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.

When the Creditors Quit Calling

There are pros and cons to declaring personal bankruptcy, so think things through carefully before you make your decision.

There are some plus points you need to know about making the tough decision to declare personal bankruptcy and contact a Chicago bankruptcy lawyer. For instance, it certainly deals with the stress caused by creditors that harass you incessantly for payment. When creditors learn you have declared bankruptcy, they can no longer call you; instead they would be dealing with a third party who will take care of all debts.

The other very attractive result of declaring personal bankruptcy with the assistance of a Chicago bankruptcy lawyer is the fact that you will be paying less once the process is started, as the third party administrator will set the terms of payment. While the creditors might not like the terms of payment, they have to follow them.

Often it's best if they reconcile themselves with the point of view that it's better to have some money, than none at all. Once you have discharged your bankruptcy, creditors can't chase any of your debts that have been written off.

The down side to making this decision is that items like student loans and company loans may be excluded. This is one of the reasons why you need to talk to a highly qualified Chicago bankruptcy lawyer to find out the specifics of declaring personal bankruptcy in your particular situation. If loans are excluded, then you have to pay for them even when your bankruptcy is discharged.

Unless the bankruptcy is Chapter 13, once you declare bankruptcy, you may lose control over your house, other assets, and your business (yes, there are some exclusions, so discuss this with an expert Chicago bankruptcy lawyer). In many instances, a trustee would take over everything, sell it and convert it to cash to pay off creditors. Again, every case is different, and you really need to consult with a skilled bankruptcy lawyer to find out how your case would be handled.

Another problem that sometimes raises its ugly head is that once you've been declared bankrupt you may have problems getting a new current account. In addition, all the fees associated with going this route – court fees, insolvency fees and other related expenses – are taken out of your assets.

Sadly, despite the circumstances of your personal bankruptcy, you may find it very difficult to get credit in the future, unless you deal with lenders who specialize in prior-bankrupt credit. It's a fact of discharged or undischarged bankruptcy life that makes gaps in your credit record, and whether or not they actually are due to a bankruptcy, they are assumed to be bankruptcy.

There are others disadvantages to declaring personal bankruptcy and if you choose the right Chicago bankruptcy lawyer, they will outline all of them so that you are able to make an informed decision. It's a gut wrenching decision and not one to be taken lightly, that's why you need a lawyer who won't pull any punches with you and will tell you like it is.

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.

Do Not File Personal Bankruptcy Without a Lawyer

The best advice anyone could ever provide to someone about to file for bankruptcy is to not attempt to do it on their own.

While a person facing bankruptcy may feel that their only option is to file, speaking to an attorney with extensive experience in this area may provide a totally different point of view. "It may not be the right option to proceed with and finding out prior to filing is much better in the long run than finding out later when it's too late," indicated Jay F. Fortier of The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois.

When a person is considering filing for bankruptcy, it makes sense to consult with an attorney, not just because of the expertise they bring to the table, but also because of any changes to the bankruptcy code that they would know about because they practice in that area. It’s a lawyer's job to make sure they are current with all the legislation pertaining to their areas of practice.

To say that finding one's way through the maze of bankruptcy rules and regulations, plus keep up with changes to the code is almost impossible without being a lawyer is an understatement. "One of the changes deals with preventing the abuse of the bankruptcy statute – meaning politicians wanted to make sure people really needed to go bankrupt and didn't just want to avoid paying their bills," said Fortier.

The addition of that particular section into the code arguably made the whole process of filing for bankruptcy a bit of a mare's nest, not to mention much more complicated. On top of that, many argued that it failed to provide any benefits for creditors or consumers.

This is still a vociferous debate with no answer in sight, but suffice it to say that when the bankruptcy court judges are still having difficulties interpreting what some of the changes mean, that can't be good – for anyone involved in the process.

"Having a bankruptcy lawyer is the smartest move in order to make sure all the legal requirements for filing are in place, otherwise attempting to do something like this alone may wind up costing a person their financial future," added Jay F. Fortier of The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois.

