Credit Unions & Bankruptcy

Read the article from Attorney Peter Francis Geraci about Credit Unions and the difference in bankruptcy. This is why hiring an experienced attorney – matters. If you would like a free consultation, Geraci Law is here for you.

Credit Unions are Different than Banks in Bankruptcy

If you owe money to a credit union, they usually have a clause in their borrowing contract that any collateral you have given them, such as the car title, or a second mortgage on your house, is collateral for any other loans such as personal loans. It is what’s known as a cross-collateralization clause.

What is Cross-Collateralization?

Let’s say that you made a credit union loan for $3,000 and it was a personal loan and you had no collateral. Then you financed a car using a credit union loan, and you have $25,000 on that loan.

Look at your credit union papers when you made that vehicle loan. You don’t owe $25,000 on that loan; you owe $28,000, because there is a clause in small print that says any loan you have with them, is collateralized by the vehicle.

The Debt Can Stay If You Cross-Collateralize

Let’s say that you have a second mortgage with your credit union, and you take out a car loan, but then the car is wrecked and the insurance would only pay $15,000 but you owe $20,000. So the insurance pays the credit union $15,000 but you still owe $5,000. Since the car is destroyed, it is no longer collateral for the car loan, but since there is a cross-collateralization clause, you will pay $5,000 if it is secured by the second mortgage on your house. Even if you pay off the second mortgage, you have to pay off that $5,000 on the car loan, plus interest until you pay it off.

Do Credit Unions Debt Shame You?

Credit unions claim that they keep their interest rates are low because they have less losses than other lenders. One way they have less losses is by scaring you, and posting the names of anyone who causes them a loss, by not paying back 100% of what they owe, either on the credit union website or on a bulletin board at the credit union, or both. That is called “credit shaming.” It is pretty nasty, but it’s a fact of life with credit unions.

What if Your Credit Union Vehicle is Over-Financed?

So, under Chapter 7, if you have a vehicle and you want to keep it, and it’s financed by a credit union, they will want the vehicle back unless you sign up on the vehicle loan and any other loans you have with them. Under Chapter 13, they are a secured creditor on cross-collateralized loans.

Complications from Credit Union Debts

So, the most common case involving credit unions is that if you want to keep the vehicle financed by them, or you have a second mortgage financed with them, no other loans, it’s pretty routine: In Chapter 7 you reaffirm, in Chapter 13 simply pay them according to the contract terms.

The complication comes in where you have multiple loans with them and that’s something we can discuss with you, but please, go get a copy of each credit union loan so we can read the paperwork and see if there is a cross-collateralization clause. You can also stop by the credit union, and ask them for a copy of the papers and ask them if the loans are crossed with each other. Then you’ll know and can make an intelligent decision. Geraci law can help you make that decision.

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

Geraci Law Attorneys in Texas!

Geraci Law is ready to help YOU in Texas. Attorney Jason Nielsen and Attorney Cecil Scruggs are sworn into Texas. It’s the same AMAZING Geraci Law service in the heart of Texas.

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

Hiring Random General Practice Attorney for Bankruptcy Leads to Disaster

Geraci Law concentrates in Bankruptcy: why pay the SAME and not get the NAME

Read the following article written by Attorney Peter Francis Geraci and MORE @ https://www.infotapes.com/Articles

A homeowner hired a local attorney in Algonquin Illinois whose main business is income tax preparation. That attorney failed to avoid a judgment lien attached to the residence. That was in 2015, 7 years ago. After the discharge was entered, the lien remained, and the homeowner discovered it 4 years later, and complained to the lawyer, who filed at least 4 motions to reopen the case that failed. The poor homeowner then hired another attorney to clean up the mess, who also failed.

