Milwaukee Bankruptcy Attorney Blog by Miller & Miller Law, LLC » Chapter 13 Bankruptcy

Misconceptions About Bankruptcy

Jamie Miller — Wed, 04 Jan 2012 16:42:52 +0000

Misconceptions About Bankruptcy Could Be Keeping Away Those Who Need Help

Historically, bankruptcy has been stigmatized. Narrow-minded people saw those filing for bankruptcy as failures, as deadbeats or as being guilty of living far beyond their means. Nowadays, though, we know that the great majority of people filing for bankruptcy protection are victims of circumstance: their debt could easily have been caused by a job loss, divorce or serious illness that racked up a mountain of medical bills.

The bankruptcy laws have undergone significant changes in recent years, and some people think it is now all but impossible to file. If anything, however, the new laws make it easier to use this legal tool for a financial fresh start. Unfortunately, there is a great deal of misinformation — both good and bad — floating around about the purpose of bankruptcy and about the process of seeking bankruptcy protection to deal with personal or business debt. This article will help dispel some of the myths and make it more approachable as a debt management option.

No More Stigma

Most people considering a bankruptcy filing fear that they will be stigmatized by family, friends and coworkers. Luckily, this is not true; unless the filer is a public figure or involved with a large company, 99 percent of the time the public will never know about a bankruptcy filing. Likewise, they may fear that lenders will forever view them as a bad risk and that they will never qualify for financing on auto or home purposes in the future. This, too, is a myth. While a bankruptcy filing does show up on the filer’s credit report, most filers can start building their credit again just a few years afterwards. For some filers, the wait is even less.

Do I Have to Sell Everything?

Some people have this abstract view of bankruptcy as being a court-ordered “rummage sale” of sorts where they will have to liquidate everything from their household furniture to their great-grandmother’s china. Yes, the court may order a filer to sell superfluous and extravagant assets (like a vacation home in Aspen that is used one week a year or an original Shelby mustang that has been under a tarp in the garage for a decade), but the majority of filers get to keep their home, clothing, household belongings, work-related items like tools, furniture and the family vehicle.

You CAN File Again

For some people, a second — or even third — bankruptcy filing is a necessity. While common knowledge may say that bankruptcy is a one-shot deal; you get a single chance to get a financial new beginning through the bankruptcy code. This simply isn’t the case. While there are waiting periods put in place to prevent so-called “serial filers” who might have a pattern of irresponsibly running up massive amounts of debt and then filing for bankruptcy again and again, the law doesn’t bar a subsequent filing if legitimate financial circumstances dictate.

Even though bankruptcy is more accessible than it has been in the past, the process can still seem overwhelming and even scary. With the help of an experienced bankruptcy attorney, though, bankruptcy can be a great way to get out from under a mountain of debt and get a fresh financial start.

At Miller & Miller we are here to help you file in Milwaukee, Kenosha, Racine, West Bend or wherever you may live. We have convenient offices in Kenosha and Germantown if getting to our downtown office is a problem.

Credit Repair Tips After Bankruptcy

Jason S. Crye — Mon, 12 Dec 2011 22:42:26 +0000

Here’s a link to a worthwhile article by Jennifer Waters on a very common (and very important) question that our clients often ask: What can I do to help my credit rating after filing a bankruptcy?

To discuss your credit repair and rebuilding options with one of our attorneys, call us today!

10 Things Not to do When Preparing to File a Bankruptcy

Jason S. Crye — Tue, 06 Dec 2011 18:21:24 +0000

1. Don’t run up your credit cards.

2. In fact, don’t even use your credit cards!

3. Don’t take our any pay day loans.

4. Don’t Cash out your 401(k) or any other retirement plan you might have.

5. Don’t pay back any friends or family members to whom you might own money.

6. Don’t transfer your money into someone else’s bank account.

7. Don’t go gambling!

8. Don’t do a balance transfer.

9. Don’t try to transfer any property out of your name.

10. Don’t be afraid to ask your attorney questions!

College Graduates Move Home and the Economy Feels the Impact

Jason S. Crye — Fri, 18 Nov 2011 16:01:54 +0000

Here’s an article from the New York Times providing a pretty bleak picture of one aspect of our current economic crisis. From the article: As of last month, just 74% of Americans between the ages of 25 and 34 are working, and 14.2% of yound adults are living with their parents.