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

Divorces May Be Complex

No one ever said that getting a divorce is easy, particularly if there are number of assets and children involved.

Let's face it, getting a divorce is extremely difficult for all parties and has been called by many psychologists a form of death. There are very few divorces that could be classified as "easy," with most of them falling somewhere between acrimonious and contentious.

The process of divorce deals with many issues, not the least of which is the division of assets, child custody, support or maintenance for the spouse and visitation rights. "Since these issues are all dealt with differently in each state, make sure to ask your lawyer what happens in your home state and what you will need to do to file and get through it all," advised Jay F. Fortier of The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois.

In Illinois when someone files a petition for dissolution of marriage, the divorce may be deemed to be either a "fault" divorce or a "no fault" divorce. Again, this is something that needs to be checked with a competent attorney familiar with divorce law, as each state has slightly different classifications for divorce petitions.

"For a no fault divorce, the spouses need to have been living apart for at least 2-years or longer. They must cite irreconcilable differences as the reason for their petition" explained Fortier. On the other side of the coin, is a spouse who has cheated, is impotent or abuses substances and these are the reasons the marriage came apart. This is definitely a fault divorce.

Other issues that need to be dealt with during a divorce include the division of joint property. "There are a variety of conditions/circumstances that apply to whether or not an asset purchased after marriage is eligible to be split up. The distinctions here have to do with the difference between marital and non-marital assets," outlined Jay F. Fortier of The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois. The lawyer dealing with a divorcing couple will need to run down the conditions to keep both parties informed of what is required by law.

Child custody is another "hot button" issue that has the potential to get quite ugly, as one parent usually wants more access to the children than the other parent is prepared to give. "In really contentious situations, the courts do take a child's wishes into consideration when making any custody decisions, however their overall well being relating to mental, emotional and physical development may override those wishes," added Fortier.

If faced with the difficult decision of divorcing a spouse, make it a point to retain a skilled divorce attorney who is able to assist in making the divorce process go as smoothly as possible.

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

To Blow or Not to Blow

DUIs are very serious offenses and carry with them the possibility of significant fines and a criminal record that dogs a person for the rest of their life.

Think twice before drinking and driving, or the consequences may be something greater than expected. It's not just about a harmless drink or two or three, it's about getting behind the wheel of a deadly instrument and causing severe injury or death to an innocent person who may have been in the wrong place at the wrong time.

The problem with DUI these days is that even though people know it's not smart to drink without a designated driver to drive, they do it anyway, largely because they feel that nothing will happen to them. While that may be the case a time or two; there will come a day when the results of drinking and driving catch up in a very memorable and possibly deadly manner.

Each state tends to have its own set of DUI laws and it's best if charged with a DUI to speak with an attorney who has experience in this area, such as Jay F. Fortier of The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois. A good lawyer, with lots of DUI experience, may be able to get the case totally dismissed or the sentence (if any) mitigated. "The other important thing to remember is that if constitutional rights were violated, then the attorney needs to know immediately," added Fortier.

When stopped for a DUI, don't volunteer anything, and don't take the roadside tests. It may mean a trip to the local jail, but if an attorney is called and is present at the station, it may make a difference in the disposition of the charges. "The only person that needs to hear all the details is the attorney, as anything else has the likelihood of being used against the person later," outlined Fortier.

It's important to seek a skilled DUI attorney for another reason as well. The charges may vary and the attorney needs to know precisely what the charges are in order to mount an effective defense. There are some instances where the person charged may request a jury trial if they truly believe they are innocent and are not interested in the options presented to them when they went through arraignment.

While a jury trial is an option, it is a complicated procedure requiring witnesses and various other experts and may not have the hoped for outcome. This is when having a highly skilled DUI lawyer present in court such as Jay F. Fortier of The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois, will assist with the possibility of a sentence reduction or dismissal of the case.

