Know When It s Time. A Bankruptcy Preparation Guide DIZON LAW LTD.

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1 Know When It s Time A Bankruptcy Preparation Guide DIZON LAW LTD. Copyright 2016

2 About the Author... 3 Know When It s Time... 4 A Budget Exercise Comparing Your Income to Expenses... 4 Credit Card Balances... 4 Making Minimum Payments is Taking One Step Forward and Two Steps Back... 4 Chapter 7 Bankruptcy... 6 The Fresh Start Bankruptcy... 6 Chapter 13 Repayment Plans... 9 The Consolidation Bankruptcy... 9 Homeowner Considerations Consider Your Options Your 401k is Not a Crutch Using your 401k to Pay Off Debt is Foolish Your Next Step Call Dizon Law Ltd. at We Don t Focus On Volume. We Focus On You Frequently Asked Bankruptcy Questions Call for a Free Consultation for an Analysis of Your Situation... 17

3 About the Author Gilbert R. Dizon is the Founder and Managing Attorney of Dizon Law Ltd. Since 1996, Gilbert has concentrated his law practice in the area of Consumer Bankruptcy and previously worked as a Senior Attorney and Partner for a premiere Consumer Bankruptcy law firm in Chicago for over ten years. Thereafter, Gilbert started his own law firm which is known today as Dizon Law Ltd. and has offices in Geneva, Wheaton and Aurora, Illinois. In the 20 years as a Bankruptcy lawyer, Gilbert has helped thousands of individuals and families get the fresh start that they deserved and needed through Chapter 7 Bankruptcy or Chapter 13 Repayment Plans. Licensing: State of Illinois U.S. District Court for the Northern District of Illinois Education: Thomas M. Cooley Law School - Lansing, Michigan Juris Doctor, 1995 Indiana University - Bloomington, Indiana B.A. Economics & Sociology (Double Major), 1991 Memberships: National Association of Consumer Bankruptcy Attorneys

4 Chapter One Know When It s Time A Budget Exercise Comparing Your Income to Expenses The first step in assessing your financial situation is to create a budget comparing your total household income and all of your actual expenses. By doing so, you will be able to get a snap shot of your financial picture on a monthly basis. During this process, have your pertinent documents such as your pay stubs, mortgage statements, utilities statements, cellular bills, cable or satellite bills, etc. First calculate what your total net monthly income is and then input a line item for all of your actual expenses. Be honest with yourself and input what you actually expend on a monthly basis for your mortgage, utilities, groceries, school expenses, clothing, gas and transportation, dining out, entertainment, credit card bills, student loans, car payments, insurance, etc. The purpose of this exercise is to show you how much money you have coming in and how much money is going out and for what purpose. If at the end of this exercise your expenses exceed your net income or if you have very little disposable income, you will realize that you will need to take action to remedy this by putting your actual budget on a diet and to consider a Chapter 7 Bankruptcy or a Chapter 13 Repayment Plan. Chapter Two Credit Card Balances Making Minimum Payments is Taking One Step Forward and Two Steps Back If you carry credit card balances, a helpful site to determine how long it will take for you to pay off your credit card balances is I invite

