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You might well have a job and even have medical insurance, but found
yourself in a situation where you have a severe injury or illness and
the bills just got right out of hand. Chicago bankruptcy
is not such a far-fetched scenario either. The cost of medical care
these days would make anyone think twice about seeking out medical
assistance. The reality though is that people have to get medical help
when they need it. The nightmare starts when the bills arrive.

Think this talk about Chicago bankruptcy and similar scenarios
nationwide might be off the wall and not in the least bit true?
Consider this then. Being ill and dealing with high medical bills was
directly linked to roughly 62% of all personal bankruptcies in 2007
alone.

Two years later, the numbers have changed, but they certainly have
not gone down. In fact, if you do some rough figuring, based on how
many current bankruptcies there are now, medical bankruptcies may touch
the lives close to 2.3 million Americans or one person every 15
seconds. Chilling thought, isn't it? Chicago bankruptcy may be just
around the corner.

Here is another statistic that will disturb you as well, considering
we were mentioning that medical bankruptcies happened to people who had
a job and health insurance. Most of the medical bankruptcies were smack
dab in the middle class before the bills hit. Many were college
graduates and/or had previously owned a home or two.

The scariest figures are the ones showing prior to a serious illness
that led to bankruptcy, close to 78% had health insurance, and 60% had
private insurance. Many had health coverage at the time they were
forced to declare bankruptcy.

It should come as no surprise that if people are forced into
choosing Chicago bankruptcy due to medical bills, then they also face a
very real risk of losing their home. No home in some cases means
homelessness. Not too much of a stretch to get there these days either.

In situations like this, you really need to speak to an experienced
Chicago bankruptcy lawyer to get a thorough understanding of what your
options are and how to handle your situation.

Patrick Warwick is the lead content contributor for Chicago
Bankruptcy firm, The Law Office of Jay F. Fortier, P.C.. To speak with
a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.

When the Creditors Quit Calling

2:12 pm | Jay Fortier | Be the first to comment

There are pros and cons to declaring personal bankruptcy, so think things through carefully before you make your decision.

There are some plus points you need to know about making the tough decision to declare personal bankruptcy and contact a Chicago bankruptcy lawyer.
For instance, it certainly deals with the stress caused by creditors
that harass you incessantly for payment. When creditors learn you have
declared bankruptcy, they can no longer call you; instead they would be
dealing with a third party who will take care of all debts.

The other very attractive result of declaring personal bankruptcy
with the assistance of a Chicago bankruptcy lawyer is the fact that you
will be paying less once the process is started, as the third party
administrator will set the terms of payment. While the creditors might
not like the terms of payment, they have to follow them.

Often it's best if they reconcile themselves with the point of view
that it's better to have some money, than none at all. Once you have
discharged your bankruptcy, creditors can't chase any of your debts
that have been written off.

The down side to making this decision is that items like student
loans and company loans may be excluded. This is one of the reasons why
you need to talk to a highly qualified Chicago bankruptcy lawyer to
find out the specifics of declaring personal bankruptcy in your
particular situation. If loans are excluded, then you have to pay for
them even when your bankruptcy is discharged.

Unless the bankruptcy is Chapter 13, once you declare bankruptcy,
you may lose control over your house, other assets, and your business
(yes, there are some exclusions, so discuss this with an expert Chicago
bankruptcy lawyer). In many instances, a trustee would take over
everything, sell it and convert it to cash to pay off creditors. Again,
every case is different, and you really need to consult with a skilled
bankruptcy lawyer to find out how your case would be handled.

Another problem that sometimes raises its ugly head is that once
you've been declared bankrupt you may have problems getting a new
current account. In addition, all the fees associated with going this
route – court fees, insolvency fees and other related expenses – are
taken out of your assets.

Sadly, despite the circumstances of your personal bankruptcy, you
may find it very difficult to get credit in the future, unless you deal
with lenders who specialize in prior-bankrupt credit. It's a fact of
discharged or undischarged bankruptcy life that makes gaps in your
credit record, and whether or not they actually are due to a
bankruptcy, they are assumed to be bankruptcy.