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

The Act of Vandalism – A Misdemeanor

A misdemeanor may sound like it doesn't amount to much, but the criminal record that follows a person around isn't worth the hassle.

One example of a misdemeanor happens to be vandalism, and in this poor economy, it seems to be on the rise as an outlet for some troubled youth. What better way to blow off steam than to paint the side of a building, a house or a bridge? "While it may seem just like a childish prank at the time, vandalism is actually a chargeable offense – a misdemeanor or other more serious charge," said Jay F. Fortier of The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois.

The legal definition of vandalism is the "willful or malicious destruction of public or private property." "This particular definition covers a wide range of acts that would include graffiti, throwing eggs, damaging road signs, breaking windows, slashing tires, defacing a church, destroying mail boxes and keying another person's property," said Fortier. They may initially be seen as gang pranks, something to do for the fun of it. However, if caught, the perpetrators will face having to pay for the destruction caused.

Depending on the seriousness of the vandalism, charges may fall into either the misdemeanor class or kicked over to a felony. "What makes a vandalism charge a felony is the amount of damage done and whether or not there happens to be a previous criminal history," outlined Fortier.

The differences in charges are usually based on the dollar value of damages. For instance, acts of destruction totaling $400 or less may be classified as a misdemeanor, which doesn’t require jail time. However, having said that, it may be just as likely to be given a year in jail plus a hefty fine, community service, restitution and possibly probation of some sort.

On the other hand, felony vandalism usually clocks in at over $400 with jail time attached to the sentencing, fines, extensive community service and formal probation. There are some instances where a driver's license is suspended as well. This isn't an area of the law that people should be messing around with, thinking that it's all fun and games.

Facing vandalism charges requires the services of a qualified lawyer with experience in this area, such as The Law Office of Jay F. Fortier, P.C., in Chicago, Illinois. Don't try and bluff through the charges, or the chance of having the whole thing backfire is quite high. A skilled attorney will evaluate the case and determine the best way to defend the charges.

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

Avoiding Business Bankruptcy

If you’re a small business, it's easy to understand why you would want to try and avoid declaring bankruptcy. Your whole life is pretty much tied up in your business.

While running a small business may be a joy, and the very thing you have always wanted to do with your life, sometimes economic reality hits hard. The reality these days is that the overall economy of the nation is suffering so badly that people have all but stopped buying things they consider to be a luxury or unnecessary.

If you own a business that caters to people who had disposable income prior to the recession, you will be feeling the economic pinch now. Unless your clientele is high end, rich and famous people who always seem to have money, your business may be in deep trouble. Many entrepreneurs try to make it against all odds and will juggle payments madly to keep from going under.

Interestingly, especially these days, is the fact that many banks, etc., are willing to barter the debt down, particularly if there is help from a credit counselor. This type of intervention will often make the difference to the enormous debt small businesses are facing by reducing it to perhaps as little as a few cents on the dollar.

While the bottom line here is that the bank does not get back its full initial loan, they are getting some return on the dollar, and this is a much more equitable solution to both parties rather than the final knell of bankruptcy. With a bankruptcy, the banks would lose the full debt owing, thus any return on their initial investment may be a welcome solution to a difficult situation, thus allowing the business to continue and the bank to recoup some of their funds.

If this kind of solution does not work because the businessperson was unable to make the negotiated payments, then all the assets of the business are sold and the cash is given to the bank(s). There are other solutions to ride out the worst of the recession, and those include snagging low rate loans, divesting yourself of expendable assets, finding an Angel investor, and asking employees if they are willing to take a pay cut to still have a job.

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

Personal Bankruptcy Is a Tough Call

Making the decision to declare personal bankruptcy is a tough one and one people do not take lightly.

Most likely, if you are seriously thinking about declaring personal bankruptcy, it took a lot to get you to that point. You have concerns about that appearing on your credit history and making a mess of your credit. It's not like you "planned" to go bankrupt. It just snuck up on you as a series of incidents you weren't expecting that made a significant change in your financial situation.

