Life Insurance And Bankruptcy – What is the Difference?

Chang and Carlin, LLP is a well known firm serving the Illinois area. When looking for a trustworthy Chicago Bankruptcy Lawyer, this is the firm to contact. They have years of experience in filing diverse real estate and bankruptcy cases.

Life insurance is a vital means of ensuring your loved ones are well-looked after should anything unfortunate befall you, but, in bankruptcy, life insurance plays an additional role of providing that same security to your loved ones while providing a sometimes necessary monthly expense that can sometimes significantly impact either your eligibility for a Chapter 7 Bankruptcy or the size of your Plan payment in a Chapter 13 bankruptcy Chicago. Therefore, it is very important to know how life insurance can help you through your difficult times. Let’s take a look.

Can I get life insurance while going through bankruptcy?

Most life insurance companies are looking for the bankruptcy to be discharged before they will consider you for life insurance. But with recent changes in economy and increase in number of filings, more companies are willing to consider you for coverage, especially with the Chapter 13 filings. The only correct way to obtain life insurance is to consult with an experienced Chicago bankruptcy lawyer.

Can I deduct life insurance premiums in bankruptcy means test?

With certain limitations, life insurance premiums can be deducted on bankruptcy’s means test. Since the means test determines whether you are eligible to file Chapter 7 Bankruptcy or, if you are filing under Chapter 13, knowing the amount you must pay into your Chapter 13 plan to be able to deduct life insurance premiums may be to your advantage when you file for bankruptcy.

Good faith standard

The good faith standard looks at your average monthly income and compares it to your average monthly expenses (as a household in both cases, not just as an individual). If there is “too much” money left over after those expenses are subtracted from that income, there is a possibility that the Trustees in your bankruptcy case may file a motion to have the case dismissed. Therefore, the term life insurance with $0 present-day cash-value (benefit only to be paid out upon the demise of the policy holder) is a very useful expense to have on the list of your expenses.

For more information about how life insurance and other more obscure expenses may affect your bankruptcy eligibility, or to schedule an appointment with a Chapter 13 bankruptcy lawyer Chicago, please Request a Free No Obligation Bankruptcy Filing Consultation Today. or call them at 1-866-790-8601.

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.

Finding a Job After Bankruptcy-Things You Need to Know

For those bearing the brunt of financial crises and saddled with debt, bankruptcy is a solution of last resort. While no one wants to file for bankruptcy, an increasing number of individuals and families have found themselves with no other means of absolving their debts. According to the experienced Schaumburg Bankruptcy attorneys at the law offices of Chang and Carlin, although bankruptcy is certainly not an asset to a job-seeker, it's not the nail in the coffin, either. Potential employers can take your new credit rating into consideration, but finding a job after bankruptcy is possible.

Here’s what you need to know about the effect of bankruptcy on your employment:

·         An employer may pull your credit report as part of the job application process. However, they do not typically pull your complete report, only your credit score, as the full report costs more money than they are often willing to pay.

·       

Chicago Bankruptcy Attorneys

  The most common question that our Chicago bankruptcy attorneys are asked is, “Will my credit score reveal a bankruptcy filing?” The answer to this question is no. Your credit score is just a number, and will not reveal a bankruptcy filing.

·        However, no matter what your credit score, you should never lie to a potential employer about your credit history. The best approach is to be upfront and inform the interviewer that you had a past bankruptcy but that your finances are now back on track, or at least you are working to get your finances in order.

·         If you are applying for a federal job, the past bankruptcy should not prevent you from being hired. There are bankruptcy discrimination laws that prevent this practice by federal employers. However, there is no such law in the private sector. A private employer is not prohibited from discriminating on the basis of past bankruptcies.

·         If you are presently employed somewhere, you will not lose your job because of bankruptcy but if you have a job that requires you to maintain a certain credit score as a condition of continued employment, then you may lose your job.

If you are currently looking for a job or in a job which may be affected by your bankruptcy filing, you can probably work out a solution. Talk to an experienced Chicago bankruptcy lawyer about the steps that will best safeguard your professional future.

For more information on Bankruptcy law or to schedule a FREE initial bankruptcy consultation with an experienced Chapter 13 bankruptcy lawyer Chicago, call Chang and Carlin, LLP 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.

Everything You Need To Know About Bankruptcy Preferences

Many people considering filing for bankruptcy in Schaumburg, Chicago, Joliet and Warrenville area consult Chang and Carlin LLP Law Firm to determine whether to file for bankruptcy or not. Our experienced Schaumburg Bankruptcy attorneys and attorneys in other areas of Chicago tell those people that they have the right under federal law to file for bankruptcy relief from their creditors.

The U.S. Bankruptcy Code, Section 547, permits a debtor in bankruptcy or its trustee to “avoid” (i.e., force disgorgement or repayment) transfers made within 90 days of a bankruptcy filing (one year if the transferee was an insider). The Bankruptcy Code gives the debtor and/or the bankruptcy trustee several devices to avoid payments.  Probably the most frequently used of these devices is the `bankruptcy preference’. It refers to treating certain creditors better than others shortly prior to the filing of your bankruptcy. 

 A bankruptcy preference is a transfer made shortly before the case is filed that the trustee can take back from one creditor and share with all the other creditors. The transfer must be:

      1. Of money or property in which the debtor has an interest.

      2.  Made to creditor owed money by the debtor.

      3.  More than the creditor would receive in a Chapter 7 distribution.

      4.  Made within a certain period of time. 

If the court agrees with the trustee and a payment or transfer is in fact a preference, the receiving creditor has to give back the money or property and it will be used to pay all of your creditors.

