Chicago Bankruptcy Lawyer Blog

RealtyTrac reports that the number of foreclosures in the Chicago-metropolitan area fell nearly 16 percent in March, when compared to last year. We may not be out of the woods though, as the foreclosure number jumped more than 23 percent, when compared to February, according to The Herald-News.

As more and more homes are lost in the area, homeowners continue to seek bankruptcy protection to stop foreclosure in Chicago.

Our Chicago bankruptcy lawyers understand there is a way to secure your financial future after navigating through these financial speed bumps. An experienced attorney can help you determine the best options for your situation and help you get your finances back on track. Our attorneys continue to assist clients struggling with mortgage debt to determine the best course of action.

Even though recent statistics show that foreclosure activity is at a national low in the last three years, experts are convinced that we're still not in the clear. Much of the slowdown is being attributed to legal problems plaguing banks and to more aggressive defense of homeowners.

The number of homes receiving foreclosure filings dropped more than 28 percent in the Chicago area in the first-quarter of this year from the first quarter of 2010. But Chicago still saw more than 30,000 filings.

Last month alone, filings were made on nearly 11,000 homes in the Chicago-metropolitan area. These filings were down nearly 1,000 from March of last year, but up 2,000 when compared to February.

"The nation's housing market continued to languish in the first quarter," James Saccacio, chief executive officer of RealtyTrac said in a statement. "Weak demand, declining home prices and the lack of credit availability are weighing heavily on the market, which is still facing the dual threat of a looming shadow inventory of distressed properties and the probability that foreclosure activity will begin to increase again as lenders and servicers gradually work their way through the backlog of thousands of foreclosures that have been delayed due to improperly processed paperwork."

Nationally, foreclosure filings were reported on nearly 240,000 homes in March, down more than 34 percent from March 2010, but up nearly 7 percent from February.

Continue reading "Foreclosure Filings in Chicago remain Elevated " »

The results of a study conducted through the University of Illinois found that those who filed for bankruptcy protection have largely seized their chance at financial redemption and are changing their financial lives for the better, according to an article on Mother Nature Network.

Our bankruptcy lawyers in Joliet, Chicago and elsewhere in Illinois see the change in our clients, from their first office call or visit to the resolution of their case. Debt can create an enormous amount of stress in a household, particularly those under the relentless barrage of collection agencies.

Chapter 13 or Chapter 7 bankruptcy protection in Chicago affords families the opportunity to regain their financial freedom and independence and to begin enjoying life again. The study found mandatory counseling required by bankruptcy reform in 2005 is having a positive impact.

Reforms in 2005 require pre and post bankruptcy counseling. As we have reported, the measures were largely a handout to banks, which were complaining about the consequences of their own irresponsible lending practices. An income-to-debt test meant to require some to enter repayment plans was the other big change. However, as we reported on our Chicago Bankruptcy Lawyer Blog, consumers struggling with mortgage debt, credit card debt and medical bills continue to file bankruptcy in record numbers.

"That''s not to say people aren't facing problems post-bankruptcy," said Angela Lyons, an economist and the study's leader. "But, they wanted to start implementing good (financial) behaviors, and they have started doing that."

Changes consumers were able to make following bankruptcy included:

-Setting short- and long-term financial goals.

-Saving money each month.

-Better tracking of expenses and income.

-Less impulse spending.

-Paying bills on time.

-Keeping their debt-to-income ratio below 20 percent.

Continue reading "Study Confirms Illinois Bankruptcies Give Consumers a New Beginning" »

Baseball hotshot, Lenny Dykstra, was arrested in California for reportedly selling $400,000 worth of belongings and trashing his million-dollar mansion after he declared bankruptcy in 2009, the Los Angeles Times reports. He reportedly sold many of the items for cash.

The house the baseball star purchased from hockey great Wayne Gretzky may come with some repair jobs, as the baseball star reportedly took truckloads of fixtures and other items from the house and ripped out a $50,000 stove from the property without consent of the bankruptcy trustee, according to Fox Business.

