Do I Need to Tell My Creditors When I File for Bankruptcy?

Whether you are thinking about filing for bankruptcy or have recently filed for bankruptcy, you may be wondering if you need to tell your creditors about your bankruptcy plans. Are there any benefits to informing your creditors about your plans to file for bankruptcy or the fact that you have already filed for bankruptcy? Are there any laws that require debtors to alert their creditors about consumer bankruptcy plans or filings? In short, a consumer is never required to get in touch directly with a creditor to alert them to bankruptcy plans or filings. However, it could be helpful in some scenarios to alert a creditor about a bankruptcy case.

If you have questions about your responsibilities as a debtor when you file for bankruptcy, it is important to have an experienced Oak Park bankruptcy lawyer who can assist you throughout your bankruptcy case.

Potential Benefits of Informing Creditors About Bankruptcy Plans Before You File
If you are considering bankruptcy but are also considering w…

How Elizabeth Warren’s Plan Would Change Bankruptcy Laws

If you are currently considering personal bankruptcy but have read news stories about some of the presidential candidates’ plans to amend U.S. bankruptcy laws so that they are more consumer-friendly, you may be wondering if it makes sense to wait until after the presidential election to file for Chapter 7 or Chapter 13 bankruptcy. While there is a possibility that U.S. bankruptcy laws could change depending upon who fills the role of U.S. president in the coming years and how Congress handles consumer advocate concerns about personal bankruptcy issues, any kind of changes to the law might not happen quickly enough for you to wait. In other words, if you are struggling with debt and are thinking about bankruptcy, it may be in your best interest to speak with an Oak Park bankruptcy lawyer sooner rather than later.

At the same time, it is important to understand recent news surrounding proposed changes to U.S. bankruptcy law and how they could affect consumers in the future. According to …

What is an “Injury in Fact” for FDCPA Standing?

When an Oak Park consumer faces harassment or other unfair or deceptive practices from a debt collection company, that consumer might consider filing a claim under the Fair Debt Collection Practices Act (FDCPA). The FDCPA prohibits certain actions by debt collectors and gives consumers the ability to file a federal claim in situations where a debt collector violates the law. Yet one of the requirements to have standing to sue under the FDCPA (and other federal statutes) is that the consumer must have suffered an “injury in fact” under Article III of the U.S. Constitution. Without an “injury in fact,” the consumer’s complaint can be dismissed for lack of standing. A 2016 U.S. Supreme Court case, Spokeo, Inc. v. Robins (2016), made clear that a consumer must have suffered an injury that is “concrete” enough to be considered an “injury in fact.”

In applying Spokeo, several circuit courts have concluded that the consumer did have standing. However, a recent case out of the Sixth Circuit Co…

Recent Illinois Bankruptcy Case Highlights Importance of Having Experienced Counsel

When you file for consumer bankruptcy, it is essential to have an experienced bankruptcy lawyer you can trust to assist with each stage of the process. The U.S. Bankruptcy Code is extremely complicated, and both Chapter 7 bankruptcy and Chapter 13 bankruptcy have a variety of complexities that can be difficult to navigate without the help of an attorney. A recent Illinois bankruptcy case emphasizes just how important it is to have an experienced and dedicated lawyer on your side throughout your bankruptcy case. In the case In re: Charles V. Cook, Sr., the U.S. Bankruptcy Court for the Northern District of Illinois found that the bankruptcy firm was liable for failing to disclose information in a consumer bankruptcy case.

At the Emerson Law Firm, we have years of experience providing experienced practiced representation to our clients in a wide variety of consumer protection matters. We want to discuss this recent case and to say more about how it underscores the need for an experienced…

Can I File for Bankruptcy if I am Self-Employed?

Filing for personal bankruptcy is complicated under any circumstances, but the process can be more complex when you are self-employed. When a person is self-employed, it can be difficult to know what kind of documentation she or he might need in order to pass the “means test” for Chapter 7 bankruptcy, or to prove that the debtor has sufficient and regular income to file for Chapter 13 bankruptcy. These complications can become more significant when a self-employed person is also a small business owner. We want to discuss consumer bankruptcy for self-employed individuals, and to provide additional information about personal bankruptcy when you are self-employed and a small business owner.

Proof of Income for Chapter 7 or Chapter 13 Bankruptcy
In order to qualify for Chapter 7 bankruptcy under the U.S. Bankruptcy Code as an individual (as opposed to a business), you need to be able to show that you can pass the “means test.” In effect, passing the means test is evidence that a liquidation…

Are Consumers in Generation Z Changing Debt Management Trends?

Consumer debt affects adults of all ages, from young adults to the elderly. When it comes to tracking personal bankruptcy filings, many older adults past the age of retirement are filing for bankruptcy, yet younger adults also file for consumer bankruptcy with some frequency. There may be a significant difference in the way that very young adults who are part of Generation Z manage their debts in comparison with adults of other generations, according to a recent article in Ladders. That article cites a Lending Point study that reports “Gen Z may be just getting into their credit-using years, but they are already showing significant differences in their credit profiles from the Millennials and GenXers that preceded them.”

In short, the article intimates that Generation Z adults may be on a trend to have less difficulty managing consumer debt, and thus ultimately could be less likely to file for bankruptcy than consumers in other generations.

Generation Z Consumers Have Higher Credit Scor…

Can the Court Dismiss My Bankruptcy Case Without Discharging My Debt?

When someone in Oak Park decides to file for consumer bankruptcy, that debtor usually will make the decision to seek bankruptcy protection under the assumption that she or he will get a discharge of all eligible debts once the bankruptcy case is complete. However, there are many reasons that the bankruptcy court can dismiss a case. In some instance, a dismissal in bankruptcy occurs because of an honest mistake. At the same time, a dismissal in bankruptcy can also happen when the debtor intentionally engages in fraudulent behavior.

If you are considering bankruptcy, you may be wondering: Can the court dismiss my bankruptcy case without discharging my debt? To ensure that you remain eligible to have your debt discharged, it is extremely important to work with an experienced Oak Park bankruptcy attorney on your case. In the meantime, we will provide you with some examples of common reasons that a Chapter 7 bankruptcy or Chapter 13 bankruptcy case can be dismissed without a discharge.

1. Yo…