Reaffirmation Agreement-Things You Need To Know

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.

Bankruptcy is a powerful tool which, if used correctly, can help you recover from financial crises. However, there are many things involved in the bankruptcy process which you need to understand. A good bankruptcy attorney in Chicago will not just help you sail through the bankruptcy process, but will also answer all your questions pertaining to bankruptcy. So, here is some information on a ‘Reaffirmation Agreement’, brought to you exclusively by Chang and Carlin, LLP.

What is a Reaffirmation Agreement?

In a Chapter 7 bankruptcy, a reaffirmation agreement is basically a contract between you and your creditor that states that you agree to treat that specific debt as if you have never filed bankruptcy.

Why people sign reaffirmation agreement?

Many people who file bankruptcy are under the misconception that if they reaffirm a debt, that debt is not listed in the bankruptcy petition. However, the truth is that you must list all of your creditors in your bankruptcy case or you will be in violation of the bankruptcy laws.

What happens if you sign reaffirmation agreement and then fail to pay?

If you sign a reaffirmation agreement and then fail to pay that creditor, they can sue you and garnish your wages. Chang and Carlin, LLP’s experienced foreclosure attorneys in Chicago suggest that you never sign a reaffirmation agreement unless you are extremely confident you will be able to make the future payments.

When should you avoid filing a reaffirmation agreement?

One of the benefits of a Chapter 7 bankruptcy, is the ability to keep (or "reaffirm") debts secured by property the debtor needs for his or her fresh start.  Typically, clients need their vehicle and house and reaffirming the loans on those items seems like the right thing to do. However, there are certain cases when you should not go for a reaffirmation agreement-

·        If there is a 2nd mortgage;

·        If a client is self-employed or has fluctuating pay; or

·        If the property has little or negative equity.

Having the proper knowledge of bankruptcy and related procedures will not only save your financial future, but can also save you from harassment and embarrassment. For more similar useful information, or to schedule a free initial legal consultation with an experienced bankruptcy or real estate attorney in  Chicago, call Chang and Carlin, LLP today 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.

Foreclosure Notice- What Next?

The Law Offices of Chang and Carlin guide individuals and families through their financial struggles, helping them make a fresh start through bankruptcy, foreclosure, and tax struggles.

‘Foreclosure’ is a word which is dreaded by all home owners. It conjures up images of homelessness, shame and ruin. According to experienced foreclosure attorneys in Chicago, foreclosure notices are only served when you fall far enough behind in your mortgage payments that your lender intends to take your property and sell it off unless you make up the late payments. Here’s a look at the possible outcomes after you receive a foreclosure notice.

What does foreclosure notice say?

When a lender sends a foreclosure letter, the letter usually announces that foreclosure will begin in 10 days. 

Pay the mortgage, keep the house

Once you pay the note, the foreclosure becomes null and void. Occasionally, people can raise enough cash to pay off the note. But in most cases, people pay off the note by refinancing (via another bank loan or mortgage company loan), one way or another.

What if you don’t pay?

Your real estate attorney Chicago will tell you that if you don't pay off your debts, the lender will put the home up for auction to the highest bidder. If it doesn't sell, then your lender becomes the new owner.

Bankruptcy Filing

If you are facing foreclosure, bankruptcy might be able to help. In many cases, filing Chapter 7 bankruptcy can delay the foreclosure by a number of months. Some people may be able to save their home by filing for Chapter 13 bankruptcy. When you file either a Chapter 13 or Chapter 7 bankruptcy, the court automatically issues an order (called the order for relief) that includes a wonderful thing known as the "automatic stay." The automatic stay directs your creditors to legally postpone foreclosure.

Bankruptcy filing not just saves your house from foreclosure but also keeps the harassing creditors at bay. But, there are many technicalities involved while filing for bankruptcy. Therefore, it is very important to choose an experienced bankruptcy attorney in Chicago. Chang and Carlin LLP’s experienced Chicago bankruptcy lawyers and attorneys can help you get the immediate debt protection you need and help you get out of debt.

To book your appointment or for more information about Foreclosure in Chicago, contact Chang and Carlin at 1-866-790-8601 or Request a Free No Obligation Legal Evaluation 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.

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.

Useful Facts About Illinois Bankruptcy Laws

Bankruptcy is a legal process that provides relief to individuals and firms in a financial crisis; it also protects their creditors to the maximum extent possible. In this process, the debtor's assets and liabilities are assessed. This provides a structure within which the debtor is allowed to keep some property and sell off others to pay off the debt. Bankruptcy can offer a fresh beginning after a troubled time in life, but it should be considered the last resort for those individuals or firms who are facing a financial crisis.

Filling Chapter 7 or Chapter 13 Bankruptcy is a courageous step forward taken to save oneself from further financial challenges, and a qualified Bankruptcy lawyers in Chicago can generally handle these issues very well. Additionally, they’ll have answers to the many questions running through your mind if you’re stuck in a financial crisis.

Know The Facts About Illinois Bankruptcy Laws

Knowing the facts about bankruptcy in Illinois will help calm your anxiety somewhat and help you understand what to expect in a given bankruptcy case. Here are a few basics about bankruptcy, which your Chicago bankruptcy attorney can explain more in detail:

There are four types of bankruptcy in Illinois under the Bankruptcy Code:

·         Chapter 7: This is also known as straight bankruptcy; it is the simplest and quickest form of bankruptcy available. In Chapter 7, all eligible assets are liquidated to settle as many debts as possible while the remaining ones are discharged.

·         Chapter 11: This is known as corporate bankruptcy; it typically allows corporations to carry on operations while they attempt repaying their debts.

·         Chapter 12: This is aimed solely at the rehabilitation for family farmers and fishermen.

·         Chapter 13: This is a loan repayment plan for individuals with a regular source of income.

Your attorney can help you determine which Chapter would best fit your situation.

The following are the benefits that you may experience when filing for bankruptcy with help from your bankruptcy attorney in Chicago:

·            You may get a ‘discharge of debts’, which means that you are exempted from paying any or all of your debtors.

·            Your assets may be exempted from foreclosure and you may be given a chance to catch up on the arrears of the payments.

·            If any of your assets have been repossessed, the court might pass an order for them to be returned to you.

·            It will get you relief from creditor harassment.

Armed with this information, you can better evaluate your situation. Being aware is like being armed. You are better prepared now to face the tough times and achieve financial freedom.

Chang and Carlin, LLP focuses primarily on helping people file Bankruptcy in Illinois. They’re very knowledgeable in the practice of Bankruptcy Law and have helped thousands of clients over eliminate debt. Contact us today at 1-866-790-8601 and discuss your situation in a FREE Bankruptcy Consultation.