Our Debtor / Creditor Services include:

  • Bankruptcy
  • Alternative Solutions to Avoid Bankruptcy
  • Defending Homeowners in Foreclosure
  • Loss Mitigation Options in Foreclosure
  • SBA Offers & Compromises
  • Short Sales
  • Deed in Lieu of Foreclosure
  • And more

BANKRUPTCY

CHAPTER 7 BANKRUPTCY

A Chapter 7 Bankruptcy is often referred to as a liquidation bankruptcy whereby the debtor receives a discharge of dischargeable debts thereby enabling the Debtor to obtain a fresh start. A Chapter 7 Bankruptcy is one where the Bankruptcy Trustee looks to sell or liquidate the Debtor’s non-exempt assets to pay back a portion of or all of Debtor’s debts. SG LAW analyzes several factors to determine whether an individual may be eligible for a Chapter 7 Bankruptcy filing, including the following:

  1. Nature and amount of debts – consumer or business debts;
  2. Means Test Calculation – A legal formulaic analysis of household income and expenses over 6 months prior to the date of filing the Bankruptcy Case to determine if the debtor qualifies for a Chapter 7 Bankruptcy case filing;
  3. The nature of the assets owned by the Debtor and the fair market value of same;
  4. Analysis of Illinois Exemptions – What Debtor may be able to keep and what debtor may have to surrender to the Bankruptcy Trustee within the Bankruptcy Case; SEE RESOURCES
  5. A detailed study of Debtor’s financial transactions that occurred within 4 years of the Bankruptcy Case to advise clients regarding potentially adverse matters involving a preferential or fraudulent transfer. SEE RESOURCES

While a Chapter 7 Bankruptcy Case may provide tremendous debt relief if done right, it is a highly complicated legal transaction that can result in adverse consequences if done incorrectly. SG LAW is highly experienced in Chapter 7 Bankruptcy Cases and can assist you in determining your options.

CHAPTER 13 BANKRUPTCY

A Chapter 13 Bankruptcy is a repayment plan where the Debtor is required to pay his or her monthly disposable income into a Plan as repayment to creditors over a period of 3-5 years. Unlike a Chapter 7 Bankruptcy case, an individual debtor’s assets are not sold or liquidated in a Chapter 13 Bankruptcy. However, a Chapter 13 Bankruptcy Debtor does have to propose a Chapter 13 Plan that satisfies the “best interests of creditors” test, i.e. pays creditors an amount at least equal to the amount that the creditor would receive if the Chapter 13 Debtor’s non-exempt assets were liquidated. SG LAW analyzes several factors to determine whether an individual may be eligible for a Chapter 13 Bankruptcy filing, including the following:

  1. Nature and amount of debts – consumer or business debts;
  2. Means Test Calculation – A legal formulaic analysis of household income and expenses over 6 months prior to the date of filing the Bankruptcy Case to determine if the debtor qualifies for a Chapter 7 Bankruptcy case filing;
  3. The nature of the assets owned by the Debtor and the fair market value of same;
  4. A detailed study of Debtor’s financial transactions that occurred within 4 years of the Bankruptcy Case to advise clients regarding potentially adverse matters involving a preferential or fraudulent transfer.

While a Chapter 13 Bankruptcy Case may provide tremendous debt relief if done right, it is a highly complicated legal transaction that can result in adverse consequences if done incorrectly. SG LAW is highly experienced in Chapter 13 Bankruptcy Cases and can assist you in determining your options.


ALTERNATIVE SOLUTIONS TO AVOID BANKRUPTCY

INCLUDING NEGOTIATION OF FORBEARANCE AGREEMENTS & OFFERS AND COMPROMISES

  • Not all debtor creditor issues need to result in a bankruptcy. SG LAW will strive to find alternative resolutions such as working out forbearance agreements, loan modifications or settlement agreements with your creditors prior to resorting to the filing of a bankruptcy as a means to obtain relief from debt.
  • To the extent a bankruptcy is the only viable solution, SG LAW will work closely with you to analyze various factual matters so that the bankruptcy gets filed at the appropriate time and manner.
  • SG LAW is experienced in negotiating offers and compromises with the Small Business Administration (SBA) to attempt to save your home and/or business from financial ruin and foreclosure. Sharanya has presented educational materials on this topic:  SEE RESOURCES
  • Do not wait until the very last minute to seek legal advise regarding debt issues. There are many strategic steps the Debtor may take towards obtaining financial freedom. Contact SG LAW right away to discuss your legal options before it is too late.

