Should I File for Bankruptcy Before Divorce?

When a couple is considering filing for bankruptcy, it is often a real possibility that those spouses also are considering divorce. As an article in Business Insider explains, financial difficulties, including consumer debt, often are listed as a primary cause for divorce. Yet when you are considering both personal bankruptcy and divorce, it can be difficult to know whether you should file for bankruptcy before you file for divorce, or vice versa. If you are thinking about bankruptcy and divorce, you should get in touch with an Oak Park bankruptcy lawyer as soon as possible who can help you to determine a course of action that is best suited to your individual circumstances. In the meantime, however, we want to provide you with some information that can help you to get a sense of whether filing for bankruptcy before divorce may be in your best interests.

Which Type of Bankruptcy are You Considering?
If you are planning to file for Chapter 13 bankruptcy, which is a type of reorganization…

What Documents do I Need to File for Bankruptcy?

When you are considering consumer bankruptcy, it is important to know that the processes for both Chapter 7 bankruptcy and Chapter 13 bankruptcy are complicated. As such, you should always work with an experienced Oak Park bankruptcy attorney throughout your case. At the same time, it is also a good idea to understand the process of filing for bankruptcy before you actually do it, as well as the documents you will need in order to be eligible for a discharge of your debts or to have the court approve your Chapter 13 repayment plan. The following is a checklist of all of the documents you will need to have in order to properly disclose income and assets, as well as to provide the bankruptcy court with the information it needs to move forward with your case.

Tax Returns
You will need to have copies of your tax returns in order to complete your Chapter 7 or Chapter 13 bankruptcy petition. If you are filing for Chapter 7 bankruptcy, you will need the last two years of tax returns. If you ar…

How Consumer Concerns Impacted a Mortgage Servicer’s Bankruptcy Filing

Often when we talk about bankruptcy and problems with mortgage servicers, we are talking about consumers who file for Chapter 13 bankruptcy to avoid foreclosure or consumers who file for Chapter 7 bankruptcy in order to get a fresh start financially. However, as a recent Chapter 11 bankruptcy case suggests, sometimes consumer issues and consumer advocacy work actually can impact a mortgage servicer’s bankruptcy case. A recent article in The Wall Street Journal describes the case as one in which “consumer concerns sink Ditech’s Chapter 11 exit plan.” We want to provide you with more information about the background of the case, and then we want to say more about the significance of consumer concerns in the case.

Getting the Facts About the Ditech Financial, LLC Bankruptcy Case
According to an article in Bloomberg, last week consumers were waiting to hear about how a judge would rule on the proposed bankruptcy plan put forth by Ditech Financial, LLC, a mortgage servicer that has faced all…

Consumer Bankruptcy and Foreclosure: Get the Basics

While consumer bankruptcy and foreclosure are not necessarily linked to one another, there are many situations in which bankruptcy and foreclosure are closely related to one another. On the one hand, for example, you may know that some individuals file for bankruptcy in order to stop a foreclosure. You also may know that some debtors seek bankruptcy protection to avoid a deficiency judgment. The following are a few examples of the basic links between consumer bankruptcy and foreclosure. If you have additional questions, a bankruptcy lawyer in Oak Park can help.

Filing for Chapter 13 Bankruptcy to Avoid Foreclosure
One of the most common ways that consumer bankruptcy and foreclosure are linked is in situations where a homeowner files for Chapter 13 bankruptcy in order to avoid foreclosure. Since Chapter 13 bankruptcy is a type of reorganization bankruptcy, a debtor who files for Chapter 13 bankruptcy first gets the benefit of the automatic stay, which will stop any further foreclosure pr…

Is Chapter 12 Bankruptcy for Consumers?

If you are considering consumer bankruptcy, you have probably done some research into your options. You may know that most people who file for personal bankruptcy will file either for Chapter 7 bankruptcy or Chapter 13 bankruptcy. In some situations in which a consumer does not qualify for Chapter 13 bankruptcy because of too much debt, that individual may file for Chapter 11 bankruptcy. Yet if you have been reading about liquidation and reorganization bankruptcy types, you may have come across information about Chapter 12 bankruptcy. Is Chapter 12 bankruptcy ever intended for consumers?

In short, Chapter 12 bankruptcy is a specific type of bankruptcy that is not available to most consumers. However, we want to provide you with more information about it, and to clarify when and why Illinois residents may seek bankruptcy protection under Chapter 12.

What is Chapter 12 Bankruptcy?
You may have heard that individuals in Illinois are filing for Chapter 12 bankruptcy, and that it costs less a…

How and Why to Replace Your Bankruptcy Lawyer

The decision to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy can be a difficult one, especially when you have been attempting to find other solutions to manage your debt. For many debtors in Oak Park, filing for bankruptcy can be a relief. Whether you receive a discharge of your debts and a fresh start with a Chapter 7 bankruptcy filing or the ability to restructure debts and avoid foreclosure by filing for Chapter 13 bankruptcy, bankruptcy protection can provide numerous benefits. Yet when your bankruptcy attorney makes a mistake in your case, it could be time to find new counsel.

We want to provide more details about the process of replacing your bankruptcy lawyer, as well as information about why you may want to consider changing attorneys once your bankruptcy case is underway.

How to Change Your Chapter 7 or Chapter 13 Bankruptcy Attorney
In order to change your bankruptcy attorney in a Chapter 7 or Chapter 13 case, you will most likely need to seek the court’s permission. …

Update on Department of Education and Debt Collection

The U.S. Department of Education (DOE) has been relying on private debt collection companies to collect unpaid or overdue student loan debt, and many consumers have experienced problems with those debt collection companies and their tactics. In some cases, consumers have alleged that the private debt collecting firms contracting with the DOE have engaged in unlawful debt collection practices in violation of the Fair Debt Collection Practices Act (FDCPA). According to a recent article in The Wall Street Journal, a federal judge just “cleared the way for the Education Department to stop using private debt collectors and revamp the way it handles overdue student loans.”

What do debtors in Illinois need to know about the recent federal case and its impact on debt collection practices?

Plans to Change the Scope of Student Loan Servicing
If the DOE no longer plans to rely on private debt collection companies to recoup money owed by student debtors, what does it plan to do instead? As the artic…