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Illinois Bankruptcy Questions & Answers
1 Answer | Asked in Bankruptcy for Illinois on
Q: Are unemployment benifits exempt from chapter 7 bankruptcy in Illinois? Can they turn you down for having them?

Can the courts take your unemployment money from you or is that untouchable?

Timothy Denison
Timothy Denison answered on Sep 18, 2020

They are treated as income for the means test but you’re not likely to ever be turned down bc of them.

2 Answers | Asked in Bankruptcy, Contracts, Real Estate Law and Civil Litigation for Illinois on
Q: Will a memorandum of judgement against me for a credit card debt affect my wife's house?

The mortgage is in my wife's name, but I am listed as a "tenant by entirety."

Anthony M. Avery
Anthony M. Avery answered on Sep 10, 2020

Absolutely... The Judgment Lien encumbers any and all interests you have in real property in the County in which the Judgment is recorded in. And you own the same estate your Wife does. Contact a competent Illinois attorney to get the specifics about how long the Lien attaches, and whether... Read more »

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1 Answer | Asked in Bankruptcy for Illinois on
Q: I'm legally separated and looking to file bankruptcy but own a house with my spouse. What are my options?
Timothy Denison
Timothy Denison answered on Sep 8, 2020

You can still file solely although you need to let a bankruptcy attorney look at all your financials so you can take the best option.

2 Answers | Asked in Bankruptcy for Illinois on
Q: I filed a Chapter 13 back in 2014. I had it converted to a Chapter 7 in 2018. How long will it stay on my credit report?
David Luther Woodward
David Luther Woodward answered on Aug 15, 2020

Your question is not a legal question, but a business question.

The only way to know for sure is to inquire from the credit reporting agency that is carrying it on your record.

FYI, you will be getting credit (card) offers shortly after your discharge probably because your are...
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2 Answers | Asked in Bankruptcy for Illinois on
Q: What if my wife refuses to pay for my debt?

I have judgments against me totaling around $60,000 for credit card debt, plus another $40K in unsecured debt that has not been brought to court. All of this debt is in my name only. I am self-employed, but currently struggling/out of work. I would like to file a chapter 7, but my wife's... Read more »

Timothy Denison
Timothy Denison answered on Aug 10, 2020

Try a Chapter 7 just in your name. Your wife has no obligation to pay your debts. Consult a competent bankruptcy lawyer who can review your financial situation before you do anything.

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2 Answers | Asked in Bankruptcy and Business Law for Illinois on
Q: If I file Chapter 7 due to small business loss, could I lose my home?

I am a sole proprietary business owner and married. I started my home business in August of 2019 and I work another job. The business has taken a hit due to COVID because most of the income is generated in-person sales. I was thinking of filing a chapter 7 but I was unsure how that could impact... Read more »

Bryan R. Bagdady
Bryan R. Bagdady answered on Aug 3, 2020

In Illinois a homeowner is entitled to an exemption for their home. The exemption amount is $15,000 per person - so $30,000 if a married couple (assuming both spouses file). Since you are married, if you have more than $30,000 in equity, then you may have issues. If you have less than $30,000 in... Read more »

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1 Answer | Asked in Civil Litigation and Bankruptcy for Illinois on
Q: Can a lawyer representing one judgment creditor solicit business from the other creditors of the same judgment debtor?
Timothy Denison
Timothy Denison answered on Jul 9, 2020

They can if it does not conflict with the original creditors interests.

1 Answer | Asked in Bankruptcy for Illinois on
Q: Do I have to pay all lien holders 100% if I file for Chapter 11 if I want to keep it in Illinois?

Commercial property with a market value of 1.8 -2.0 Mil . Have 1st $ 2nd Mortgages for 1.5 Mil. Have a lien from a lender who used it as collateral for 1.2 Mil.

I can afford the 1st & 2nd mortgages. If I have to pay a lender who used the property as collateral do they need to be... Read more »

Timothy Denison
Timothy Denison answered on Jul 6, 2020

To keep property you will have to pay all three liens. The third may be avoidable to a degree. Consult a qualified bankruptcy attorney

1 Answer | Asked in Bankruptcy, Consumer Law and Contracts for Illinois on
Q: im being sued for a car that i haven't paid on because i was intoxicated and couldnt afford it in the first place

in an attempt to get away from the drugs and get a job that would allow me to keep the car i moved to a different state and while in the other state the cars ecu blew up while i was driving and i didnt have insurance on the car yet then the bank had it repoed and told me it was a blown up motor... Read more »

Timothy Denison
Timothy Denison answered on Jun 10, 2020

You can negotiate with the creditor to resolve it. Offering a lump sum payment as resolution might go a long way to settling it. If not, your only other option is bankruptcy.

2 Answers | Asked in Banking, Bankruptcy, Business Formation and Business Law for Illinois on
Q: Hello, I am a business owner. I want to know if bankruptcy is an option for me.

I am a banquet hall business owner. My bank has refused to give me relief on mortgage payments because I was already behind 2 payments due to the increase in property taxes in the county. The bank has filed for foreclosure during covid and intends to appoint a receiver in June 2020. At this point,... Read more »

Bryan R. Bagdady
Bryan R. Bagdady answered on May 18, 2020

I can't tell from your facts if you are facing a business bankruptcy, a personal bankruptcy or both. However, it sounds like you need a mechanism to stop the litigation and to liquidate debts in an orderly fashion. That is one of the functions of a bankruptcy case. I need to know more about... Read more »

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1 Answer | Asked in Bankruptcy and Insurance Defense for Illinois on
Q: I am currently in bankruptcy, Chap 13, and my car was included in the bankruptcy, but now I have paid them off but they

still have the title until I completely pay the bankruptcy off, but I have been recently in a minor accident and the insurance company wont pay me unless I have a lienholder release form. Will I be able to get that since the car is paid off eventhough the bankruptcy isnt?