5 you and encourage you to visit this site to see how long it will take for you to pay off your credit card balances, especially if you are only making the minimum monthly payments. Again, be honest with yourself and input your actual payment amounts that you make monthly. If you are only making the minimum monthly payments, it is very likely that it will take you several years to pay off your credit card debt depending on the balances and interest rates on your credit cards. And during that time, the interest will continue to pile up and you may never see a reduction in the principal balance of those credit cards. If you find yourself in this predicament, a Chapter 7 Bankruptcy or a Chapter 13 Repayment Plan are options you should consider. Remember, there are two types of bankruptcies for individuals: Chapter 7 to eliminate your debt and Chapter 13 to repay your debt. If you have credit card debt and are making only the minimum monthly payments, it is very likely that it will take you several years to pay off those balances depending on the amount of the balances and interest rates on those credit cards. Often, you may see a story on local or national news networks about an individual or families consolidating and repaying back their credit card debt. However, more often than not, people who have tried to consolidate their credit card debt have been scammed or only some of the credit card companies agreed to a lower repayment leaving them back at square one with their other credit cards. If you find yourself in the same predicament of only making the minimum monthly payment on your credit cards, Bankruptcy may be your best option. A Chapter 7 Bankruptcy will discharge your credit card debt, meaning that you will no longer be liable to repay back that debt. Whether or not you will qualify for a Chapter 7 will depend on your total household income compared to the median income of a similar household in your geographical area. This is known as the "means test". If you fall below the median income level, you will qualify for a Chapter 7 (assuming that you have no unprotected assets such as a home with equity beyond the State exemption amount). If your income is above the median income level, there is a presumption that you will not qualify for Chapter 7, but that presumption may be overcome under certain circumstances.

6 However, assuming that presumption cannot be overcome and you cannot qualify for Chapter 7, you can file a Chapter 13 Bankruptcy and repay back a portion of or all of your debt over a period of 5 years. You're probably asking - "If I have to repay back my debt thru a Chapter 13, what's the point of even filing for Bankruptcy?" The answer is three-fold:(1) A Chapter 13 is a Court approved repayment plan, meaning your credit card companies have very little say in the terms of the repayment plan; (2) You will be debt free in a maximum of 5 years as opposed to never being debt free; and (3) You can realize a substantial savings in a Chapter 13 because the repayment plan typically provides no interest on the credit card debt and the repayment plan may only require that you repay back pennies on the dollar, so once you complete the Chapter 13 plan payments, the balance of your credit card debt are discharged. Chapter Three Chapter 7 Bankruptcy The Fresh Start Bankruptcy A Chapter 7 Bankruptcy is what is known as a Liquidation Bankruptcy. Chapter 7 Bankruptcy is generally the quickest and most efficient way to eliminate your debt. Once your case is filed, your creditors must stop all collection activities including lawsuits and wage garnishments. When your case is discharged in approximately three (3) to four (4) months, you will no longer be liable for any debts that were discharged. Debts that can be discharged in Chapter 7: Credit Cards Personal Loans Medical Bills Judgments and Lawsuits Utility Bills

7 Repossessions Payday Loans Debts that cannot be discharged in Chapter 7: Child Support and Maintenance (Domestic Support Obligations) Student Loans Federal & State Income Taxes (less than 3 years old) Government Fines or Fees Criminal Fines Intentional Torts Traffic & Parking Tickets Despite its name Liquidation, your property and other assets will not be sold. Under Illinois law, you are entitled to protect certain assets, with the most common being: $15,000 of equity of your personal residence, $2,400 in equity of a motor vehicle and $4,000 of personal property. Pensions, 401k and life insurance are 100% protected. Pre-Bankruptcy Filing: Before your Chapter 7 Bankruptcy is filed, you will need to meet with your attorney and provide him or her with the following information: 6 months of paystubs (yours & spouse) Past 2 years of tax returns Bills, statements, letters, court documents, etc. Your attorney should also be able to obtain your credit reports. Once the information is provided and the legal fees are paid, your attorney will prepare the documents for you to review. Prior to filing the case, you will be required to take a credit counseling class which is typically offered online. The class takes about 1 hour and once the class is completed, a certificate will be issued and this certificate must be filed with the Court along with your Bankruptcy petition and other documents. Post-Bankruptcy Filing: Once your Bankruptcy is filed, a case number and hearing date will be assigned. The hearing is called the First Meeting of Creditors and is typically