You may be faced with some astronomical medical bills, have been laid off work or are in the throes of a divorce. Bankruptcy is never an easy decision and it's best that you know some things about the process before you make the final decision.

Declaring yourself bankrupt is a hassle and nothing will change that, but if you don't do that, the hassle from the debt collectors could be even worse. While many people regard bankruptcy as a negative resolution to a problem, it may actually be considered a positive step towards clearing up your financial future.

Don't be concerned about having a completely destroyed credit rating for the rest of your life. This is a myth. When you have cleared your bankruptcy, usually a 7 to 10 year process, your credit history is cleaned up and you may start all over again. Yes, it may seem like a long wait, however in the meantime you will have learned some valuable money management lessons and will be in a good position to re-establish your credit.

Many people also think that you can only file bankruptcy once in a lifetime. This is not the case either. You may file Chapter 13 every time you find yourself in need of doing so. If you are referring to a Chapter 7 bankruptcy, you would have to wait 8 years to file again should you find yourself in the same boat twice.

The idea behind filing personal bankruptcy is that it protects you (the debtor) from losing all of your possessions while working your way out of debt. This is one of the first things you and your bankruptcy attorney will discuss when you meet to talk about filing bankruptcy.

With the assistance of a competent bankruptcy attorney, filing for bankruptcy, while still difficult emotionally, is a made a lot easier by the solid advice you will receive from the lawyer. Your lawyer will be able to advise you every step of the way and make the whole process much less stressful.

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

An Important Part of Life – Estate Planning

Usually the last thing on people's minds is estate planning, when in reality, it needs to be something done on a regular basis as your wishes and circumstances change.

It's not easy to do estate planning, and the very thought of sitting down with a lawyer and telling him or her what you want to do with your assets when you die just gives you an odd feeling. Often it's also hard to know where to start, what to give to whom, how to gift it, and whole raft of other burning questions you need to ask your attorney.

If you don't know what estate planning is, it's sitting down and getting your finances in order for those left behind when you pass on. While you might not enjoy doing this, it will make people's lives easier later. It's not a lot of fun dealing with an estate that no one took the time to pre-disburse in accordance with the principles of sound estate planning.

If you want a certain someone to have something of yours, this is the time to enshrine that wish in your will. If you wait or don't do it, that gift may wind up in probate and not go to the person you wanted to have it. Sure, it's natural to want to put this kind of planning off because it's hard to think about dying. However, the best time to begin this kind of task is when you start to amass assets – like your home, investments, real estate, etc. Planning now is the smart thing to do.

Perhaps you might think you don't have enough assets to be put into a will. That isn't the point though. The point is that you want certain things to go to your family and not to the government. All our lives we give to the government, in death it is time to gift our families. This means you may have any wish you want expressed in your will and legally your family is bound to abide by your wishes later.

The will acts as the central point to estate planning and actually does the deed of tying all the finances and other estate details together. So once the will is done, it's time for some down to earth and clever planning, dealing with assets such as annuities, investments and retirement funds. Choose your beneficiaries, and make sure they know they are being named in that capacity, and, if you wish, what you plan to leave them. This is a personal decision, and you may also choose not to divulge your plans.

Be aware that there are many kinds of tax implications that go hand-in-hand with estate planning, so make sure the attorney you are consulting gives you the full run down so you are totally informed. Don't attempt to do estate planning on your own. The chances of failing miserably are quite high, not to mention the fact that there are way too many gray areas in this area of the law that may ultimately trip you up later.

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

Lawyers Collecting Debt

There aren't a lot of people who know that some law firms make it point of collecting outstanding debts for various clients. In instances like this, the creditors need help with collections and send their business to a law firm.

The whole debt collection usually kicks into gear when someone (the borrower) defaults on payment owed to a creditor. Even though the creditor may have tried various routes of getting the money back, trying to get blood from a stone just didn't work. The decision was made to use either a debt collection agency or a debt collection lawyer. On reflection, the debt collection lawyer was the ultimate choice for their ability to be versatile in the debt collections process.

