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Illinois power of attorney for healthcare 2015 form

Illinois power of attorney for healthcare 2015 form:

In 2015, Illinois has a new Statutory Power of Attorney for Healthcare form.  This new form is simpler and easier to fill out than its predecessor but also carries with it several pitfalls including making successor power of attorney nominations suggestive and not mandatory.  It also carries with it language in its directives that is unclear with regard to patients with dementia.  In short the new statutory form is the new “standard” form for Illinois and a great form to fill out when needed in a hurry.  However, having an attorney customize your Power of Attorney for Healthcare may be helpful.

For more information about how the new statute read, please visit:

  1. The Illinois Statutory Short Form Power of Attorney for Health Care is codified at 755 ILCS 45/4-10. The statutory text can be accessed at http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=075500450HArt%2E+IV&ActID=2113&ChapterID=60&SeqStart=2600000&SeqEnd=-1.
  2. The new health care power of attorney form is available as a downloadable PDF form by clicking on the link to the right:  IL Stat POA Health Care

Sources used in the drafting of this article:

Ed Finkel, Estate Planners Adopt and Adapt the New HCPOA Form, April 2015 • Volume 103 • Number 4 • Page 20; Illinois Bar Journal

 

Adoption Tax Credit is Exempt

Adoption Tax Credit is Exempt

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NEKESSA-DANYELLE-JOHNSON4

Today, Judge Janet Baer issued a ruling in Case No. 2011-B-45378 which held that the Adoption tax credit provided by Section 36C of the Internal Revenue Code is exempt as a “public assistance benefit” under the Illinois Exemption Statute.

In this case, the debtor was able to exemption nearly $24,000 of income tax refund in her Chapter 7 Case.

Trail Ridge Road Rocky Mountain National Park Colorado

Trail Ridge Road Rocky Mountain National Park Colorado

Click the above-listed link to read the case.

For more information about bankruptcy call NLO Today at 877-GO-GO-NLO.

 

joint tax refund ownership

Midwest Athletic Club Garfield Park Chicago Illinois

Midwest Athletic Club Garfield Park Chicago Illinois

joint tax refund ownership

Joint Tax Refunds are not presumably owned equally by married couples.  Instead they are owned by the spouse that earned the income that allowed for the refund to exist.  In this case, the debtor was the spouse who earned all of the income for the family.  Therefore, he was the sole owner of the refund.  Therefore, all of the refund is owned by his bankruptcy estate.  In this case exemptions did not exist for this tax refund.  Therefore the debtor had to turn over all of his tax refund to the trustee in a turnover order.

The case does specifically say this, but is can be implied that in fact a tax refund resulting from the filing of a joint tax return is owned in proportion to the income of each spouse to the total income of the family.  Another better way to look at this is that the producer of the income that resulted in the credit that is a tax refund is the one who owns that refund.

For most debtors who have relatively equal income, the old rules that the refund is owned 1/2 by each spouse will work well.  But under this case, where either one spouse earns all of the income or make substantially more, that spouse will own all or most of the refund.  This is very important where only one spouse of a married couple files bankruptcy. In the case where the debtor did not make any of the income on the tax return that resulted in the refund, he or she is not the owner of that refund.

Example:

Debtor and her husband file a joint tax return showing $100,000 in income.  They receive a refund of $6000.00.  Joint Tax Return is filed April 15, 2012.  Refund is received May 15, 2012.  Debtor Files her bankruptcy on March 15, 2012.  In this case, the Debtor and her husband have received a tax refund after the bankruptcy was file.  This refund is not the property of the estate as it was not in existence on or before the date of filing.

 

Example:

Debtor and her husband file a joint tax return showing $100,000 in income.  They receive a refund of $6000.00.  Joint Tax Return is filed April 15, 2012.  Refund is received May 15, 2012.  Debtor files her Chapter 7 Bankruptcy on May 16, 2012.  The refund has been received but not spent on the date of filing.    In this case, Debtor and her husband are in possession of $6000.00 of non-exempt tax refund on the date of her bankruptcy filing on May 16, 2012.  However, the refund is not owned by the debtor because she did not earn any of the income that was listed on the Joint Tax Return.  Therefore, in her bankruptcy petition, she will list the $6000.00 tax refund but will list herself as a 0% owner and the bankruptcy estate will have no ownership over this interest.  The tax refund will be kept in its entirety by its owner, the husband spouse of the debtor.