There are others disadvantages to declaring personal bankruptcy and
if you choose the right Chicago bankruptcy lawyer, they will outline
all of them so that you are able to make an informed decision. It's a
gut wrenching decision and not one to be taken lightly, that's why you
need a lawyer who won't pull any punches with you and will tell you
like it is.

July 01, 2009

Avoiding Business Bankruptcy

3:00 pm | Jay Fortier | Be the first to comment

If you’re a small business, it's easy to understand why you would
want to try and avoid declaring bankruptcy. Your whole life is pretty
much tied up in your business.

While running a small business may be a joy, and the very thing you
have always wanted to do with your life, sometimes economic reality
hits hard. The reality these days is that the overall economy of the
nation is suffering so badly that people have all but stopped buying
things they consider to be a luxury or unnecessary.

If you own a business that caters to people who had disposable
income prior to the recession, you will be feeling the economic pinch
now. Unless your clientele is high end, rich and famous people who
always seem to have money, your business may be in deep trouble. Many
entrepreneurs try to make it against all odds and will juggle payments
madly to keep from going under.

Interestingly, especially these days, is the fact that many banks,
etc., are willing to barter the debt down, particularly if there is
help from a credit counselor. This type of intervention will often make
the difference to the enormous debt small businesses are facing by
reducing it to perhaps as little as a few cents on the dollar.

While the bottom line here is that the bank does not get back its
full initial loan, they are getting some return on the dollar, and this
is a much more equitable solution to both parties rather than the final
knell of bankruptcy. With a bankruptcy, the banks would lose the full
debt owing, thus any return on their initial investment may be a
welcome solution to a difficult situation, thus allowing the business
to continue and the bank to recoup some of their funds.

If this kind of solution does not work because the businessperson
was unable to make the negotiated payments, then all the assets of the
business are sold and the cash is given to the bank(s). There are other
solutions to ride out the worst of the recession, and those include
snagging low rate loans, divesting yourself of expendable assets,
finding an Angel investor, and asking employees if they are willing to
take a pay cut to still have a job.

Patrick Warwick is the lead content contributor for Chicago
bankruptcy firm, The Law Office of Jay F. Fortier, P.C.. To speak with
a Chicago bankruptcy lawyer or learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com

Personal Bankruptcy Is a Tough Call

2:59 pm | Jay Fortier | Be the first to comment

Making the decision to declare personal bankruptcy is a tough one and one people do not take lightly.

Most likely, if you are seriously thinking about declaring personal
bankruptcy, it took a lot to get you to that point. You have concerns
about that appearing on your credit history and making a mess of your
credit. It's not like you "planned" to go bankrupt. It just snuck up on
you as a series of incidents you weren't expecting that made a
significant change in your financial situation.

You may be faced with some astronomical medical bills, have been
laid off work or are in the throes of a divorce. Bankruptcy is never an
easy decision and it's best that you know some things about the process
before you make the final decision.

Declaring yourself bankrupt is a hassle and nothing will change
that, but if you don't do that, the hassle from the debt collectors
could be even worse. While many people regard bankruptcy as a negative
resolution to a problem, it may actually be considered a positive step
towards clearing up your financial future.

Don't be concerned about having a completely destroyed credit rating
for the rest of your life. This is a myth. When you have cleared your
bankruptcy, usually a 7 to 10 year process, your credit history is
cleaned up and you may start all over again. Yes, it may seem like a
long wait, however in the meantime you will have learned some valuable
money management lessons and will be in a good position to re-establish
your credit.

Many people also think that you can only file bankruptcy once in a
lifetime. This is not the case either. You may file Chapter 13 every
time you find yourself in need of doing so. If you are referring to a
Chapter 7 bankruptcy, you would have to wait 8 years to file again
should you find yourself in the same boat twice.

The idea behind filing personal bankruptcy is that it protects you
(the debtor) from losing all of your possessions while working your way
out of debt. This is one of the first things you and your bankruptcy
attorney will discuss when you meet to talk about filing bankruptcy.

