Dealing with Chapter 13 Bankruptcy

Bankruptcy is looming on the horizon and Chapter 13 is beginning to look really good, but no one wants to give up the house.

Using Chapter 13 will allow those facing bankruptcy to stop foreclosure and save their homes. In fact, Chapter 13 protects equity in the home, helps balance the mortgage default, and helps get rid of other crushing debts.

Things seem to have come full circle in the mortgage industry, swinging from a once booming economy to a recession. Many people recall mortgage lenders used to offer really low adjustable rate mortgages, no money down mortgages, and 100% to 110% mortgage loans. Gone are those days.

Nowadays adjustable rate mortgages have increased from roughly 5% to over 10% depending on who the lender happens to be. Homeowners are faced with suffocating mortgage payments virtually double what they used to be. As interest rates rise, so do the mortgage payments.

Unfortunately, the real estate market is also very soft right now which means homes have not appreciated any in value, not like they used to. They also don't give homeowners any leeway to refinance and use their equity. As this situation keeps spiraling out of control, Chapter 13 bankruptcy begins to look very attractive.

"Homeowners may file Chapter 13 that would allow them to catch up with their mortgage payments – interest free," explained Jay Fortier of The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois. Fortier has extensive experience in this area and knows what homeowners are going through when they are faced with rapidly escalating mortgages payments and no extra money to pay them – even if the family works.

Chapter 13 will allow the homeowners to consolidate other financed items (other debts) and in the process, wind up actually saving some money on the interest rates. This break often means the family is able to carry their debt load with dignity and be able, in the long run, to keep up payments.

While Chapter 13 is a viable option in this day and age, the other route consumers may opt for is consolidating credit card debts, medical bills and other loans. In some instances they may wind up only paying back about 10 cents on the dollar. "It's an attractive option, and one I explain to my clients," added Fortier.

To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.

Business Bankruptcies Need Legal Counsel

Going bankrupt is not a lot of fun for anyone, personally or if you need to declare a business bankruptcy.

Before you get so far into the red with your business, you might want to think ahead and have some contingency plans in place if you face tough times down the road. The economy today is not in super condition and we are actually facing a rather serious recession.

In a recession many things happen, not the least of which is people stop buying items they view as "extras." There isn't much in the way of discretional funds to spend on things that people once didn’t think twice about buying. Keep that in mind if you are in business during a recession and your product or service is something people deem "nice but not really needed right now." You may face an uphill battle to stay in business, so having an alternative plan if struggling with a serious decline in revenue only makes good sense.

If you are considering declaring bankruptcy, then the first thing you need to think about is whether you want to continue to operate your business or not, and whether it is viable to do so. Depending on your business's situation, different kinds of bankruptcy can help you to liquidate the business or reorganize it and continue to run it.

What you really need to know is what your goals are for the future of your business, as there are several routes open to you to declare bankruptcy. This is where your bankruptcy attorney will outline the various options from which you may choose.

The route of bankruptcy you choose will largely also relate to the type of business you own, e.g. partnership, a corporation or sole proprietor. Don't waste a moment trying to sort out what to do, as this is precisely what you hire a bankruptcy attorney for in the first place. They are there to help you through the process and will outline what you need to know to make an informed decision that is best for you in the prevailing circumstances.

Patrick Warwick is the lead content contributor for Chicago Bankruptcy firm, The Law Office of Jay F. Fortier, P.C.. To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.

Estate Planning Requires Reliable Information

Planning what to do with the assets of an estate takes a great deal of legal knowledge and the proper kind of information to ensure that the will accurately reflects the wishes of its creator.

Never try to write a will without the assistance of an attorney. There are far too many legal loopholes that may arise and cause untold havoc later. In addition, tax laws and other legal rules that affect estate planning tend to change fairly regularly. Being up-to-date and totally legal when drafting a will is for the benefit of the client who wants to ensure their assets are distributed as they wish – legally and without any hassles.

If there is a provision for a charitable trust in the will, keep in mind that charitable trusts have serious tax incentives. However, having said that, they are not just a tax shelter. They are perhaps the best way possible to make provisions for a charity of the deceased's choice.