8 assigned a date 30 to 45 days from your case filing date. At this hearing, you will be required to attend and you must bring proof of your identity and Social Security Number. You and your attorney will meet with the Bankruptcy Trustee (not a Judge) and the Trustee will ask you questions about the information contained in the Bankruptcy documents, specifically about your assets, income and expenses. The hearing generally takes less than 10 minutes. If all goes well, the Trustee will file a no asset report, which means he or she has made a finding that there are no assets to administer for the benefit of creditors and is recommending that you receive a discharge of your debt. In order to receive a Discharge, you will be required to take a 2nd online course. Again, a certificate will be issue upon completion of the course and the certificate must be filed with the Court. Assuming that the course was taken and the certificate was filed, the Court will enter a Discharge Order in about 60 days after the First Meeting of Creditors. Reaffirmation Agreements: If you have a car loan or are financing something such as furniture or other personal property, and if it is your intention to keep the car or property, you will be asked by the creditor to sign a Reaffirmation Agreement. By signing the Reaffirmation Agreement, you are contractually bound by the original terms of your financing (or modified terms indicated in the Reaffirmation Agreement) and the underlying debt will survive the Bankruptcy and will not be discharged. What this means is if you default in the future, the creditor may repossess the car or property and file suit against you for any deficiency. Thus, you should put a lot of thought and consideration before you sign a Reaffirmation Agreement. Because of the ramifications, you should never sign a Reaffirnation Agreement for a mortgage or 2nd mortgage. So, this is Chapter 7 in a nutshell. It may sound easy, but the laws are very complicated. No one should ever file a Bankruptcy without an attorney.

9 Chapter Four Chapter 13 Repayment Plans The Consolidation Bankruptcy A Chapter 13 Bankruptcy filing is a Repayment Plan of your debt which can stop the foreclosure of a house or the repossession of a car. A Chapter 13 Bankruptcy allows you to stop collection actions, foreclosures, repossessions, law suits, etc. The length of the repayment plan ranges from 36 to 60 months to pay back your creditors allowing you to spread out payments to get caught up on your delinquent mortgage payments over time. A Chapter 13 Bankruptcy can also help eliminate most of your unsecured debt. In addition, in some instances, a second mortgage on your residence may be stripped and repayment of a car loan can be based on the value of the vehicle plus interest at the prime rate, meaning you can save a significant amount of money. Common Reasons to File a Chapter 13 Repayment Plan: To stop a foreclosure To stop a repossession You do not qualify for Chapter 7 Bankruptcy If you voluntarily want to repay your debts Below is an example of a typical Chapter 13 scenario. A couple is behind on their mortgage and a foreclosure was filed. They are approximately $10,000 behind on their mortgage payments including court costs and attorneys' fees. They do not have any other secured debt such as car payments, but their unsecured debt amounts to approximately $20,000 consisting of credit cards. They fell behind on their mortgage payments because one of them lost their job but is now back to work. Their minimum monthly payments on their credit card debt totals about $800 per month. A Chapter 13 plan would propose to pay the mortgage company the total amount that they are behind and 10% of their unsecured debt over a 5 year period. The monthly Chapter 13 payment would be approximately $252

10 monthly for 5 years. Thus, the couple would have to have enough income to pay their regular monthly mortgage, their normal monthly expenses (excluding their credit card payments that are now included in the Chapter 13) and the Chapter 13 payment. The benefits of the Chapter 13 are as follows: 1 The Chapter 13 immediately stops the foreclosure and allows the couple to pay what they are behind to their mortgage company over time; 2 The couple will no longer have to make payments on their credit cards and medical bills and the Chapter 13 plan only requires that they pay back 10% ($2,000) of what they originally owed and the remainder will be Discharged once the Chapter 13 plan is completed; and 3 The couple will be debt free once the Chapter 13 plan is completed with the exception of the remaining balance of their mortgage and any new debt they incur after the Chapter 13 is filed. Note that although this is a typical scenario, the length of the payment plan and the percentage required to be payed to unsecured creditors depends on total household income, allowable monthly expenses and the value of unprotected assets. For example, if the couple have equity in their home above the allowable joint exemption amount of $30,000, they will likely have to pay a higher percentage to unsecured creditors depending on the amount of unprotected equity. To illustrate, if they have $75,000 equity in their home, they can protect $30,000, leaving $45,000 that is unprotected. What this means, is that they would be required to pay 100% to the unsecured creditors with about 3% interest to protect the unprotected equity. From the example above, the monthly payment would be $573 monthly. Although they would be required to pay this higher amount, the couple will still significantly save on their monthly expenses because this amount is less than what their monthly payments are on their credit cards ($800 from above) and they would save a significant amount on interest. And remember, part of the $573 is for payment of what they were behind on their mortgage. So, this is Chapter 13 in a nutshell. It may sound easy, but the laws are very complicated. No one should ever file a Chapter 13 without an attorney.

