining lender approval to drafting contracts that protect your interests during negotiations with buyers, every step demands careful attention to detail. Engaging with knowledgeable attorneys like those at Benjamin Legal Services ensures compliance with Illinois laws while safeguarding against future liabilities.

Alternative Solutions: Exploring Other Options

Before committing to a short sale, it's important to explore alternative solutions that might better suit your circumstances. Options such as loan modification programs or refinancing could offer relief without having to sell your home at all—or potentially improve terms enough that selling becomes unnecessary altogether. Discussing these possibilities with both legal advisors and financial counselors provides clarity on whether other paths might yield better results based on personal goals and situations.

Deciding whether a short sale is right for your Chicago property involves weighing numerous factors—from financial implications and credit impacts to local market conditions and legal requirements. It’s not merely an escape route but rather a strategic decision requiring thorough consideration of all variables involved. By seeking guidance from professionals like those at Benjamin Legal Services who handle such cases within Illinois’ unique landscape, homeowners can navigate these challenges more effectively while minimizing risks associated with hasty decisions.

Currently Non-collectible Status with Benjamin Legal Services in Chicago, Illinois

Thu, 31 Oct 2024 14:45:01 GMT

Currently Non-collectible Status with Benjamin Legal Services

Dealing with tax debt can be overwhelming, especially when you are facing financial hardships. In Chicago, Illinois, taxpayers who are struggling to pay their tax debts may qualify for Currently Not Collectible (CNC) status with the IRS. This temporary designation can provide much-needed relief by suspending collection efforts while you get back on your feet financially. At Benjamin Legal Services, we understand the complexities of CNC status and can help guide you through the process.

Understanding CNC Status:

When you are deemed Currently Not Collectible by the IRS, it means that you are currently unable to afford to pay your tax debt due to financial hardship. This could be the result of job loss, medical expenses, or other unforeseen circumstances. The IRS will temporarily suspend its collection efforts, including levies and garnishments, giving you some breathing room to address your financial situation.

Qualifying for CNC Status:

To qualify for Currently Not Collectible status, you must demonstrate to the IRS that paying your tax debt would create a financial hardship for you. This involves providing detailed financial information such as income, expenses, assets, and liabilities. Our team at Benjamin Legal Services can assist you in gathering and presenting this information to the IRS in a way that maximizes your chances of being approved for CNC status.

Benefits of CNC Status:

Being placed in Currently Not Collectible status can provide immediate relief from IRS collection efforts. It gives you time to focus on improving your financial situation without the added stress of dealing with aggressive collection tactics. Additionally, while in CNC status, the statute of limitations continues to run on your tax debt, meaning that eventually it may become uncollectible entirely.

Working with Benjamin Legal Services:

Our team at Benjamin Legal Services has years of experience helping taxpayers in Chicago navigate complex tax issues such as Currently Not Collectible status. We understand the intricacies of IRS procedures and can advocate on your behalf to ensure that your rights are protected throughout the process. Whether you need assistance with gathering documentation or negotiating with the IRS, we are here to support you every step of the way.

Taking Control of Your Tax Debt:

If you are struggling to pay your tax debt and believe that Currently Not Collectible status may be a viable option for you, don't hesitate to reach out to Benjamin Legal Services in Chicago. Our dedicated team is committed to helping Illinois residents find relief from their tax burdens and regain control of their finances. Let us guide you through the process and work towards a resolution that puts you on solid footing moving forward.

Navigating Currently Not Collectible status with the IRS can be complex and overwhelming, but with Benjamin Legal Services in Chicago on your side, you don't have to face it alone. Our experienced team is here to help Illinois residents understand their options and find a path towards financial stability. Don't let tax debt hold you back – contact us today to learn more about how we can assist you in achieving Currently Not Collectible status and getting back on track towards a brighter financial future.

Do I Actually Need a Bankruptcy Attorney in Illinois?

Thu, 03 Oct 2024 13:45:00 GMT

Do I Actually Need a Bankruptcy Attorney in Illinois?

If you are struggling with overwhelming debt and considering filing for bankruptcy in Illinois, you may be wondering if hiring a bankruptcy attorney is necessary. While it is possible to file for bankruptcy on your own, having the guidance of a skilled attorney can make the process much smoother and increase your chances of achieving a successful outcome. At Benjamin Legal Services, we help Illinois residents navigate the complexities of bankruptcy law and provide personalized legal solutions tailored to each client's unique financial situation.

Understanding Bankruptcy Laws in Illinois:

Filing for bankruptcy can be a complex and confusing process, especially if you are unfamiliar with the laws and regulations governing bankruptcies in Illinois. A qualified bankruptcy attorney can help you understand your rights, obligations, and options under state and federal bankruptcy laws. They can also advise you on which type of bankruptcy (Chapter 7 or Chapter 13) is best suited to your circumstances.

Navigating the Legal Process:

Filing for bankruptcy involves completing numerous forms, attending court hearings, and negotiating with creditors. An experienced attorney can guide you through each step of the process, ensuring that all paperwork is filed correctly and deadlines are met. They can also represent you in court proceedings, protecting your interests and advocating on your behalf.

Protecting Your Assets:

One of the main benefits of hiring a bankruptcy attorney is their ability to help you protect your assets during the bankruptcy process. Depending on the type of bankruptcy you file, certain assets may be exempt from liquidation or seizure by creditors. An attorney can help you identify which assets are protected under Illinois law and develop strategies to safeguard your property.

Negotiating with Creditors:

Dealing with aggressive creditors and collection agencies can be overwhelming and stressful. A skilled attorney can handle communications with creditors on your behalf, negotiating settlements, payment plans, or discharge agreements that are favorable to you. They can also help stop harassing phone calls and collection actions, providing relief from creditor harassment.

Maximizing Debt Relief:

Ultimately, hiring a bankruptcy attorney can help maximize your debt relief by ensuring that all eligible debts are discharged or restructured through the bankruptcy process. An attorney can help you develop a comprehensive debt repayment plan that allows you to regain financial stability and start fresh after filing for bankruptcy.

In conclusion, while it is possible to file for bankruptcy without an attorney in Illinois, hiring legal representation can greatly benefit individuals facing financial difficulties. At Benjamin Legal Services, our team is dedicated to helping Illinois residents achieve debt relief through personalized legal solutions tailored to their specific needs. Contact us today to schedule a consultation and learn how we can assist you in navigating the complexities of the bankruptcy process effectively.

Debunking Social Stigmas Surrounding Bankruptcy

Thu, 05 Sep 2024 21:03:49 GMT

Debunking Social Stigmas Surrounding Bankruptcy

Filing for bankruptcy can be a daunting decision to make, especially with the negative connotations and social stigmas attached to it. However, it's important not to let these misconceptions cloud your judgment when considering bankruptcy as a viable solution for your financial struggles. At Benjamin Legal Services, we are here to help the Illinois public navigate through the complexities of bankruptcy matters and provide support every step of the way.

