Blogs

Often times a person who files Chapter 7 has a home mortgage. Sometimes a first and second mortgage. The client is current on the monthly mortgage. They ask: “Should I reaffirm my mortgage”? Lawyers who represent Chapter 7 individuals say “No”. This includes my firm, Robert J. Adams & Associates. In the final analysis the choice is always yours. This is why every one of my Chapter 7 clients with a mortgage gets the following letter. If you are a homeowner considering filing Chapter 7, I hope this helps you. Dear Mr., Ms. or Mr. and Mrs._____________, You are receiving… Read More

Individuals who file Chapter 7 bankruptcy frequently have a car note. They ask “What do I do about the car? Some clients want to keep their car and continue to pay the car note. Some find the car and the car note a burden and want to give it back. Keeping the car or giving it back is always your choice. This is why every one of my Chapter 7 clients with a car note gets the following letter. If you have a car note and are considering filing Chapter 7, I hope this helps you. Re: AUTOMOBILE REAFFIRMATION AGREEMENTS… Read More

In my blog: What is a Chapter 7 bankruptcy case and what do I need to get started? I try to lay out what is needed when you visit our office (or another’s lawyer’s office.) This blog tells you a bit of what a Chapter 7 is and how it works. Many good folks are a bit scared of any legal process. At first it seems intimidating. It is not when you hire an experienced law firm. Hopefully, that will be ROBERT J ADAMS & ASSOCIATES, a firm with 40 years’ experience. The purpose of Chapter 7 is to discharge… Read More

People file Chapter 7 bankruptcy to get a discharge of debts. At the end of the Chapter 7 you don’t owe the money anymore. Of course, not all debts are dischargeable. For instance: A car note for a car you want to keep. Same for a home mortgage; Student Loans; Child support payments; parking tickets and tollways debts; Income tax debts. But, some IRS debts are dischargeable; Co-debtors nor Cosigners receive a discharge in your Chapter 7. Also, creditors can file a complaint to except a debt from discharge. This is rare. A competent lawyer looks for problem areas and… Read More

With large credit card and other unsecured debts, Chapter 7 is the best option. But, sometimes Chapter 7 is not available to you. Or, Chapter 13 is the best option: like saving your car or your house. People ask how much they have to pay their credit card bill in Chapter 13. Chapter 13 plan propose a “dividend” to unsecured creditors. The dividend is the percentage that unsecured creditors will get. A plan with a 10% dividends means the unsecured creditors will get ten cents of the dollar of its filed claim. If the unsecured filed claims are $30,000 the… Read More

There are 3 basic types of claims in Bankruptcy for folks: Secured claims; Priority claims; and General unsecured claims. Secured Claims A secured claim is one where the creditor has a lien on a property in your possession. A secured claim can be by agreement; by law; or by recording a lien. By agreement. The most common types include mortgages, cars, and even furniture. The individual agrees that the creditor has a lien on certain property as well as on the note. By law. This would include real estate taxes. By recording. Creditors who get a money judgment can record… Read More

Often individuals with a heavy debt load want to file Chapter 7 but find out they can’t. There is a Means Test. Many middle-income folks are “high earners” in Bankruptcy Land. What this means is the income in the family exceeds certain thresholds. I have a blog that explains the Means Test in greater detail: https://www.robertadamslaw.com/beat-means-test/ So what do you do if a lot of debt; and income above the threshold? I often talk to good folks with situation frequently. And, we discuss what happening in their life. They tell me they are juggling their debts. Stealing from Peter to… Read More

IRS debts can be discharged in a Chapter 7. Eliminating Tax Debt in Bankruptcy The following set out the rules to discharge an IRS debt in Bankruptcy: You filed the Income tax return. At times the IRS files substitute returns when an individual has failed to file. Another name for this is Service Filed Returns. The amounts due on IRS filed returns are not dischargeable. The tax is for income-an income tax. You cannot discharge payroll taxes. The tax debt is at least 3 years old. Generally, the due date is April 15th. If April 15th falls on a Saturday… Read More

Did you ever park your car to run into a store for a few minutes? You come back out and find a big fat Chicago Parking ticket on your windshield. It has happened to me. Ruins your day! Accumulated parking tickets are a major headache; license suspension; being “booted”; cars impounded. If the tickets go to a collection lawyer it can be a bad mark on your credit; and, even a lawsuit and wage garnishment. How dangerous is a license suspension? A recent survey: half the people lose a job or can’t get a job. People often don’t know that… Read More

Bankruptcy laws say you have to do a Means Test. You are to list the gross income in family for the past six (6) months. The total is compared to the Illinois State Standards. If your gross family income is above a certain amount they want you to file a Chapter 13 instead of a Chapter 7. Most people have income below the Means Test. Everyone has to take the Means Test. For most it is only a simple exercise but for some it presents a challenge. Even if your gross income is above the income listed below there are… Read More