11 Chapter Five Homeowner Considerations Consider Your Options Although the housing market has been on the rebound the past couple of years, many homeowners are still faced with the predicament that they owe more money on their house than what its worth. If you are in this same predicament, you have to ask yourself ultimately what do you want to do about the house...do you want to keep it with hopes of the market rebounding someday? Or do you want to walk away from it? I will address what your options are and what ramifications that you may face depending on what you decide to do. Scenario 1: Let's start with the simple scenario that you want to walk away from the house. Your options will depend on whether you have one mortgage or more than one mortgage such as a Home Equity Loan or a Line of Credit. If you only have one mortgage, walking away from the home is much easier and has less ramifications. If you only have one mortgages and want to walk away from your home, your options are as follows: (1) Short Sale: You can sell it for the best price as possible and should the offers be less than what you owe on your mortgage, you will have to negotiate with the mortgage company to agree to take less than what you owe. This is typically what is known as a "Short Sale." Typically what is reported to the credit report agencies after a Short Sale is that the mortgage debt was settled for less than what was owed.; (2) Foreclosure & Do Nothing: If you have fallen behind on your mortgage payments, your mortgage company has the right to file a Foreclosure if you more than 3 months in default. If you do nothing to defend against the foreclosure, the mortgage company will sell the property in a Foreclosure Sale, typically 6 to 9 months after the foreclosure is filed. Usually there will be a deficiency balance that remains after a foreclosure sale. If so, although your mortgage company can come after you for that deficiency balance, they typically will not. However, the foreclosure will be damaging to your credit and it will take a few years to rebuild your credit.

12 (3) Foreclosure & Offer a Deed In Lieu of Foreclosure: If a foreclosure has been filed, and you want to walk away from your home, you may want to negotiate with your mortgage company's foreclosure attorneys what is called a "Deed In Lieu of Foreclosure." This basically is telling the bank, "I don't want the house anymore and I want to avoid the foreclosure, so here are the keys. But, I don't want to be held liable for any deficiency, so please forgive any deficiency balance." In some instances, the mortgage company will agree to this to avoid incurring additional attorneys' fees and costs related to the foreclosure. However, they may require first that you try to sell the house via a Short Sale. A Deed In Lieu of Foreclosure will result in a less damaging effect on your credit report than a Foreclosure. Typically what is reported to the credit report agencies is that the mortgage debt was settled for less than what was owed. Scenario 2: If you have more than one mortgage and you owe more money on both of your mortgages than what your house is worth, the three options above typically are not available to you. A Short Sale would almost be impossible because you would have to negotiate with all of your mortgage companies to accept less than what is owed. Although you may be able to get the first mortgage company to agree to that, the second mortgage company will likely not agree. Likewise, a Deed in Lieu of Foreclosure would not be possible, because your first mortgage company would not be able to accept a Deed In Lieu of Foreclosure knowing that there is a second mortgage. And, if a foreclosure is filed and if you do nothing and the property is ultimately sold in a foreclosure sale, there will most likely be a deficiency balance on the first mortgage and you will still be liable on the second mortgage debt. The second mortgage company will likely file a lawsuit against you for the amount owed. So, what are you to do? A Chapter 7 Bankruptcy (or a Chapter 13 Repayment Plan if you do not qualify for Chapter 7) is your best option to be relieved of any and all liability from the foreclosure and other debt that you may have. A Chapter 7 would discharge you of any deficiency balances owed on the first and second mortgages, as well as other unsecured debt that you may have such as credit cards, medical bills, etc. If you do not qualify for Chapter 7, a Chapter 13 would allow you to repay a percentage (usually pennies to the dollar) of any deficiencies and other unsecured debt over a period of 3 to 5 years.

