So, I figure I’ll sell the benefits of bankruptcy, with Y is for YOU DID IT!
You completed the bankruptcy case.  3 months for chapter 7, and 3 to 5 years for most chapter 13 bankruptcy cases.    So, now what?

It is a good idea to check your credit report a few months after bankruptcy.  This is a new service we are providing for interested clients.  We’ll help to make sure all items are being properly reported.
You worked hard and paid a lot of money to get your credit back on track, so make sure it’s being done correctly.

You should see an increase in your credit score after bankruptcy as well.  My research shows that most credit scores are predicted to jump up 50-100 points in the first year after bankruptcy.  This assumes the debtor doesn’t go crazy and apply for every offer they see!  If the debtor stays on track, pays all of their bills on time, they should see an increase.  

Don’t hesitate to take new debt, but only if you need it.  You’ll get bombarded from tons of companies who gather your info from the bankruptcy filing and send you offers of new credit. Be smart, throw most in the trash.  You’ll notice huge interest rates and tempting offers that aren’t as good once you start reading the small print.

Take out a small credit card.  Use $50 each month on it. But pay off that $50 each month in full, on time as well. That will help your credit score for sure.

My clients are getting credit card and loan offers the first month after the case.  They are getting car notes the first month out of bankruptcy in Chicago as well.  Watch those interest rates and long car notes – 6, 7 years! Yikes!  My clients in the Chicago area who file bankruptcy are also getting mortgages as well within a few years out of bankruptcy.  

Nothing is set in stone, so feel free to seek out the credit, but only if you need it.  Keep your payment history clean, pay your bills on time.  That can take a few years before this has a major positive impact on your credit score, but every month counts.

Make a budget for yourself.  Be honest with yourself as well.  You had to take 2 counseling classes during the bankruptcy process,  use what they have provided to help keep you on track to financial freedom.

Don’t forget, your attorney is a great tool as well to use, to help with issues you may be having.  They are a great source of referrals too, and have many vendors who are bankruptcy friendly if you need a car, a credit card, loan etc.  

Congratulations, you are out of debt and have a fresh start!
www.leederslaw.com
www.chicagobankruptcynetwork.com
www.cookcountybankruptcy.com

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Several years ago, we saw a boom in mortgage lenders offering low adjustable rate mortgages (ARMS) 100% to 110% mortgage loans, and no money down mortgages.

Today, we have seen these ARMS increase from 5% to 8%, 9% or more depending on the lender. Homeowners are being bombarded with a mortgage payment that is almost double than it had been previously before the interest rates have started to rise.

What is a homeowner to do? With the soft real estate market, homes have not appreciated in value, or not enough to allow homeowners to refinance and use some of their equity to help with the higher rates.

Chapter 13 is an option. In a nutshell, consumers can file chapter 13 which will let them catch up on their mortgage payment, interest free. It can also consolidate their other financed items and often save money on the interest rates. Currently, debtors can pay cars, furniture and jewelry back at prime rate of interest or prime +2, or +3. Bankrate.com shows a current prime rate of interest at 8.25%.

Consumers can also consolidate their credit card debt, medical bills and other consumer debts and pay them back, with little or now interest, and often can pay them as low as 10 cents on each dollar owed!By doing this, consumers can cure any mortgage arrears, pay off their secured debt for vehicles and for big ticket financed items, while eliminating their consumer debt. A Chapter 13 bankruptcy can run from 3 to 5 years. This depends on your monthly household disposable income. There are several recent changes to the Bankruptcy Code that can affect this repayment plan. These changes were part of the BAPCPA reform. Therefore, it is crucial to discuss with an experienced bankruptcy lawyer about the various law requirements and qualifications based on your unique situation.

For instance, let’s say Johnny Consumer owns a home worth $100,000 in Chicago, Illinois. Let’s say he has a $70,000 mortgage with the bank, but has fallen $6,000 behind and the mortgage company has started a foreclosure. Johnny was recently out of work do to an injury on the job. He has just went back to work, and sees no way to catch up $6000 any time soon. He has $10,000 in medical bills. He owes $3000 on his car. For our example, let’s say that Johnny makes $3000 per month and takes home about $2100. His mortgage is $700 a month, his car note is $300 and he has $67 left at the end of the month to use to try to catch up with the medical bills and the mortgage arrears.

At first glance, there is no way he can manage this on his own. Under a chapter 13, Johnny can make a monthly payment of $367 to the court. This will allow him to catch up on the mortgage, pay off his car note, and eliminate the medical bills he has. This will only take 3 years. It will protect all of the equity he has in his home and stop the foreclosure!

Therefore, if you are looking to stop foreclosure, and have steady income, Chapter 13 could be a great tool to use. You can always refinance or sell your home while under Chapter 13 if you wish to pay off the bankruptcy and move on with your life. The Chapter 13 stops the foreclosure immediately. Often, your only other option would be to refinance, or enter into a repayment agreement with your mortgage company. All too often, they want a double payment each month until you can catch up. If you had that kind of disposable income, you probably wouldn’t be in this situation in the first place.

Contact an experienced Chapter 13 bankruptcy attorney today to discuss these options. You
don’t need a home to file either. Often consumers just wish to get a better deal on their old car note, consolidate their credit card debt to eliminate the high interest rates…or wish to consolidate their old student loans and parking tickets. There is a way to pay back old IRS debt as well as pennies on the dollar.

Pick up the phone and call me at 312-346-7400 and I’ll be happy to give you a free consultation by phone or schedule an appointment at one of our convenient
office locations.
We also have a free online legal evaluation to try as well.

The time to act is now if you want to save your home from foreclosure.

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