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