A trust works by primarily transferring assets from one entity to another. Although that may sound easy, there are other considerations that have to be met, e.g. the transfer must be done in an efficient and timely manner. This works by allowing the person to have a stream of income from the trust holdings.

When that person dies the remaining assets in the trust transfer directly to the named charity. While it may sound simple, it isn't and this is only just the tip of the iceberg. This is why consulting with a well-qualified attorney like The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois, will ensure the trust is set up according to the required rules of law.

Living trusts are another area that Fortier uses in the estate planning process. "A living trust lets clients be remembered in the way they wish to be recalled," explained Fortier. A living trust may go to a favorite charity or a much-loved heir.

Simply put, a living trust is a legal method of transferring assets from one entity to another. That means the person who places the funds in the trust is the trustor, the person who manages the trust is the trustee, and the person who lives on the trust is the beneficiary.

If estate planning is in the future, make sure to contact a reputable attorney such as The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois. Fortier's gift of the ability to explain complex situations to clients is superb.

To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.

Estate Planning Lingo

It's never too early to think about estate planning, no matter what anyone may tell you. Make your first call to a qualified estate attorney to make sure your wishes are observed later.

When it comes to estate planning, there is a lot of lingo of which many people aren't familiar; for instance, power of attorney, living will, and last will and testament. What do these things really mean in the greater scheme of making your last wishes known?

If you speak to an estate lawyer, you will discover that these particular documents are critical to making sure your assets are properly distributed, not only according to the law, but that your legal interests are protected as well. It goes without saying that you would also like your assets apportioned the way "you" want them to be and not at the whim of another.

In general, a will is a document that outlines how you want your assets distributed when you die. It's funny, but the number one myth many people have about wills is that you have to tell the lawyer drafting the will all your personal financial information, where it is, how to access it, and how much you have on hand. This couldn’t be further from the truth.

The only thing you need to worry about when writing a will is to whom you want your assets to go, what percentages each should receive, and the distribution of special items, e.g. a much loved painting, car, horse or home. That's it in a nutshell, aside from the legal drama within the four corners of the document itself, meaning the legal jargon that is necessary for the will to meet the legal requirements of the state in which you live.

You will, of course, need to name an executor/executrix to handle the estate affairs once you pass on. Choose well and ask the person's permission, as this is a very significant job in some instances. The executor figures out all the estate's assets and liabilities, pays bills, distributes assets according to the will, and in general takes care of the hundreds of other nitpicking details to finalize an estate.

If your will calls for money to be left to a minor, you will also need to name a Trustee. Again, ask the person you want to if it's ok with them if you do this. Your legal counsel will outline all these details for you when you are drafting your will. If you have a living will, that is another thing and relates to medical treatment, not the disposition of assets.

Primarily a living will tells your loved ones what you wish to do should you be permanently disabled with no hope of recovery. Usually this refers to a coma or a permanent vegetative state. In some states two doctors must certify there is no hope of recovery. Ask your estate lawyer which law applies in your state.

Patrick Warwick is the lead content contributor for Chicago Bankruptcy firm, The Law Office of Jay F. Fortier, P.C.. To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.

Bankruptcy Means Being Insolvent

Not a lot of people actually understand what happens to a company when it declares bankruptcy. It isn't always the end of the world.

Not a day goes by that we don't read about another company going under and declaring bankruptcy. The statistics are dismal and the numbers keep getting higher as 2009 progresses. Who really knows where it will all end, or if it will?

When a company decides that it needs to declare Chicago bankruptcy, it doesn't always mean that they have reached a dead end. This is because bankruptcy is considered to be a legal state where a debtor is judged to be insolvent. Once this happens, their property is distributed to creditors and while they may be insolvent, they have a way to still protect themselves. This applies to corporations, as well as individuals.

In the US today there are two kinds of Chicago bankruptcy proceedings they may choose – Chapter 7 and Chapter 11. If a company is choosing to file under Chapter 7, it is deeply in debt and its assets are normally sold to satisfy creditors. For instance, if a person owned a bookstore and the debts were piling up because no one could pay them, all the assets of the store, including fixtures, would be seized and sold to pay bills.

