Are Unlisted Creditors Discharged in My Bankruptcy Case?

Read the article below or @ https://www.infotapes.com/Articles written by Attorney Peter Francis Geraci.

That depends.  In the First Circuit and the Seventh Circuit, there are cases that talk about missing creditors that aren’t discharged unless the case is reopened to amend schedules to list an omitted creditor, but, at least in the 7th Circuit, that reasoning is rarely followed.

In Stark v. St. Mary’s Hospital, 717 F.2d 322 (7th 1983), the Seventh Circuit concluded that the decision of whether to discharge the debt of an omitted creditor is based on equity. The Stark court said the burden is on the debtor to show that law and equitable principles allow the reopening of the case to include the omitted creditor. Without such a showing by the debtor, the debt will not be discharged and the creditor will have a claim against the debtor, despite the previous order for discharge of debts.

This case has been criticized for suggesting that adding a creditor to a schedule has an effect on the dischargeability of the underlying debt. See In re Anderson, 72 B.R. 783 (Bankr. D. Minn. 1987).

The general rule in most jurisdictions is that a debt is either dischargeable or not based on the nature of the debt, and the nature of the status of the claims proceeding, and that reopening the case is unnecessary.

Even in the 7th Circuit, which is Illinois, Indiana and Wisconsin, if the creditor has actual notice of some kind, such as you called and told them, or if “no harm, no foul” because the case was a “no asset case” and they would have gotten nothing even if they were listed, or if the creditor is really to blame because they sold the debt to someone else and didn’t tell them, the case does not have to be reopened at all. At Geraci Law, the issue rarely comes up.

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.

Medical Debt To Be Removed from Credit Reports

See article from CNET ” Medical Debt to Be Removed from Credit Reports This Summer – What to Know” @ https://www.cnet.com/personal-finance/medical-debt-to-be-removed-from-credit-reports-this-summer-what-to-know/

This does not mean you do not owe the debt but rather the 3 major credit reporting agencies Experian, Equifax and Transunion will not report debt until ONE YEAR of going into collections and the plan is NOT report any balance under $500.

If you have unpaid debt, if you need help – the medical bills may not show up but creditors can still attempt to collect, call Geraci Law. We’re happy to help.

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.

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.

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.

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.

Geraci Law is OPEN in South Bend

Geraci is open in South Bend and ready to help YOU with your debt! We’re located at 1251 N. Eddy Street in Suite 200 inside the Eddy Street Commons Building directly across from Starbuck’s. The entrance is between TIAA and O’Rourke’s Public House.

You can schedule online @ https://www.infotapes.com/Bankruptcy/OfficeLocator or give us a call. We can meet you in person, we can meet virtually – whatever is easiest for YOU!

Check out PFG in South Bend @ https://fb.watch/aKFXn9Poxe/

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.

Links and Resources!

Geraci Law dedicates a page on http://www.infotapes.com to resources and links for job fairs, free family events & more! Check it out @ https://www.infotapes.com/Links.

Geraci Law wants to be a resource to you! Did you know on our web site, we have a special page called Tools & Links? Geraci Law routinely updates to include info like job fairs, free family events and more! Check it out at https://www.infotapes.com/Links.

Here are some of links under Free Family Services

3 For FreeFun, free things to do in Lake County, ILlittlelakecounty.com
A Parents Guide to Community Resources in MilwaukeeList of community resources and contact informationoakcreekwi.org
After School Programs (Illinois)Afterschool programs for children and teens.ACT Now!
After School Programs (Indiana)Afterschool programs for children and teens.Indiana Afterschool Network
After School Programs (Wisconsin)Afterschool programs for children and teens.Wisconsin Aftershool Network
Chicago Public LibraryFree events for library card holders.Chicago Public Library
Childbirth & Parenting Classes (Indiana)Affordable parenting classes.Community Health Network
Free Mommy & Me Classes (Illinois – Chicago)A list of free programs for new moms and babies.Mommy Nearest
Illinois Winter EventsList of holiday events and festivals in IllinoisTravel Illinois
Indianapolis Public LibraryFree events for library card holders.Indianapolis Public Library
Milwaukee Public LibraryFree events for library card holders.Milwaukee Public Library
Parenting ClassesAffordable parenting classes.The Parenting Network
Parenting Education Program (Illinois-Chicago)Support services with focus on youths in foster care, teen parents and low income families.Ucan
SouthShore Convention & Visitor Authority30 Free and fun things to do on the South Shoresouthshorecva.com

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.

Debt Collectors can text you, email you, and contact you on social media!

The federal agency Consumer Financial Protection Bureau doesn’t seem to be protect you much when they passed new rules that let debt collectors email you, text you, and message you on social media.

Read article below by Attorney Peter Francis Geraci and more @ https://www.infotapes.com/Articles

The federal agency Consumer Financial Protection Bureau doesn’t seem to be protect you much when they passed new rules that let debt collectors email you, text you, and message you on social media. They do have to identify themselves as debt collectors. On social media, they can send you a fried request. They have to give you the option to opt out of being contacted online. Any messages have to be private, not on you public or contacts page.

The good news is that you will be more aware of collection activities, so you can do something about your financial mess before you get sued or garnished. Of course, most people who have debt collectors contacting them don’t do much of anything if it is just one small debt. But if you have $10,000 or more in consumer debt, outside of student loans, and you are getting emails and texts, you can be sure that it just isn’t going away, and debts have at least a 5 year statute of limitation before the debt is to old to collect

Chapter 7 and 13 bankruptcy stop all collection efforts during the bankruptcy proceedings, and stop all collection permanently on debts you obtain a discharge for. The sooner you contact Geraci Law if you have over $10,000 in debt you can’t pay, the sooner you will be able to decide what to do.