13 Scenario 3: If you want to keep the house and If you have more than one mortgage, such as a Home Equity Loan or Line of Credit, you should keep up with your first mortgage and second mortgage payments as well. There is one caveat though. And that is, if you owe more money on your first mortgage than the Fair Market Value (FMV) of your home, a Chapter 13 Bankruptcy would allow you to strip that 2nd mortgage because there is no equity for that lien to attach. The 2nd mortgage would then be classified as a general unsecured debt, which can be paid back at a percentage (usually pennies to the dollar) as well as your other unsecured debt such as credit cards, medical bills, etc. over a period of 3 to 5 years. The second mortgage lien would be released upon completion of the Chapter 13 plan and discharge. Scenario 4: If you want to keep your house and you only have one mortgage, keep up with the status quo and continue to make your mortgage payments. Chapter Six Your 401k is Not a Crutch Using your 401k to Pay Off Debt is Foolish I am often asked by prospective clients whether it is wise for them to use their 401k to pay off their credit cards, medical bills and other debt or to catch up on their mortgage payments. Although I am not a tax attorney or a financial advisor, what I do tell them is that unless they qualify for a hardship (see below), a withdrawal from their 401k will result in them being taxed at their regular income tax rate and they will also be penalized 10% of the amount of the withdrawal. However, if they do qualify for a hardship, the distribution will be taxed as Gross Income but they will not have to pay the 10% penalty. A better alternative might be to take out a loan against their 401k if their plan allows them to. The advantage of a 401k loan is that there will be no tax ramifications or penalties.

14 In terms whether one qualifies for a hardship depends on the following: "[w]hether a need is immediate and heavy depends on the facts and circumstances. Certain expenses are deemed to be immediate and heavy, including: (1) certain medical expenses; (2) costs relating to the purchase of a principal residence; (3) tuition and related educational fees and expenses; (4) payments necessary to prevent eviction from, or foreclosure on, a principal residence; (5) burial or funeral expenses; and (6) certain expenses for the repair of damage to the employee's principal residence. Expenses for the purchase of a boat or television would generally not qualify for a hardship distribution. A financial need may be immediate and heavy even if it was reasonably foreseeable or voluntarily incurred by the employee." IRS Reg (k)-1(d)(3)(iii) Paying off credit cards will not qualify for a hardship distribution. So, generally, it would not be wise to take a distribution from a 401k to pay off credit card debt because of the tax and penalty ramifications. However, if the conditions are met to qualify for a hardship distribution, using the 401k funds to pay certain medical bills or to catch up on mortgage payments is a viable option. But, the amount of the distribution will be taxed as Gross Income. And, although this is a short term solution, they may not feel the effects until down the road...when they need the funds when they retire. Other alternatives to taking a 401k distribution or a loan against a 401k are Chapter 7 or Chapter 13 Bankruptcy depending on the individual's overall financial situation. A Chapter 7 will discharge credit card bills, medical bills and other unsecured debt. A Chapter 13 is a repayment plan that allows one to repay back the defaulted mortgage payments and a percentage of their unsecured debt over a 3 to 5 year period.

