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Showing posts from April, 2015

Fair Debt Collection Report

When creditors or collection agencies try to recover debts owed by consumers , they must abide by the terms outlined in the Fair Debt Collection Practices Act (FDCPA). In short, the FDCPA is designed to ensure that consumers in Illinois and throughout the country aren’t harassed or treated unfairly just because they owe money. The Consumer Financial Protection Bureau (CFPB) submits annual reports concerning how it and the Federal Trade Commission enforce the FDCPA. While the CFPB and the Commission operate in different ways, they “work closely to coordinate debt collection enforcement actions” as well as “other matters related to debt collection,” according to the most recent report . Debt Collection Across America According to the recent CFPB report, debt collection is a multi-billion dollar industry. To be sure, it generates $13 billion through more than 140,000 workers in up to 6,000 firms across the country. For a surprisingly high number of Americans, debt co

Signs You’re Having Financial Difficulties

Should You Consider Filing for Personal Bankruptcy? Many Chicago consumers don’t realize they’re financially overextending themselves until it’s too late. Indeed, according to a recent article in Huffington Post , “you may think you’re managing your debt, but in reality your debt is managing you.” And when you don’t manage your money properly, you could be setting yourself up for a serious financial quandary. For some of us, consumer bankruptcy may turn out to be the best solution. In some cases, consumers may be able to make adjustments to their spending habits in order to get back on track. However, many Illinoisans already have done a significant amount of damage to their finances. In such situations, an unexpected financial event—such as a costly hospital visit or an automobile repair—could end up leading to insolvency. For debtors with bills that they simply cannot pay, filing for personal bankruptcy may be able to help ease the anxieties associated with piling pa

Are Personal Bankruptcy Rules Too Tough on Debtors?

Many Chicago-area residents remember the bankruptcy reform that took effect about a decade ago. While reforms have lowered the number of consumer bankruptcy filings , new evidence suggests that the rules surrounding personal bankruptcy simply are too tough on debtors, according to a recent article in The Economist . To be sure, “the reform may have done more harm than good.” Aims of Consumer Bankruptcy Law In general, “the aim of bankruptcy law is to give people relief from unpayable debts.” Indeed, many Americans face a financial crisis when they learn they’ve lost their jobs or have unexpected medical expenses. If bankruptcy law works the way it should, it offers consumers in these situations the opportunity to have a fresh start, particularly in the case of Chapter 7 filings. However, the ease with which Chapter 7 allows debtors to “wash away debts” caused credit card companies to lobby for bankruptcy law reform. About 10 years ago, credit card companies argued

U.S. Supreme Court Hears Consumer Bankruptcy Cases

During the most recent term, the U.S. Supreme Court heard multiple consumer bankruptcy cases that deal with bankruptcy and reorganization . The two most recent cases, Bullard v. Blue Hills Bank and Harris v. Viegelahn , concern Chapter 13 bankruptcy procedural issues. Current Personal Bankruptcy Cases Being Heard In Bullard , the Supreme Court will be deciding a procedural problem. In short, the primary issue in the case is whether a debtor who files for Chapter 13 bankruptcy can “appeal a bankruptcy court order that denies confirmation of a plan,” according to a recent post on ScotusBlog.com. In the second case, Harris , the Court must decide the disposition of undistributed funds in cases where the “debtor in good faith converts a bankruptcy case to Chapter 7 after confirmation of a Chapter 13 plan.” How will the decisions affect consumers in the Chicago area? We’ll have to wait and see how the Supreme Court decides. In the meantime, we’ll look at one of those rec

Avoiding Bad Credit Cards and Consumer Scams

Most consumers who make the decision to file for Chapter 7 bankruptcy begin to think about ways to restore their credit. Indeed, it doesn’t take nearly as long as most Chicago residents think to begin rebuilding your credit profile after personal bankruptcy . But in order to be successful, you’ll need to do your research. Some credit cards are better than others, while some simply aren’t good at all. What do you need to know? Learning the Signs of a Bad Credit Card Offer According to a recent article in U.S. News & World Report , there are some telltale signs of a bad credit card. Regardless of whether you’re simply trying to increase your credit or rebuild after personal bankruptcy, you should know what not to look for in a new credit card. Here are some of the tips from U.S. News & World Report : Don’t apply for a credit card that has a high annual percentage rate (APR). For consumers who are likely to carry a credit card balance from month to month, a

Too Broke for Bankruptcy Protection

Can an Oak Park consumer actually be too poor to file for bankruptcy ? According to a recent article from Nasdaq.com , there’s a new economic class of Americans that are “permanently insolvent.” Indeed, nearly 10 years after federal bankruptcy law reform known as the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), many Americans simply aren’t in a better financial position. A great deal of consumers actually appear to be worse off, as “they’re too poor to file for bankruptcy protection ” given that, as a result of the reforms, the cost to file actually “quadrupled.” Creditor Harassment and Mounting Debt For those who have become part of the “permanently insolvent” class, do we need to rethink the bankruptcy laws in our country? As the article points out, without the possibility of bankruptcy protection, “the insolvent are endlessly harassed by creditors and are more likely to lose their homes through foreclosure.” To be sure, debt only continues to