Answers to Almost Every Question About Bankruptcy

Did you know Attorney Peter Francis Geraci wrote a book? It’s called the “The Complete Book on Bankruptcy.” His book answers almost any question you may have about bankruptcy.

Did you know Attorney Peter Francis Geraci wrote a book? It’s called the “The Complete Book on Bankruptcy.” His book answers almost any question you may have about bankruptcy.

The best part? The book is FREE and available online. You can click https://www.bankruptcybookbypeterfrancisgeraci.com/ to read the entire book and learn about the differences of Chapter 7 and Chapter 13.

His book answers questions like:

What happens to my credit score if I file bankruptcy?

Will My Employer Find Out if I File Bankruptcy?

What can bankruptcy do for you?

When Will Creditors Stop Bothering Me?

Bankruptcy and Divorce, Alimony, & Child Support

Bill Consolidation Scams

Chapter 13 Debt Repayment Plans

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at http://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 since November 2016!

Chapter 10-What is the Real Price Difference Between Bankruptcy Lawyers?

An excerpt from Attorney Peter Francis Geraci’s “The Complete Book on Bankruptcy.” Learn more about misconceptions about bankruptcy!

You may be thinking about bankruptcy. You may have called a couple of law firms. Geraci Law can help you. Below is an excerpt from Attorney Peter Francis Geraci’s Complete Book on Bankruptcy about the REAL price difference between bankruptcy attorneys.

From Chapter 10 – What is the Real Price Difference Between Bankruptcy Lawyers?

I have found that there is very little difference in attorney’s fees. You can’t save more than a couple hundred dollars between lawyers’ fees for the same type of case. Some people like cheap doctors, and some people like cheap food. Some people pick attorneys by a $100 difference in price, not realizing that one deal your attorney makes can save or cost you thousands.

So, the cheapest lawyer in town is not necessarily the best. In other words, go for experience, not price, because there is not much difference in fees for consumer bankruptcies, but there is a big difference in the quality of the advice and service.

For instance, let’s say that 5 years later, a bill collector calls and says you left him off your petition, and he wants to be paid. Will you be able to call your attorney who did the Chapter 7, for advice, or will the telephone be disconnected? If it is Geraci Law, yes you can. 7 am to 7 pm and Saturdays until 1 PM. All your records are electronic. No voice mail either.

Usually, Chapter 7 fees can be paid in installments of as low as $100 a month. Chapter 13 Plans including attorney fees are as low as $95 biweekly. If you can’t afford $100 or $200 a month, you may have to ask friends or family to help you out.

In my opinion, anyone “shopping for fees” for a bankruptcy attorney, is not thinking clearly. If you can clear $10,000 in debt, tax free for $1500, it is a bargain. 10 payments of $150 or even $200 is a bargain.

Chapter 13 cases are even more of a bargain. In almost every state, the attorney fee is exactly the same. Most Chapter 13 cases get filed “no money down”, because it’s a repayment plan. Your attorney gets paid from your Chapter 13 payment, which takes care of attorney fees and all debt. Your Chapter 13 payment could be as low as $95 bi-weekly, or more depending on what debt you are paying back.

Geraci Law represents people on Social Security with low income, and people making over $100,000 a year. Anyone quoting the same fee for any case, on the phone, may be engaging in “bait and switch” tactics. But, if you are really were just looking for the cheapest lawyer in town, sadly for you, there are some poor lawyers at the bottom of their career that will work for free. You kind of get what you pay for.

Geraci Law is the largest filer of bankruptcies in Illinois Indiana and Wisconsin, and you will generally find that the largest law firms probably have the happiest clients, and about the same fees, when you get done, as the all-by-myself attorneys.

Lawyers that claim to be “cheap” can often end up costing you more! Beware of “cheap fee quotes on the phone”

In most Chapter 13 cases, you are saving a lot of money on interest, so the cost is less than paying the creditors at their contract rate of interest. However, Chapter 7 cases are usually cheaper than Chapter 13 cases in terms of total cost. Many “cheap” lawyers don’t know the difference between Chapter 7 and Chapter 13, so if you go there, you won’t know either.

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.

Chapter 36 – Business Bankruptcies

An excerpt from Attorney Peter Francis Geraci’s “The Complete Book on Bankruptcy.” Learn more about misconceptions about bankruptcy!

Chapter 36 – Business Bankruptcies

Stein Mart is the most recent business to file for bankruptcy since the start of the pandemic. You may wonder what is a business bankruptcy and what does it mean? You may be a business owner thinking about filing for bankruptcy. Below is an excerpt from Attorney Peter Francis Geraci’s Complete Book on Bankruptcy.

At Geraci Law, we don’t do bankruptcies for operating business. You may as well wind it up properly yourself. Pay your taxes, sell your inventory, and close up. Businesses don’t get a discharge anyway. Chapter 7 only liquidates a business. You can do that by yourself.

