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Fresh Start Repayment Plan

Has your driver’s license been revoked for unpaid parking tickets? Has your car been booted and impounded by the City of Chicago? Do you have old parking tickets where the fines and penalties continue to increase the amount you owe? The City of Chicago now has a program in place that allows you to discharge/eliminate either all or a portion of your parking tickets in a Chapter 7 case.  In the past, the only way to repay your parking tickets to the City of Chicago was by filing a Chapter 13 bankruptcy case.  This new program is much less costly than filing a Chapter 13 case and provides a streamlined alternative to individuals who have been trying to manage their outstanding parking tickets. In order to qualify for this program you MUST meet the following requirements: Parking tickets/violations that were received at least 3 years prior to a Chapter 7 filing date – All penalties and fines are waived. Fines and penalties received within 3 years of filing of a Chapter 7 bankruptcy case – You can apply for an installment repayment plan over up to 3 years – minimum payment of $25/month.  If payment will be over $100.00 per month, the repayment term can be extended to 5 years.  This repayment will be for ONLY the tickets you received within 3 years of filing the [...]

By |2020-05-25T18:07:33+00:00May 25th, 2020|Blog, Covid 19|0 Comments

COVID-19 – Evictions

If you are unable to pay your rent, the first thing you should do is contact your landlord and tell them that you cannot pay your rent.  Many landlords are working with their tenants so that they can remain in their homes.  You should be aware that there is currently a moratorium on all evictions in Cook County. Can you be evicted during the Covid-19 crisis in Cook County? The answer depends on a number of factors. If the eviction is based upon a violation of a lease term other than rent payment – evictions are paused until May 18, 2020 If the eviction is because of your failure to pay rent – If you live in subsidized housing evictions and late fees are paused for 120 days – until July 25, 2020.  After that date, 30 days’ notice is required. So, the earliest that a 30-day notice could be given would be Sunday, July 26th, which period would expire on Wednesday, August 25th. If you do not reside in subsidized housing – If your landlord has a federally backed mortgage - evictions and late fees are paused for 120 days – until July 25, 2020.  After that date, 30 days’ notice is required. So, the earliest that a 30-day notice could be given would be Sunday, July 26th, which period would expire on Wednesday, August [...]

By |2020-05-25T21:30:31+00:00May 20th, 2020|Blog, Covid 19|0 Comments

THE SMALL BUSINESS REORGANIZATION ACT AN ALTERNATIVE TO THE TRADITIONAL CHAPTER 11 CASE

The enactment of the Small Business Reorganization Act (“SBRA”) has added a new subsection to Chapter 11 of the Bankruptcy Code, which is being referred to as a Subchapter V.  Subchapter V was created to offer small business debtors a faster and less expensive Chapter 11 reorganization path.  The Chapter 11 bankruptcy attorneys at Gregory K. Stern, P.C. are available to discuss this new reorganizational option. The SBRA and Subchapter V include many new provisions, but here are some of the key differences between a Subchapter V case versus a regular Chapter 11 case. Eligibility To be eligible for Subchapter V, a debtor (whether an entity or an individual) must be engaged in commercial activity and its total debts -- secured and unsecured – must normally be less than $2,725,625.  Section 1113 of the CARES Act has increased the debt limit to $7,500,000. The increased debt limit applies to cases filed after the enactment of the CARES Act and is valid for one year after the CARES Act becomes effective (March 27, 2021). Thereafter, the debt limit will be reduced back to $2,725,625. In addition, single asset real estate debtors are ineligible for relief under Subchapter V. At least half of those debts must come from business activity.  The debtor's principal activity cannot be a single-asset real estate operation.  The debtor must elect to proceed under [...]

By |2020-05-25T21:45:55+00:00May 19th, 2020|Blog, Covid 19, Financial|0 Comments

COVID-19 and Foreclosures in Illinois

COVID-19 – Foreclosures If you are unable to pay your mortgage as a result of the Covid-19 crisis, you should contact your mortgage lender immediately.  Most mortgage lenders are working with homeowners to help you retain your property.  However, you MUST contact your lender.  Programs that are available are not automatic and will likely require you to complete an application. In Cook County, there is a moratorium of foreclosure cases.  The following is a summary of how the Covid-19 crisis has affected foreclosure cases in Cook County. Foreclosure Moratorium on Residential Real Property “federally backed mortgage loan” includes any loan secured by a first or subordinate lien on residential real property (including condominiums and cooperatives) on 1-to 4-unit buildings which are either insured or guaranteed under FHA, VA, and certain other programs or which are purchased or securitized by FHLMC or FNMA. Allows borrower to request forbearance on a federally backed mortgage loan for up to 180 days which shall be extended for an additional 180 days at borrower’s request,     subject to borrower’s request to shorten the period. All borrower needs to do is submit a request to the servicer affirming that borrower is experiencing a financial hardship during the COVID-19 emergency. Makes no difference if borrower was delinquent at the time of the request. during forbearance period, no fees, penalties, or interest shall accrue [...]

By |2020-05-18T20:40:20+00:00May 18th, 2020|Blog, Covid 19|0 Comments

Illinois District Court and Covid 19

DISTRICT COURT – COVID 19 The United States District Court remains open but subject to significant restrictions.  On April 24, 2020, the Chief Judge entered an order that extended certain deadlines, hearings, and trials. This is the third order entered during the CORONAVIRUS COVID-19 PUBLIC EMERGENCY.  The following is a summary of the third order: This Court remains open and accessible, subject to the limitations and procedures set forth below. In the courts prior 2 orders, all deadlines, in all civil cases and Executive Committee matters, whether set by the court, the Federal Rules of Civil Procedure, or the Local Rules were extended by 21 days and 28 days, respectively. The Third Order extends all deadlines in civil cases and Executive Committee matters by an additional 28 days – or a total of 77 days. The Third Order does not affect the rights to or deadlines concerning any appeal from any decision of this Court in a civil case. That is, the deadlines for filing a notice of appeal in a civil case remained in place and had to be followed to preserve appellate rights. The Court invited parties to move under Appellate Rule 4(a)(5)(A) for an extension of time to appeal. If a timely extension motion is filed, then the Court deems that good cause exists for the extension given the public health emergency. Parties [...]

By |2020-05-18T19:32:15+00:00May 13th, 2020|Blog, Covid 19|0 Comments

Access to attorneys during the Covid-19 crisis

We understand that many people are facing financial hardships, unlike anything they have faced in the past.  You may be experiencing the following: Inability to pay your rent or mortgage Inability to pay your car loans Wage garnishments Evictions Foreclosure Inability to pay credit card or other loans Many people are living paycheck to paycheck and the idea of missing weeks and months of paychecks can be scary.  The massive increase in unemployment applicants has resulted in delays in getting financial assistance.  This has resulted in an increased use of credit cards in order to pay for basic necessities, including food and medicine. Will I lose my house or my car?  Will the credit card companies sue me? Do I need to file bankruptcy now? Understanding your options can help you feel like you are in control of your financial future.  We are here to help.  Whether it is filing for a Chapter 7, 11 or 13 bankruptcy; representation in a foreclosure action; or exploring non-bankruptcy alternatives to manage your debt, the attorneys at Gregory K. Stern, P.C. have the knowledge and expertise to help. Many mortgage lenders and credit card companies are offering deferred payments and the waiver of late fees and penalties for those affected by the Covid- 19 crisis.  The first thing you should do if you are unable to make your monthly [...]

By |2020-05-05T18:53:51+00:00May 5th, 2020|Blog, Covid 19|0 Comments