Timothy Denison
Timothy Denison answered on May 15, 2020

You should be able to, yes. Consult the trustee on your case and tell him what has happened.

1 Answer | Asked in Bankruptcy for Illinois on
Q: I received a mortgage statement from my bank with a bankruptcy message.

It has past late charge fees and past other fees. I filed in 2009 and never got a statement like this before. What does this mean? It also states our records show I I’m a debtor or I discharged personal liability for my mortgage loan in bankruptcy

Timothy Denison
Timothy Denison answered on Apr 25, 2020

The bankruptcy administration finally caught up to the mortgage. The accuracy of how they are reporting you depends on whether you reaffirmed the mortgage or not.

1 Answer | Asked in Bankruptcy for Illinois on
Q: Ex wife filed bankruptcy on truck I was awarded in divorce. It was Chapter 13. I have questions about my legal rights.

Divorce final 12-2018. Ex wife who lives in Tennessee filed bankruptcy on truck I was awarded in divorce. Her name was supposed to be court ordered off title but that didn't get put in divorce so it didn't happen. I was never notified. It went into bankruptcy in April of 2019. I recently... Read more »

Timothy Denison
Timothy Denison answered on Apr 25, 2020

You should contact a bankruptcy attorney who can evaluate the entire financial and divorce action and help you decide what your best option is going to be.

1 Answer | Asked in Bankruptcy for Illinois on
Q: I have filled Chapter 13 in 2019. I have an unsecured Auto loan debt that I have not paid on in over years time.

The bank just now (in 2020) notified the trustee In January 202 of non payment. As of now I still have possession of the vehicle. I have not been notified by the trustee regarding the past non payment. I continue to pay my monthly 13 plan payment however, I still have not made any payment regarding... Read more »

Timothy Denison
Timothy Denison answered on Apr 14, 2020

You will need to modify your Chapter 13 plan to provide for payment of the auto or you can surrender the car and leave the plan payment as it is.

1 Answer | Asked in Bankruptcy, Estate Planning and Probate for Illinois on
Q: My mom passed away I have her house in probate can I file bankruptcy

Or do I have to assume the loan first

Bryan R. Bagdady
Bryan R. Bagdady answered on Apr 14, 2020

A debtor's assets in bankruptcy include property received by bequest, devise or inheritance. Please review section 541 of the bankruptcy code before making any decisions. If you are inheriting the house and there is equity, you need to analyze how that equity is treated if you file for... Read more »

1 Answer | Asked in Bankruptcy for Illinois on
Q: Filed check 7 bankruptcy on March 28th. One day after the cares act passed. I have read that it is part of my bk estate?

Just wondering should I not spend it just in case the trustee asks for it. Also read that if they are going to take it they have to report it to the us trustees office. I just want to use the money as it was intended to help pay my bills and put food on the table.

Timothy Denison
Timothy Denison answered on Apr 13, 2020

It is not income to you and you should be able to spend it on your bills, expenses, etc. you should check with your bankruptcy attorney but most of the trustees are not pursuing the stimulus checks.

1 Answer | Asked in Bankruptcy for Illinois on
Q: Is it ok to contact your bankruptcy trustee? I just have a question about the stimulus.

My friend was told by his lawyer the stimulus would be taken by his trustee. I have read all the other questions relating to chap 7 and the stimulus and not counting as income. My friend filed on the 29th and I filed on the 28th of March by myself. Maybe it depends on the trustee. I just thought... Read more »

Timothy Denison
Timothy Denison answered on Apr 9, 2020

Yes, if you do not have an attorney. If you have a lawyer, the trustee can only speak with him, not you.

1 Answer | Asked in Bankruptcy for Illinois on
Q: I filed bankruptcy on my own on March 29th. Now since the cares act passed on March 27th I was told no stimulus for me.

It was a chapter 7. I see the provision for chapter 13 where it says the stimulus would go to the debtor but is there something for chapter 7 as well. stimulus is considered to be part of my bankruptcy estate. So I'm reading it can be taken by the trustee to satisfy creditor debts. My question... Read more »

Timothy Denison
Timothy Denison answered on Apr 7, 2020

See my previous answer.

1 Answer | Asked in Bankruptcy for Illinois on
Q: Filed chapter 7 by myself on March 29th. Will I get to keep the stimulus and why? Read it would be part of my bk estate.

There are a few provisions under the cares act for chap 13 but I don't read anything for chap 7 saying that the stimulus is safe from the trustee. Is there something that specifically says I will get to keep the stimulus so I can cite it if the trustee brings it up. When I filed I had 3100 in... Read more »

Timothy Denison
Timothy Denison answered on Apr 7, 2020

No. The stimulus check should not be part of your bankruptcy estate as it is not income so if you otherwise qualify, you should get the check.

1 Answer | Asked in Bankruptcy for Illinois on
Q: Filed bankruptcy on March 30th. Would I get the stimulus or will it go to the trustee? It is a chapter 7.

It would be considered post petition. I filed on my own so I am trying to get information.

Timothy Denison
Timothy Denison answered on Apr 6, 2020

Stimulus check should go to you.

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