Here’s what the court had to say about the first attorney: While the court does not do so for every attorney appearing before it, as Maksymonko was unfamiliar to the court and given his repeated errors, prior to the Initial Hearing, the court sua sponte sought to confirm Maksymonko’s status as an attorney authorized to practice before it. It is worth noting here that this court has no bar qualifications or admission process. Attorneys practicing before it must only be members in good standing of the bar of the United States District Court for the Northern District of Illinois. What the court discovered was concerning—that Maksymonko was not a member in good standing of the District Court bar. Apparently Maksymonko was suspended from practice by the State of Illinois on January 23, 2003. As a result, he was reciprocally suspended by the District Court. https://www.ilnb.uscourts.gov/sites/default/files/opinions/BruceK.Probst15bk12654JudicialLienAvoidanceUnder522f60.pdf

Another attorney then appeared and failed. The lien of $92,054.53 is still stuck on the debtor’s residence. All because the homeowner went to an “unknown attorney” who was suspended. You can read the whole sad story in Judge Barnes’ opinion. Geraci Law would have simply filed, and won, a motion to avoid the lien, for most likely $92,000 less than what the homeowner is going to have to pay. Those attorneys who “dabble” in bankruptcy law may sometimes cause big trouble for their clients. In this case, the cost of a “cheap lawyer” was over $92,000.00.

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

Beverages & Budgeting

It may be time to rethink your plan. Use Geraci Law budget as a guide. If you are worried about the amount you are paying toward debt – Geraci Law is here for you.

Inflation is causing everyone to relook at the budget. Where to start? Where to begin? You can only eliminate cable once so where is there give? Look at your monthly expenses, write them down. Are the payments you worked out to “settle” or “consolidate” MORE than you are spending on food, utilities? Has the agency you hired settled anything? Are you being sued despite being enrolled in this program?

It may be time to rethink your plan. Use Geraci Law budget as a guide. If you are worried about the amount you are paying toward debt – Geraci Law is here for you. We’re happy to review your budget and options to see if there’s a BETTER solution.

Fillable PDF @ https://www.infotapes.com/Content/Forms/ExpenseFormFillable.pdf

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

What Bankruptcy Can Do!

No one wakes up in the morning and says, “I want to file for bankruptcy!” It does not work that way. Life happens and more often than not you are in more debt with less income. Sometimes it’s as simple as bad luck – you get into a car accident 2 days after your insurance lapses, you start a new job and are in the hospital before health insurance kicks in. There’s divorce, life circumstance – things happen.

Thankfully, we have bankruptcy as an option to deal with the debt. Filing for bankruptcy can be the fresh start and breath of fresh air you are looking for. So what can it do for you?

  • Gets rid of as many bills as possible
  • Does not affect car payments if you keep the car and continue payments
  • STOPS all calls and letters from bill collectors.
  • STOPS interest on charge cards.
  • CLEARS credit report except for bankruptcy listing.
  • Allows you to INCREASE your credit score.
  • Helps you catch up on house and car payments.
  • Lowers interest on furniture and appliance payments.
  • Allows you to start a savings plan immediately.
  • STOPS garnishments and wage assignments.
  • NEVER pay another old debt again.
  • Clear up past due utility bills–only a deposit needed to restart service.
  • All negative credit reports before bankruptcy are cleared.
  • Accounts you have reaffirmed or paid are credit references in the future.

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

What You Get When You Choose Geraci Law!

Check us out @ https://www.infotapes.com/. Geraci Law has helped THOUSANDS get control of their finances. We’re not a corporate firm, we’re nice friendly people ready to help. Geraci Law cares about YOU and finding a solution to your financial problem. If we can’t help, we’ll try to come up with an alternative solution.

Here’s what else you get when you choose Geraci Law:

  • Free phone consultation to go over your debts with a bankruptcy counselor. Call to start now with a free consultation.
  • Free office or virtual consultation Weekdays and Saturdays.
  • Fast filing same day available.
  • No money down filing available for Chapter 13 plans.
  • Payment plans you can afford available to fit your case.
  • We handle our own trial and appellate work.
  • No hidden charges: some firms tack on $150 for what we do for free.
  • Established bankruptcy law firm with over 100 attorneys and staff.
  • We do both Chapter 7 and 13, some attorneys only do one Chapter.
  • We are in court all the time everywhere, it’s no trouble to help you out!
  • No phony debt settlement schemes: we work within the court system.
  • Geraci Law is the largest bankruptcy firm almost everywhere we are.
  • Personal attention, happy clients, and a fresh start for you.
  • Experience counts: we do so much bankruptcy we see everything.
  • Geraci Law LLC provides our lawyers and staff with Continuing Legal Education constantly so you get lawyers who are up to date legally!

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

Can Bankruptcy Stop Collection Agencies From Calling?

Check out this article (and more!) at https://www.infotapes.com/Articles. The answer is YES.

Yes. You can stop creditors from calling you without filing a bankruptcy.  Just say “Oh, I’m glad you called, where can I send payment in full?”  