15 Chapter Seven Your Next Step Call Dizon Law Ltd. at We Don t Focus On Volume. We Focus On You. DIZON LAW LTD. is a Consumer Bankruptcy law firm with convenient office locations in Geneva, Wheaton and Aurora, Illinois. We are able to represent clients throughout the various counties in Northern Illinois including: Kane County, DuPage County, McHenry County, DeKalb County, Cook County and Lake County. Our attorneys have been recognized by our clients and members of the Chicagoland legal community for their professionalism, tenacity and hard work ethic in protecting our clients' rights and property. Be assured that when our attorneys represent you, protecting your rights and property is our highest priority. Whatever legal situation you are faced with, you need to be serious about protecting your rights and property. And, you need the RIGHT LAWYERS...RIGHT NOW...to protect your rights and property. To many law firms you may only be a number. To us, you will be our NUMBER ONE PRIORITY. Why? Because WE DON'T FOCUS ON VOLUME. WE FOCUS ON YOU. Beware of bankruptcy law firms advertising that they can file your Chapter 7 bankruptcy case with no money down, including the filing fee. Beware that these law firms will ask that you sign a Retainer Agreement for the legal fees and court costs AFTER your bankruptcy case is filed. Be advised that YOU DO NOT NEED TO SIGN the Retainer Agreement for those fees and costs BECAUSE THOSE FEES AND COSTS WILL BE DISCHARGED IN YOUR CHAPTER 7 BANKRUPTCY.

16 However, don't think that you can get your bankruptcy for free because if you don't sign the Retainer Agreement, those law firms have a right to withdraw from your case leaving you unrepresented without an attorney. The bottom line is to remember that you get what you pay for. The Federal Court of the 7th Circuit has ruled that Bankruptcy Attorneys' Fees not paid in full prior to the filing of a Chapter 7 Bankruptcy are Discharged in the bankruptcy. This does not apply to Bankruptcy Attorneys' Fees in a Chapter 13. Case: Albert Bethea No Issue: Are unpaid attorney s fees, incurred in a bankruptcy proceeding, discharged at the conclusion of the bankruptcy proceedings? 7th Circuit Holding: Yes unpaid attorney s fees incurred in a bankruptcy proceeding are discharged at the conclusion of the bankruptcy proceedings because attorney s fees are not enumerated as exempt from discharge in Bankruptcy Code Sec Chapter 7 Fees: ABOUT OUR BANKRUPTCY FEES We typically charge a flat fee for Chapter 7 cases. The flat fee is determined based on the complexity of your case as each case is different. We can offer payment plans for payment of the attorney fees and the court filing fee. However, we cannot file your case until the attorney fee and court filing fee is paid in full. Be assured that our fees are reasonable compared to other law firms, especially those that advertise on TV and radio and those that advertise No Money Down. Those firms typically charge a premium for their business model, which is based on volume. In addition, we will not quote you a fee over the phone. As every case is different, it is difficult to determine the complexity of a case until we analyze your situation in person. In addition, we believe that it is unethical and unprofessional to quote a fee without analyzing your situation in person.

17 Chapter 13 Fees: Chapter 13 Attorney fees are set by the Bankruptcy Court at $4, While we have no control over the Chapter 13 Attorney fees set by the Court, we do not require full payment of that fee to file your Chapter 13 case. Typically, we require a portion of the fee in addition to the $ court filing fee. The balance can be paid through the Chapter 13 payment plan. Chapter Eight Frequently Asked Bankruptcy Questions Call for a Free Consultation for an Analysis of Your Situation What Bankruptcy (Chapter 7 or Chapter 13) is right for me? We will determine what type of Bankruptcy that you should file based on your situation. Please call our office at to schedule a free consultation with one of our experienced attorneys. Will I lose my house or car? No. Chapter 7 allows you to keep your property. As long as you are current on your car and mortgage payments, and there is no significant equity in your property, you should have no problem reaffirming your mortgage and/or car loan. Also, with regards to your personal property, as long as the value of those assets are within the Illinois exemptions, you will not lose any of your property. If the value of your assets exceed the Illinois exemptions, you may qualify for a Chapter 13 Bankruptcy to repay back a portion or all of your unsecured debt to protect those assets.