Example used with conflicting cases in the Central District and Northern District (the often quoted rule by trustees)

Debtor and her husband file a joint tax return showing $100,000 in income.  They receive a refund of $6000.00.  Joint Tax Return is filed April 15, 2012.  Refund is received May 15, 2012.  Debtor files her Chapter 7 Bankruptcy on May 16, 2012.  The refund has been received but not spent on the date of filing.    In this case, Debtor and her husband are in possession of $6000.00 of non-exempt tax refund on the date of her bankruptcy filing on May 16, 2012.  The refund is considered owned 1/2 by each spouse.  Therefore, in her bankruptcy petition, she will list the $6000.00 tax refund and will list herself as a 50% owner and the bankruptcy estate will have 50% ownership over this interest.  50% of the  The tax refund will be turned over to the trustee.

To read the actual case giving rise to this conclusions, please see:

In Re Ronald W. Ruhl, Debtor

illinois statutory power of attorney july 1 2011

Utah Road

Utah Road

illinois statutory power of attorney july 1 2011

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Effective July 1, 2011, the State of Illinois has a new Power of Attorney Form for Property.  The Power of Attorney for Property is a Statutory Form that provides the highest level of protection and power when seeking to be a power of attorney for property in Illinois.  Common uses for this Power of Attorney is to give a son or daughter the power to manage and elderly parent’s checking account.  Other uses include allowing your attorney to sign the seller’s documents in a residential real estate sale transaction.

The Power of Attorney has several pitfalls that one must be very careful about – first the principal – the person giving the power of attorney must be of sound mind.  Therefore, if your parent is already suffering from Dementia and does not have a sound mind, you are already too late to use the Power of Attorney and need to see an attorney about opening up a guardianship.  Other special provisions that usually require the advice of an attorney are “springing powers of attorney” and effective date issues.

refinance attorney needed Should I hire an Attorney to Represent me in a Refinance?

Davenport Bank Building Davenport Iowa

Davenport Bank Building Davenport Iowa

refinance attorney needed Should I hire an Attorney to Represent me in a Refinance?

  • Hire Your Refinance Attorney Here. Fill Out Form for Immediate Response




Yes and No.

Yes, it is always good to have attorney counseling you on the meaning of any legal document you are signing.  No, it is not always necessary to have an attorney to sign standardized bank documents in a refinance unless you want to fully understand the refinance and make sure that you are getting what you bargained for.

Bottom line – Having an attorney at a refinance closing is a really great way to make sure that the interest rate your thought you were getting is right, that it is either fixed or is adjustable in the way you understood it.  It is also important to understand the rather large fees charged (and buried) in a refinance.  On average, a refinance costs $5000 in bank fees.  Bottom line – $250 for an hour appearance fee is a drop in the bucket compared to these fees and will help you feel comfortable with what you are signing.

Hiring the attorney, the problem is how to hire and attorney who can make these sorts of appearances profitable and desirable to do and also be qualified.  Usually an attorney belonging the Illinois Real Estate Lawyers Association (IRELA) www.irela.org will be competent in Illinois to represent you and usually has flat rates that are reasonable.

If you are hiring an attorney generically, try these tried and true questions and technics:

1.  Find three attorneys that serve the geographical area you need service in
2.  Confirm that the attorneys speak your language
3.  Call each attorney and ask three questions:

    • How long have you been in practice in Illinois
    • How many residential real estate closings have you done on average over the last five years
    • What is your flat rate for representation at a refinance including any trip charge

Based on your discussed with the attorney, you should be looking for the following answers:

  1. I have practiced in Illinois for over 5 years
  2. I do at least 10 residential real estate closings per year and it is one the core concentration areas of my practice.
  3. I charge a flat rate fee of $250 per refinance for up to 1 hour of representation.  Trip charge is maximum of $100.  {This illustrates that the attorney understands how to be profitable and thereby of good service both in the City and Suburbs}  Attorneys who charge too little and are unprofitable are not motivated to provide good and competent service and should be avoided.  Value is the golden rule in purchasing legal services whereas price is simply irrelevant.

For more information about representation in any real estate matter, call David Nelson at 877-464-6656 or email Dave at:  info@nelsonlawoffice.com

For more information about NLO Nelson Law Office, please go to:  http://nelsonlawoffice.com/practice-areas/ & http://nelsonlawoffice.com/attorney-bio/.

To read reviews of NLO Nelson Law Office, please visit http://www.yelp.com/biz/nlo-nelson-law-office-chicago-2.