Chapter 11 Chicago bankruptcy is a different kettle of fish, and companies that choose this route are choosing Chapter 11 bankruptcy to restructure their debt. Chapter 11 bankruptcies keep their assets/possessions, subject to court supervision. If a company has the protection of a Chapter 11 bankruptcy, they are usually also able to get loans with favorable terms. In addition, any legal proceedings against the company are put in abeyance until things are resolved in bankruptcy court.

The decision to declare Chicago bankruptcy, no matter what the circumstances, is a difficult one, and it really needs to be discussed in detail with a Chicago bankruptcy lawyer with expertise in this area. Each Chicago bankruptcy case in unique and only a good lawyer will be able to discuss the various options available.

To learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.

The Family Law Expert Does Soup to Nuts

Many attorneys are seeing more divorce clients than ever before, whether the divorce is filed in the face of a tough economy is another question. Meet the all-purpose family law expert.

The face of family law in America has begun to change from the "expected" divorce, custody and other family issues most people associate with a family lawyer to a legal practice that deals with adoption, trust funds, estate planning, annulments, prenuptial agreements, spousal abuse or writing a will. "In other words, many family law attorneys are finding themselves answering the call of multiple other disciplines in order to serve their client base well," explained Jay F. Fortier of The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois.

Family lawyers have even been known to handle real estate legal issues as well. Divorce law, while certainly one area that a family law attorney handles, is no longer the major focus of what drives the firm's expertise. "In fact, given the tough economic times, when tensions are high and people want out of their marriages, they are dealing with more cases of trial separations," said Fortier.

Many people locked into a marital situation that seems to be a dead end are opting to try trial separation, which is relatively inexpensive, rather than initiate expensive divorce proceedings.

This isn't to say that a divorce may not be the ultimate resolution of the separation, but in the meantime, the separation agreement still needs to be drafted. "It would include things such as division of material assets, all financial information, pensions, who will get custody of the children and for how long, child support and spousal maintenance, etc," explained Fortier.

If the divorce appears to be uncontested, the family law attorney will advise the couple that their divorce, should they choose to proceed now, will likely go quickly. The reason for that would be that the agreements have already been drawn up relating to the major issues of a potential marital split. "If the couple does decide to proceed with an uncontested divorce at a later date, using one family law expert may save money," added Jay F. Fortier of The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois.

To learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.

The Tip of the Iceberg – Medical Bankruptcy

More and more people these days in our great nation are going bankrupt due to medical bills. Chicago bankruptcy is at an all time high.

You might well have a job and even have medical insurance, but found yourself in a situation where you have a severe injury or illness and the bills just got right out of hand. Chicago bankruptcy is not such a far-fetched scenario either. The cost of medical care these days would make anyone think twice about seeking out medical assistance. The reality though is that people have to get medical help when they need it. The nightmare starts when the bills arrive.

Think this talk about Chicago bankruptcy and similar scenarios nationwide might be off the wall and not in the least bit true? Consider this then. Being ill and dealing with high medical bills was directly linked to roughly 62% of all personal bankruptcies in 2007 alone.

Two years later, the numbers have changed, but they certainly have not gone down. In fact, if you do some rough figuring, based on how many current bankruptcies there are now, medical bankruptcies may touch the lives close to 2.3 million Americans or one person every 15 seconds. Chilling thought, isn't it? Chicago bankruptcy may be just around the corner.

Here is another statistic that will disturb you as well, considering we were mentioning that medical bankruptcies happened to people who had a job and health insurance. Most of the medical bankruptcies were smack dab in the middle class before the bills hit. Many were college graduates and/or had previously owned a home or two.

The scariest figures are the ones showing prior to a serious illness that led to bankruptcy, close to 78% had health insurance, and 60% had private insurance. Many had health coverage at the time they were forced to declare bankruptcy.

It should come as no surprise that if people are forced into choosing Chicago bankruptcy due to medical bills, then they also face a very real risk of losing their home. No home in some cases means homelessness. Not too much of a stretch to get there these days either.

In situations like this, you really need to speak to an experienced Chicago bankruptcy lawyer to get a thorough understanding of what your options are and how to handle your situation.

Patrick Warwick is the lead content contributor for Chicago Bankruptcy firm, The Law Office of Jay F. Fortier, P.C.. To speak with a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.