Oak Park Real Estate & Estate Planning Blog

Are too many young adults experiencing financial trouble ?  According to a recent article in the New York Post , people under the age of 30 don’t know how to properly handle their finances, and many end up with substantial debts they can’t pay.  And young people in the Chicago area are no different.  In fact, according to a recent survey conducted by the Organization for Economic Cooperation and Development, 15-year-old Americans across the country tend to receive markedly low scores on financial literacy tests. Will a high percentage of young adults in America wind up declaring personal bankruptcy?  For many Oak Park residents, bankruptcy can be an option that allows you to manage the stress and anxiety associated with serious medical debt or credit card debt.  Yet, does consumer bankruptcy make sense for the youngest adults? Facts and Statistics About Young Adults and Debt A report from Demos, a financial research organization, recently ex...

Are Certain Car Loans Hurting Consumers? By now we’ve all heard about predatory lending when it comes to the housing market.  Indeed, many Chicago homeowners have suffered financially and emotionally due to predatory lending practices.  But do similarly deceptive practices take place in the auto lending industry?  According to a recent article in the New York Times , “the practice of roping people into loans that damage them financially is all too common.”  In other words, consumers agree to “ruinously priced loans they could never hope to repay,” and as a result, many end up declaring personal bankruptcy . Predatory lending in the auto loan industry isn’t a new practice.  For years “unscrupulous auto dealers” have been convincing consumers to take on loans that they can’t afford to repay.  However, it looks like the problem has worsened in recent months and years.  What’s different now?  Several major banks in the U.S. “began buyi...

When an Oak Park consumer files for personal bankruptcy , he or she typically will be able to discharge medical debts .  However, as we’ve told you previously, it’s a lot more difficult—although not impossible—to have student loan debts discharged.  Yet some lawmakers believe that people with substantial student loan debts who have been working to pay off their medical bills should be able to discharge their student loans more easily. According to a recent article in the Wall Street Journal , a new bill, the Medical Bankruptcy Fairness Act, “would allow people to get rid of their student loan debt if they have paid more than $10,000 in medical bills during the three years before bankruptcy.”  How many consumers are we talking about?  Based on research conducted by a law professor, “more than half of the people who’ve filed for bankruptcy in recent years would qualify.” Senator Sheldon Whitehouse of Rhode Island initially introduced the Act, emphasizing...

Do you have an elderly parent or loved one who's currently struggling with debt?  For older adults dealing with piling bills and debt in the Chicago area , consumer bankruptcy might help.  Each person's financial situation is different, and personal bankruptcy can be complicated.  However, the dedicated Oak Park consumer protection attorneys at the Emerson Law Firm have years of experience helping Illinois residents.  Contact us to learn more about filing for a Chapter 7 or Chapter 13 bankruptcy. For Some Seniors, Fixed Incomes Lead to Debt Are older Americans really struggling with substantial debts?  According to a recent article in the Huffington Post , many seniors have turned to consumer credit counseling services to help them manage the debt they've accrued.  For instance, one woman, Tracey, described her 77-year-old mother's financial problems and emphasized that credit counseling just isn't working.  In her case, her mother is n...

Health-Related Bills Can Lead to Bankruptcy What's the number one reason people file for personal bankruptcy in the U.S.?  According to a recent analysis by NerdWallet Health published in the Los Angeles Times , it's not what you might think.  Most people don't file for bankruptcy because they've lost their jobs or because they've used credit cards irresponsibly.  Rather, medical expenses lead to most bankruptcy filings in Illinois and throughout the country.   Indeed, more than 60 percent of all consumer bankruptcies are related to healthcare expenses and medical debt .  Based on extensive data from bankruptcy filings in 2007, researchers at Harvard University published a study in the American Journal of Medicine that said, "using a conservative definition, 62.1 percent of all bankruptcies were medical."   And most Americans who filed for bankruptcy because of medical debt might not fit certain stereotypes, either.  The researche...

When it comes to filing for bankruptcy , most Americans have been operating under the assumption that they'll be able to exempt retirement funds when they file for a Chapter 7 bankruptcy.  In other words, retirement savings accounts, such as those contained in individual retirement accounts (IRAs), typically can be exempted under federal law when someone files for consumer bankruptcy.  However, the recent U.S. Supreme Court ruling in Clark v. Rameker emphasizes that some exceptions exist when it comes to this rule. Supreme Court Ruling: Inherited IRAs Aren't Retirement Funds We previously discussed the potential implications of Clark v. Rameker when the case was still pending before the Supreme Court.  As a quick reminder, the case involves Heidi Heffron-Clark's inherited $450,000 traditional IRA.  Heidi inherited the IRA from her mother, Ruth, who named her daughter as the sole beneficiary.  When Heidi and her husband later decided to file for p...