If you can’t send payment in full, start sending partial payments, and they’ll stop calling. 

If paying the creditor who is calling, you isn’t in your budget, you can also say “Don’t call me, I can’t pay you, you can sue me but don’t call me.”  They may or may not file a lawsuit against you.

If Geraci Law files your Chapter 7, or Chapter 13 repayment plan, we provide you with your bankruptcy case #.  You then give it to anyone who calls you, and you won’t hear from them again.  Make sure you ask who is calling and who they represent, so you make sure they are listed on your bankruptcy petition. 

If you are planning on filing a bankruptcy with Geraci Law, Keep a pen and paper to take down information on who is calling you, if they are a collection agency or the actual creditor, and the account #, because you want to make sure you list them on your bankruptcy petition.  Unlisted creditors don’t get discharged, so listing all creditors you have is important. 

Or worse, someone has filed a lawsuit against you or your check is being garnished.  You should immediately call us to start your case.  A chapter 7 can eliminate your debt or a chapter 13 will consolidate your debt into a payment you can afford.  Both Chapter 7 and Chapter 13 stop collection and lawsuits.  

Is your mortgage or rent always late?  Other payments are behind a month or more?  All because you lost your income?  You probably qualify for bankruptcy protection and need a fresh start to get rid of debt and start over.  

What about savings?  Do you have any?  Are your balances not going down even though you make payments.  Are you being turned down for credit?  Many people file bankruptcy to help build savings.  Watch our video on credit scores.  You will learn that studies show bankruptcy will actually increase your credit score and that people who file bankruptcy are likely to have better future financial success.  Why?  Because they got rid of their debt and started over.  

Are you concerned you have assets and cannot file a bankruptcy?  Most people with assets can still file a bankruptcy to eliminate their debts.  Think you make too much money to get rid of your debt?  Chapter 13 gives you interest free repayments on your debt.  Better yet, if your creditor doesn’t file a claim in your case you will receive a discharge without repaying them.  

Let’s do a hypothetical: Bill and Sally have been married for 20 years. Bill recently lost his job in middle management, and is now working at half his former salary, driving a limousine. Sally had an operation, and since there was no insurance, owes $8,000 in unpaid medical bills. To supplement Bill’s income, they have been using credit cards to pay for groceries and other expenses because Sally needed 8 weeks to recover from her operation.  The balances on the credit cards are now $5000, because they used the cards to supplement their lost income.  Sally returned to work, but because of the medical bills and increased credit card balances, They can’t afford the credit card payments anymore.  They want to know, do I qualify for bankruptcy.  

Answer: Of course.  Bill and Sally were hit with some bad luck.  Bill lost his position in middle management and Sally’s operation forced her out of work for a month.  A bankruptcy, either chapter 7 or 13, would benefit Bill and Sally because it will get rid of all their unsecured debt and they will be able to start saving now that Sally is back to work.  

Does any of this sound familiar?  If it does, call right now to get your options.  

But let’s do one more.  Same situation with Bill and Sally, but this time Bill and Sally are 6 months behind on the house. Bill and Sally received foreclosure paperwork and now they need to save the house.  

Answer: Chapter 13 will stop the foreclosure and let Bill and Sally repay the past due amounts over time.  Better yet, the unsecured debts will be paid interest fee.  When the plan is complete Bill and Sally will likely have improved credit for making timely payment in their chapter 13, a MUCH BETTER budget, and no debt.

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

Geraci Law – Chicago Ashland & Jackson

Geraci Law office located at 234 South Ashland, Chicago, IL 60607 at the southwest corner of Ashland & Jackson. We’re are RIGHT across the street from Rush Hospital.

Geraci Law office located at 234 South Ashland, Chicago, IL 60607 at the southwest corner of Ashland & Jackson. We’re are RIGHT across the street from Rush Hospital.

The office is easy to get to for anyone living in the Chicago West Loop neighborhood, right near Teamster City. If you live in Chicagoland, getting to the Geraci Law Ashland office is hassle-free and easy!

You can schedule to meet us in person at the Ashland office. There’s plenty of street parking and easy access for anyone working at Rush Hospital. Geraci Law is located next to the Mexican Consulate!

Check out our office before the renovation!

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

Consumer Debt is $15.6 TRILLION!

