Legal Question in Bankruptcy in Illinois

A Big �thank you� to All of you that make this website so valuable and credible. These are treacherous times for people in need of help, with dozens of websites providing help, only to be "bankruptcy mills" taking many of us to slaughter. I am grateful for sound, decent, and honest advice.

I want to know what relief is available for people who arre upside down on their mortgage, only owe secured loans (mortgaged their home to save their business), have no credit card debt, unsecured debt, BUT exceed the Chapter 7 income qualification in Illinois, AND can't afford a payment plan under Chapter 13?

Is there any Relief for people like me? I am also in the foreclosure process.

I would definitely like to keep my home, if possible, but cannot afford the present mortgage. I�ve always had excellent credit, so would welcome ideas to negotiate with the bank, refinance at a lower price, etc. instead of foreclosure or bankruptcy. However, I am realistic, so I am looking at all of the dreaded �options� for someone in my situation.

If you were in my shoes, what steps would you take besides hiring a qualified attorney? What options are available, in general terms?

Thank you for your help.


Asked on 9/01/10, 8:39 pm

1 Answer from Attorneys
Burton Padove Indiana and Illinois Lawyer, Burton A. Padove

I would do two things at this time. Negotiate a modification if you can and at the same time place your home up for sale at market price. If you are upside down on the market price, make sure that the realtor knows this and makes the appropriate notation so that any agreement is subject to bank approval. Modification can take a long time, and the lender and you may not reach an agreement. Selling takes time, so you dont want to wait too long and find a foreclosure being filed before you list. Additionally, although lenders are acceptiong short sales, they often require that a home be listed at market price for 90 days before they will consider a short sale. Also, obtain the short sale package and modification package, if different from your lender immediately. You will need to complete a mountain of paperwork in either case and should beging working on it asap. I am sure that there are other options, but these are two that come to mind.

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Answered on 9/08/10, 5:35 am


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