One common misconception about bankruptcy is that it is a sign of failure or irresponsibility. In reality, bankruptcy is a legal process designed to offer individuals and businesses a fresh start when overwhelmed by debt. It allows you to reorganize your finances and create a plan to repay creditors while protecting essential assets. By seeking assistance from experienced professionals like Benjamin Legal Services, you can ensure that your rights are protected throughout the bankruptcy process.

Another stigma surrounding bankruptcy is the fear of losing everything you own. While bankruptcy may involve liquidating some assets to repay debts, there are exemptions in place to protect certain properties such as your home, car, and personal belongings. Our team at Benjamin Legal Services can help you understand which assets are exempt under Illinois bankruptcy laws and guide you on how to maximize these protections.

It's also important to debunk the myth that filing for bankruptcy will ruin your credit forever. While bankruptcy will have an impact on your credit score initially, it does not mean that you will never be able to rebuild your credit. With proper financial planning and responsible borrowing habits post-bankruptcy, many individuals have been able to improve their credit scores over time. Our team can provide valuable insights on how to rebuild your credit after filing for bankruptcy.

Furthermore, seeking help from professionals like Benjamin Legal Services can alleviate the stress and anxiety associated with navigating through complex legal processes. Our experienced attorneys have in-depth knowledge of Illinois bankruptcy laws and can provide personalized guidance tailored to your specific needs. We understand the challenges you may face during this difficult time and are committed to helping you achieve financial stability.

As we have discussed in this blog post, it's essential not to let social stigmas influence your decision-making when it comes to filing for bankruptcy. By seeking assistance from reputable professionals like Benjamin Legal Services, you can gain a better understanding of the benefits of bankruptcy and how it can help you overcome financial hardships. Remember that bankruptcy is a tool designed to provide relief and a fresh start – don't let misconceptions prevent you from seeking the help you need. Reach out to us today for guidance on navigating through the complexities of bankruptcy matters in Illinois.

Legal Defense in Criminal Tax Matters

Thu, 01 Aug 2024 13:15:00 GMT

legal defense in criminal tax matters

Criminal charges related to tax matters can be an exhausting experience, but having the right legal defense on your side can make all the difference. In Chicago, individuals can turn to Benjamin Legal Services for expert assistance with Bankruptcy & Tax Matters. Let's explore why it is crucial to seek professional representation when dealing with criminal tax issues.

Legal Repercussions

When it comes to criminal tax matters, the stakes are high. Charges such as tax evasion, fraud, or willful failure to file tax returns can result in severe penalties, including hefty fines and even imprisonment. Without proper legal defense, individuals facing these charges may find themselves overwhelmed by complex legal proceedings and unsure of how to protect their rights. This is where experienced attorneys like those at Benjamin Legal Services come in.

At Benjamin Legal Services, we understand the nuances of tax law and have a proven track record of successfully defending clients against a variety of charges. From conducting thorough investigations to negotiating with prosecutors, we go above and beyond to secure favorable outcomes for our clients.

The Sooner The Better

One key aspect of effective legal defense in criminal tax matters is early intervention. The sooner you seek representation from a qualified attorney, the better your chances of building a strong defense strategy. By enlisting the help of Benjamin Legal Services at the first sign of trouble, you can proactively address any issues that may arise and work towards resolving your case in a timely manner.

Personalized Assistance

In addition to providing strong legal defense, Benjamin Legal Services offers personalized support and guidance throughout the entire process. We understand that facing criminal charges can be overwhelming and stressful, which is why we prioritize clear communication and transparency with our clients. With us by your side, you can rest assured that you are in capable hands every step of the way.

In conclusion, when it comes to criminal tax matters, seeking professional legal defense is essential for protecting your rights and achieving a favorable outcome. If you are facing charges related to tax evasion, fraud, or willful failure to file tax returns in Chicago, don't hesitate to reach out to Benjamin Legal Services for expert assistance with Bankruptcy & Tax Matters. Our team is dedicated to providing top-notch representation and support for Illinois residents navigating complex legal challenges. Trust us to fight tirelessly on your behalf and help you navigate this difficult time with confidence.

Chapter 7 Bankruptcy and How it Can Provide a Fresh Start

Thu, 04 Jul 2024 13:30:00 GMT

chapter 7 bankruptcy and how it can provide a fresh start

Chapter 7 bankruptcy is a common form of debt relief sought by individuals who are struggling to manage their financial obligations. This legal process, often referred to as the "fresh start" bankruptcy, offers individuals the opportunity to eliminate certain types of debts while providing a pathway towards financial stability. In this blog post, we will delve into what Chapter 7 bankruptcy entails, how it works, and the benefits it can provide to those facing overwhelming debt.

Chapter 7 bankruptcy allows individuals to discharge various types of debts, including credit card balances, medical bills, routine civil judgments, unsecured debts, and personal loans. This form of bankruptcy is designed for individuals who do not have the means to repay their debts and are in need of a fresh start financially. To qualify for Chapter 7 bankruptcy, individuals must pass a means test that determines their eligibility based on their income level and ability to repay debts.

The Role of a Trustee

Once an individual files for Chapter 7 bankruptcy, a court-appointed trustee is assigned to oversee the process. The trustee's role is to review the individual's financial situation, liquidate any non-exempt property that exceeds specific limits set by law, and distribute the proceeds from the sale to creditors. The individual's eligible debts are then discharged or eliminated through the bankruptcy process, providing them with relief from overwhelming financial obligations.

Not all Debts can be Discharged

It is important for individuals considering Chapter 7 bankruptcy to understand that not all debts can be discharged through this process. Certain obligations such as student loans, child support payments, alimony payments, and tax debts may not be eligible for discharge under Chapter 7 bankruptcy. Additionally, individuals must also complete credit counseling courses before filing for bankruptcy and attend a meeting with creditors.

Despite these requirements and limitations, Chapter 7 bankruptcy can offer individuals a fresh start financially by eliminating unmanageable debts and providing them with a clean slate to rebuild their finances. By working with experienced legal professionals such as Benjamin Legal Services, individuals can navigate the complexities of Chapter 7 bankruptcy with confidence and ensure that they receive the debt relief they need.

In conclusion, Chapter 7 bankruptcy can be an effective tool for individuals who are struggling with overwhelming debt and seeking a fresh start financially. By understanding how this legal process works and enlisting the help of knowledgeable legal professionals like Benjamin Legal Services in Chicago, individuals can successfully navigate Chapter 7 bankruptcy proceedings and emerge on the other side with improved financial stability. If you are an Illinois resident facing significant debt burdens, consider exploring your options for Chapter 7 bankruptcy relief today.

Get Mortgage Loan Litigation Help in Chicago with Benjamin Legal Services

Thu, 06 Jun 2024 13:15:00 GMT

get mortgage loan litigation help in chicago with benjamin legal services

Are you struggling to make your mortgage payments and facing the possibility of foreclosure? Benjamin Legal Services in Chicago can help you restructure your mortgage loan and avoid losing your home. Mortgage restructuring involves making significant changes to your current loan terms, such as reducing the principal, lowering monthly payments, extending the length of the loan, or converting an adjustable rate to a fixed rate. Our team is dedicated to providing foreclosure resolution assistance to Illinois residents who are in need of financial relief.

