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Trustee Holds Feher Proceeds Until Completion or Dismissal of Chapter 13 »

When an insurance policy pays a damage claim for a totaled car that is involved to a chapter 13, the bankruptcy trustee is required to hold excess money over the amount of the lender’s secured claim according to In re Feher, Southern District of Illinois case Bankruptcy Number 95-30444, Adversary Number 96-3133.  Consequently, the money [...]

What Happens to Insurance Proceeds for a Totaled Car in Chapter 13? »

In the Southern District of Illinois Bankruptcy Court, one option permits the insurance company to pay the money directly to the car lender.  Another option lets the debtor use the proceeds to purchase a substitute vehicle.
The insurance money is property of the bankruptcy estate under contractual terms that make the money payable to the debtor, [...]

Bankruptcy and Foreclosure Defense Attorney Opens New Southern Illinois Office »

Bankruptcy and Foreclosure Defense attorney Andy Miofsky announces the opening of his new office in Mt. Vernon Illinois.
“Clients from deep Southern Illinois are driving 90 minutes or more to my Granite City office for a consultation, so I know there is a need that isn’t currently being met in that area,” reports Andy Miofsky.  “I [...]

Ask For A Discharge After Making Last Chapter 13 Payment »

You must request a discharge in Chapter 13 and certify your eligibility for that discharge or your case will be closed and your debts will remain collectable.
Your Chapter 13 Trustee will report when you have finished making your Plan payments.  You then have 20 days to file a Motion, under Section 1328 and Rule 2002f asking the [...]

Must I pay my creditors in less than 5 years in a chapter 13 case? »

Must creditors be paid in less than 5 years in a 100% chapter 13 plan? We don’t yet know.

Protect your income tax refund in bankruptcy »

Tell your bankruptcy attorney if you are expecting an income tax refund or economic stimulus payment.

Pre-Bankruptcy Means Test Planning — Try Moving »

The 2005 amendments to the Bankruptcy Code created a very complex rule to discourage folks from moving around the country to protect more property.  But the same amendments encourage people to do so if it helps avoid that same law.
One aspect of the law we have come to hate is the change to discourage folks [...]

Chicago Bankruptcy Judge Says Chapter 13 Projected Monthly Income is based on Actual Income and Expense »

Judge Wedoff of the United States Bankruptcy Court for the Northern District of Illinois has issued an opinion where he tries to harmonize conflicting opinions about what constitutes “projected monthly income.” This is highly important in determining how much a debtor has to pay under a plan.

How will your tax refund be treated in bankruptcy? »

Do you get to keep your tax refund when you file for bankruptcy?
Many people who are thinking about bankruptcy at this time of year forget that their income tax refunds are a valuable asset.  If you file your bankruptcy case before you get your income tax refund, you may lose it.
If your income tax refund [...]

7th Circuit’s Belcher Decision Sure To Spawn »

My colleague David Leibowitz of Chicago posted about a fresh 7th Circuit Court of Appeals case, In re Belcher, which denied a homestead exemption under Illinois law to a spouse as to real estate that was titled in his spouse’s name only but not in his name.  This case will expose real estate equity to [...]