18 What should I do if a foreclosure has been filed or is about to be filed against me? Filing a Chapter 13 will stop your mortgage company from pursuing its foreclosure action. We can help you develop a reasonable payment plan to pay your mortgage and all of your other bills into one affordable payment. What if my creditors are suing me or have a judgment against me? Once a Bankruptcy is filed, your creditors must stop all collection activities and proceedings against you, even if a judgment has already been entered against you. How do I get bill collectors to stop calling me? As soon as you retain us as your attorneys, you can give your creditors our information so we can deal with them directly. Once your Bankruptcy is filed with the court, it becomes illegal for your creditors and their collectors to call you. My utilities are shut off. Will I be able to have them turned back on? Yes. As soon as your Bankruptcy is filed, your utility companies such as your electric, gas and phone companies will receive a Notice of Automatic Stay. You can then make arrangements with them to have your service restored. Although they cannot take further action to collect the past due debt, they may require that you pay a deposit to have the service restored. If I am married, does my spouse have to file bankruptcy with me? Your spouse does not have to file Bankruptcy with you. If your debts are separate, your spouse is not liable for your debts. If your spouse is a co-signor on any of the debts, filing a Joint Bankruptcy may be appropriate to get the best results. Although your spouse will not be filing Bankruptcy with you, his or her income (and expenses) must be utilized in the calculation of your household income and expenses. Will Bankruptcy discharge my student loans, parking tickets, government fines, etc? No. Student loans, parking tickets and most governmental fines are not dischargeable in Bankruptcy. Some taxes may be dischargeable if certain conditions are met.

19 Will I be able to rent an apartment again or will I be able to buy a house in the future? Yes. People who have filed for Bankruptcy are able to rent an apartment. As for buying a house, it will depend on your individual situation, whether you have a steady job, a down payment and have kept out of debt after your case has been discharged. Will I be able to get credit after I have filed for bankruptcy? Yes. Most people are able to establish credit again after the completion of their Bankruptcy. How long will a Bankruptcy stay on my credit report? Ten years. How much does a bankruptcy cost? Chapter 7: No two cases are exactly the same. Chapter 7 cases generally average between $1, to $2, in the Chicagoland area depending on the complexity of the case. We base our legal fees on the circumstances of each case. After the initial free consultation with one of our experienced attorneys, we will quote you a specific fee which can be paid in installments. In most cases, we will match another law firm's fee quote. Note that all attorney's fees and court filing fees for a Chapter 7 case must be paid in full in order to file your case. Chapter 13: A Chapter 13 case can be filed upon payment of the court filing fee and a portion of the attorneys' fees. The balance of the Chapter 13 legal fees can be paid from the monthly plan payment that you make for your Chapter 13 payment plan. Note that the Chapter 13 fees are set and approved by the Court and typically are $4, You do not need to pay this amount in full prior to the filing of your case. Typically, we require a portion of the attorneys' fees up front and the court filing fee to file your case and the remaining balance can be made part of the Chapter 13 payment plan. What are the court filing fees? The court filing fees for a Chapter 7 is $ and the court filing fees for a Chapter 13 is $ These fees get paid directly to the Bankruptcy Court upon the filing of your case.

20 How do I get the Bankruptcy process started? The first step is to call our office at to schedule a free consultation with one of our experienced attorneys. At the time of your appointment, please bring with you the following (if possible): 1. All of your bills including any and all loan documents, collection letters, statements, etc. We can obtain your credit reports at no cost to you. 2. Any court documents pertaining to any foreclosures or lawsuits filed against you. 3. Proof of income (pay stubs) for you and your spouse for the last 6 months. 4. Copies of the last 4 years of your Tax Returns.

21 GENEVA OFFICE: 524 W. STATE ST., UNIT 2 GENEVA, IL WHEATON OFFICE: 400 S. COUNTY FARM RD., SUITE 100 WHEATON, IL AURORA OFFICE: 52 W. DOWNER PLACE AURORA, IL P: F: E: INFO@GDIZON.COM