New Illinois Power of Attorney for Health Care Effective July 1, 2011

Attached is the New Illinois Power of Attorney for Health Care Form.   This form is unedited and is exactly as formatted and presented in the Illinois Statute.

Illinois Power of Attorney for Health Care Form Effective 7-1-2011

For assistance in filling out this form please contact NLO Nelson Law Office at 877-GO-GO-NLO or via email.

illinois hardest hit program

illinois hardest hit program

Illinois Hardest Hit Program – Save Your Home – $25K Grant to Pay Mortgage Arrears

For anyone who hasn’t heard, here’s the news…there’s a new program on the block for saving your home.  And for some people, it’s a hit.

Looking for unbiased help in figuring out how to save your home?  Check out the following housing organizations. Click on the Link.  I have worked with all of them for years and know of their honesty and fair dealing:

The Illinois Hardest Hit Program essentially gets your home out of foreclosure.  Pays all the arrears, court costs, etc. to reinstate your loan fully and then provides up to 18 months of payment assistance.  The cap on the assistance is $25,000.

To apply for this program, please go to (click link):  Illinois Hardest Hit Program

Pro’s:

  • No Fees
  • Completely Reinstates Your Mortgage
  • Up to 18 months assistance

Con’s:

  • Increases the mortgage balance on your home by up to $25,000
  • Does not reduce the total amount owed on your home
  • Does not provide assistance after 18 months which is a problem if a person has not secured employment or their family is only partially employed

Who are the best candidates for this program:

  • Homeowners who are only temporarily out of work and can easily return to work in a stable job within 18 month of starting the program
  • Homeowners whose mortgage has less than $15,000 in arrears or is about 6 months or less behind
  • Homeowner who want to stay in their house for 10 years or more and does not care about having the flexibilty to move….for say a new job, changed family circumstances (divorce) or any other matter

Who are the worst candidates for this program:

  • Homeowners who haven’t made a mortgage payment for over one year
  • Homeowners who are in a profession that has been affected by the severe economic downturn such as construction or union jobs and are unlikely to have stable employment for the next five years
  • Homeowners who want the ability to be flexible in selling their home in the next 10 years

Who should consider a short sale of their home instead of this program:

  • Homeowners who cannot afford their home even when they are fully employed
  • Homeowners who are in an employment industry that will not recover soon and may need to relocate for employment
  • Homeowners who have so much debt on their home that they will not have equity for ten years or more (typically someone with two or more mortgages including a home equity line of credit)

Who should consider a Chapter 7 Bankruptcy instead of all of these options?

  • Homeowners who have unsecured debt (credit card style debt) that exceeds more than 1/3 of their annual take home pay
  • Homeowners who have not made a mortgage payment in over one year
  • Homeowners who have not been able to get a short sale approved by their lender
  • Homeowners who want to easily walk away from a home to simply move-on or need to relocate for employment
  • Homeowners who are insolvent – that is – no real assets outside of retirement accounts

When is a Chapter 13 Bankruptcy Reorganization a  better than the Illinois Hardest Hit Program?

  • When a mortgage debt is more than 6 months in arrears (no payment for at least 6 months or longer
  • When the homeowners property has more than one mortgage such as a second mortgage or home equity line of credit
  • When the homeowner has equity or something valuable to save in the property but also has a large amount of unsecured debt (credit card style)
  • When the total home mortgage debt can be reduced through “stripping off the second and junior mortgages/liens”

How to Compute Real Estate Tax Proration Illinois & Tax Credits in Cook County Illinois

John Deere Planetarium Augustana College Rock Island Illinois

John Deere Planetarium Augustana College Rock Island Illinois

How to Compute Real Estate Tax Proration Illinois & Tax Credits in Cook County Illinois

  • Do you need an attorney for your real estate closing? Selling your house? Please contact NLO today




If you are a young attorney just starting out or just someone interested in the obscure world of tax prorations, this article is for you.  Tax Prorations are essentially receiving credit for unpaid property taxes either now or later after tax bills come out.

History:  In the Great Depression of the 1930’s; the State of Illinois granted a one year property tax holiday.  This set all tax collections back one year.

Example:  Your Tax Bill for the First Half of 2010 (January 1, 2010 to June 30, 2010)  is $2000.  The tax bill is dated March 15, 2011 and due by June 30, 2011.    Since the bill is provided nearly a year after when the tax was incurred, the taxpayer has no idea what his tax bill will be when the tax is actually being incurred….He can only estimate based upon his prior tax bills.

