Oak Park Real Estate & Estate Planning Blog

Medical debt is a serious problem for hundreds of thousands of consumers, and it is a factor in a large percentage of personal bankruptcy filings every year. Given that more Americans are getting sick and requiring hospital care with the COVID-19 pandemic, medical debt is a bigger issue than ever before. According to a recent press release , U.S. Senator Jeff Merkley, along with members of the U.S. Senate and the U.S. House of Representatives, has introduced the Medical Debt Relief Act, which “would remove paid-off or settled medical debt from a patient’s credit report and institute a year-long waiting period before new medical debt can be reported.” The proposed legislation is designed to help debtors maintain eligibility for credit despite medical debt, and for those consumers to have a chance to catch up on medical debt before their credit is harmfully affected. We want to say more about the proposed legislation, as well as the links between medical debt and consumer bankruptcy

If you filed for Chapter 13 bankruptcy and are currently making payments according to the terms of your repayment plan, you should know that various issues can arise that might lead you to ask if it is possible to modify the terms of that repayment plan. For example, especially given the state of the economy during the coronavirus pandemic, you might have lost your job or had your hours reduced. Or, you might have suffered an illness or injury that has prevented you from working at full capacity or from working at all. Other problems can also come up during the typical three-to-five-year period of a Chapter 13 bankruptcy plan, such as an unexpected car or home repair that requires you to set aside a significant amount of your income. If an unexpected event occurs, it may be possible to ask the court to modify your Chapter 13 bankruptcy plan under U.S. bankruptcy law . We will provide you with some of the basic information to know, but we want to encourage you to seek advice from a b

If you are filing for Chapter 13 bankruptcy or you have already filed for Chapter 13 bankruptcy, you likely have some idea about how this process works. Unlike a Chapter 7 bankruptcy that results in your non-exempt property being liquidated to repay creditors so that you can obtain a relatively quick discharge, Chapter 13 bankruptcy is a much longer process. For most consumer debtors, the Chapter 13 bankruptcy process lasts between three and five years, after which point the debtor can have remaining debts discharged. Yet sometimes the debtor needs to seek a discharge earlier in the case. In such situations, it is important to learn more about a hardship discharge in a Chapter 13 bankruptcy case . Understanding How Chapter 13 Bankruptcy Works In order to understand why a hardship discharge may be necessary, you will need to have a clear understanding of the Chapter 13 bankruptcy process . As part of a Chapter 13 bankruptcy case, the debtor develops a repayment plan through which sh

If you are considering personal bankruptcy , especially a Chapter 7 liquidation bankruptcy , owing money to a close friend or family member can put you and your loved one in a very difficult position. While it can be much easier to seek a discharge of debt you owe to a seemingly nameless creditor, realizing that your debt can pose problems for a friend or family member can be much more complicated if you are seeking a bankruptcy discharge. How often does this kind of situation arise? What are your options if you want to file for Chapter 7 bankruptcy but you do not want to negatively affect a friend or family member who is now linked to your debt? Friends and Family Members are Negatively Affected by Financial Issues More Frequently Than You Might Think According to an article in Bankrate , more people borrow money from loved ones or ask loved ones to serve as co-signers on loans than you might think. With some frequency, those friends and family members ultimately end up bearing the

When you owe a significant amount of debt and you do not have options for paying it off, consumer bankruptcy could make a lot of sense for you. However, you likely have concerns about how certain types of property will be handled in your bankruptcy case, and whether you will lose property that you need. For example, if you rely on your car to get to work and to run errands such as going to the grocery store or picking your kids up from school, the prospect of losing your car can be devastating. As such, you may be wondering, “Can I keep my car if I file for personal bankruptcy?” The answer to that question may not be the same for everyone, and it will depend upon your particular circumstances. However, we want to be clear that you certainly may be able to keep your car if you file for personal bankruptcy , and we will explain how that can work. You Will Not Lose Your Car if You are Filing for Chapter 13 Bankruptcy First, if you are filing for Chapter 13 bankruptcy, you should know t

Struggling with debt is incredibly difficult under any circumstances, but it has been particularly difficult for many individuals and families in Illinois during the coronavirus pandemic. You may be dealing with frequent calls from debt collectors, and you might be considering Chapter 7 bankruptcy or Chapter 13 bankruptcy as an option. At some point, you might learn that the creditor has charged-off your debt, and you might assume that you are no longer responsible for paying the debt. Whether or not you are considering personal bankruptcy , we want to make sure you understand what charged-off debt is and how it can affect you. What Does it Mean if My Debt Has Been Charged Off? If you learn that a particular debt has been charged off, you should know first and most importantly that this fact does not mean that you no longer owe the debt. In fact, many charged off debts are sold to debt collection companies and other debt buyers, and you will likely continue to receive calls about th