Why Mortgage Restructuring is Important:

Mortgage restructuring is crucial for homeowners who are facing financial difficulties and are at risk of losing their homes. By modifying the terms of your mortgage, you can lower your monthly payments and make them more affordable. This can help you avoid foreclosure and stay in your home while also giving the bank an alternative to costly legal proceedings.

How Benjamin Legal Services Can Help:

At Benjamin Legal Services, we have a team of experienced attorneys who have extensive knowledge in mortgage loan litigation and foreclosure resolution. We work closely with our clients to understand their financial situation and negotiate with lenders on their behalf. Our goal is to find a solution that works for both parties and allows homeowners to keep their homes without facing the threat of foreclosure.

Types of Mortgage Restructuring Options:

There are several options available for mortgage restructuring, depending on your individual circumstances. These may include reducing the principal amount owed on the loan, lowering interest rates, extending the term of the loan, or converting from an adjustable rate to a fixed rate. Our team will assess your situation and recommend the best course of action based on your needs.

Benefits of Working with Benjamin Legal Services:

By working with Benjamin Legal Services, you can benefit from our expertise in mortgage loan litigation and foreclosure resolution. We have a proven track record of helping Illinois residents restructure their mortgages and stay in their homes. Our team will guide you through the process step by step and ensure that you understand all your options before making any decisions.

Take Action Today:

If you are struggling to make your mortgage payments or facing foreclosure, don't wait until it's too late – contact Benjamin Legal Services today for help with restructuring your mortgage loan. Our team is here to provide support and guidance throughout the process, so you can secure a brighter financial future for yourself and your family.

Don't let financial difficulties jeopardize your home – get mortgage loan litigation help in Chicago with Benjamin Legal Services today. Our experienced attorneys can assist you with restructuring your mortgage loan and avoiding foreclosure, so you can stay in your home without worrying about losing it. Contact us now to schedule a consultation and take control of your financial future!

How an Attorney Can Help You with Your IRS Tax Debt Issues in Illinois

Thu, 02 May 2024 13:00:01 GMT

How an attorney can help you with your irs tax debt issues in illinois

Nobody likes getting mail from the IRS. But when you have tax debt issues, those letters can seem downright terrifying. Fortunately, you don't have to face the IRS alone. Benjamin Legal Services provides legal services for IRS tax debt issues. Our goal is to help you end your IRS nightmares and resolve difficulties related to your IRS tax debt. Keep reading to learn how an attorney can help with IRS tax debt issues in Illinois.

1. Experience and Knowledge

Attorneys have vast knowledge and training in tax law. They know the ins and outs of the IRS code and can help you understand your rights and responsibilities as a taxpayer. They can also provide guidance on the best course of action for resolving your tax debt issues.

2. Protection from the IRS

Most times, when you have an attorney working on your IRS tax debt issues, the IRS is no longer able to contact you directly. This can be a huge relief for taxpayers who are struggling with the stress of constant phone calls and letters from the IRS. Your attorney will communicate with the IRS on your behalf, possibly protecting you from any further harassment.

3. Negotiation Skills

Attorneys are skilled negotiators. They can work with the IRS to negotiate a payment plan, settlement, or even a reduction in your tax liability. With their knowledge of tax law and experience in dealing with the IRS, an attorney can often get a better outcome for their clients than they would be able to achieve on their own.

4. Peace of Mind

Dealing with tax debt issues can be incredibly stressful. Having an attorney on your side can provide peace of mind, knowing that you have an expert in your corner who is working to protect your interests and resolve your issues as quickly and efficiently as possible.

5. Personalized Service

When you hire an attorney for your IRS tax debt issues, you get personalized service that is tailored to your unique circumstances. Your attorney will work with you to understand your situation and develop a strategy that is specific to your needs and goals. They can also provide ongoing support and guidance as you work through the resolution process.

If you're dealing with IRS tax debt issues in Illinois, don't hesitate to reach out to Benjamin Legal Services for help. Our experienced team can provide the guidance and support you need to resolve your tax debt issues and move forward with confidence. With our personalized service, negotiation skills, and knowledge of tax law, we can help you achieve the best possible outcome for your situation. Contact us today to schedule a consultation and learn more about how we can assist you with your IRS tax debt issues.

Everything You Need to Know About Chapter 13 Bankruptcy

Thu, 04 Apr 2024 13:00:03 GMT

Everything you need to know about chapter 13 bankruptcy

Bankruptcy is a daunting term that can evoke feelings of embarrassment and shame for those who don't fully understand it. However, filing for bankruptcy can be a smart financial decision for those who are struggling with overwhelming debt. Chapter 13 bankruptcy is a powerful legal tool that allows individuals to restructure their debt repayment plan with creditors in order to regain control of their finances. In this blog post, we will explore how Chapter 13 bankruptcy works, how it differs from Chapter 7 bankruptcy, and the benefits of filing for Chapter 13 bankruptcy.

What is Chapter 13 Bankruptcy and How Does It Work?

Chapter 13 bankruptcy is also known as the "wage earner's" bankruptcy. This type of bankruptcy is designed for individuals who have a regular income. The goal of Chapter 13 bankruptcy is to give filers the opportunity to restructure their debts and create a manageable repayment plan. Unlike Chapter 7 bankruptcy, which is a liquidation of assets, Chapter 13 bankruptcy allows filers to keep their property and assets. During this process, a debtor proposes a repayment plan to creditors which usually lasts three to five years. The debtor must make monthly payments to the bankruptcy trustee, who will distribute the payments to creditors according to the plan. Once the debtor completes the payment plan, any remaining debts are typically discharged.

How is Chapter 13 Bankruptcy Different from Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a liquidation bankruptcy, where a debtor's assets are sold by the bankruptcy trustee in order to pay off creditors. Under Chapter 7, most of the debtor's debts can be discharged without any repayment. Chapter 13 bankruptcy is different because the debtor can keep their assets and does not have to sell any property. Instead, the debtor proposes a debt repayment plan to the bankruptcy court and creditors. In this case, creditors will receive a portion of the debt owed over the life of the repayment plan.

Benefits of Filing for Chapter 13 Bankruptcy

One of the primary benefits of filing for Chapter 13 bankruptcy is that it can stop foreclosure proceedings, giving the debtor time to catch up on mortgage payments and potentially save their home. Additionally, filers are typically allowed to keep their assets and property, as long as they make the required payments. Chapter 13 bankruptcy also allows filers to restructure their debts in a way that is more manageable and can prevent further financial problems down the road.

Benjamin Legal Services Can Assist

Bankruptcy can be complex, and it's important to have a competent and compassionate legal team by your side. Benjamin Legal Services offers an experienced team who can guide you through each step of the bankruptcy process. From determining if Chapter 13 bankruptcy is the right option for you to crafting a repayment plan and representing you in court, we can help our clients regain control of their financial future.

Chapter 13 bankruptcy could be the solution to your debt problems. This legal tool can give you the chance to reorganize your finances and create a more manageable repayment plan. Working with an experienced bankruptcy team like Benjamin Legal Services can make the process less stressful and more successful. Don't let fear and embarrassment keep you from taking control of your finances - contact us today to discuss your situation!