With the assistance of a competent bankruptcy attorney, filing for
bankruptcy, while still difficult emotionally, is a made a lot easier
by the solid advice you will receive from the lawyer. Your lawyer will
be able to advise you every step of the way and make the whole process
much less stressful.

An Important Part of Life – Estate Planning

2:59 pm | Jay Fortier | Be the first to comment

Usually the last thing on people's minds is estate planning, when in
reality, it needs to be something done on a regular basis as your
wishes and circumstances change.

It's not easy to do estate planning, and the very thought of sitting
down with a lawyer and telling him or her what you want to do with your
assets when you die just gives you an odd feeling. Often it's also hard
to know where to start, what to give to whom, how to gift it, and whole
raft of other burning questions you need to ask your attorney.

If you don't know what estate planning is, it's sitting down and
getting your finances in order for those left behind when you pass on.
While you might not enjoy doing this, it will make people's lives
easier later. It's not a lot of fun dealing with an estate that no one
took the time to pre-disburse in accordance with the principles of
sound estate planning.

If you want a certain someone to have something of yours, this is
the time to enshrine that wish in your will. If you wait or don't do
it, that gift may wind up in probate and not go to the person you
wanted to have it. Sure, it's natural to want to put this kind of
planning off because it's hard to think about dying. However, the best
time to begin this kind of task is when you start to amass assets –
like your home, investments, real estate, etc. Planning now is the
smart thing to do.

Perhaps you might think you don't have enough assets to be put into
a will. That isn't the point though. The point is that you want certain
things to go to your family and not to the government. All our lives we
give to the government, in death it is time to gift our families. This
means you may have any wish you want expressed in your will and legally
your family is bound to abide by your wishes later.

The will acts as the central point to estate planning and actually
does the deed of tying all the finances and other estate details
together. So once the will is done, it's time for some down to earth
and clever planning, dealing with assets such as annuities, investments
and retirement funds. Choose your beneficiaries, and make sure they
know they are being named in that capacity, and, if you wish, what you
plan to leave them. This is a personal decision, and you may also
choose not to divulge your plans.

Be aware that there are many kinds of tax implications that go
hand-in-hand with estate planning, so make sure the attorney you are
consulting gives you the full run down so you are totally informed.
Don't attempt to do estate planning on your own. The chances of failing
miserably are quite high, not to mention the fact that there are way
too many gray areas in this area of the law that may ultimately trip
you up later.

Lawyers Collecting Debt

2:58 pm | Jay Fortier | Be the first to comment

There aren't a lot of people who know that some law firms make it
point of collecting outstanding debts for various clients. In instances
like this, the creditors need help with collections and send their
business to a law firm.

The whole debt collection usually kicks into gear when someone (the
borrower) defaults on payment owed to a creditor. Even though the
creditor may have tried various routes of getting the money back,
trying to get blood from a stone just didn't work. The decision was
made to use either a debt collection agency or a debt collection
lawyer. On reflection, the debt collection lawyer was the ultimate
choice for their ability to be versatile in the debt collections
process.

Debt collection attorneys are able to help a client with things like
student loan collections, credit cards being delinquent, stalled
installment loan collections and consumer debt collections. After
taking a good hard look at the collection file, it's the attorney's job
to figure out which route will best achieve a collection judgment
result for their client.

Like debt collection agencies, debt collection attorneys are
required to meet the rules and regulations of the federal Fair Debt
Collection Practice Act. The Act simply governs the actions a debt
collector may take while attempting to collect on a debt. This service
does not tend to come cheaply and may cost the creditor an hourly fee,
one-third the amount recovered or perhaps even both. Speak to your
attorney about how s/he handles these kinds of cases.

If you have any doubts about how to proceed on a collection after
exhausting all your usual routes, make it a point to discuss your
collection needs with a highly skilled debt collection attorney. It
only makes good business sense to get some return on your initial
billing, rather than have nothing to show for it in the long run. In
other words, in cases like this, if you have done what you could and
did not recover the outstanding debt, it's time to spend money to
recover money.

Company Snapshot

The Law Offices of Jay Fortier P.C

6832 W North Ave, Suite 2A,
Chicago, IL 60707
P. 773.237.0000
http://www.westsidebankruptcy.

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