What To Do When You Get A Claim Form From Court

The Law Offices of Chang and Carlin guide individuals and families through their financial struggles, helping them make a fresh start through Chapter 7 and Chapter 13 Bankruptcy.

There are times in life when we feel absolutely clueless about the right step to take. When it comes to making important decisions, having an expert’s opinion is very important. Chang and Carlin, LLP’s Chapter 13 bankruptcy lawyers in Chicago have used their expertise to help many families to take the right decision and come out of murky situations. One such situation is, ‘getting a claim form from court’. Read on to find out what one should do in such a situation.

What is a claim form?

When a creditor starts court action, you'll get a number of documents from the court. These are a claim form and a response pack. The claim form gives details of how much your creditor is claiming you owe them. The response pack contains a number of forms. Some of the forms are for you to say whether you accept you owe the money. If you don't agree you owe the money, there's also a form you need to send back to confirm you got the documents.

What to do when you receive a claim form?
According to bankruptcy lawyers in Chicago, once you receive a claim form, you should read the notes which come with the claim form carefully and deal with the documents by the deadline given. If you don't deal with these documents, a court order can be made against you. If this happens, you'll have to pay back all the money your creditor is claiming, even if you don't owe it. You may also have to pay interest and extra costs on top of this.

An Important thing to remember:
If the court's official stamp isn't on the claim form, the person you owe money to might be trying to get you to pay them back by pretending to send you court papers. This could count as harassment by your creditor and might be against the law.

These were some things that everyone should know about claim forms. For information on any topic pertaining to bankruptcy, such as Chapter 7 or Chapter 13 bankruptcy in Chicago, call Chang and Carlin, LLP at 1-866-790-8601 or  Request a Free No Obligation Bankruptcy Filing Consultation Today.

Disclaimer: The content provided by Chang and Carlin, LLP is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Foreclosure services, or Real Estate legal services, call our law firm at 1-866-790-8601 for a Free Legal Evaluation. Chang and Carlin, LLP serves clients in Chicago, Schaumburg, Joliet, and Warrenville.

Top Reasons To File For Chapter 13 Bankruptcy

The Law Offices of Chang and Carlin guide individuals and families through their financial struggles, helping them make a fresh start through Chapter 7 and Chapter 13 Bankruptcy.

People who face extreme financial difficulties have the option of filing for bankruptcy in order to get respite from their financial burdens. However, it is important to make careful assessment of each aspect before one decides to proceed with a bankruptcy case. Each situation is different and so is each chapter of bankruptcy. Therefore, this article will look at the top reasons why Chapter 13 Bankruptcy in Chicago is a popular and effective option.

1.     In case of Missed payments on mortgage or car. If you have missed payment on home mortgage or car loan and you don’t want your home to be foreclosed or your car to be repossessed then you should file for Chapter 13 Bankruptcy. In a Chapter 13 Bankruptcy you will be able to spread out those payments over 36-60 months, and your creditors cannot foreclose on your home, repossess your vehicle.

2.     In case of second or third mortgage. If you have a second or third mortgage on a house that is currently valued at less than the first mortgage, then you should definitely go for Chapter 13 Bankruptcy filing. The bankruptcy judge has the power to completely discharge any additional mortgages.

3.     For loan modification. Banks can take months, even over a year, to decide if they want to give you a loan modification. But, if you can have your Chapter 13 plan confirmed while you await the bank’s decision, as long as you are being making payments equal to 31% of your gross income, which is usually much less than the amount homeowners are currently paying. 

4.     When monthly debts make it hard to pay mortgage or car loans. According to Chapter 13 bankruptcy lawyers in Chicago, in a Chapter 13 Bankruptcy, you will most likely be able to wipe out most of your unsecured debts, like credit cards, so you can put your earnings toward what is most important: your home or car.

Reasonable Fees for Bankruptcy and Foreclosure Help for Illinois Residents + an Initial Free Consultation

If any of the above cases apply to you then, you should definitely consider filing for Chapter 13 Bankruptcy with the help of experienced Bankruptcy lawyers in Chicago. The experienced bankruptcy attorneys at the law offices of Chang and Carlin will also help you decide your best options during the bankruptcy process.

Our goal at Chang and Carlin, LLP is to change your financial future. To book your appointment or get more information about Chapter 13 and Chapter 7 Bankruptcy in Chicago, contact us at 1-866-790-8601 or Request a Free No Obligation Bankruptcy Filing Consultation Today.

