Let's have a fun non-lawyer blog post shall we?

Things I have learned as a mom

1. People love seeing pictures of your kids.  (I think) So here are 2 recent pictures of my girls.  Enjoy. 

2. Use small nail scissors to cut your baby's nails, way easier and less dangerous than using the clippers.

3. If you have hardwood floors, don't let your toddler run around the house in their socks, they will fall on their face.

4. Try not to rock your babies to sleep (if you can help it).  It's not so fun later.

5. Go out to eat at restaurants and take your children and make them behave.  They have to learn how to behave in public.

6. As much as you will be bombarded with new and pretty things for your babies in the beginning, keep it simple.  Babies (if you're breastfeeding) need very little in the beginning of their lives.  Milk, clothes, diapers, blankets and you're pretty much set. 

7. Travel with your kids, expose them to new cultures, new foods, and new people. 

8. Buy a good carrier for when your babies are little.  Like an ergo.  I would pesronally stay away from bjorn style carriers where the babies face outwards, they look terribly uncomfortable for the babies and they HURT your back.  Ergos and other similar carriers are great for long trips and especially good in airports, like so:

9. Document your kids' lives.  Not necessarily by writing a blog, but try some kind of journal.  I just open a word document every few months and sit down and type for 15 minutes.  I write about milestones in their lives, whether they are sleeping through the night, what kinds of words they are saying, etc.  That's it.  It's simple but it's a great way to remember those details you will NOT remember later in life!

10. Finally, I've learned, to relax.  To chill out and go with the flow.  Kids are unpredictable and it's pointless to stress yourself over things that you can't control.  I keep my house clean but there are some things that I have just let go.  For example, my toddler took a red marker and drew all over our couch.  And you know what? It's ok.  Why? Because our couch is old and crappy anyway.  We'll just buy a new one once the kids are older. 

I've learned many more things, but I'm out of time!

Protecting assets in banrkuptcy

Lately I've had a lot of clients ask me whether certain assets are protected when you file for Chapter 7 bankruptcy.  The correct terminology is whether there is an exemption that can be applied to the asset.

Generally speaking the following assets have exemptions that can be applied to them so that some or all of the asset can be protected:

1. Homes
2. Cars
3. Personal property
4. Tools of the trade
5. Retirement accounts
6. Tuition savings plan
7. Life insurance proceeds/cash value of policies
8. Proceeds of a personal injury lawsuit
9. Back due wages
10. Public benefits

The question is always how MUCH of an exemption do I get in order to protect my assets.  The answer is: It depends on what state you live in.

Here in IL the following are a general list of exemptions and their amounts.  This list was borrowed from a wonderful source known as Illinois Pro Bono.  The link can be found here.

Type of Property	Amount of Exemption	Controlling Statute
Residence or homestead of individual. Includes farm, lot and buildings, condominium, mobile home or cooperative. Can be owned or leased.	$15,000	735 IL Compiled Statutes (ILCS)5/12-901 (735 ILCS 5/12-906 includes proceeds of sale for 1 year)
Necessary wearing apparel, bible, school books and family pictures. Prescribed health aids of debtor and dependents.	100%	735 ILCS 5/12-1001(a) 735 ILCS 5/12-1001(e)
Any personal property of the debtor	$4,000	735 ILCS 5/12-1001(b)
One motor vehicle	$2,400	735 ILCS 5/12-1001(c)
Implements, professional books, tools of trade	$1,500	735 ILCS 5/12-1001(d)
Proceeds and cash value of life insurance policies and annuity contracts payable to dependent of insured	100%	735 ILCS 5/12-1001(f)
Public benefits: social security, unemployment compensation, public assistance, veteran's and disability and illness benefits	100%	735 ILCS 5/12-1001(g) (1), (2), (3)
Alimony, support or separate maintenance	Amount reasonably necessary to support debtor and dependents.	735 ILCS 5/12-1001(g)(4)
Crime victim's reparation awards	100%	735 ILCS 5/12-1001(h)(1)
Wrongful death payments as a result of the death of a person who supported the debtor	Amount reasonably necessary to support debtor.	735 ILCS 5/12-1001(h)(2)
Life insurance payments from a policy insuring a person who supported the debtor	Amount reasonably necessary to support debtor and dependents.	735 ILCS 5/12-1001(h)(3)
Payments on account of bodily injury to the debtor or a person who supported the debtor	$15,000	735 ILCS 5/12-1001(h)(4)
Restitution payments made under Federal Civil Liberties Act of 1988 and the Aleutian and Pribilof Island Restitution Act	100%	735 ILCS 5/12-1001(h)(5)

The bottom line is that MOST people who are filing Chapter 7 bankruptcy can protect their homes as long as they don't have much equity, one or two cars depending on the values, and normal household items.

Some things that are considered "assets" that people usually don't think about:

1. Your anticipated Federal Tax Refund
2. Proceeds from a potential lawsuit claim you may have against someone
3. Lottery proceeds
4. Inheritances

I'll end this blog post with the usual lawyer-speak.  ALWAYS speak to a knowledgeable attorney about your assets before filing for bankruptcy.

More questions? Ask us.

www.schottlerlaw.com