Chicago Bankruptcy Attorney Chad Hayward Explains Types Of Bankruptcies
There Are Two Types Of Bankruptcies: Chapter 7 And Chapter 13 Bankruptcies Explained By Chad Hayward
Chicago Bankruptcy Attorney Chad Hayward is our expert guest writer at Gustan Cho Associates Mortgage Resource Center and one of the most respected and sought after Bankruptcy Attorneys in the Chicagoland Area. Attorney Chad Hayward is not just an expert bankruptcy attorney but is also an experienced real estate attorney. Here is an excerpt from Chicago Bankruptcy Attorney Chad Hayward soon to be published book on how he explains the two types of bankruptcies consumers downing in debt can utilize for a fresh financial start in life.
Chicago Bankruptcy Attorney Chad Hayward Of The Law Offices Of Chad M. Hayward Speaks On The Types Of Bankruptcies:
I understand how it can be to have creditors harassing you for payments when you don’t even have enough money to buy food or pay rent. Shortly after graduating law school and opening up my practice, I discovered that I received enjoyment helping people that were experiencing a difficult time financially and being harassed by creditors. I saw some of the tactics creditors used on my clients to scare them into paying something they could not afford. This is why I have dedicated my practice to bankruptcy and chose to write this book.
Filing for bankruptcy can be a stressful time for most individuals. Although you did not ask to be put in this situation, usually the missed payments and amount of debt has caused many sleepless nights and stressful days. Most individuals find that they are afraid to answer the telephone due to the constant harassing calls from creditors or open the mail in fear of receiving shut off notices from utility companies. And, even after someone makes the decision to discuss bankruptcy options with an attorney, the stress may still remain. People worry about whether they will lose all of their personal property, their home, their automobiles, their retirement accounts, or simple whether they are ruining their credit for life. However, do not feel alone.
These are common feelings for people when debt has taken control of your life and left you with no option other than to seek help through bankruptcy. As an attorney that has been helping people file for bankruptcy since 2003, I hope I can set your mind at ease and assure you that with proper planning you can eliminate your debt and still keep your possessions. Though every case is different, there are different types of bankruptcy filings to achieve different types of results. Furthermore, there are many different events or actions that can occur within bankruptcy, and this book is designed as a quick guide that will explain what such events or actions mean and how they affect you.
Types Of Bankruptcies: Chapter 7 Bankruptcy
First, it is important to briefly explain the two common types of bankruptcy.
Usually, the more simple type of bankruptcy is Chapter 7.
Under Chapter 7 Bankruptcy, an individual can discharge credit card debt, most judgments, medical bills, back rent, mortgage debt, payday loans, car loans and certain other types of debt. Whether someone qualifies for Chapter 7 Bankruptcy first depends on whether you have filed for, and received a discharge, under Chapter 7 Bankruptcy within the previous 8 years. Next, you are required to complete a Means Test which will compare your income to the mean income of others in your geographical area. Although your gross income may exceed the mean income, you are allowed to take deductions for income taxes, car loans, car repairs and upkeep, mortgage payments, insurance, child support and other living expenses which have been established by the Internal Revenue Service. I personally filed a Chapter 7 Bankruptcy for an individual that made approximately $200,000 per year and obtained a discharge for him. This is probably not the norm, but the point is that you have to examine every individual’s financial obligations closely and take advantage of any deductions that you can legally make.
Assets And Chapter 7 Bankruptcy
Once you meet the means test requirement, you need to take a look at the amount of non-exempt assets you own. Most states provide for exemptions of assets that creditors cannot touch. For example, in Illinois, a judgement creditor, such as a credit card company, cannot touch the first $15,000 of equity in your home. And I you are married, they cannot touch the first $30,000. This is referred to as your “Homestead Exemption.” Likewise, depending on the state, there are exemptions for a certain amount of equity in your automobiles, bank accounts, furniture, etc. As long as you do not possess assets that exceed such exemptions, you can likely file for Chapter 7 without fear of losing your belongings. It is very common for someone that has a retirement account, owns a home, but has a mortgage, and a car or two, to file for Chapter 7, discharge their unsecured debt and keep their retirement accounts, real estate and automobiles. And, if you are simply looking to get rid of a car loan or mortgage that you can no longer afford, Chapter 7 is an excellent tool to accomplish this.
Types Of Bankruptcies: Chapter 13 Bankruptcy Explained By Chad Hayward
Chapter 13 Bankruptcy is the next common bankruptcy that is filed. This chapter is used when someone does not qualify under the means test, has non-exempt assets that a Chapter 7 trustee would try to sell for the benefit of creditors, is trying to get caught up on delinquent mortgage payments, retrieve a repossessed vehicle, reinstate a suspended driver’s license as well as many other situations. Depending on an individual’s monthly income, individuals can catch up on delinquent payments and lower car payments while paying other unsecured debt at a reduced percentage. Chapter 13 also allows someone to get their car back after repossession or impoundment. It can also be used to get a driver’s license reinstated that has been suspended for unpaid parking tickets, red light violations or unpaid tolls.
About Chicago Bankruptcy Chad M. Hayward
Chicago Bankruptcy Attorney Chad M. Hayward is the founder of The Law Offices Of Chad M. Hayward, a prominent law firm in Chicago specializing in Bankruptcy Law and Real Estate Law. Attorney Chad M. Hayward is a writer and advisor to Gustan Cho Associates Mortgage Resource Center and has helped thousands of folks who were drowning in debt get a fresh financial start in life. Chad is one of the most respected and experienced bankruptcy attorneys in the Chicagoland Area and is not just an expert in all aspects of bankruptcies, but is an expert real estate attorney and is an expert in all areas of mortgage lending. Chad Hayward is also a licensed mortgage loan originator with The Gustan Cho Team at The Money Store and the main reason he got his NMLS license is not to originate loans but to be knowledgeable in all areas and to be the best of the best in every field where he can help his clients. Visit the Law Offices Of Chad M. Hayward at 312-867-3740.