Application:  When you purchase a piece of residential real estate in Cook County, clear title is provided and all of the taxes that can be paid are paid up on the day of closing.  However, because tax bills come out one year after they are due, there is often an entire year of property tax liability that is unpaid and the actual bill is unknown..

Example:  Buyer of Real Estate makes offer to purchase a home in Chicago.  The offer is accepted June 1, 2011.  The closing is to be September 30, 2011.  Full Year Tax Bill for 2009 is $4000.

First:  Calculate the estimated tax liability  up to the date of closing:

First Half of 2010 Tax Bill $2200  (must be 55% of the full bill from the prior year)
Second Half of 2010 Tax Bill (unknown)
First Half of 2011 Tax Bill (unknown)
Partial Second Half of 2011 Tax Bill (unknown)

The contract should call for a proration premium which is typically 105% or more.  In this contract, the amount is 105%.

To figure out estimate full year 2010 bill, simply take the 2009 bill times 105%.
$4000 X 1.05 = $4200.

To figure out Second Half of 2010:

Take $4200 (total estimated 2010 bill) less the $2200 already paid for a credit of $2000 to be given at closing for this half.

To figure out estimated full year 2011 bill, simply take the 2009 bill times 105%
$4000 X 1.05 = $4200.

For 2011 you will be paying 1/2 of the $4200 for the period 1/1/2011 to 6/30/2011 or $2100

For the period or 7/1/2011 to 9/30/2011 you would pay the fraction of ((31+31+30)/365) x $4200
$1058.64.

So our closing statement will show the following credits:

2010 Taxes 1st Paid
2010 Second Half Credit    $2000.00
2011 First Half Credit:  $2100.00
2011 Second Half Credit to 9/30/2011:  $1058.64.

SO WHAT DO YOU DO WHEN YOU DON’T HAVE A FULL YEAR TAX BILL AVAILABLE AND MUST CREATE A BASE TAX AMOUNT FROM SCRATCH?

Answer:  Take 2% of the purchase price.  This is an approximate annual maximum tax rate for homes in Cook County and specifically applicable to the City of Chicago.  This is used often with new homes that do not have any tax record yet.

For more information about tax prorations or to hire David Nelson as your real estate attorney, please call 877-464-6656 (877-GO-GO-NLO) or email David at info@nelsonlawoffice.com

Can I Modify my Home Mortgage in Chapter 13 Bankruptcy?

Mrs. Free's Studios Davenport, Iowa

Mrs. Free’s Studios Davenport Iowa

Can I Modify my Home Mortgage in Chapter 13 Bankruptcy?

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Yes – you can modify your home mortgage in a Chapter 13 Bankruptcy by Stripping Off The Second Mortgage and other junior liens.

Today, you can modify your home mortgage in two ways:  Get a modification from the lender or file a Chapter 13 bankruptcy and attempt to strip off the second mortgage on your home.  Oftentimes, this will reduce the balance on your mortgage by 30%.  While this isn’t perfect, it is oftentimes, the difference between being able to keep your home or being forced to surrender it in foreclosure.

So how does this work.? First it is important to determine whether you should file bankruptcy.  Second you need to file a Chapter 13 bankruptcy.  Third, your bankruptcy attorney files an adversary procedure with the court to rule that the value of your home is less than the balance on  your first mortgage.  Fourth get the Chapter 13 plan confirmed by the court whereby the second (third, fourth, fifth and any junior mortgages) are wholly unsecured and will be paid as unsecured creditors.  At the end of the plan (60 months), the second mortgage and all other junior mortgages are released by the lender and the debtor/s is left with a home with only one mortgage.

Does this work in real life applications?  In the last year over 40% of our firms Chapter 13’s had successful plan confirmations with the second mortgage being stripped.    On average this reduced the principal by 30% on the home indebtedness.

So what is not so great?  The first mortgage still has to be paid off in full with all of the arrearages paid back over 60 months along with the costs of collection plus the first mortgage may still have a balance that is more than the home can be sold for…so why has the court allowed this to occur – the answer is in the intent of the bankruptcy code, the idea was that if home mortgages could be modified in bankruptcy, why would anybody pay their mortgage?  Therefore, to save the ability for consumer to get home mortgages from banks, the bankruptcy code strictly prohibits the modification of a home mortgage this is wholly or even partially secured even if secured by only $1.

