Windy City Media Group Frontpage News
Celebrating 30 Years of Gay Lesbian Bisexual and Trans News
home search facebook twitter join
Gay News Sponsor Windy City Times 2016-11-30
DOWNLOAD ISSUE
About WCMG Publications News Index  Entertainment Features Bars & Clubs Calendar Videos Advertisers OUT! Guide    Marriage


  WINDY CITY TIMES

Considering bankruptcy; a fresh start
by Roger McCaffrey
2013-03-06

facebook twitter google +1 reddit email


Q. During the holidays I have been going wild with my credit cards. I find myself buried in debt and I don't even know how much I owe. I just lost my job this year and have been afraid to open my mail because of all the bills. Should I file for bankruptcy?

A. Over five years ago Congress enacted a new Bankruptcy law. The law made substantial changes to Chapter 7 requiring a "means testing" approach to consumer bankruptcy. The law requires people with incomes above their state's median income level, who can pay at least $6,000 over five years (that is, $100 a month), to involuntarily enter into repayment plans. Currently, the median income for single people in Illinois is $45,545.00

When an individual files for a Chapter 7 bankruptcy, their income is subject to a two-part means test. The judge subjects the individual's income to a formula that exempts certain expenses (rent, food, etc.) to determine whether that individual can afford to pay 25 percent of their "nonpriority unsecured debt", such as credit card bills. Second, the individual's income is compared to the median income of the state where they reside.

If the individual's income is above their state's median income and they can afford to pay 25 percent of their nonpriority unsecured debt, then that individual cannot file for Chapter 7 bankruptcy, but can under Chapter 13. If the individual's income is less than the state median income but they can still pay 25 percent of their unsecured debt, then they may be able to file a Chapter 7 bankruptcy still. In a Chapter 7 bankruptcy, your assets, minus those exempted by your state, are liquidated and given to creditors, and many of your remaining debts are cancelled. Since many Chapter 7 filers don't have assets that qualify for liquidation, credit card companies and other creditors can get nothing.

For the individual in the question, since you are unemployed the threshold to file a Chapter 7 is much lower and its benefits and burdens should be thoroughly reviewed with your bankruptcy attorney. AND Be careful with credit card charges, the law does not allow you to run up your credit cards and then discharge your debts in a Bankruptcy. Some of those debts may not be dischargeable if they are incurred too close to a filing.


facebook twitter google +1 reddit email




Windy City Media Group does not approve or necessarily agree with the views posted below.
Please do not post letters to the editor here. Please also be civil in your dialogue.
If you need to be mean, just know that the longer you stay on this page, the more you help us.


  ARTICLES YOU MIGHT LIKE

Gay News

LGBT business event focuses on supplier diversity 2016-09-28 - Law firm Baker & McKenzie hosted a Sept. 22 City Wide Pride event alongside the LGBT Chamber of Commerce of Illinois. Four panelists ...


Gay News

WERQ! LGBTQ job fair Sept. 16 in Chicago 2016-09-07 - More than 60 major corporations, small businesses, government agencies and nonprofits will participate in the Windy City Times WERQ! LGBTQ job fair Friday, ...


Gay News

Entrepreneur talks ABDL, Tykables store, public reaction 2016-09-07 - Since his early childhood years, John-Michael Williams has lived most of his life as an adult baby diaper lover ( ABDL ). Williams, ...


Gay News

WERQ! LGBTQ Job Fair Sept. 16 2016-08-18 - More than 30 major corporations, small businesses, government agencies and nonprofits will participate in the Windy City Times WERQ! LGBTQ job fair Friday, ...


Gay News

Out & Equal workshop challenges companies to engage allies 2016-08-17 - Jenner & Block has hosted many LGBTQ-related downtown events. On Aug. 10, the law firm hosted the national LGBT workplace equality and inclusion ...


Gay News

Out of the Office rings in Pride month with celebration and charity 2016-06-02 - As it has for 15 years, Out of the Office heralded the beginning of Pride month in Chicago June 1. The 2016 event ...


