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Showing posts from May, 2019

What Documents do I Need to File for Bankruptcy?

When a consumer in the Oak Park area files for Chapter 7 bankruptcy or Chapter 13 bankruptcy , that consumer will need to have a number of specific documents and other information in order to be eligible to file. The paperwork for Chapter 7 bankruptcy and Chapter 13 bankruptcy does vary, but in large part, consumers will need to have many of the same types of documents and information available. For example, consumers need to have specific documentation of income, assets, debts, and expenses. Consumers also will need to provide documentation of any asset transfers or property sales in the period leading up to the bankruptcy. In some cases, bankruptcy trustees seek additional specific information. It is extremely important to work with an experienced Oak Park bankruptcy attorney on your case since the specific documents necessary for bankruptcy can vary depending upon the facts of your case. At the same time, there are some general documents that you should plan to have available w

CFPB Clarifies Deceptive Practices in Lawsuit Against Debt Collector

When debt collectors contact consumers about debts they owe, the debt collectors are prohibited from using deceptive practices under the Fair Debt Collection Practices Act (FDCPA) in order to convince consumers to pay any debts that they owe. According to a recent report from CNBC , the Consumer Financial Protection Bureau (CFPB) recently filed a claim against a debt collection company, alleging that it “violated federal law by falsely representing to consumers that its attorneys were meaningfully involved in preparing the collection lawsuits against them.” Between 2014 and 2016, the debt collection company, Forster & Garbus, allegedly filed more than 99,000 lawsuits against consumers. While the debt collection company is based in New York, the CFPB’s decision to file a claim makes clear that debt collection companies that falsely inform consumers that attorneys are involved in filing lawsuits—when there are not actually attorneys involved—may have engaged in deceptive practices

Wage Garnishment and Bankruptcy in Illinois

What is the relationship between wage garnishment and bankruptcy in Illinois ? Many consumers learn that they could have their wages garnished, or receive information about their wages being garnished as a result of a judgment. They also often hear that they may be eligible to stop the wage garnishment by filing for personal bankruptcy . In many cases, filing for consumer bankruptcy can stop a garnishment, but it is important to understand how wage garnishment works and then how bankruptcy laws might stop a wage garnishment. What is Wage Garnishment? Many debtors in the Oak Park area have heard of wage garnishment, but confusion still exists about this term. In short, wage garnishment refers to a process of collecting on a judgment against a debtor (although garnishments can also affect companies and other entities) by having that debtor’s employer deduct a certain amount from his or her paycheck. In some cases, garnishment can also affect a debtor’s personal property that is not exe

Student Debt and Income Share Agreements­

Many Americans across the country are struggling to repay student loan debt, and many are dealing with unfair debt collection practices tied to student loans. Consumers with student loan debt vary widely in terms of age, with some debtors in their early 20s who recently graduated from college to older Americans who are working to pay off loan balances of tens of thousands of dollars—and sometimes much more—in student loan debt. While consumer bankruptcy rules could change to make it easier for people with student loan debt to receive a discharge in personal bankruptcy, until that point, people with student loan debt continue to struggle. According to a recent article in The New York Times , for some people, student loan debt might not even be the worst of it. Some people have what are known as “income share agreements,” or “ISAs.” For some student borrowers, this alternative to taking out additional student loans can be enticing. However, for some students, choosing an ISA over a

Should I Repay Time-Barred Debt?

If you owe debts from many years ago, should you be planning to pay them off even if they have become time-barred? Just because a debt is time-barred does not mean that a debt collector cannot continue to call you in an effort to get you to make payments on the debt. Consumer bankruptcy may be an option. A recent article in U.S. News & World Report discusses old debt and the reasons that it can hurt you, even when it has become time-barred. To say more, we want to explain what it means when a debt becomes time-barred . Then we want to explain some of the reasons that you should deal with time-barred debt even if you cannot be sued. What is Time-Barred Debt in Illinois? Time-barred debt refers to debt for which the statute of limitations has run out and, accordingly, the creditor is no longer permitted by law to file a lawsuit against the debtor in order to be repaid. The statute of limitations varies greatly depending upon the type of civil lawsuit, and even debt collection la

CFPB Plans New Restrictions on Debt Collectors

The Fair Debt Collection Practices Act (FDCPA) currently limits when debt collectors can make calls to debtors and, in some cases, where those debt collectors can attempt to make contact with debtors. For example, if you ask a debt collector to avoid calling you at work, the FDCPA says that the debt collector must abide by your request. In addition, debt collectors are not allowed to call at any time of day. Debt collectors are prohibited from calling you at unusual or inconvenient times, which include anytime before 8:00 a.m. and anytime after 9:00 p.m. However, the Consumer Financial Protection Bureau (CFPB) believes that more restrictions need to be in place to protect debtors from harassment and abuse by debt collectors , according to a recent article in The New York Times. Proposed Rules Would Restrict Number of Phone Calls from Debt Collectors One of the most significant of the proposed rules concerns the number of times that a debt collector can call a debt. According to th

Bankruptcy for Student Loans Could Change

Currently, it is difficult but not impossible to have student loans discharged in bankruptcy . Given the high number of consumers with substantial student loan debt, however, many consumer advocates have urged lawmakers to reconsider the U.S. Bankruptcy Code and the ways in which it impacts debtors who are trying to have student loans discharged in Chapter 7 bankruptcy. According to a recent article in MarketWatch , new recommendations from the American Bankruptcy Institute (ABI) Commission on Consumer Bankruptcy could result in changes to how student loan debt is handled in consumer bankruptcy . Bankruptcy Numbers May be Low Because People are Unable to File The report focuses in part on the high number of people with student loan debt and the potential relationship to the decline in bankruptcy proceedings. Those who argue that current bankruptcy rules work well and should not be changed to make it easier to discharge student loan debt in bankruptcy point to the fact that the total

Five Factors to Consider if You are Thinking About Bankruptcy

Making the decision to file for consumer bankruptcy is never a decision that someone makes lightly. However, when a consumer is struggling with debt, filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy can help that consumer to deal with debt and, in some cases, to get a fresh start financially. If you are considering whether personal bankruptcy might be right for you, it is important to think carefully about the process before you file. An experienced Oak Park consumer bankruptcy lawyer can speak with you about your options, but in the meantime, the following are five important facts to consider if you are thinking about bankruptcy. 1. You may not be eligible to file for Chapter 7 bankruptcy. Not everyone is eligible for Chapter 7 bankruptcy. Under the U.S. Bankruptcy Code, in order to be eligible to file for Chapter 7 bankruptcy—which is a liquidation bankruptcy—a consumer needs to be able to pass the “means test.” The means test is designed to show that the consumer’s incom