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 About My Car in Bankruptcy?

Bankruptcy can be used to get rid of bad car deals, or help you to pay for a vehicle you want to keep.  You can buy a car on credit after filing bankruptcy, so you may want to dump a gas guzzler or high payment vehicle and get a cheaper one.

Below is Chapter 18 about your vehicle. Read this chapter and more https://www.bankruptcybookbypeterfrancisgeraci.com/

Bankruptcy can be used to get rid of bad car deals, or help you to pay for a vehicle you want to keep.  You can buy a car on credit after filing bankruptcy, so you may want to dump a gas guzzler or high payment vehicle and get a cheaper one.

If you are like most people, your car is financed.  The U.S. Department of Commerce estimates that, in 1991, the average cost of owning a car that is financed is over $425.00 per month.  The cost of owning a car includes the monthly payment, the interest lost on the down payment or cash value of the trade-in, repairs and maintenance, depreciation (the amount the car goes down in value every month), license and taxes, as well as gasoline and oil.  I have seen more than a few people who are paying more for their car than for their rent.  If they were living in their cars, that would be a good idea!

Many people are suffering from “car fever” when they buy a car.  Dealers have relationships with finance companies that allow them to finance any kind of deal.  If you want to finance a car with a bank or a finance company that has no relationship with the dealer, the first thing a loan officer will do is look up the car in a book which lists the value of the car.  There are several services which provide such information.  Most finance companies or banks that have no continuing relationship with a car dealer will only loan you 70 to 80% of the average retail price for the same type of car listed in the book.  If you are paying more than the average retail price, you will be able to get a loan based on the average price similar cars are usually sold for, not on 75% of what you want to pay.

What does this mean to the average car buyer?  It means that if you are paying too much more than the usual price everyone else pays for similar cars, the “average retail price”, you will have to put more money down.  However, finance companies that have regular relationships or agreements with car dealers will lend you almost any amount, regardless of how much the car is really worth.  In other words, they will finance you for the price the dealer got you to pay, not what the car is really worth.

When that happens, often the car is worth less than you owe on it.  If the difference between what you owe, and what you could sell the car for, is very great, you may want to give the car back to the finance company.  Then, you won’t owe anything, and you can start fresh and get another car.

Can you get another car, if you have filed a bankruptcy?  This depends on you. If you are filing a bankruptcy, your credit is probably bad anyway right now.  After you discharge your debts, you won’t have any payments to make, so you probably will be able to afford reasonable car payments.  If you put some money down, many dealers will finance you again.  Or, you can buy a used car for cash. Or, for what you would spend on a car, you can take cabs.  The trick is to avoid getting into trouble on another car. 

If your car payments are reasonable, and you owe less than the car is worth, or about the same, and you are up to date in your payments, and the car is running good, you will probably want to keep your car even though you are getting rid of the rest of your bills.  This is absolutely no problem.  The finance company will be happy to agree, generally, that your debt will survive the bankruptcy.  This is done in writing, and is called a reaffirmation.

If you are behind in your payments, or don’t have car insurance, finance companies will seldom let you keep the car unless you cure those problems.  This is true even when you are not doing a bankruptcy.

Many people come in to do a bankruptcy after the finance company has repossessed the car because they didn’t make the payments, or didn’t keep it insured.  Sometimes I can get the car returned if they bring the payments up to date, and get insurance, but most of the time they are better off giving up the car.

In a situation where the car has already been repossessed, if you owe less than the car is worth, it might be worthwhile investigating filing a Chapter 13 debt repayment plan.  This is a repayment bankruptcy, and the payments can be restructured if your budget allows it.  Of course, Chapter 13 plans, in which you pay a payment to a court-appointed trustee who sends it to your creditors, are always more expensive than Chapter 7 bankruptcies.

If you have a car that you own, and it is not financed, you need to have me look at the exemptions allowed by law, to see if you could still file a bankruptcy and keep the car, free and clear of any claims of creditors.  In Illinois, if the car is your main asset, and you own it free and clear, and you are the only one on the title, we need to see if you can keep it without having to do a Chapter 13. This may not be a problem, however.  I do many Chapter 7 bankruptcies, especially for married people who own vehicles in joint tenancy, where they have cars and keep them free and clear in a bankruptcy.  It all depends on your individual situation, and a competent bankruptcy attorney can advise you about this.

Example: Ted wrecked his car without insurance. The accident was his fault, and the other driver is suing him. He still owes $6,000 on his car note, and now the car finance company wants to be paid. His brother Bill has a 1989 Camaro. When he bought it, he traded in another car that was not paid off, and his car note now includes money he owed on the old car, as well as what he owes on the new car. Bill’s car note is $457 per month. He is current, but wants to give the car back and get a “beater” so he can save some money.

Their friend Ralph is up to date in his car payments, has insurance, but has a lot of medical bills and credit cards. He wants to keep his car and get rid of the rest of his debt.

The Peter Francis Geraci Chapter 7 or 13 Solution: Ted files a bankruptcy and lists the other driver and their insurance company, as well as his own car finance company. Any debts to them will be discharged. He can save up some money, go buy another car, and no one can sue him for the accident, so he won’t lose his driver’s license.

His brother Bill surrenders his car, and doesn’t have to pay a nickel more. He now has no bills, and can save up to buy another car.

Ralph is getting rid of his hospital bills and his credit card debt, so now he can afford his car payment. It is up to date, and the car is insured, so he can keep his car even though he is getting rid of other 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.

Beverages & Budgeting

Beverages & Budgeting – grab a drink and let’s take a look at your monthly expenses, let’s see if Geraci Law can help!

Grab a cold one or a warm one and watch Attorney Peter Francis Geraci’s video on budgeting. Weekends are a great time to sit down with the bills over a iced or warm beverage!

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.

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