Bankruptcy in Chicago & My Job: Do I need to worry?

Fri, 28 Apr 2023 01:27:00 GMT

Filing for bankruptcy in Chicago is a big step. On the upside, it can help you reset finances and start over. On the downside your creditworthiness will likely bottom out. Additionally, if you are employed, poor credit is not the only concern. You may worry that Chapter 13 bankruptcy will affect your job. Our experienced Chicago bankruptcy lawyer, J. Kevin Benjamin, can discuss your concerns and help you determine the best way to move forward.

Below are some of the most common questions about bankruptcy in Chicago and your job.

1. Can Illinois bankruptcy affect the job I have now?

In most cases, filing bankruptcy should not affect your current job. Federal law protects people who file bankruptcy from discrimination from their employers. It also protects you from negative actions or retaliation due to a Chapter 13 filing, such as:

Retaliation due to your bankruptcy filing could open the company to a lawsuit.

2. Will my employer find out about my Chicago bankruptcy filing?

Typically, Chicago area employers only get information about your bankruptcy status if it relates to your job duties. However, there are some exceptions:

Your duties include managing finances or handling money.

When you work as a financial advisor, treasurer, accountant or similar job, your employer likely conducts periodic credit checks or background checks as a condition of your employment. A Chicago bankruptcy could raise concerns about your ability to manage money and meet financial obligations. As a result, it could affect your employment status.

You have Chicago wage garnishment due to a Chapter 13 bankruptcy filing.

Employers are often required to deduct a portion of an employee’s wages for creditors after a Chapter 13 bankruptcy filing. While your employer should not discriminate against you based on your bankruptcy status, this could impact your take-home pay, potentially causing financial hardship.

In general, it is unlikely that bankruptcy will directly affect your current job, as long as it does not impact your ability to work or create financial concerns for your employer. That said, Chicago bankruptcy is a matter of public record and the filing documents are available for public review. However, your employer would not typically have access to this information unless it has a valid reason to conduct a credit check or background check on you.

3. What Chicago bankruptcy information is public record?

Some of the bankruptcy information that is available to the general public for review, includes:

Please note that while bankruptcy information is public record, it is still subject to certain privacy protections under federal law. It cannot lawfully be used to discriminate against you in Illinois employment or housing. Nor can it be shared or sold for commercial purposes without your consent.

4. Can Chicago bankruptcy affect my job prospects?

The impact of a Chapter 13 filing on your job prospects can vary depending on the industry and position you are applying for. Some employers may view Chicago bankruptcy as a red flag in the hiring process.

As previously mentioned, if you are applying for a position in the areas of finance or accounting, a past bankruptcy may be seen as a negative indicator of your financial responsibility. On the other hand, if you are applying for a job in a different industry, such as marketing or technology, the effect of your bankruptcy on job prospects may be less significant.

If your career requires a professional license, such as doctor, lawyer, teacher, electrician, etc., it is unlikely that Chapter 13 bankruptcy will affect your standing. However, you may be required to file the information with the ruling board. Government agencies or private government contractors require security clearance for some positions. Generally speaking, bankruptcy will not impact your status if you already have security clearance.

However, private companies can choose not to hire you due to a past bankruptcy filing. A credit check is expected during the hiring process, and potential employers need your permission to pull one. This provides the opportunity to be upfront about the circumstances. You can explain the situation and highlight steps you have taken to improve your financial situation, demonstrating your responsibility and reliability as an employee.

Get help from a Chicago Bankruptcy Lawyer

Are you concerned about the potential impact of bankruptcy on your current or future employment? A Chicago bankruptcy lawyer can discuss your options and develop a plan for managing your debts. J. Kevin Benjamin is a skilled Illinois bankruptcy attorney, ready to help you achieve a brighter financial future. Contact us today or call 312-945-0021 to schedule a free initial consultation.

The post Bankruptcy in Chicago & My Job: Do I need to worry? first appeared on Chicago Bankruptcy Attorney J.Kevin Benjamin .

Top Tips to make your Chicago Chapter 13 Bankruptcy a Success

Thu, 09 Mar 2023 20:41:00 GMT

For Chicago residents who have missed several monthly payments, the risk of foreclosure, threat of repossession and harassing creditor calls make every day stressful. Filing for Chicago Chapter 13 bankruptcy allows you to create a manageable repayment plan without losing your home, vehicle and other personal property. However, it is also a complex legal process. You must adhere to a strict financial plan for three to five years. This takes commitment, and success depends on you. Here are some tips to help you complete Chapter 13 successfully.

Chapter 13 – The Wage Earner’s Plan

If you have consistent income, chances are, you don’t qualify for Chapter 7 bankruptcy, which can wipe out debts in about six months. When filing Chicago Chapter 13 bankruptcy, you propose a repayment plan that repays creditors over a specific time. If the court approves your plan, it assigns a trustee to work with you and distribute the payments.

During the repayment period, creditors cannot contact you regarding collections. Your home and vehicle are not subject to foreclosure or repossession. If debts remain at the end of the repayment period, they are typically wiped out. Exceptions may include student loans, tax debt, alimony and child support.

Can Chapter 13 Fail?

Bankruptcy has several pros and cons, and the benefit that most filers focus on is that they can keep their home, car, and other personal items. Despite the benefits, Chapter 13 bankruptcy filings often fail for several reasons:

What Happens if Your Chicago Chapter 13 Bankruptcy Fails?

If your Chapter 13 bankruptcy case fails, there are several possible outcomes. If the court dismisses your case, your debts will still be active, and creditors will begin collection attempts. In situations that involve job loss or unforeseen events, the trustee may modify your repayment plan or convert your case to Chapter 7. The result may include the liquidation of your non-exempt assets to pay creditors.

Tips for Successfully Completing Chicago Chapter 13 Bankruptcy

Chicago Chapter 13 Bankruptcy Attorney

Several parties, deadlines, and court dates are involved in a bankruptcy case. Managing all components while still accurately completing the required paperwork can be time-consuming and complicated. Having an attorney at your side to navigate the bankruptcy process, work with the trustee and develop a realistic plan can help you survive and thrive after Chicago Chapter 13 bankruptcy. Contact J. Kevin Benjamin or call 312-945-0021 to schedule a free initial consultation and find out if bankruptcy is the right option for you.

The post Top Tips to make your Chicago Chapter 13 Bankruptcy a Success first appeared on Chicago Bankruptcy Attorney J. Kevin Benjamin .

What are Illinois Bankruptcy Exemptions?

Fri, 20 Jan 2023 17:37:00 GMT

Unemployment, inflation, medical conditions and unexpected events combine, becoming a growing, uncontrolled whirlwind of debt, causing your finances to spiral out of control. After months or years of dodging creditor calls, stress levels flare, affecting relationships with friends and family. If you’re holding on by your fingertips, desperately looking for a break, Illinois bankruptcy and its exemptions might be the calm after the storm you need.

What are Bankruptcy Exemptions?

