DO I HAVE TO INCLUDE THE INCOME OF MY CO-HABITATING PARTNER ON MY BANKRUPTCY PETITON?

As you may recall from previous posts, when filing a bankruptcy petition, you are required to provide information about your household income in order to determine your eligibility for a Chapter 7 bankruptcy or your payment amount for a Chapter 13 bankruptcy.  In Illinois, if you are co-habitating with a partner or living with a spouse, you must include their income as part of the household income.

http://www.westmontattorneys.com/Bankruptcy/

HOW DO I VALUE MY ASSETS IN A BANKRUPTCY?

In a Chapter 7 bankruptcy, the state provides certain exemption limits that protects your assets from bankruptcy, and any assets with a value above that limit could be at risk.  The trustee is not interested in your small assets such as everyday clothing or kitchen utensils.  They are looking for assets that can liquidated such as a coin or art collection, sports memorabilia, etc.  As a result, it is very important how your assets are valued on your bankruptcy petition.  In certain situations, your valuation and that of the trustee can vary greatly, and an independent appraisal may be necessary.  For real estate and vehicles, there are several websites available to provide an estimation of the property's value.  With other assets, a valuation can be much more complicated.  For more information on this issue, feel free to contact one of our experienced bankruptcy attorneys.

http://www.westmontattorneys.com/Bankruptcy/

WHAT HAPPENS IF I STOP MAKING PAYMENTS IN A CHAPTER 13 BANKRUPTCY?

As discussed in previous blogs, a Chapter 13 bankruptcy requires the debtor to make monthly payments to the bankruptcy trustee, who will then distribute the money to creditors in accordance with their priority.  If the debtor ceases making payments in a chapter 13 bankruptcy, the case will be dismissed with no resulting discharges.  For the debtor, it would be as if no bankruptcy was ever filed, and he or she would lose any of the money that was paid related to the bankruptcy.

http://www.westmontattorneys.com/Bankruptcy/

HOW IS A LEASED VEHICLE HANDLED IN A CHAPTER 7 BANKRUPTCY?

In a Chapter 7 bankruptcy, you have three options with a secured debt as previously discussed in this blog: redemption, surrender, and reaffirmation.  If you would like to retain your secured property, such as a house or vehicle, almost 99% of people choose reaffirmation, where you agree to continue making payments to the creditor of that debt.  If you are leasing a vehicle, there is obviously no equity in the vehicle because there is no ownership.  Therefore, the bankruptcy trustee cannot seize the property to settle creditor claims, and therefore, if you wish to retain the automobile, you can simply execute an assumption of the lease with the creditor, and your payments will continue just as they were prior to the bankruptcy filing.

http://www.westmontattorneys.com/Bankruptcy/

HOW OFTEN CAN I FILE BANKRUPTCY?

The bankruptcy laws specifically state when you can re-file bankruptcy after previously receiving a discharge.  If you file for a second time and the statutory period has not concluded from the first bankruptcy, you will not be able to obtain a discharge.  For example, you cannot receive a second Chapter 7 discharge within eight years of the filing of your last Chapter 7 bankruptcy.  Also, you cannot receive a discharge on a Chapter 13 bankruptcy case if it was filed within two years from the date your last Chapter 13 bankruptcy was filed.  Finally, if you previously receive a discharge from a Chapter 7 case, you cannot receive a discharge from a Chapter 13 case that was filed within two years of the filing date of your previous Chapter 7 case.  Understandably, this can be very confusing so if you have previously filed bankruptcy, but believe it is currently in your best interests to do so again, please contact one of our experienced bankruptcy attorneys for a free consultation.

http://www.westmontattorneys.com/Bankruptcy/

WHAT HAPPENS IF I DO NOT ATTEND MY 341 CREDITOR'S MEETING?

If a debtor fails to attend a 341 Creditor's Meeting, the trustee does have the option to dismiss the case, although this usually will not happen.  In most instances, the trustee will continue the 341 meeting to a future date and give the debtor one more opportunity to attend.  If you do miss a meeting, it is important that you contact your attorney immediately, if you have retained one, in order to resolve the situation and learn of the new meeting time if the trustee decided to continue it.  Either way, if you know you will have a conflict with a scheduled 341 meeting, it is best to have your attorney contact the trustee prior to the meeting date to make the appropriate arrangements.

http://www.westmontatorneys.com/Bankruptcy/

CAN YOU CONVERT FROM ONE CHAPTER TO ANOTHER IN BANKRUPTCY?

When a bankruptcy is filed, you must choose under what chapter you are filing.  If the filing individual's or business' circumstances change, many times debtors will want to change the chapter under which they filed.  Federal law allows debtor's one conversion to another chapter as long as it does not involve fraud or bad faith intent.  However, if you are converting to another chapter, you must still qualify for the other chapter.  Also, some bankruptcies will be converted by the trustee or the court under rights provided to them by law.  If you have filed a bankruptcy petition and you believe you would like to convert to another chapter, please consult your bankruptcy attorney for a full list of options.

http://www.westmontattorneys.com/Bankruptcy/