DEFENDING HOMEOWNERS IN FORECLOSURE

  • Within months of failure to pay on a mortgage debt, a homeowner can expect to get served with a Summons and Complaint for Mortgage Foreclosure at their home via a Sheriff or a Process Server.
  • The very act of being served with legal papers by a sheriff or a process server can be scary. SG LAW understands the emotional toll this can take on an individual and his or her family members. Therefore, SG LAW takes great care and compassion in explaining the process in detail to clients so they remain informed and prepared to face the next step.
  • Illinois is a foreclosure state. Therefore, considerable amount of time will pass between the time a homeowner is served with the Complaint and the time the homeowner is evicted from the home as a result of a foreclosure sale. Contact SG LAW immediately upon service of the Summons and Complaint or even prior to that in order to understand your legal rights. Not doing anything can result in adverse consequences, including but not limited to the loss of your home, a personal deficiency judgment being assessed against you and the inability to assert rights to attempt to keep your home.

A common question among homeowners is this - How long can I stay in my home after I get served with the Foreclosure Summons and Complaint? The following is an illustration of the approximate amount of time a homeowner may get to stay in his or her home if they take no action in response to the foreclosure Complaint. Please note this is merely an example and an illustration and each case may vary depending on the facts and circumstances involved in said case.

  • Homeowner gets served with Foreclosure Complaint and Summons;
  • If homeowner takes no action in response to the Summons and Complaint within 30 days of being served, the Bank may file a Motion for Default Judgment of Foreclosure. Depending on how diligent the Bank is, this Motion for Default Judgment may be filed anywhere between 35 to 45 days or more following the service of the Summons and Complaint upon the homeowner. Contact SG LAW to determine what your options may be.
  • If homeowner takes no action in response to the Motion for Default Judgment, the Court will enter a Judgment of Foreclosure.
  • Once the Judgment of Foreclosure is entered, the Bank cannot take any action for three months following the entry of said Judgment. This period is called the Redemption Period. Contact SG LAW to determine what your rights may be as the homeowner during the Redemption Period.
  • Following the expiration of the Redemption Period, the Bank may conduct a foreclosure auction of the home.
  • Following the foreclosure auction of the home, the Bank will file a Motion with the Court seeking its approval of the terms of said foreclosure sale. If Bank is seeking a money judgment against the homeowner for the difference between the sale price and the loan amount, this would be the time for the Bank to seek such a personal deficiency judgment against the homeowner. The Bank is not entitled to a personal deficiency judgment against the homeowner in all circumstances. Contact SG LAW to determine what your options are and the ramifications that may arise from the entry of said deficiency judgment.
  • Following the confirmation of the sale by the Court, the homeowner will need to vacate the home approximately 30 days thereafter.

The timeline estimated above may vary depending on various actions taken by the homeowner, bank, the Court and other junior lienholders. Contact SG LAW immediately upon receipt of the Summons and Complaint or upon receipt of default letters or communications from the Bank.


LOSS MITIGATION OPTIONS IN FORECLOSURE

INCLUDING NEGOTIATION OF SHORT SALES, DEED IN LIEU OF FORECLOSURE AND CONSENT JUDGMENTS OF FORECLOSURE

In addition to representing homeowners in pending foreclosure cases, SG LAW also assists clients with loss mitigation options that may help lessen or avoid the impact of a fully completed foreclosure case. The following are some examples of such loss mitigation options:

  1. Short Sale: Negotiating a sale of the home for a price less than the outstanding debt amount in exchange for a forgiveness or discounted settlement of the outstanding debt owed to the Bank. If you are in the middle of a foreclosure case or about to be sued by the Bank, there are important deadlines that may be involved in a short sale transaction. Contact SG LAW for further legal advice regarding same.
  2. Deed in Lieu of Foreclosure: Turning over the home to the Bank in exchange for a forgiveness of the deficiency amount that may be due to the Bank. This transaction may not be possible if there are junior lienholders. Contact SG LAW to determine what your options are.
  3. Consent Judgment of Foreclosure: An Illinois statutory provision that allows the Bank to take the property back in satisfaction of the debt with no assessment of a deficiency judgment against the homeowner even if there are junior lienholders. Contact SG LAW to determine what your options are.
  4. Relocation Expenses: Within the confines of any one of the aforementioned loss mitigation options, SG LAW may be able to negotiate a payment to the homeowner from the Bank to assist with relocation expenses.

Serving Cook, Lake, DuPage & McHenry Counties

(847) 603-6600

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