Disclaimer: The content provided by Chang and Carlin, LLP is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Foreclosure services, or Real Estate legal services, call our law firm at 1-866-790-8601 for a Free Legal Evaluation. Chang and Carlin, LLP serves clients in Chicago, Schaumburg, Joliet, and Warrenville.

Lien Stripping Defence: Detailed Analysis

During the bankruptcy process, understanding the distinction between secured and unsecured debt is very important. If you are contemplating bankruptcy, it is critical for you to thoroughly comprehend the bankruptcy process. The bankruptcy attorneys at Chang and Carlin, LLP in Chicago can help you understand bankruptcy procedure and take the steps necessary to ensure that you emerge in the best financial position possible. One such necessary step is “Lien Stripping”.

If you have a second mortgage on your home and are in danger of losing it to foreclosure, Chapter 13 may offer a solution. In Chapter 13 Bankruptcy there’s a procedure called ‘Lien Stripping’, that changes a secured second mortgage or home equity line of credit into an unsecured debt, which not only eliminates your monthly payment, but usually lowers your total debt by thousands of dollars.

Our experienced Bankruptcy Lawyers in Chicago can help you through the process, which involves the following steps:

·         1. Our experienced Chicago Chapter 13 Bankruptcy attorneys can help you determine whether you qualify for Lien Stripping or not and, if you do, we’ll help you remove the lien from the second mortgage.

·         2. A Chapter 13 debtor can ask the bankruptcy court to strip away the second mortgage debt because the value of the home is less than the amount of the first mortgage. An attorney can help you determine the fair market value of your property, so that you can establish whether there is enough equity to secure a first mortgage. If the fair market value of your property is less than the total amount of money due on the first mortgage, a second and third mortgage can be stripped off the house. By stripping off this lien, which is treated as an unsecured claim, you may be able to wipe out debt in order for you to more easily pay back your existing debt as part of your Chapter 13 payment plan.

 “Lien stripping” is one of the most powerful forms of debt relief available in Chapter 13 bankruptcy. If you are considering filing Chapter 13 bankruptcy in Chicago and are interested in the possibility of “lien stripping” to eliminate or reduce liens or mortgages on your home or other property, please contact Chang and Carlin, LLP today. For an initial FREE Bankruptcy Legal Consultation, contact our law offices in Chicago.

Disclaimer: The content provided by Chang and Carlin, LLP is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Foreclosure services, or Real Estate legal services, call our law firm at 1-866-790-8601 for a Free Legal Evaluation. Chang and Carlin, LLP serves clients in Chicago, Schaumburg. Joliet, and Warrenville.

Filed Bankruptcy? Now To Rebuild Your Credit Score

So you’ve had some financial misfortunes that led you into bankruptcy? Not to worry! Bankruptcy offers an opportunity to rebuild your life, as you can learn from your mistakes and start over fresh with a new perspective and knowledgebase. While it’s true that bankruptcy can provide freedom from your financial woes, it does have an adverse effect on your credit score. Regardless of whether you chose Chapter 7 or Chapter 13 Bankruptcy, the next step you need to take is to start rebuilding your credit.

Rebuilding Your Credit Rating

One of the worst side effects of filing for bankruptcy is the hit your credit record takes; It can take several years and quite a bit of TLC to get your credit back on its feet. However, this doesn’t mean that you should give up on hopes of ever getting another car loan or mortgage in the future. If you are ready to make some life changes and develop a financial strategy, then you can steadily rebuild your credit rating after filing Chapter 7 or Chapter 13 bankruptcy in Chicago.

Additionally, some loans, credit cards, etc. will still be available to you. However your focus needs to remain on improving your credit score. This means you’ll need to pay your bills on time, every time. Missing even one payment may set you back even further. Not missing even a single payment is the number one key to rebuilding your credit.

If you are lucky enough to get a credit card or store card after your Chapter 13 or Chapter 7 bankruptcy in Chicago, you should use it as tactfully as possible. Make use of this credit card for a minimal amount every month. Make sure you pay off the credit card bill on time each and every month. This will show that you aren’t getting ahead of yourself with big purchases, and that you can consistently make your payments. Essentially, you need to show future creditors that you are no longer a risk for them to invest in.

A small charge of 10 to 20 dollars on your credit card is sufficient to show that you can use a credit card and repay it without issues. If you feel you are beginning to use the card more than necessary, it is advisable to take a debt management course that will give you pointers on how to avoid financial troubles. Your bankruptcy attorney in Chicago should be able to give you a reference for a financial counselor who will help you to organize your finances in the best way possible.

For more information on rebuilding your credit score or filing bankruptcy, contact Chang and Carlin, LLP today for a Free Bankruptcy Consultation.