Bottom line – Chapter 13 offers a crude type of home mortgage modification by getting rid of unsecured mortgages, however, it does not fix long term problems with a first mortgage.  If your first mortgage is OK by itself then this type of modification is for you.  If your first mortgage is still a problem, then it may be wise to simply surrender the home in the bankruptcy and let the lender take the loss.

What are we seeing now is unbelieveable – it never used to happen in the past, but it is happening now: After filing the bankruptcy  and after stripping the second mortgage, the lender on the first mortgage voluntarily modifies the first mortgage to make the plan easier.

So what is this all about?

Well…here’s the best way to describe it.  Typically, the interest rate is reduced to 2% for the first five years and it increases by 1/2% per year after that until it hits the market rate and then becomes fixed at that rate.  The kicker is that the bank will put the arrears on to the balance of the loan.  Doesn’t seem like a big deal, but it is!  If your old mortgage payment was $2400 per month and you were 10 months behind at the time of your bankruptcy filing, then you owe $24,000 in arrears.  In a typical 60 month chapter 13 plan, you will pay $24,000/60 per month to pay back these arrears.  This is $400 per month.  In this case, the bank basically put this into the balance.  So basically, you are now paying 2% interest on $24,000 over the next 30 years or so.  Around $50 per month.  The benefit is theoretically that your home if you keep it for 15 years will finally be worth more than the mortgage; you can sell it, pay off the mortgage and have a happy life.  This is all true with one caveat.  What if you have to get out of the house one year after your bankruptcy ends and you are still “underwater”   Good luck – you just entered another bankruptcy or years of garnishments.

In a nutshell – if you want to live in your house a long time and don’t have a big need to move soon and don’t believe you will be forced to move, then this is the ticket.  Basically, the bank cuts its price on loaning you the money.  But if you need to be more flexible and actually have the debt load be less immediately, then you are out of luck and better surrendering the home in bankruptcy.

Examples:

Ron and Karla bought a home in 2006 for $200,000.  The first mortgage was $160,000 from Wells Fargo.  The Second Mortgage for $40,000 was from Banco Popular.  Ron and Karla were doing great until Karla lost her job in 2008.  The couple missed 8 payments.  The couple was five months into their foreclosure action when they filed a Chapter 13 Bankruptcy.

Ron and Karla hired David Nelson to file their Chapter 13.  David suggested that they keep their home, but attempt to strip off the second mortgage.  Ron and Karla agreed.

Ron and Karla make approximately $70,000 per year together and have two children.  Their budget is tight and the means test says that they need to contribute on 10% of their plan to paying unsecured creditors.

Ron and Karla have no other debts besides the home.  Their mortgage payment was $1400 on the first mortgage, $500 on the second and their tax escrow was $300 per month.

Ron and Karla were $11,200 in arrears on their first mortgage when they filed their bankruptcy.

Here is how their plan payment is figured.

$1400 for payment of the first mortgage regular payment
$300 for tax escrow payment on the first mortgage
$67  (10% of $40,000 divided by 60 months) for payment of the unsecured second mortgage
$187  ($11,200 divided by 60 months)
$1954 Subtotal
$195  Trustee Fee (10% of payment)
$2149 total payment

So how does this work out with their budget

$70,000 Gross Income Per Year
$5833 Per Month Gross
($1458)  Taxes
$4375 Net Income Per Month

$2149 Plan Payment
$250  Gas & Electric
$800  Food
$194  Clothing
$100  Laundry
$250  Medical
$502  Transportation
$130  Auto Insurance
$4375  Subtotal

Square Budget.  Home Saved.  Overall home mortgage modified by overall reduction by 20%

Bottom line – this Chapter 13 accomplishes good things.  With other applications we might have an auto loan, additional credit card debt or other unsecured debt.  For those discussions, please see my other blog postings.

For more information about bankruptcy, mortgage modification or other debt relief options, please call NLO Nelson Law Office at 877-464-6656 or email us at info@nelsonlawoffice.com

The Dangers of Non-Bankruptcy Credit Consolidation

The Bankruptcy Act of 2005 wrote in a number of provisions that “encourage” potential bankruptcy debtors to consider non-bankruptcy debt relief such as Credit Consolidation.  The problem with Credit Consolidation is that it is not regulated and is not a global settlement of debts.Also, the cost of credit consolidation is usually between 30 to 50 cents on the dollar which typically is more expensive than what most debtors pay in a Chapter 13 Bankruptcy.