Almost everyone has heard the myth about people losing everything when going through bankruptcy. Although it’s true that many of your assets are liquidated (sold) and used to pay creditors, there are Illinois bankruptcy exemptions that protect most of your personal property. Lawmakers understand that you must keep certain vital assets to emerge from Chapter 7 and survive. As a result, the exemptions protect specific property from being liquidated so that you can thrive when your case is complete.

Illinois bankruptcy exemptions are generous. Most Chapter 7 filings are “no asset” cases, which means that the trustee assigned to your case by the court may not seize any property for liquidation. Here are some of the most commonly used exemptions in Chicago.

Illinois Homestead Exemption

State law protects up to $15,000 worth of property, including:

This would be the total amount of equity available if the trustee sold the property, not its total value. Most people have exhausted the equity in their homes or properties by the time they file for bankruptcy protection, so they don’t have much, if any, equity available.

For example, you have a mortgage. To pay expenses, you take out a second mortgage. Now you can’t afford the monthly mortgage payments, and the debt is almost as much as (or more than) your home is worth.

Illinois Vehicle Exemption

Bankruptcy trustees typically seize property they can liquidate for a significant amount above the exemption. The state exemption protects vehicles worth up to $2,400. Before determining whether to accept the exemption, they factor in the cost of advertising and selling the vehicle.

Illinois Alimony and Child Support Exemptions

These payments are exempt up to the amount considered reasonably necessary to support you and your dependents. The partial to total amount of the payments may be exempt.

Illinois Wrongful Death and Personal Injury Settlements

If you receive personal awards and settlements, they are exempt up to $15,000. The entirety of a worker’s compensation award/settlement is also exempt.

Additional Illinois Bankruptcy Exemptions

State bankruptcy laws protect a broad range of assets. You may only qualify for some of them or have to decide which ones are most important. Additional exemptions include:

Necessary clothing, schoolbooks, family photos, and property held in trust are also protected in bankruptcy.

Federal Nonbankruptcy Exemptions

Depending on your situation, you may qualify for federal nonbankruptcy to supplement the Illinois exemptions. They typically apply to specific government employees or groups of individuals, from judges and military service members to seamen and railroad workers.

Are Chapter 7 and Chapter 13 Exemptions the Same?

The exempt property is the same, regardless of whether you file Chapter 7 or Chapter 13 . The difference is in how the trustee handles nonexempt property. In Chapter 7, the bankruptcy trustee sells eligible assets to pay creditors. In Chapter 13, your disposable income or the bankruptcy value of nonexempt property equity must be paid in the repayment plan.

Get Help with Illinois Bankruptcy Exemptions

Bankruptcy is a complex legal process. It also affects your ability to get a loan, lease and other high value items. The law doesn’t require that you have a lawyer. However, having experienced counsel can ensure you get the most from the process, including keeping as much of your property as possible. Contact me or call 312-945-0021 to schedule a free initial consultation to learn more about bankruptcy and whether it is right for you.

The post What are Illinois Bankruptcy Exemptions? first appeared on Chicago Bankruptcy Attorney J. Kevin Benjamin .

Tips to Avoid Student Loan Forgiveness Scams

Mon, 12 Dec 2022 17:12:00 GMT

As student loan debt continues to rise, President Biden has presented legislation that forgives a certain amount of student loans. Part of the process includes expanding efforts to help protect borrowers from falling victim to scams by educating borrowers and sharing forgivness scam complaints with states.

If you have student loan debt and are desperate for relief, you may be vulnerable to student loan borrower scams. J. Kevin Benjamin is an experienced student loan debt attorney in Chicago, IL. He can help you understand the options available to manage your debt, including payment options offered by the Federal government. He can provide valuable information on your next steps if you think you’ve already been scammed.

What is a Phishing Scam?

Phishing is any action by a person or organization that gets you to reveal personal information to steal your identity or money. Criminals set up a situation where you believe you’re giving credit card numbers, banking information or passwords to legitimate websites and companies. They may send an email or text containing a link that sends you to a phishing website. Sophisticated criminals set up call centers that auto-dial or text numbers, looking for targets.

Why Do Student Loan Forgiveness Scams Exist?

Any time consumers have a pain point, legitimate businesses work to reduce the pain. Scammers make it look like they are legitimate businesses, but their goal is to take advantage of people looking for a solution. With American student loan debt topping $1.6 trillion , paying off student loans is a concern for many Chicagoland residents. The student loan debt relief industry is not as tightly regulated as other industries, such as banking. As a result, scammers have more opportunities to prey on borrowers.

What are the Warning signs of Student Loan Forgiveness Scams?

You may have received an advertisement or even an official-looking letter that promises to help you get student loan debt relief. Beware that these are likely scams. Some companies charge fees for services you can take care of on your own, while others will steal your sensitive information. Here are some warning signs that indicate a student loan scam.

Forgiveness is promised – Legitimate forgiveness programs typically require proof of hardship or many years of payments before qualifying. If a company promises immediate forgiveness, it indicates a scam.

Upfront payment is required – Your student loan servicer can help you find a more affordable repayment program for free. If the company charges a fee to help you lower payments, it may be proof of a student loan scam.

Access to your FSA ID password is requested – Neither the Department of Education nor your student loan servicer will ask you for your password. This is the password you use on StudentAid.gov. It has the same legal status as your signature and gives scammers access to your sensitive data.

Use of high-pressure tactics – Any time you see/hear phrases such as “limited time offer” or “immediate action is required” from a company that says they can help, it may be a scam. The Department of Education does not partner with organizations other than your student loan servicer.

Signing power of attorney is needed – This can give the organization authorization to act on your behalf for any reason. It doesn’t need to be related to student loans. A reputable company will not ask you to sign this form.

Chicago Student Loan Lawyer

You can change payment plans, consolidate and take other similar actions on your own. However, wading through the paperwork can be time-consuming and confusing. More than a dozen plan options, and forgiveness programs are available to most borrowers, depending on status, industry and current job. J. Kevin Benjamin has the training and experience to help you determine the best way forward. He can provide valuable guidance if you’re considering bankruptcy or just need lower monthly payments. Call 312-945-0021 to learn more and to schedule an analysis.

The post Tips to Avoid Student Loan Forgiveness Scams first appeared on Chicago Bankruptcy Attorney J. Kevin Benjamin .

What is Debt Relief in Illinois?

Fri, 09 Sep 2022 17:41:00 GMT

Chicago Debt Relief Has Many Forms: Which is Right for You?

Illinois residents don’t need to scroll through their feed to know times are tough. Inflation and unemployment numbers continue to rise, making it harder to maintain the lifestyle you worked so hard to achieve. If the last few years have resulted in living on credit and a plummeting FICO score, you may be ready to consider some form of debt relief. Talking with an experienced debt relief attorney in Chicago can help you understand the options available and make the choice that’s right for you.

What is Debt Relief?

Debt relief comes in many forms, from debt settlement and debt management to Chapter 7 and Chapter 13 bankruptcy. Each option has pros and cons. Despite their differences, they share several components. Among them include:

Various fees
Negative impact to your credit
Utilize a third-party

On the upside, financial relief may be around the corner if you have more debt than money.