Debt collection attorneys are able to help a client with things like student loan collections, credit cards being delinquent, stalled installment loan collections and consumer debt collections. After taking a good hard look at the collection file, it's the attorney's job to figure out which route will best achieve a collection judgment result for their client.

Like debt collection agencies, debt collection attorneys are required to meet the rules and regulations of the federal Fair Debt Collection Practice Act. The Act simply governs the actions a debt collector may take while attempting to collect on a debt. This service does not tend to come cheaply and may cost the creditor an hourly fee, one-third the amount recovered or perhaps even both. Speak to your attorney about how s/he handles these kinds of cases.

If you have any doubts about how to proceed on a collection after exhausting all your usual routes, make it a point to discuss your collection needs with a highly skilled debt collection attorney. It only makes good business sense to get some return on your initial billing, rather than have nothing to show for it in the long run. In other words, in cases like this, if you have done what you could and did not recover the outstanding debt, it's time to spend money to recover money.

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

Bankruptcy Debt Woes for Small Businesses

Small businesses need business planning for the future, and that planning needs to include what to do in the event of a bankruptcy.

Filing for a bankruptcy is one of life's more challenging moments, guaranteed to be a gut-wrenching experience. It's a tough decision to make when someone's hopes and dreams have been incorporated into a business. It's a very personal decision as well and goes to the heart of how a person was striving for success and failed.

While some regard the bankruptcy process as a way to get out of debt, there are things that people don't know – things in the fine print they need to be well aware of before acting too precipitously. Last year's small business bankruptcy statistics are a bit on the dismal side, clocking in at a high rate of roughly 65% of small businesses going under. Sure, some of it might have had something to do with the economy, but that is just the tip of the iceberg when it comes to reasons.

The real reason for most of the small business bankruptcies is that the owners came face to face with a major cash crunch. Debts outstripped their income and they had no money to pay off the bills. While this can happen to any business, it hits a small business even harder, as they tend to have more of their personal resources invested in their enterprise.

By the time things have gotten too overwhelming to handle, the owner would have the option to declare Chapter 11 or other applicable chapter suitable for a small business bankruptcy. To do this requires the services of a skilled bankruptcy attorney.

At this point, the attorney and client sit down and discuss what kind of company the owner operates; e.g. if the company a sole proprietorship or not. If it's a sole owner, s/he doesn't need to ask for anyone else's consent to file for bankruptcy. On the other hand, if there is a partnership agreement in place, joint consent is needed to file. In any event, the services of a skilled bankruptcy attorney are crucial in order to file bankruptcy under the proper chapter and in the proper manner.

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.

Juvenile Crime Is a Societal Issue

Juvenile crime, while on the rise and a real concern, has its origins in societal issues.

For the most part, juvenile crime is considered to be criminal acts that are carried out by minors, and while we seem to "get" why adults commit crimes, it's harder to figure out why juveniles do. This means society is at a loss for what the causes seem to be and therefore, what to do about this type of crime.

Most often the types of crimes juveniles (teens) are involved in involve drug use, illegal drug sales, bullying, vandalism, assault and battery, and gang violence. Evidently statistics show there are a number of possible factors that would encourage teens to commit crimes; e.g. drugs present in the teens environment, domestic violence, family alcohol problems, and dysfunctional families.

If there is violence at home, it's not too much of a stretch to imagine that what teens see at home will be repeated on the streets. This is normal behavior for them and they have nothing to compare. If firearms happen to be in the home, this kicks the risk factor up another notch. Add into the mixture all the gratuitous violence in the media and there is a recipe for disaster.

Politicians are often pressured to make a difference in the juvenile crime rate: to stop it, to deal with gang violence and the drug problems. The difficulty is, most programs that exist today to deal with "juvies" are programs that kick in after an offense has taken place. There is nothing effective that deals with at risk youth prior to them offending.