You may have heard of major corporations reorganizing under Chapter 11 of the Bankruptcy Code. Small businesses seldom reorganize, and 95% of the businesses with under $2 million in sales that go into Chapter 11 do not reorganize successfully and go under completely. In October, 2005, a simplified reorganization procedure for small businesses was enacted.

Businesses don’t usually file bankruptcy because only people get discharges. Business usually wind up their affairs, pay off what creditors they can, and disappear. Only if a real person has personal liability, or the business really wants to liquidate using bankruptcy, do small businesses file.

Many small businesses are incorporated. If the owner of the incorporated business did not sign personally, it is only the corporation that is obligated. In that case, certainly the owner does not need a bankruptcy attorney. But does the small corporation need bankruptcy relief? The answer generally is, no. Just struggle along. If your small incorporated business is still alive, do the best you can. Stay away from bankruptcy. Make sure you pay the employee withholding taxes, unemployment taxes, and sales tax. Those are items that an officer or shareholder of a corporation may be held personally liable for. Try to pull out of your problem by yourself, and if you cannot, fold the business yourself.

However, if your business is not incorporated, you may be personally liable for its debts. In that case, the same rules apply. I see no benefit to putting a going business into bankruptcy court. If you are going under, just go out of business. Many creditors tend to just drift away. After you are out of business, and find a regular job, if anyone sues you, you may want to file a Chapter 7. Bankruptcy rules will generally not help a failing small business to succeed.

If you have already closed your business, and remain liable on its bills, and have other bills such as charge card debt, we may be able to get you a fresh start. We represent a lot of people who have already closed their businesses, there are no assets left, and they need to get a fresh start.

If that is your business is closed up, and you are now doing something else, and you just want to eliminate personal liability on loans, or if you have a 1 person business, you may benefit greatly from the bankruptcy relief which is available. But, if your business is still going, don’t call me!

Problem: Jose had a hot dog stand, and his rent doubled, and he was evicted. He is now working as a cook making about $32,000.00 a year, but that is not enough to pay for all the bills he ran up trying to save his small business, and now the creditors are suing him.

The Peter Francis Geraci Chapter 7 or 13 Solution: Jose can file a Chapter 7, list both his business and personal debts, and get a fresh start.

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.

Chapter 9 – Is Bankruptcy Bad?

An excerpt from Attorney Peter Francis Geraci’s “The Complete Book on Bankruptcy.” Learn more about misconceptions about bankruptcy!

Chapter 9 – Is Bankruptcy Bad?

Below is an excerpt from Attorney Peter Francis Geraci’s Complete Book on Bankruptcy.

No. Owing money you can’t pay is bad. Money can be used for good or bad purposes. People end up without money because of circumstances beyond their control, or for other reasons. Bankruptcy merely adjusts the debt situation to 0 again. You start out even. You get a fresh start, while still keeping the necessities of life. But the prevailing attitude about bankruptcy is that is “bad.”

This is an interesting perception. The origin of bankruptcy can be found in ancient traditions, as found in the Bible, Deuteronomy 15.1: “In the 7th year, each creditor shall release his debtors. This shall be known as The Lord’s Release.” In the Old Testament, it was the policy that a debt could exist only 6 years, and should be relaxed or forgiven in the seventh year. The purpose was to prevent damage to society by allowing a debt to live forever. The lender was cautioned thereby to lend only as much as the borrower could reasonably be expected to repay.

There are other Biblical references to debt, such as St. Paul’s admonition in Romans 13:8; “Strive to owe no debt, except that debt that binds us to love one another.” I have found nothing in any religion that states that owing money to another is “good.” In the Koran, there is a prohibition against lending money at interest. In most Moslem countries today, Moslems borrow at no interest from “banks of the faithful.”

In modern times, lenders do not follow this idea. In an era where charge cards are sent out through the mail and applications are “pre-approved”, creditors lend money without regard to whether or not the borrower can pay it back. They cover their losses by charging huge rates of interest. I have seen contracts with interest rates as high as 53%. In olden days, this was known as usury. Technically, any lending of money at interest is known as usury. But, until modern times, it was the money lender, or usurer, that was bad, not the poor person who had to borrow.

Of course, capitalism could not exist without the practice of lending capital and charging interest. But bankruptcy laws provide a legitimate, legal, and moral safety valve for the excesses of the credit system. Now, you don’t have to join the French Foreign Legion, disappear to Australia, or blow your brains out, to escape from your creditors. Bankruptcy was so important to the Founding Fathers of the United States, that, when the U.S. Constitution was written in 1787, they directed Congress to make uniform bankruptcy laws. Article III, Section 8 of the United States Constitution states: “Congress shall make uniform laws relating to Bankruptcy.”

