How To Avoid Foreclosure In Illinois?

Foreclosure is one of the most dreaded dealings that a home owner would ever face. When an individual or family purchases a home, the general intention is to own it long term. The last thing anybody would want is getting a notice of foreclosure. Foreclosures are in the rise in Illinois partly due to recession and partly due to lack of proper financial management. Now, you may be wondering what exactly is a Foreclosure in Illinois. Is it same as Chapter 13 bankruptcy Illinois ? When you are unable to clear mortgage payments on your home in Illinois in a timely fashion, your bank or other secured creditor will initiate foreclosure proceedings. This happens when the past due mortgage payments compound over time; however, many people do not reach the final stages of home foreclosure.

Reasons for foreclosure in Illinois

The main reason leading to home foreclosure has been found to be sudden unemployment which could occur due to layoffs, ill health or accidents. Generally during purchase banks scrutinize the loan repayment capacity of the potential home buyer and only provide loans to favorable applicants. It is only natural that when an individual's career is put on hold, they will not be able to support the mortgage payments. In addition to that, unplanned financial expenditures, such as those due to inflation and accidents result in a large financial toll, which directly correlates to unmet mortgage payments, therefore resulting in foreclosure.

Avoiding foreclosure in Illinois

A Chicago real estate attorney can help you avoid foreclosure. The most efficient way to stop foreclosure is to simply avoid putting oneself into that situation by building up an emergency financial fund. If things happen too suddenly and you are not able to handle it, the immediate course of action to take would be to call the bank or lender or make a mortgage modification or decrease in mortgage payments application, explaining the temporary delay in non-payment. A negotiation can prevent immediate foreclosure. This process is also known as forbearance, where the bank temporarily avoids taking legal actions to obtain payments, and instead assigns a time period of gratification. Besides that, banks often increase the loan period (which results in decreased payments), so that payments become easier to make. For example, a 15 year $1,500 of monthly payment can be changed into a 26 year $900 of monthly payment process. Even though it is not recommended, one can also acquire separate loans on new terms to pay for the existing loans. Although this is a temporary solution and provides relief for a while, the interest rates from both loans compounds over time. However, for recovering individuals that expect a future increase in salary, this is a feasible method for avoiding foreclosure.

To know more about foreclosure please visit www.changandcarlin.com

What Is The Bankruptcy Qualification Process?

Mostly people do not realize that that filing for bankruptcy is an entirely legal and extremely beneficial process that thousands of people have already taken advantage of. Even though bankruptcy is not very well received, filing for consumer bankruptcy has many advantages for individuals and families across the nation, including the most obvious: a debt-free future. Nevertheless, if you are unfamiliar with this section of the law, bankruptcy and other legal options of debt relief may appear very complex or discomforting. Understanding the concept of bankruptcy with an emphasis on the qualification process will help you to make an educated decision. Generally a bankruptcy attorney in Chicago area will walk you through the means test to determine if you qualify for bankruptcy, and if so, which chapter will best suit your needs

In the means test, first the income of the debtor will be compared to the median income of the state in which the potential bankruptcy filer belongs to. If the debtor's income falls below the median income of the state, he or she will most likely be considered eligible to file for Chapter 7 bankruptcy. If the debtor‘s income is above the median income in his or her state, however, the debtor will be eligible to file for Chapter 13 in most cases. It is critical that you do not restrict your options when filing for bankruptcy, as there are several other alternatives available to individuals struggling with debt.

A quick definition says that Chapter 7 bankruptcy In Illinois is a legal process that allows a debtor to quickly relieve their debt through liquidation. As per the law, several possessions are not liable to this type of bankruptcy and will not be liquidated, but this law varies by state. Chapter 13 bankruptcy, on the other hand, is one that allows a debtor to cautiously restructure his or her debt into affordable monthly payments in order to pay back over a period of three years to five years. When your financial future is at risk, you will require a legal team that is ready to mold to fit your needs, rather than use a cookie-cutter approach. Your finances are time-sensitive and should be treated with high care and promptness more so when you are staring down the barrel of foreclosure and threats from creditors. In such a scenario only an experienced attorney will be able to provide you with the resources and attention that you need to ensure your rights are protected both during the qualification process and during the debt relief process.