Just last week, Lisa Madigan, Illinois Attorney General filed a Cease and Desist Order Against Legal Helpers, an Illinois Based Debt Consolidation Firm under the new law effective January 1, 2011, that prohibit any non-lawyer from offering non-bankruptcy debt consolidation.

So what’s the solution?  Bottom line is this: If you are wealthy enough that a bankruptcy is more harmful than good, the traditional route to take is to spend some serious money on legal fees to restructure you debt and also defend lawsuits as they arise.  For most people’s debts that are beyond their ability to pay, bankruptcy is the only safe choice because it is court supervised and is global in its effect.  This is not to say that Bankruptcy is the best debt relief ever, but is simply to say that only in a bankruptcy can you get the automatic stay which stops all lawsuits and debt collections from happening without court order.  Also, in a bankruptcy,  a repayment plan uses long established and well thought out priority rules to determine which debts are paid in preference to other debts.  Lastly, all parties in bankruptcy proceedings generally have attorneys, which helps to ensure that the focus is on debt relief and not on silly mistakes of procedure or allowing one creditor to have preference over another.

Here is a typical example of why non-bankruptcy debt relief through non-attorney assisted credit consolidation is now prohibited in Illinois:

Sally and Ben are married with two children.  Their family income is $50,000.  They have $2000 of tax debt from last year, Ben owes child support arrears to his ex-wife in the amount of $10,000 and Sally has $60,000 in credit card debt.  Ben and Sally own a modest home with an $80,000 mortgage and $500 per month payments.  Ben and Sally are 4 months behind on their mortgage payments and are about to have foreclosure lawsuit filed against them.  Sally has two court judgments against her.  Both have been sent to collections.  15% of Sally’s gross income is being deducted each month for these garnishments.  Currently Sally will be in garnishment for 5 years before they are paid off.

What should they do?

If they file a Chapter 7 Bankruptcy, all of the credit card debt will be gone, and they can surrender their house and move out in approximately 6 months. Ben will still be garnished for his child support arrears up to 50% of his gross income, and he and Sally will also have to make steep payments on their back taxes.  The family will move into low quality rental housing within 9 months.

If they file a Chapter 13 Bankruptcy, all of the credit card debt will be paid at 10 cents on the dollar or $6000 over 60 months.  The arrearage on the home mortgage will be paid first without interest and is approximately $2000 over 60 months.   The tax debt will be paid back before all other creditors at 100% with 9% interest over 30 months.  Ben and Sally will be able to keep their home.  Ben will pay back all of his child support arrears without interest over the 60 month plan at 100%.  In this case, the garnishments stop, meaning that the family now only pays 10% of its gross income not to just two unsecured creditors but in satisfaction of ALL of the unsecured creditors.  This is where the good deal is.  Also – if Ben and Sally had a car loan, it would be converted today to 6.25% interest with payment spread out over 60 months.

If they went with debt consolidation, Ben and Sally would most likely pay $4500 for debt consolidation services up front.  Then they would pay approximately $1200 per month for at least 36 months.  At the end of the 36 months, the creditors who voluntarily agreed to a reduce payoff would be gone and paid off.  The creditors who did not join in would still be owed money and most likely would have filed a lawsuit for collection and have entered a garnishment against Ben and Sally.  The Child Support would be paid through garnishment of Ben’s salary up to 50% of his gross income, and the tax debt would be paid through a tax lien which would tie up all of their real and personal property, freeze their bank accounts and ruin their credit rating.

Bottom line: when the Bankruptcy Reform Act of 2005 was enacted, part of the goal was to increase the payout to credit card companies.  This has been accomplished by increased payouts under Chapter 13 plans and the means test that forces everyone with above mean income into a Chapter 13 repayment plan.

Bottom line: voluntary credit consolidation was bad for most people prior to 2005, and it is still bad today.

Only the very rich with very private and expensive attorneys benefit from these types of restructuring, and usually it is done to simply keep control of many assets with very little equity but lots of income.

For more information about debt relief through bankruptcy, please email info@nelsonlawoffice.com  or call 877-GO-GO-NLO to set up a free bankruptcy consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. CALL 877-GO-GO-NLO (877-464-6656) FOR A FREE BANKRUPTCY CONSULTATION TODAY! SATURDAY APPOINTMENTS ARE AVAILABLE.