Debt Management Plans

Often developed by debt consolidators or credit counseling agencies, debt management plans do not settle your debts or offer loans. However, they typically have agreements with credit companies and financial institutions to provide lower interest rates when you make payments through the agency/debt management company. This allows you to pay more on the principal you owe and less interest, which enables you to pay the amount you owe faster.

Debt management companies charge for their services and may have various fees, such as:

Monthly maintenance fees
Startup fees
Other hidden fees

As a result, you may not be saving any money at all. You’ll likely have to close all your credit cards, and these plans only work for unsecured debt. If you need help paying your mortgage or auto loan, this debt relief may not be for you. Generally speaking, payment plan terms are five years or less. If you cannot pay off the debt in that time frame, Chapter 13 may be a better option.

Debt Settlement

Debt settlement occurs when creditors settle for less than what you currently owe, expecting you to pay the new, agreed-upon amount in full. Also known as debt adjustment, this process is typically handled by a third party. Not all lenders will accept debt settlements, and the process is often complicated for those that do.

In addition to the settlement amount, you’ll also be charged a fee for the third party’s services. They negotiate your debt and withdraw funds from an account that you set up for them. In some cases, the settlement is a lump sum; in others, it’s a monthly payment. Debt settlement companies may charge between 15% and 20% of the original debt amount, not the final amount you pay. This could be thousands of dollars, depending on how much you owe.

Attorneys often charge a flat rate. If you carry an enormous debt burden, hiring a lawyer may be less expensive. Legal professionals also have a deeper understanding of the law, which means they may be able to negotiate a better deal with your creditors. The entire process can take up to four years, and you’ll have to pay taxes on any forgiven debt. Ultimately, whether you hire a credit settlement company or lawyer for Chicago debt relief, your credit will likely take a hit.

Chapter 13 – Debt Repayment Plan

Medical bills and underemployment are two leading reasons Illinois residents have more debt than they can afford. If you have consistent income but cannot make any headway on your debt, Chapter 13 bankruptcy may finally help you get ahead, and it can stop creditor calls, wage garnishment and lawsuits. If you are a homeowner and have a vehicle, Chapter 13 can also prevent foreclosure and avoid repossession.

The main feature of this type of bankruptcy is the payment plan. Your attorney negotiates a payment plan based on what you can afford after the allowed exemptions. Afterward, you make one monthly payment to the trustee, who distributes an agreed-upon amount to each creditor. If you have made the required payments at the end of three to five years, most remaining unsecured debt may be forgiven (wiped out). Your credit will take a hit, but you’ll be free and clear to start rebuilding it the right way.

Chapter 7 – Debt Discharge

Unemployment and unexpected expenses, such as medical bills and catastrophic events, often result in mountains of unsecured debt. If you cannot make minimum required payments, dodge daily creditor calls and are at risk of losing your home, Chapter 7 bankruptcy may provide the financial relief you need.

Although you must liquidate non-exempt property, you have options when choosing which exempt property you want to keep. The process is often completed in about six months. While Chapter 7 stays on your credit for seven to ten years, you can begin rebuilding your credit almost immediately.

Debt Relief Help in Chicago

If you’ve been struggling financially since the pandemic began, or even before, you have suffered long enough. Contact J. Kevin Benjamin or call 312-945-0021 to schedule a free consultation. He can help you determine which option best fits your needs. He can negotiate with creditors, help you navigate the Chicago debt relief process and handle student loan issues.

Next month we’ll cover rebuilding your credit. As we head toward the end of 2022, acting now can help you start 2023 with a strong financial plan.

The post What is Debt Relief in Illinois? first appeared on Chicago Bankruptcy Attorney J. Kevin Benjamin .

Why Your Lender May Have Rejected Your Chicago Loan Modification

Mon, 15 Aug 2022 19:01:00 GMT

the decision, or find another option fits your needs better than a Chicago loan modification.

In the last six months, inflation has hit levels not seen since 2008. With costs skyrocketing, your current paycheck may no longer cover basic expenses. For thousands of residents, a Chicago loan modification could lower the mortgage payment due each month. If you’ve gone to your lender and they rejected your modification, you may have other options.

What’s the Status of the Illinois Housing Market?

Homeowners with high levels of debt often resort to selling their property to get some breathing room and lower debt to income-ratios. However, higher interest rates mean higher mortgage rates in today’s real estate market. As a result, fewer people can afford to buy a home. This situation might leave homeowners in danger of foreclosure. One of the most common ways to avoid foreclosure is a loan modification.

What is a Loan Modification?

Refinancing means you have a new mortgage with different terms. A loan modification refers to changes made to the terms of your current loan. The changes might include:

Changing the loan type from an adjustable to a fixed rate
Extending the length of the loan
Changing the interest rate

There is no one-size-fits-all modification. Several different types of programs exist, and each has its own qualification requirements. FHA and VA loans often have home loan modification programs for eligible borrowers.

Why Was My Request for a Loan Modification Denied?

Applying for a loan modification in Chicago is typically not a quick, easy process. Collecting and submitting the information needed, including personal data, takes time and effort. There are many reasons your lender might deny your request for a loan modification, such as:

You have already received loan modifications
You did not make 12 consecutive payments on the original loan or current modification
You cannot afford the modified payment
You have an incomplete or untimely application for a loan modification

However, it is not uncommon for a loan modification denial due to servicer errors or violations. Federal regulations protect borrowers from fraudulent activity, and servicers must meet specific requirements when denying a modification request. These requirements include:

Failing to advise you within five days of receiving the application that more information is needed
Failing to decide within 30 days of receiving a complete application for a loan modification
Scheduling a sheriff sale or applying for a Final Judgment while the application is reviewed
Advising you that you must be in default to apply for a loan modification

Your modification could also be denied if you have a poor loan-to-value ratio. According to the Homeowner’s Rights Act , your lender must notify you of your legal options and rights if they decide to foreclose.

Can I Appeal a Loan Modification Denial?

If you received a denial notice in the mail, don’t panic. You still have options and time. The law requires the lender to tell you why it denied your request. This gives you the opportunity to write an appeal letter or restructure your application and try again. If you address the lender’s concerns, you have a higher chance of being approved the next time.

Submitting a complete loan modification request demonstrates that you are committed to keeping your home. If you go to foreclosure proceedings, the court will also note this. In many cases, it can extend the foreclosure timeline, giving you more breathing room to work things out.

Chicago Loan Modification Lawyer

The thought of losing your home can be stressful, taking your focus away from other areas of your life that need attention. If you received a denial letter from your lender, it’s critical that you act quickly. J. Kevin Benjamin is an experienced Chicago attorney with decades of experience helping clients avoid foreclosure . He can determine if a loan modification is your best option and negotiate terms with the mortgage holder.

If the lender violated your Homeowner rights, J. Kevin Benjamin can act in your best interests and challenge their right to deny your application. Contact him or call at 312-945-0021 and schedule a free, no-obligation consultation today. It costs you nothing and could help you keep your home.

The post Why Your Lender May Have Rejected Your Chicago Loan Modification first appeared on Chicago Bankruptcy Attorney J. Kevin Benjamin .