To know more about bankruptcy please visit www.changandcarlin.com

What role does a trustee play in a bankruptcy case?

In bankruptcy terms “trustee” is a court appointed official who has been selected to represent the collective interests of your creditors during your case. If you are high on debt, filing for bankruptcy in Chicago is a solution that can help you eliminate significant amounts of debt and get a new start. Choosing the right bankruptcy trustee is critical to ensure that you are aware of all your choices and that you derive the best settlement at the end of the process. A bankruptcy trustee is not biased; he does not work either for you or for your creditors. Instead, they act as sort of a moderator or referee between the different parties involved in the bankruptcy case.

The bankruptcy trustee is primarily sells your unprotected assets and distributes the money to repay your creditors. Additionally, the trustee is also in a position to provide debt counseling services to you so that you may avoid bankruptcy altogether. For instance, the trustee might make a special arrangement in which your creditors forgive any missing payments as long as you promise to resume making regular future payments.

Another type of possible settlement would be to pay your missing payments in "installments" along with your regular payments over a set schedule.

What should you look for in a trustee?

If you pay attention you will notice that a bankruptcy trustee is important because they can help you through a complex legal process and they might even be able to help you avoid declaring a bankruptcy in the first place. For this reason, the trustee has to be someone who is trustworthy and who makes you feel secure when discussing your financial and personal matters.

You should not choose a trustee who hesitates to answer your questions or who gives you the feeling that he or she is impatient with you. In order to know all your options, you will need a trustee who is willing to take the time to do his or her job properly.

One of the best ways to understand your compatibility with your trustee is to meet the person first. This will give you an idea of how the person is and how comfortable you are with him or her. The trustee should be very easily accessible in times of your need. It is a good idea to select a firm that specializes in working with average clients rather than big firms or wealthy individuals. There are several reputed bankruptcy law firms Chicago, you can choose any one of them to file a bankruptcy claim. Their highly knowledgeable and experienced Chicago bankruptcy lawyers will evaluate you case efficiently and help you to file a successful claim. They will fight in trail on behalf of you.

To know more about bankruptcy services please visit www.changandcarlin.com

Is Bankruptcy Lawyer A Good Career Option Now?

As is evident from the recession, people are struggling to keep their jobs. Recently it was reported that only 24.6% of all jobs in the United States today are actually good jobs. You cannot consider working at Mickey D's or other fast food restaurants to constitute a career choice by any means. The unemployment numbers were released in the beginning of August and with no surprise, are worse than the previous month at 8.3%. One thing the government is not informing anybody is the number of people that have fallen off the radar because their unemployment insurance been exhausted and they still are not working. On an average more than 51% of Americans are now on government assistance. It seems that the number of Americans filing bankruptcy is soon going to take another rise. The number of Americans filing bankruptcy Chapter 13 or chapter 7 has been rising steadily to a high of close to 1.6 million back in 2010. Since then, the numbers have dropped a little or stayed flat. Many financial experts have been predicting that this might be the calm before the storm.

In this economy, you may want to consider law as a career option; many parents will instruct their children to go to law school to become a bankruptcy attorney. This is one of the only careers that thrive in a bad economy and the scenario is such that it appears that bad economy is here to stay. Recently, several bankruptcy lawyers in Chicago have diversified and started defending clients that were in foreclosure. Due to the unstable market, many loans that were taken out back in the boom time were sold and resold many times over. This occurred due to the deregulation of the industry. Many banks could not even prove that they own the paper free and clear, angering the judges causing the bank to lose the property entirely. Now, a foreclosure takes approximately one year from beginning to end as things have to go through multiple phases. Real estate experts are predicting a continued downslide in real estate prices nationwide and the economy continues to wallow.

With all this going on this is the time for the youngsters to get into the law school and to begin practicing as a bankruptcy attorney. This economy will not recover any time soon and over the next 10 years we will see many Americans filing bankruptcy. People having financial trouble should consider consulting a bankruptcy attorney to look at different options.

To find out if about filing bankruptcy and more, contact Chang and Carlin LLP for a free consultation with an experienced bankruptcy lawyers in Chicago, Illinois who will review your situation and give you a detailed analysis of your case.