Read the full story here.

Yes you can get rid of your second mortgage in bankruptcy!!

Jamie Miller — Wed, 12 Oct 2011 04:32:28 +0000

If you are having problems making your second mortgage payment or home equity line of credit you may want to meet with one of our lawyers to see if we can get rid of that secondary mortgage. When you file a chapter 13 bankruptcy a bankruptcy Judge may get rid of a second mortgage or home equity loan if that mortgage is wholly unsecured. Those secondary mortgages are wholly unsecured if your home is valued at an amount equal to or less than the amount you owe on your first mortgage. As an example. You have a home worth $150,000.00 with a 1st mortgage of $155,000.00 and a 2nd mortgage of $30,000.00. In this case the 2nd mortgage company would get nothing in the event your home sold for $150,000.00 or less. For that reason a Chapter 13 judge would order the 2nd mortgage void since it is entirely or wholly unsecured.

This issue can sometimes be very confusing. For that reason we always suggest you set up a free consultation with one of our lawyers a Miller & Miller. There is never a charge for an initial consultation and we are happy to meet with you to discuss all of your options.

James Miller

jmiller@millermillerlaw.com

414-277-7742

10 Ways We Waste Money

Jason S. Crye — Mon, 26 Sep 2011 16:55:06 +0000

The MSN Money team makes the important point that before you start saving money, you have to stop spending it. Below are 10 common ways that Americans blow their hard-earned cash. Check out the full article here.

1. Buying Brand Names

2. Buying New

3. Accepting Initial Offers

4. Buying a Bigger Home than You Need

5. Paying Interest

6. Eating out too Much

7. Paying for Freebies

8. Keeping Unhealthy Habits

9. Turning Down Free Money

10. Paying too Much for Insurance

Do any of those ring a bell for you? Did they miss anything? Add your top money wasting activities in the comments section below.

Attorney Miller quoted in Journal Sentinel regarding decline in Bankruptcy Filings

Jamie Miller — Tue, 26 Jul 2011 15:31:13 +0000

Bankruptcies ease in U.S., state

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By Paul Gores of the Journal Sentinel

July 25, 2011 |(1) Comments

Click to enlarge

Bankruptcy filings in Wisconsin and the nation are running behind last year’s pace, but attorneys say it’s too soon to know whether the wave of filings triggered by the economic downturn has crested.

Still, at least in some lawyers’ offices, the number of people coming in to declare themselves insolvent has slowed slightly. And more of those filing for bankruptcy today are people who at one time were higher on the economic scale. That compares with many of those who filed earlier in the recession – people who were living paycheck to paycheck and folded quickly when their income was cut, lawyers said.

“I think those that we’re seeing now are those who were able to survive the downturn – people who were self-employed, people who had higher-paying jobs, were able to tap into retirement accounts and use the credit card but make the minimum payments,” said James Miller, of Miller & Miller in Milwaukee. “There is just not that same mass of people as those who fit into the first category.”

U.S. Bankruptcy Court records show bankruptcy filings fell 8.4% in the first half of 2011 in Wisconsin, to 14,682 from 16,024 in January through June 2010. About 80% were Chapter 7 filings, which wipe out debt on things such as credit cards, medical expenses and utility bills.

The Wisconsin numbers mirror a decrease in consumer bankruptcies nationally. There were 709,303 filings in the United States in the first six months of 2011, an almost 8% decrease from 770,117 during the same span in 2010, according to American Bankruptcy Institute.

“What we’re seeing is still high filings, but off the peak,” said David Leibowitz, founder and managing member of LakeLaw in Milwaukee and Kenosha. “I don’t think we can take a great deal of comfort in it. But I do think that there’s a direct correlation between the economy and unemployment on one hand and the bankruptcy statistics on the other hand.”

Madison bankruptcy attorney Claire Ann Resop of von Briesen & Roper said people who had been making at least midlevel incomes are among those she sees more frequently. Among those on the list: teachers, nurses, sales people, tradesmen, homebuilders and truckers.