However, there are several exceptions or defences a creditor may use to stop the trustee from cancelling a payment or transfer as a preference. It's up to the creditor to prove to the bankruptcy court that one of the exceptions applies. 

Preferential payments and transfers can get complicated. Talk to your Chicago bankruptcy attorney before you make any payments to creditors to make sure you get the full benefit of the payment. You don't want a payment to backfire when the person or company you pay has to turn it over to the trustee.

Contact a Chicago Bankruptcy Lawyer at Chang and Carlin, LLP to learn more about bankruptcy preferences.  Chang and Carlin L.L.P, provides excellent legal services to assist clients with bankruptcy and non-bankruptcy alternatives to meet their financial needs.

Contact Chang and Carlin for a Free Bankruptcy Consultation Today!

If you are filing for bankruptcy in Illinois, get in touch with Chang and Carlin, LLP today for a Free Bankruptcy Consultation. We understand what you’re going through and can help you navigate the bankruptcy process with precision.

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.

How A Bankruptcy Can Change Your Life

So you have filed bankruptcy. This financial setback can be an emotionally trying time, and you might have a good deal of anxiety about how you will be able to get back on your feet. It can certainly take time and consistent effort to regain the goodwill you had with the lenders and vendors you deal with. It is not going to be easy to recover all that you lost, but it is not impossible. You can rebuild your finances and your life, if you develop a plan of attack and decide not to let history repeat itself.

If you feel unsure about where to begin with the reconstruction of your life, you can approach your bankruptcy lawyers in Chicago for guidance. Many reputed law firms make sure they counsel those who have filed for bankruptcy to ensure they do not repeat their mistakes. Apart from that, there are a few things you need to keep tabs on:

1. Avoid applying for credit cards or loans for as long as you can. Stop using your current credit card too, or at least avoid them as much as possible. If you are using a credit card, make sure your payments are up to date.
2. Pay all your bills on time. This is the best way to show your creditors that you are credit worthy. This is crucial to reviving your credit rating.
3. There is no harm in asking for financial planning assistance from a professional financial planner, or the Chicago bankruptcy lawyer who may have already helped you with filing your bankruptcy
4. Plan your expenditures. Record your expenses and income on a daily basis to track your finances. The records will help you to easily spot areas where you can curtail your expenses.
5. Try to find an additional source of income so that you can make your repayments sooner and also begin saving, rather than borrowing.

Filing for bankruptcy can be one of the most challenging experiences in one’s life. It is not just the mental stress and financial problems that have to be dealt with, but there you may also feel a certain social stigma. Although bankruptcy will be removed from your credit rating in 7 years, banks will continue to look at your loan request doubtfully for a much longer time. Make sure you do not give them additional reasons to be skeptical.

If you’re on the lookout for financial advice in Chicago, Illinois, take action and get in touch with the offices of Chang and Carlin, LLP, and follow their strategy to get your life back on track! Contact us today for a FREE Legal Consultation.

 

What You Need To Know About Bankruptcies

Bankruptcy a good option for people and organizations that cannot repay debts owed to creditors. Filing for bankruptcy is a legal way to get relief when you are in serious financial trouble.

The Bankruptcy Process

Usually, when filing for bankruptcy, the debtor's assets and liabilities are assessed and a structure is provided within which the debtor is allowed to keep some, and in most cases, all property and is ordered to pay as many eligible debts as possible. These debts to be repaid are selected according to an order of priority which is established by law.

·    There was a time when bankruptcy was considered an embarrassing situation, but now that perception has been replaced by the view that it is a fresh start after a time of financial trouble.

·      Most people who are faced with this situation in life have experienced unexpected and severe financial shock, often caused by events like loss of job, failure in business, death, divorce or illness.

While it does not carry the same stigma, filing bankruptcy still requires courage. It is a step that you need to take to save yourself from further financial troubles, and get freedom from your debts. If you are currently thinking about bankruptcy, keep in mind that it is not a simple matter and requires professional assistance. You will need to retain the services of a qualified and licensed Chicago bankruptcy lawyer to guide you through the process.

Fining a Chicago Bankruptcy Attorney

If you find yourself in a tough financial situation, you need to start exploring your options among bankruptcy attorneys. Here are a couple tips to help you find a good Bankruptcy attorney:

·         Search the internet: Most lawyers have websites that provide a good deal of information about them. You can research the types of clients each bankruptcy lawyer deals with and pick a Joliet bankruptcy attorney who has a good track record and represents claims that are similar to yours.

·         Get Recommendations: An easy way to find a lawyer you can trust is to ask friends and family to recommend one. Make sure the lawyer you select has successfully handled cases similar to yours.

·         Be quick in your research, but do not compromise on the quality: If you are clear about what you want from your lawyer, it should not take you too long to zero in on the right fit.

·     Don’t hold back information: When you make your choice in a bankruptcy lawyer who has experience in debt consolidation and bankruptcy cases, give them all the information you can about your situation and let them handle your financial and legal issues for you.

Chicago attorneys will assist you in understanding your choices and what differences these choices will make. For a Free Bankruptcy Consultation with an experienced bankruptcy lawyer who will review your situation and give you a detailed analysis of your case, contact Chang and Carlin, LLP today!