Oak Park Real Estate & Estate Planning Blog

If you’re thinking about filing for consumer bankruptcy , you might have heard about the Bankruptcy Abuse Protection and Consumer Protection Act (BAPCPA).  What is this law, and can it prevent debtors from filing for bankruptcy ? The BAPCPA’s Contentious History and the Limits of Debt Forgiveness The BAPCPA, a law that amended the U.S. Bankruptcy Code , was the result of “intense lobbying” from credit card companies, according to an article in the Washington Post .  This legislation was passed back in 2005, and it was aimed at preventing consumers from taking advantage of bankruptcy protection.  To be sure, it was designed as a reform measure, intended to limit personal bankruptcies and their effects.  However, the law has been contentious since it was passed. On the one hand, some commentators believe that debtors will take advantage of the ability to discharge debt in bankruptcy, and that legislation like the BAPCPA is necessary to protect consum...

Is filing for consumer bankruptcy a good option for debtors?  For many Americans who are suffering financially, Chapter 7 or Chapter 13 bankruptcy might be able to help alleviate the stress associated with multiple credit card payments, massive medical bills, and other substantial debts.  Indeed, a recent article in Fortune Magazine suggests that the federal bankruptcy code may actually “help the poor and stem the tide of rising inequality.” Consumer bankruptcy can be very complicated, and it’s important to talk with an experienced Chicago bankruptcy lawyer before you file.  Contact the Emerson Law Firm today to learn more about how we can help. New Study Says Bankruptcy Filers Live Longer and Earn More Money The federal government has several entitlement programs like Social Security, Medicare, and Medicaid that are intended to help ease the economic inequalities that exist in our country.  However, a recent working paper released by the Nat...

When consumers think about filing for bankruptcy , most are likely thinking about a Chapter 7 bankruptcy in which debts are completely wiped out.  However, according to a recent article in Personal Finance , it’s important to consider if Chapter 13 bankruptcy might be the best option for you. What is Chapter 13 Bankruptcy and How Does it Work? Chapter 13 bankruptcy, unlike Chapter 7, results in debt reorganization or restructuring, rather than liquidation.  In other words, when consumers file for Chapter 7 bankruptcy, they benefit from an automatic stay that prevents creditors or collection agencies from calling to collect a debt.  In Chapter 7 cases, the bankruptcy trustee liquidates the debtor’s assets, pays back (as much as possible) the creditors, and gives the debtor a clean start. But if you’re experiencing anxiety over massive debts and have concerns about keeping most of your secured property (like a home or a motor vehicle), Chapter 13 may be t...

According to a recent news release from Illinois Legal Aid, it’s important to understand bankruptcy basics that can help you to decide whether personal bankruptcy is the right option for your.   Filing for chapter 7 bankruptcy can be a solution for many Chicago-area residents, but as the press release notes, it’s not necessarily a solution for everyone. What is Chapter 7 Bankruptcy? Different types of bankruptcy are available to individuals and businesses alike.  Chicago residents might have heard about consumer bankruptcy options and filing for Chapter 7 bankruptcy, but how is this type of bankruptcy defined? In short, Chapter 7 bankruptcy allows a consumer to erase all—or mostly all—of his or her debts.  According to the Federal Bankruptcy Code, it’s also known as a liquidation bankruptcy, which means that the debtor’s property will be sold, or liquidated, in order to pay back the creditors to whom the debtor owes money. A Chapter 7 bankruptcy be...

Has the Illinois economy fully recovered?  A recent article in Business Wire reported that U.S. personal bankruptcy filings have dropped to their lowest level in seven years (essentially, since the recession began), but does this mean we’re all back on our feet financially speaking?  The data on personal bankruptcies came from a Fitch Ratings Report, but according to the article, it doesn’t necessarily mean that Chicago residents are feeling comfortable in terms of consumer finances. Decline in Consumer Bankruptcies According to the Fitch Ratings Report, consumer bankruptcies are “12 percent lower year-over-year through mid-August.”  And Fitch currently projects that the total number of filings for 2014 will “fall below one million for the first time in seven years.”  This is the fourth year in a row in which the number of personal bankruptcies has declined.  Is the economy the sole factor? The Fitch Senior Director Steven Stubbs suggested...