Gay News

Midsommarfest returns to Andersonville for 51st year 2016-05-29 - Chicago - May 27, 2016 - Returning to Andersonville for its 51st year, Midsommarfest continues to prove why it is Chicago's most intriguing ...


Gay News

LGBT issues spotlighted at financial/legal planning event 2016-05-11 - Don Martin ( MetLife financial services representative ) and Michelle Sinkovits, Esq. ( partner at Greenberg & Sinkovits, LLC ) co-presented the "Planning ...


Gay News

Business leaders discuss LGBT certification 2016-04-30 - Members from Chicago's LGBT business community, on April 27, gathered at Fulton Market Kitchen, 311 N. Sangamon St., to discuss the certification process ...


Gay News

Out & Equal promotes workplace equality 2016-04-13 - Jim Huberty, chair of Out & Equal Chicagoland met with business leaders and community advocates on April 5 about the organization's upcoming Citywide ...


 



Copyright © 2016 Windy City Media Group. All rights reserved.
Reprint by permission only. PDFs for back issues are downloadable from
our online archives. Single copies of back issues in print form are
available for $4 per issue, older than one month for $6 if available,
by check to the mailing address listed below.

Return postage must accompany all manuscripts, drawings, and
photographs submitted if they are to be returned, and no
responsibility may be assumed for unsolicited materials.
All rights to letters, art and photos sent to Nightspots
(Chicago GLBT Nightlife News) and Windy City Times (a Chicago
Gay and Lesbian News and Feature Publication) will be treated
as unconditionally assigned for publication purposes and as such,
subject to editing and comment. The opinions expressed by the
columnists, cartoonists, letter writers, and commentators are
their own and do not necessarily reflect the position of Nightspots
(Chicago GLBT Nightlife News) and Windy City Times (a Chicago Gay,
Lesbian, Bisexual and Transegender News and Feature Publication).

The appearance of a name, image or photo of a person or group in
Nightspots (Chicago GLBT Nightlife News) and Windy City Times
(a Chicago Gay, Lesbian, Bisexual and Transgender News and Feature
Publication) does not indicate the sexual orientation of such
individuals or groups. While we encourage readers to support the
advertisers who make this newspaper possible, Nightspots (Chicago
GLBT Nightlife News) and Windy City Times (a Chicago Gay, Lesbian
News and Feature Publication) cannot accept responsibility for
any advertising claims or promotions.

 

 

 

TRENDINGBREAKINGPHOTOS

Sponsor
Sponsor
Sponsor
Sponsor
Sponsor


 



Sponsor

About WCMG Publications News Index  Entertainment Features Bars & Clubs Calendar Videos Advertisers OUT! Guide    Marriage



About WCMG      Contact Us      Online Front  Page      Windy City  Times      Nightspots      OUT! Guide     
Identity      BLACKlines      En La Vida      Archives      Subscriptions      Distribution      Windy City Queercast     
Queercast Archives      Advertising  Rates      Deadlines      Advanced Search     
Press  Releases      Event Photos      Join WCMG  Email List      Email Blast     
Upcoming Events      Todays Events      Ongoing Events      Post an Event      Bar Guide      Community Groups      In Memoriam      Outguide Categories      Outguide Advertisers      Search Outguide      Travel      Dining Out      Blogs      Spotlight  Video     
Classifieds      Real Estate      Place a  Classified     

Windy City Media Group produces Windy City Queercast, & publishes Windy City Times,
The Weekly Voice of the Gay, Lesbian, Bisexual and Trans Community,
Nightspots, Out! Resource Guide, and Identity.
5315 N. Clark St. #192, Chicago, IL 60640-2113 • PH (773) 871-7610 • FAX (773) 871-7609.

www.windycitymediagroup.com
[email protected]  •  [email protected]  •  [email protected]

Website Powered by LoveYourWebsite.com