ICYMI – You Might Be Eligible for Student Loan Forgiveness

Sat, 30 Jul 2022 01:11:00 GMT

The post ICYMI – You Might Be Eligible for Student Loan Forgiveness first appeared on Chicago Bankruptcy Attorney J. Kevin Benjamin .

Your Rights During the Foreclosure Process in Illinois

Mon, 28 Feb 2022 16:42:00 GMT

The post Your Rights During the Foreclosure Process in Illinois first appeared on Chicago Bankruptcy Attorney J. Kevin Benjamin .

Student Loan payments: The Storm After The Pause

Mon, 28 Feb 2022 15:38:00 GMT

Are you ready to make student loan payments again?

Do you know what to do if you can’t afford it?

A Chicago Student Loan Lawyer, can answer your questions, analyze your case and help you understand which programs best fit your situation and budget.

Help for Student Loan Borrowers

The 2-year Student Loan Pause ends in April
The average Chicago student loan balance is nearly $40,000
Recent legislation may have changed your options

As the Student Loan Pause winds down, inflation and unemployment plague millions of Americans. On top of skyrocketing prices on everything from utilities to groceries, bills for student loan repayment programs begin again in May 2022.

It’s been almost two years since legislation placed a pause on student loan payments. The cost of living has risen dramatically since the pandemic began and outpaces wage increases. The average student loan debt in Cook County, IL is nearly $38,000 and Illinois is ranked in the Top 10 states with the most student loan debt. The estimated average student loan balance in Chicago is almost $40,000.

Student loan law is a complex, fast-evolving legal area. Getting help from a student loan lawyer with the experience and specific training in student loans can ensure you understand the best way to move forward and deal with your loans.

Student Loan Servicers

Millions of student loan borrowers have a new servicer
You may have to change the electronic payment information
You might need to find your StudentAid.gov login/password

Student loan servicers are the companies that handle the collection of student loan payments for the federal government. There has been a shake-up among servicers since The Pause, and you may have a new servicer when you get your next bill.

If you used to send payments to Navient, you might now get bills from Maximum. If Granite State handled your loans, they will now likely be serviced by Edfinancial. These changes took place at the end of January. According to Federal Student Aid, if you have not received notification about the change or don’t know your student loan servicer , you can log into your account dashboard or call 1-800-433-3243.

Any automatic payments you had set up with your old servicer will not transfer, so you’ll need to create a new account. If you need to request an additional forbearance or want to change your payment plan, you must go through the new servicer.

Choosing the Right Student Loan Repayment Plan

Between Illinois-specific options and the federal programs, there are more than a dozen student loan repayment plans and options such as consolidation and rehabilitation that might help you get back on track with payments. Depending on your career path and situation, you could be eligible for forgiveness or discharge.

Your Chicago Student Loan Debt Relief Options

Although student loan servicers might be able to tell you about the different repayment plans you qualify for, they may not know about the long-term consequences of those plans. If you struggle with mortgage payments or overwhelming debt, student loans may be only one part of your financial troubles. Contact Benjamin Law and schedule a student loan analysis. J. Kevin Benjamin can determine which consumer debt relief options best fit your circumstances and help you take back financial control.

The post Student Loan payments: The Storm After The Pause first appeared on Chicago Bankruptcy Attorney J. Kevin Benjamin .

The CARES Act: Are Your Student Loans Protected?

Wed, 16 Jun 2021 21:35:00 GMT

Student loan debt was already making news when COVID-19 hit in 2020. The Coronavirus Aid Relief and Economic Security (CARES Act) was first passed by President Trump on March 27, 2020, with the goal of helping people with their federal student loans. However, the protections expire in September 2021. If you struggled with federal student loan payments before CARES, take action now. It takes at least 45 days to get a payment plan in place. Don’t fall further behind in payments. Contact us today and talk to a student loan lawyer in Chicago.

What does the CARES Act do for student loans?

Presidents Trump and Biden each extended the effective timeframe for the protection of the CARES ACT. Currently, the benefits expire on September 30, 2021. For qualified loans, the CARES Act reduced interest rates to 0% and suspended payments. It also stopped wage garnishments and collection attempts if you were in default. It’s important to note that not all student loans qualified under the legislation.

What loans qualify for protection under the Cares Act?

According to the U.S. Department of Education, only federal student loans held by the Department of Education are eligible for protection. Some Stafford/FFEL and Perkins loans may not be covered, especially if your loan is in good standing and you make payments on time. Depending on your circumstances, you may not benefit from the CARES Act and must continue paying these loans even while other loan payments are suspended.

The Federal government subsidizes some federal student loans but does not own them. This is the major difference as to whether CARES covers them.

Are there exceptions to student loan protection under the CARES Act?

Despite the fact that the CARES Act attempts to clearly define which loans qualify for protection, there are several exceptions. Some loans can become federal-owned loans based on the status of the loan, your status, or various other circumstances. Understanding eligibility requirements, how they apply to your loan and what it means, in the end, is best accomplished with the help of a trained student loan lawyer. Making a mistake can cost you dearly with a severe negative impact when the CARES Act expires or potentially sooner.

How does a student loan lawyer help me?

A trained, experienced student loan lawyer understands the specific circumstances of the loan cycle. They can help you understand your loan status and the strategies you can implement during the protection period and after the CARES Act expires. Knowing how to position your loans now can help you avoid collections, make it easier to plan your finances, and ease any stress you have on this topic.

Contact us today to set up an analysis of your student loans. Take steps to make sure you are prepared and don’t get stuck in the middle when CARES expires.

The post The CARES Act: Are Your Student Loans Protected? first appeared on Chicago Bankruptcy Attorney J. Kevin Benjamin .

Does Bankruptcy Wipe Out My IRS Tax Debt?

Tue, 01 Jun 2021 19:12:00 GMT

Have you fallen behind in your monthly bills? Whether it’s credit card debt, missed mortgage and car payments, or additional financial burdens, are they too expensive for you to handle? Millions of Americans have financial hardships related to medical bills, unemployment, and other circumstances. You may be looking at debt relief offered by bankruptcy in Chicago. However, if you owe the government, the tax debt may or may not be discharged (wiped out) with Chapter 13 or Chapter 7 bankruptcy.

Can Chapter 13 Help with My Tax Debt?

Chapter 13 may help you manage your tax debt. If the debt is at least three years old, might be forgiven without payment and discharged. It depends on a variety of factors, including the amount of your disposable income once necessities and reasonable expenses are tallied. You don’t incur any additional penalties or interest after it’s discharged.

Although a tax lien less than three years old is typically not discharged, you may be able to satisfy it through the Chapter 13 payment plan. The IRS is obligated to abide by the plan, as are all creditors. However, the plan must include all back income tax requirements. Chapter 13 payments typically last three to five years. You must keep up your tax returns and tax payment obligations current throughout the plan.

Can My Tax Debt Be Discharged in Chapter 7?