Generally speaking juvenile crime starts at home, which then makes this whole issue one that needs to be addressed by society as a whole. Where to start remains the burning question of the day, with rumblings that youth need a suitable alternative to gangs. What those alternatives may be remains vague. In the meantime, juvenile crime continues to be an issue, and attorneys who deal with this area of the law strive to do the best they can for their clients.

If ever there is doubt about how to proceed when a youth has been charged with a crime, make it an immediate point to contact a highly skilled juvenile attorney and find out what rights the youth has in the criminal justice system.

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.

Call Me the 12th of Never

Don’t you just despise collection calls at home that always come at the most awkward moments? Have them call you back the 12th of Never.

Collections calls have a tone all of their own and many of them are less than polite. Whether or not you do owe money does not mean collections personnel have the right to harass you in the privacy of your own home. You do have rights, even as a debtor, and threatening calls day or night are out of line.

If you are receiving these kinds of calls at home, do two things. First check your state legislation to find out what the law is in your state about getting collection calls. Then contact a skilled attorney to get the rest of your questions answered. You should know that there is something called the Fair Debt Collection Practices Act that outlines when a debt collector may call.

If you do owe the money the collector is trying to get you to pay, but don't have the means to deal with the bill, seek credit counseling rather than let the debt collection process continue. If you don't do this, the debt collection process will escalate and you may find yourself in court or with your wages garnisheed. Making payment arrangements with the help of a debt counselor will get the bill collectors off your case so they won't ruin your credit rating any further.

Again, whether or not you do owe the bill, you are still protected by law from being harassed by debt collectors and they are not allowed to call during times known to be inconvenient. Depending on where there are calling from, this might be a bit hard to avoid, given time zone differences.

Here is another tip that many people don't know: if you have sent collectors a cease and desist letter, they may not call you, with the exception of one time once they receive your letter. They do not have the right to call you at work and put your job in jeopardy either, and most definitely they are not allowed to call you while you are in the hospital or a nursing home.

For further information on your rights in this area of the law, contact a highly trained attorney who has experience in dealing with these situations. S/he will advise you on what collectors may and may not do.

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 Is Ongoing

Just because you sit down once and do some estate planning, don’t think that it is the only time you will be doing this. Estate planning is an ongoing process in order to keep up with changes in your life.

Generally speaking, the definition of estate planning is the distribution of assets after your death to people, organizations or causes with a minimum of fuss and legal ramifications. No, this is not just for the wealthy; it is for anyone with an estate, no matter how big or small. However, having said that, it's a good idea not to wait until you are older to do this.

The best time to plan out your estate distribution is when you are alive and healthy and mentally competent to do so. Waiting until you are older does not always guarantee that your mental capacity is as sharp as it once was. The other reason not to wait until later is that if an estate plan is made and the mental capabilities of the person are in question, this virtually guarantees a challenge, which is not a good thing for the beneficiaries.

Think ahead when doing estate planning; plan when you are well and "with it" and cognizant of the ramifications of your decisions. Estate planning needs to take into account just about any "glitch" that may arise, which is why this kind of asset distribution needs to be done with the assistance of a thoroughly competent estate planning attorney.

Don't know where to start with estate planning? Here are a few simple ideas, but again, it is best to discuss the whole process with a skilled attorney. Make a list of all your possessions, or at least the ones you wish to gift to others, which may include your house, land, cars, boats, cash, savings accounts, stocks, bonds, art, furniture, and/or interests in a business, etc. Just remember debts and other obligations are also a major part of your estate as well.

While you are making a list, outline who your beneficiaries are and flesh out that information with names, addresses, ages, etc. Name an executor or executrix and draft a list for them of any other agreements you may have: e.g. pre-nuptial, post-nuptial, other wills, property deeds, etc. When in doubt, consult with your estate planning attorney. Remember, this is an ongoing process and needs to be updated every time your life circumstances change.

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.