“They had higher income and they had more resources to try to keep up for a while,” she said.

Milwaukee attorney Robert Waud said he was “kind of surprised” to hear the number of filings in the state declined.

“It’s pretty steady coming in the door,” he said.

Small-business owners, trades people and land developers are common bankruptcy filers, he said.

Waud, of Todd C. Esser & Associates, isn’t convinced bankruptcy filings have peaked, even if the half-year trend is down from a year ago.

“I think it’s too soon to say,” he said.

Miller said restraints on credit since the start of the recession and financial crisis have cut the likelihood of people charging huge debts that end up in bankruptcy.

“Credit companies aren’t taking as many risks on people, so there are not as many credit-related defaults,” Miller said.

Lawyers said issues that historically have led to bankruptcy remain the big factors – uninsured major medical costs, divorce and job loss.

“The problem still, as far as I’m concerned, is there are not enough people working,” Waud said.

We can Lower your car payment through bankruptcy

Jamie Miller — Tue, 12 Jul 2011 17:07:33 +0000

In you own a car that you owe more than it is worth, our lawyers may be able to help lower your car payments. Our lawyers can use a Chapter 7 bankruptcy redemption to lower your payment. Many people are forced into bankruptcy because a car loan company has over-financed a vehicle. A high car payment can make it impossible to afford your car. We may be able to force your car lender to accept a payoff on your vehicle for only the value of your vehice.

In a Chapter 13 bankruptcy we can “cram down” or reduce what you owe on the car to what the car is worth. Our experienced lawyers will help you figure out if this is a solution for you.

We can even get your car back and reduce your car payment if your car has already been repossessed.

NEW MORTGAGE LOAN MODIFICATION PROGRAM

Jamie Miller — Wed, 04 May 2011 12:40:52 +0000

If you are behind on your mortgage payment and you have not consulted with a bankruptcy lawyer within the last two weeks I would urge you to contact Attorney James Miller at Miller & Miller to discuss your options regarding the new Chapter 13 bankruptcy loan modification program. The bankruptcy court for the Eastern District of Wisconsin has initiated this brand new program for those who need immediate help to save their homes.

The Mortgage Modification Mediation Program is a new program designed to help qualified Chapter 13 debtors keep their homes by modifying their mortgage to an affordable payment. To qualify for this program you must have steady income. The bankruptcy court and your bankruptcy lawyer will work to set up an informal meeting between the borrower and mortgage lender to help get you caught up on your mortgage payment. The mediator cannot force a lender to modify a mortgage, but can help the debtor and the lender reach an agreement. This program is a way for the borrower and the lender to discuss whether modifying the mortgage is possible. The goal is to encourage the borrower and the lender to agree to a permanent mortgage modification which ultimately may help you get caught up on your mortgage payments.

This program is different from others because it has the weight of the Bankruptcy Court behind it to encourage mortgage lenders to cooperate with their borrowers to achieve a mortgage modification that is acceptable to all parties involved.

Call Attorney Miller today at 414-277-7742 or email him at jmiller@millermillerlaw.com for a confidential consultation on how this loan modification program to help you.

I filed Bankruptcy once before, when can I file again?

Stacey Martinez — Wed, 26 May 2010 14:40:40 +0000

If you should stumble upon financial hardship again, it is possible to file bankruptcy more than once. There are time limits however.

Chapter 7 – If you filed and received a discharge in a prior Chapter 7 case, you have to wait 8 years after the filing of the prior Chapter 7 before you can file another Chapter 7 case.
- If you filed and received a discharge in a prior Chapter 13 case, you have to wait 6 years after the filing of the prior Chapter 13 before you can file a Chapter 7.

Chapter 13 - If you filed and received a discharge in a prior Chapter 7 case, you are eligible to file a Chapter 13 case without a waiting period. However, if you file the Chapter 13 case within 4 years of the date you filed the prior Chapter 7, you will not receive a discharge in the Chapter 13. In other words, you could use the Chapter 13 to pay mortgage arrears and save your house, but the Chapter 13 will not discharge any debt obligation, including credit cards.
- If you filed and received a discharge in a prior Chapter 13 case, there is a 2 year waiting period from the filing of the prior Chapter 13 case.