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Can a Creditor Force Me to Reaffirm Debt After a Bankruptcy Discharge?

Are there situations in which you can be required to repay debts you owe even after you receive a bankruptcy discharge ? Can a creditor continue trying to collect on debts you owe after your bankruptcy case has been completed or, worse, force you to reaffirm your debts? There are relatively few types of debts that a debtor will still owe following a bankruptcy discharge, and some of those debts may be reaffirmed debts based on the particular situation of the party filing for bankruptcy. However, U.S. bankruptcy law does not permit debtors to continue taking legal actions in attempts to collect on debts that have been discharged in a bankruptcy case. Our Oak Park bankruptcy lawyers can tell you more about reaffirmed debt and how debt responsibilities can persist after a bankruptcy discharge. Reaffirming Debt is a Process That Will Occur Prior to a Bankruptcy Discharge One of the first things to know is that, if any debt is going to be reaffirmed such that a debtor still owes it fol

How Soon Can I File for Bankruptcy Again?

While many consumers who file for Chapter 7 bankruptcy or Chapter 13 bankruptcy in Oak Park are first-time bankruptcy filers, some consumers who are filing for bankruptcy are doing so after a previous bankruptcy case. If you have filed for bankruptcy in the past, how soon can you file for bankruptcy again? Does the waiting period change if you do not receive a bankruptcy discharge the first time around? Our experienced Oak Park bankruptcy attorneys are here to provide you with information about filing for bankruptcy more than once. Waiting Periods Apply to Previous Bankruptcy Discharges The first thing to know is that waiting periods between bankruptcy cases under the U.S. Bankruptcy Code apply to bankruptcy discharges as opposed to bankruptcy filings. In other words, if you previously filed for bankruptcy but did not receive a discharge, you are not bound by a waiting period under bankruptcy law. However, if you did receive a previous bankruptcy discharge, then you need to learn

How COVID Has Changed Consumer Bankruptcy

For nearly 18 months, consumers across the country (and across the globe) have been struggling with the physical and economic ramifications of the COVID-19 pandemic. Early on in the pandemic, many commentators expected to see personal bankruptcy rates rising, with increased Chapter 7 bankruptcy and Chapter 13 bankruptcy filings. Yet those predictions largely have not come to fruition, at least not yet. A recent article from the American Bar Association discusses what bankruptcy shifts have occurred in the age of COVID-19, and what could change in the near future. Our Oak Park bankruptcy attorneys want to go over some of those issues with you to give you a sense of where we are when it comes to consumer bankruptcy filings, and where we could be going. Chapter 7 and Chapter 13 Bankruptcy Cases Have Not Surged One key thing to know about bankruptcy in the era of COVID-19 is expectations that we would see a sharp rise in consumer bankruptcy filings has not occurred. Indeed, as the articl

Will My Debt Relief be Taxed?

Did you know that if you have any debt that has been forgiven or canceled, you may owe income taxes on that amount of money? In other words, you may need to pay taxes on that amount of money as if it were part of your income. However, not all forgiven or canceled debt is taxable. As such, it is critical to understand when you may owe taxes on canceled debt and when you do not need to worry about it. Our Oak Park bankruptcy attorneys will provide you with some more information and examples to help clarify situations in which eliminated debt can be taxed. When a Creditor Forgives Your Debt Outside Bankruptcy Generally speaking, if a creditor forgives or cancels any of your debt outside of bankruptcy, the amount of money that is forgiven is treated as taxable income. To be clear, if you owe money and your debt is forgiven or a portion of it is discharged outside bankruptcy, whatever amount that you do not have to pay is considered canceled debt and is typically taxable as income. As the

Five Things to Know About Liquidation Bankruptcy

When people think about consumer bankruptcy , they often think about liquidation bankruptcy, or a type of bankruptcy in which non-exempt assets are liquidated and remaining eligible debts are discharged. Yet there are many misconceptions about liquidation bankruptcy out there, and it is important to understand key aspects of liquidation bankruptcy if you are thinking about your options. The following are five things to know about liquidation bankruptcy. If you have follow up questions or need assistance with your case, an Oak Park bankruptcy attorney at our firm can help. 1. Consumer Liquidation Bankruptcies are Chapter 7 Bankruptcies Anytime a consumer is talking about the possibility of filing for liquidation bankruptcy, they are likely referring to Chapter 7 bankruptcy. Chapter 7 bankruptcy is the most common type of liquidation bankruptcy for both consumers and businesses, and it is the type of bankruptcy you should anticipate if you are thinking about a liquidation bankruptcy.

Common Kinds of Debt That are Dischargeable in Consumer Bankruptcy Cases

Are you thinking about filing for Chapter 7 or Chapter 13 bankruptcy , and are you wondering about types of debt you have and whether they are dischargeable? While there are some types of debt that are not dischargeable in consumer bankruptcy cases, there are many forms of commonly held debt that can be discharged in your bankruptcy case. If you have questions, you should always seek advice from a bankruptcy lawyer who can help you. In the meantime, the following are examples of some of the most common types of debt that are dischargeable in personal bankruptcy cases under the U.S. Bankruptcy Code . Credit Card Debt Did you know that more than 191 million Americans currently have credit cards and that millions of households are currently carrying tens of thousands of dollars in credit card debt? According to Debt.org, credit card debt is one of the most common forms of consumer debt, and it is nearly always dischargeable in a bankruptcy case. While there are some exceptions when a

If I File for Bankruptcy, Can I Keep My House?

When you are considering consumer bankruptcy , our experienced Oak Park bankruptcy attorneys know that you probably have a wide variety of questions about the bankruptcy process. Indeed, we often work with clients in the early stages of bankruptcy planning who want to know more about bankruptcy exemptions, types of assets they will be able to retain if they file for bankruptcy, and how different types of personal bankruptcy affect both debts and assets. One question we frequently receive from debtors concerns the bankruptcy process in relation to staying in your home or your condo. So, if you file for bankruptcy, can you keep your house? The answer to that question will depend upon several different factors, and we want to provide you with some of the key information you will need to answer that question for yourself. Ultimately, you should seek advice from a bankruptcy attorney who can assess the particular facts of your case to determine whether or not you are likely to be able to