Bankruptcy is therefore more fundamental to the United States of America than the Bill of Rights, and such things such as freedom of the press, and freedom from unreasonable searches and seizures.

The United States Bankruptcy laws are part of the Federal Code. They were passed into law by the United States Congress, our elected Senators and Representatives. All bankruptcy in the United States is governed by federal law, and the procedures are as much a part of our society as lending money at interest.

After the American Revolution, when the first Continental Congress met in 1787, one of the topics debated was whether or not to have a uniform bankruptcy law. Many of the American settlers had to run from creditors in England. They had to leave the country to avoid being thrown into debtor’s prison. Each American colony had different laws relating to collection of debts. Some had provisions that a person could be jailed for debt, and some, like the colony of Georgia, were havens for debtors and had laws which prevented bad treatment of people who owed money

There was little disagreement between the Founding Fathers of the United States of America, when it came to having a bankruptcy law. Freedom from debt was important, and so was the ability to start fresh. Therefore, in the United States Constitution, Article III, Section 8, we find the provision, “Congress shall make uniform laws relating to bankruptcy.”

However, the banking lobby was so strong that each state kept their own bankruptcy laws until 1898, when the U.S. Bankruptcy Code was passed. It was modified greatly in 1978 to deal with the amazing amount of consumer credit, and is constantly being tinkered with by Congress to balance the interests of those who lend money, and those who borrow it.

Abraham Lincoln was a bankruptcy lawyer. In Springfield, Illinois, Old Abe filed about 1/2 the bankruptcies in Illinois in 1842. 1/2 of his legal work involved debt cases.

It is to the advantage of moneylenders, to use public relations techniques to convince the public that bankruptcy is bad, and to make it something that is bad or evil. I agree that you should not discharge your debts until it is absolutely necessary, but there is certainly nothing wrong or illegal about it. No one comes out to your house and takes your clothes. No one paints a big “B” on the sidewalk in front of your house. In fact, no one is interested.

If you find yourself with no savings, nothing left over after you pay your rent, mortgage, food and utilities, and still have bills to pay, you should consider taking advantage of the fresh start provisions of the bankruptcy law. Bankruptcy is like getting a fresh start. Your debts are forgiven, except those that you want to continue to pay, and you can start saving money and doing things the right way, instead of suffering because of the credit trap.

People come into my office and ask, “What will happen to me if I file a bankruptcy?” No one ever came in, when I used to be a general practice attorney, and said, “What will happen to me if I don’t have get convicted for running a red light?” They never said, “What will happen to me if I sell my house?” But people who are being chased by bill collectors sometimes feel that they should not be able to get relief and that they will be punished if they get a fresh start. They do not realize that a big part of bankruptcy laws is forgiveness.

Nothing will “happen” to you if you file a bankruptcy. You won’t suddenly become rich and famous, or popular, or beautiful or handsome, and, on the other hand, you won’t suddenly be miserable and an outcast. One out of every 22 Illinois families will file for some type of bankruptcy relief, on the average, and in some states, the average is higher.

So, if you have problems with bills, getting the proper advice from a bankruptcy attorney as to whether or not some type of bankruptcy relief would make your life better, should not be looked on as bad. You should think of it as provision in the Federal laws that was put there by Congress to help people get out of 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.

Chapter 7 – What Happens to My Credit Score if I File Bankruptcy?

An excerpt from Attorney Peter Francis Geraci’s “The Complete Book on Bankruptcy.”

Below is an excerpt from Attorney Peter Francis Geraci’s “The Complete Book On Bankruptcy.”  You can read the rest of the book online at https://www.bankruptcybookbypeterfrancisgeraci.com/.

CHAPTER #7 What happens to my credit score if I file bankruptcy?

Strangely, it usually goes up. Most of our clients have a credit score of below 600. Four months after filing Chapter 7, you should receive a discharge. You then have a creditor report that shows way less debt, and that you received a Chapter 7 discharge. If you are working, now you are not under pressure to pay bills you cannot pay, and can start saving. You also cannot file Chapter 7 for another 8 years, or in a Chapter 13 for another 4 years. So the lenders think you are a pretty good risk for lending, since you have little debt, and no ability to file bankruptcy, and a job. Your credit score can go up as much as 100 points.

If you had a credit score of 700 or more, and filed bankruptcy, it was a phony score, since you were overloaded with debt. Even so, after a Chapter 7 discharge, it may not change much, or it may go back up.

Regardless of credit score, after you receive a Chapter 7 or 13 discharge, you will find yourself able to buy a vehicle or house if you have the right job and down payment. The key is to save up a down payment, and not get overloaded again.

Take our Debtor Education Course taught by attorney Peter Francis Geraci as soon as you file for either Chapter 7 or 13. Or even before filing for $25. It will help you understand how to raise your credit score.

If you need help or have questions – our experienced staff is ready 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 25,000 5-star reviews 5starsince November 2016!