You may be able to wipe out your tax debt with Chapter 7 in Illinois. However, not everyone qualifies for the “fresh start” option. The means test determines if you’re eligible for this type of Chicago bankruptcy. Once qualified, you’ll need meet the following conditions for federal income tax debt to be discharged in Chapter 7:

Income taxes are the only taxes that bankruptcy can discharge.

Tax Levy vs. Tax Liens

A tax levy is a legal seizure of your property to satisfy a tax debt. A tax lien is a claim or security interest against specific property. For example, if you have a mortgage, a lien may be placed on your home. A creditor can sell the property if you don’t pay the debt. A federal tax lien is similar to a mortgage. Your obligation is to the IRS instead of your mortgage lender. When the IRS imposes a tax lien, it does not get wiped out in Chapter 7 or Chapter 13 bankruptcy.

Tax Debt Consultation in Chicago

If you have questions about bankruptcy and if it can help with your tax debt, contact Benjamin Brand, LLP for a free consultation . We help clients throughout Chicagoland find debt relief options. Our office is located in Chicago’s West Loop. Although we accept consultations in person, we follow social distancing recommendations. You can schedule a consultation via phone or video conference if you prefer. Let us help you take your life back and begin rebuilding your credit.

The post Does Bankruptcy Wipe Out My IRS Tax Debt? first appeared on Chicago Bankruptcy Attorney J. Kevin Benjamin .

Can I Get Help with My Federal Student Loans?

Fri, 24 May 2019 17:59:00 GMT

Did you know you may qualify for a student loan repayment plan that lowers your monthly payment?

Federal student loans have several options to assist people with paying them off. However, typically people are unaware of their student loan repayment plan options until they are in payment trouble. This is where a student loan lawyer can help. We can help you with a variety of legal issues caused by delinquency or default of your federal student loans, as well as:

Federal Student Loan Repayment Plans

There are nine different federal Student Loan Repayment Plans . Each one has a different payment calculation method and uses different logic to determine how they work. Several plans are based on income such as IDR, New IDR, ICR and IBR. Other options are balance-based. The plans are as follows:

UPDATE FOR 2021: Depending on your industry, such as healthcare or education, there may be additional repayment plan options for you. J. Kevin Benjamin is our student loan lawyer in Chicago – contact us to learn more.

Revised-Pay-As-You-Earn

There are many variables you should consider when selecting which of the Student Loan Payment Plans you want. These variables include:

The answers to the above questions make a difference because some repayment plans put you on a gradually increasing payment regardless of future earnings growth. Other federal student Loan repayment plans dictate an amount that increases as your income increases. An annual review of income is required and evaluated.

Which Student Loan Repayment Plan is Right for Me?

When contemplating these options, we can help you understand the ramifications of each plan and any effects on short and long-term goals. Once we decide which program works best, we can complete the necessary documents, file them per procedure and help maintain the plan if yearly recertification is required.

There are more options for working with federal student loans which include:

Not all of the repayment plans are offered to everyone with some restricted to certain loans or can only be used once. Every program has a different impact on:

Need a Student Loan Lawyer in Chicago?

Contact us or call 312-945-0021 to schedule a consult with J. Kevin Benjamin. He can asses your situation and help you get the right repayment plan. This can help you avoid a federal tax intercept and sidestep bankruptcy.

The post Can I Get Help with My Federal Student Loans? first appeared on Chicago Bankruptcy Attorney J. Kevin Benjamin .

What is Bankruptcy in Chicago?

Fri, 19 Apr 2019 17:14:00 GMT

Bankruptcy in Chicago is a legal process used to eliminate a variety of debts when a person is not able to afford payments. It is not always calculated or based on debts being larger than assets. It is more often related to the ability for a person to repay the debts based on income after paying necessities such as groceries, utilities, children’s needs, etc.

Considering filing Chicago bankruptcy?

Ask yourself these questions:

If the answer to at least one of these questions is yes, filing for Chapter 7 or Chapter 13 bankruptcy may be the best option.

How do I know when to file bankruptcy in Chicago?

Many individuals feel filing for bankruptcy in Chicago is a scary experience and something a person should never do unless there are no other options. This fear is unnecessary and can lead to significant harm by not taking action. Filing for bankruptcy in Chicago can be refreshing as a person becomes unburdened with the immense financial pressures and receives an opportunity for a new beginning. Determining whether to file for Chapter 7 or Chapter 13 bankruptcy in Chicago, there are several actions a person should take.

How do I declare bankruptcy in Chicagoland?

The first step regardless of whether debts and assets have been calculated is to call me for a free consultation where we can discuss the types of bankruptcy in Chicago. Chapter 7 and Chapter 13 bankruptcies are typically the most filed but have different timelines, benefits and procedures. Chapter 13 bankruptcy has several protections that Chapter 7 does not but takes longer to complete. Contact us today at 312-945-0021 and we will assist with selecting and processing the best bankruptcy option.

The post What is Bankruptcy in Chicago? first appeared on Chicago Bankruptcy Attorney J. Kevin Benjamin .

Stopping Federal Tax Intercept & Keeping Your Tax Refund

Tue, 19 Mar 2019 16:05:00 GMT

Federal Tax Intercept occurs when the Internal Revenue Service takes (intercepts) a tax refund you think you are getting in order to pay off government debt. Federal Student Loans are one such qualifying government debt that can lead to a tax intercept . Often, the IRS will not notify you in advance of the intent to have your tax refund intercepted. You typically find out the hard way when you realize you did not receive your tax refund. Most often, you have received several notices from collection agencies or loan servicers well in advance which may include a warning that a tax intercept is possible.

How Do I Stop A Federal Tax Intercept?

Stopping a Federal Tax Intercept is not easy, but it can be done. The first thing is to get ahead of it by taking action before filing your tax returns. Most often, it requires the preparation of several documents, which can be confusing. A trained Student Loan Lawyer at Benjamin Brand, LLP can create a strategy with you, prepare and file the necessary documents. Consolidating loans, performing rehabilitation or changing your current arrangement to an Income-Driven Repayment plan before things get bad can help to avoid or resolve the default before the federal tax intercept scenario can occur. Some variables that come into consideration when preparing a strategy include:

Does My Spouse Lose Tax Refunds as Well?

Not necessarily. It depends on the filing status with your spouse.

If you file jointly, your spouse has generated enough income that part of the tax refund is theirs and you incur a Federal Tax Intercept, your spouse does have an option. Your spouse can file the Injured Spouse form with the Internal Revenue Service. Their refund may be a proportional amount that your tax return justifies as their portion of the refund. This is somewhat discretionary on the part of the IRS as it does not have to agree with the amount you feel your spouse is due. However, the IRS is most likely to go with the refund amounts calculated directly from the tax return. If you do not file joint tax returns, your spouse will most likely not have their tax refund intercepted due to your federal student loan default.

Contact a Chicaog Student Loan Lawyer Today

Student loan law is a specialized niche, with complex rules and requirements. We have the training and experience to help you deal with your federal student loans and get back on track. Contact us today, or call 312-945-0021 to learn more.

The post Stopping Federal Tax Intercept & Keeping Your Tax Refund first appeared on Chicago Bankruptcy Attorney J. Kevin Benjamin .