Our Chicago bankruptcy lawyers urge you to contact a lawyer immediately if you or someone you know is currently going through bankruptcy. While bankruptcies can be filed without a lawyer, as a federal court case it is much more complicated than many realize. A qualified attorney can help make sure you stay on the right side of the law. A lawyer will help you through all of the proper steps in helping you to organize your financial situation. It is important to remember, too, that failing to include a creditor in a bankruptcy filing can make you responsible for that debt even after a bankruptcy is discharged.

Dykstra, a former Phillies and Mets outfielder, retired from the Phillies in 1996 and has since gained attention for his work as a stock picker and for frequently appearing in the financial media, including guest appearances on FOX Business. He was hired, by CNBC "Mad Money" host Jim Cramer, to write a stock-picking column for the influential website, TheStreet.com

Authorities state that the baseball star gone writer sold the removed sports memorabilia on Craigslist and eBay. He was arrested and jailed on a $500,000 bail. USA Today reports, Dykstra could face up to five years in a federal prison if found guilty of the charges.

Continue reading "Former MLB Baseball Star Faces Charges on Bankruptcy Fraud " »

CNN is reporting that six percent fewer consumer bankruptcy filings were reported in the first quarter of 2011. At first blush, that sounds like good news.

The truth of the matter is that bankruptcy filings are at historically high levels. Chicago bankruptcy attorneys continue to handle record numbers of filings for consumers who are dealing with bad real estate debt, overwhelming credit card debt or astronomical medical bills.

Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 in an effort to reduce the number of bankruptcy filings. Despite the name, this legislation was largely a handout to credit card companies, banks, the medical industry and other big campaign donors. The largest change was the requirement that some with certain income-to-debt levels establish a repayment plan.

To illustrate the impact the economy has had on filings, there were 1.1 million bankruptcies nationwide in 2006 -- last year nearly 1.6 million people filed for bankruptcy protection.

Through March, a total of 340,012 filings were reported, which includes Chapter 7 bankruptcy filings, Chapter 13 filings and filings by farms and corporations.

The stigma once associated with bankruptcy has diminished as consumers seek protection in record numbers. The reality is that bankruptcy can provide tremendous relief and permit a family or filer a new lease on life. Collection calls will stop immediately upon filing. And if they don't, you may have standing to take legal action against them.

Congress is moving to end the government's failed mortgage modification program, once again leaving Chicago homeowners facing foreclosure to fend for themselves.

Our Chicago bankruptcy attorneys continue to assist clients struggling with mortgage debt to determine the best course of action. The Home Affordable Modification Program was an abysmal failure largely because banks refused to cooperate -- ultimately only about $1 billion of the $50 billion earmarked for homeowners was distributed.

In many cases, the process turned out to be a nightmare for homeowners who were already struggling to stay afloat financially. Mortgage modifications were approved on a temporary basis, then later rejected for permanent modification. Often, the banks used the resulting mortgage arrears to file foreclosure actions. In other cases, lenders approved a modification and then sold the loan to a bank that would not honor the agreement.

In all cases, consulting a Chicago law firm experienced in handling foreclosures and bankruptcies is the best course of action to protect your rights and the future financial well-being of you and your family.

The New York Times reports House Republicans have voted to kill the program. Democrats may try to save it, but even they admit it has been a failure. Banks have done everything possible to avoid helping homeowners, including losing paperwork and denying many who were eligible according to the guidelines. A review of the program by the government determined banks could only be punished for handing out too much help -- which has been anything but the problem.

Meanwhile, housing prices have fallen for six consecutive months -- very near the technical definition of a double dip recession. Many outlets are reporting the next shoe to fall will be deficiency judgments. Homeowners who avoided bankruptcy via strategic default, foreclosure or shortsale, could be on the hook to the bank for as long as 10 years and may be chased for the difference between what was owed on the mortgage and what the property brought at foreclosure sale.

In other words, they may have gone through the pain and stress only to face bankruptcy anyway -- instead of tackling it all at once and putting their financial issues behind them through a Chapter 7 bankruptcy filing.

RealtyTrac reports there were 225,000 foreclosure filings in February, a number that could outpace even the height of the recession. Until the market regains stability, home prices will continue to fall, and the number of struggling homeowners seeking a new beginning through bankruptcy protection in Illinois will continue to climb.

Continue reading "Chicago Bankruptcy Lawyers note Government Moves to End Failed Foreclosure Assistance Program" »