Oak Park Real Estate & Estate Planning Blog

If millions of Americans are now affected by wage garnishment for consumer debts , do we need to reexamine the state and federal laws surrounding wage garnishment?  While consumer bankruptcy can help Chicago residents to handle their debts, wage garnishment is affecting many people in Illinois.  According to Illinois Legal Aid, it’s important to understand how wage garnishment currently works in our state, and to consider how new wage garnishment legislation could help debtors and employers alike. What is Wage Garnishment? We’ve talked a lot about wage garnishment, but how does it work?  In short, when a creditor claims that you owe money, the creditor can file a lawsuit against you.  If the company wins a judgment against you, that judgment will say how much money you owe.  Then, the creditor can try to collect that money by taking a cut from your wages.  Wage garnishment is also known as “wage deduction.” In the event that a creditor is...

Did the recession leave you with growing debts and the inability to make regular payments?  For many Americans, personal bankruptcy can help to alleviate the burden of high credit card and medical debts.  Yet many of us thought the end of the recession would mean a higher paying job and the ability to eradicate some of that burdensome debt.  Some debtors don’t realize, however, that wages can be garnished for unpaid credit card bills, medical bills, and student loans.  According to a recent article in Pacific Standard , millions of Americans have had their wages garnished by creditors in current years. Rise in Garnishments in the Midwest A study conducted by ADP, the largest payroll provider in the country, showed shocking data concerning wage garnishment in our country.  Indeed, in 2013, about 5 percent of Americans whose gross yearly earnings range from $25,000 to $40,000 had at least “a portion” of their wages “diverted to pay down consumer d...

Are consumers less burdened by student loan debt as they grow older?  It would make a lot of sense to assume that most of us have paid off our student loans by the time we retire.  However, it turns out that many seniors across the country, including in the Chicago area, are severely burdened with student loan payments.  Can we do anything to avoid this burden during retirement years? The Senate Aging Committee recently heard testimony about the relationship between older Americans and student loan debt.  And according to an article republished by the National Association of Consumer Bankruptcy Attorneys, “a growing percentage of aging Americans struggle to pay back their student debt,” while “tens of thousands of them even see their Social Security benefits garnished when they cannot do so.”  And it’s difficult, although not impossible, to erase student loan debt through bankruptcy . Who’s at Greatest Risk of Having Student Loan Debt in Retirement...

According to elder justice advocates, the population of America’s seniors will expand rapidly over the next two decades, and many of them are in danger of struggling with debt .  According to a news release from the National Consumer Law Center in MarketWatch , personal bankruptcy and reverse mortgages go hand-in-hand when it comes to helping older adults to deal with higher debt loads.  Tara Twomey, the Project Director for the National Consumer Bankruptcy Rights Center and Of Counsel attorney at the National Consumer Law Center, contends that two tools exist to help the elderly with financial distress: personal bankruptcy and reverse mortgages. According to Twomey, many legal practitioners don’t often consider the two options alongside one another and instead view them as mutually exclusive.  This is a mistake, she explains, and contends that more bankruptcy attorneys should know the ins and outs of reverse mortgages to better assist senior clients.  At ...

When it comes to filing for bankruptcy , many Chicago residents worry about the stigma and the emotional toll associated with personal bankruptcy .  As such, a recent article in Forbes provides tips for “coping with the emotional cost of bankruptcy.” For debtors across the country, consumer bankruptcy can be the best option when you’re facing medical bills that won’t stop piling up, a mortgage you cannot afford, substantial credit card debt, and other monthly payments.  If you’re having difficulty paying off your debts and are dealing with serious anxiety issues as a result, filing for Chapter 7 or Chapter 13 bankruptcy could be a solution. Yet it’s important to know that filing for bankruptcy can have emotional costs that you might not predict.  An experienced Oak Park bankruptcy lawyer can examine your situation and discuss your best options with you today. Losses in Bankruptcy When you file for personal bankruptcy, you’re going to have the bene...

Are you thinking about filing for consumer bankruptcy but have concerns about protecting cosigners on some of your loans?  You’re not alone.  According to a recent article in the Los Angeles Times , debtors across the country—from California to Illinois to Florida—need to consider the ramifications of personal bankruptcy on their cosigners.  The big question is this: will filing for a Chapter 7 bankruptcy or Chapter 13 bankruptcy affect the credit of the cosigner?  It’s important to keep in mind that all bankruptcy filings aren’t the same, but cosigners could, in fact, be negatively affected by your decision to file for bankruptcy. Bankruptcy law is extremely complicated, and it’s important to discuss your situation with an experienced Oak Park bankruptcy lawyer .  Are you considering bankruptcy but still have questions?  Contact the Emerson Law Firm to learn more about how we can assist you. How Does Bankruptcy Affect Cosigners? Firs...