Check out the article posted at CNBC titled, “Consumer debt totals $15.6 trillion in 2021, a record-breaking increase,” @ Consumer Debt.

Check out the article posted at CNBC titled, “Consumer debt totals $15.6 trillion in 2021, a record-breaking increase,” @ Consumer Debt.

It’s mortgage debt, car debt and credit card debt. Take a look at your finances, are you struggling to pay OFF minimums? Break the cycle of paying the minimum payments only to use the credit again because your cash is gone.

Inflation is hitting everyone’s budget, interest rates on said minimum payments will most likely INCREASE later this year. Filing a bankruptcy can help YOU gain control back of your finances.

The best thing about Geraci Law – we will give you our best opinion. If bankruptcy makes sense, we’ll work WITH you to accomplish your goals. If bankruptcy is not your best option, we’ll help you come up with other options if we can. It’s as simple as a phone call.

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at www.infotapes.com.  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!

Read ALL ABOUT DEBT RELIEF at www.bankruptcybookbypeterfrancisgeraci.com.

When Should I File For Bankruptcy?

The real question is, when you get in a situation where you can’t pay your bills, when should you eliminate or consolidate.

Read Chapter 5 of Attorney Peter Francis Geraci’s “Complete Book on Bankruptcy” below or at https://www.bankruptcybookbypeterfrancisgeraci.com/

The main causes are:

1. Financing lifestyle Buying things on credit can get out of hand

2. Failure to get raises Bills go up, but salary doesn’t. That is pretty common.

3. Illness When you’re ill, you can pay your bills

4. Bad luck Accidents, floods, fires, theft

5. Job loss Getting rehired often means taking a pay cut, now days

6. Gambling Yes, it’s a major cause of filing bankruptcy

7. Family Many solid working people are paying for family members debts

The real question is, when you get in a situation where you can’t pay your bills, when should you eliminate or consolidate. The answer is:

A. Before you spend your pension. The first thing many people do to pay bills is take a 401K loan or draw down their pension. Do NOT do that, because creditors cannot touch your 401K or pension. Bankruptcy laws protect your pension and 401K. No one can touch it. File before you think of using retirement funds to pay creditors.

B. When you lose a good job. There is an income test for Chapter 7. So if you lose a 100K a year job, why pay the credit cards unless you are going back to work right away. If you’re not back to work in 4 months, you might qualify for Chapter 7. But if you wait until you go back to work, you might not qualify, because now you make more than the median income, and your only remedy is Chapter 13 debt repayment, based on your income.

C. If illness and unpaid medical bills are your problem, wait until you are better, or have insurance before using up your right to file Chapter 7. If you are working and have ongoing medical that is unpaid, often Chapter 13 is a good idea, because it keeps your Chapter 7 option open.

D. If you simply aren’t making enough money, you should take my debtor education course, get out of debt, and learn how to budget. It just may be impossible to pay your debt on the salary you are making.

E. Don’t consider bankruptcy unless you can eliminate at least $10,000 in debt. It is just dumb to file any bankruptcy because you have a lawsuit for $4000. Settle it yourself. Save your bankruptcy for a real disaster.

***If three or more of the following apply to you, you should see a bankruptcy lawyer now.

***If more than 5 of the following apply to you, you should have already seen us 3 months ago!!!

_____My debt is over $10,000 not including a car or house.

_____My payments are over 25% of my take home pay.

_____I am frequently late on my payments.

_____I pay 20% interest on my debt.

_____I buy necessary items like food or clothing on credit.

_____I frequently get cash advances.

_____I am thinking about getting a loan to pay other loans.

_____ I have a lawsuit and over $10,000 in other debt I can eliminate.

_____Collection agencies are calling me.

_____I am “robbing Peter to pay Paul.”

_____My balances are not going down even though I make payments.

_____I have been turned down for more credit.

_____Payments are more than 1 month behind on more than one bill.

_____My driver’s license is suspended because of an accident.

_____I am working but paying other debts so I can’t afford car insurance.

_____My mortgage or rent is always late, or is behind.

_____We are getting divorced and have too many bills to pay.

_____I have medical bills over $20,000 that are not insured.

_____There is a garnishment or wage assignment on my check.

_____I owe income taxes I can’t pay now.

_____My car is worth much less than I owe.

_____I have no savings.

If none of these apply to you, congratulations!! You are living the American Dream.PREVIOUSNEXT

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