Oak Park Real Estate & Estate Planning Blog

Payday lenders can pose serious problems to Illinois consumers who are experiencing financial trouble. According to a recent article in the Washington Post , many states have passed laws to ban or to restrict the power of payday lenders, but borrowers continue to find that these lenders take advantage of them when they’re at their most vulnerable. High Interest Rates that Hurt Low-Income Consumers Payday lenders are out to make as much money as possible from the dire financial circumstances of low-income Americans. To be sure, payday loans often come with “triple-digit interest rates,” and they’re frequently “a last resort for the poor.” In addition to very high interest rates, these loans also tend to come with hidden fees. Why do these lenders persist in the market? In short, issuing these kinds of loans is lucrative to the lender, even if it hurts the borrower. The Illinois Attorney General has emphasized that payday lenders offer products that aren’t as conveni...

If we hear in the news that personal bankruptcy filings have decreased over the last year, most of us are likely to think it’s because fewer Americans need bankruptcy protection . However, according to a recent article from ACA International , the total number of bankruptcy filings haven’t dropped for the reasons that you’d think. Instead, the statistics suggest that many of us—even those who could benefit from consumer bankruptcy—may have avoided filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy because of the cost of the filing fees. If you’re having trouble paying monthly bills or making mortgage payments, you might want to learn more about how consumer bankruptcy can help you to get a handle on your debts. An experienced Chicago bankruptcy lawyer at the Emerson Law Firm can speak with you today. Bankruptcy Fees Decline Sharply Between January 2014 and January 2105, bankruptcy filings in the country decreased by about 14 percent, according to data colle...

What leads Chicago residents to file for bankruptcy ? Many factors can contribute to a Chapter 7 bankruptcy decision, including credit card debt and substantial medical bills. But do these consumers have underlying financial difficulties that make it difficult to pay off their debts? A recent article in the Chicago Tribune suggested that nearly half of all American households “exhaust their salaries,” meaning that there’s no money left at the end of the months for savings. And if there’s no money going into a savings account or other investments, those consumers won’t have any extra funds when an unexpected expense arises. And for some, consumer bankruptcy might be an answer. Yearly Incomes Don’t Cover Annual Expenses According to the article in the Chicago Tribune , the Federal Reserve recently has emphasized the solid growth of the American economy. However, data released by the Pew Charitable Trusts suggests that general economic growth doesn’t account for everyon...

When you file for personal bankruptcy , do you have to disclose information about pending personal injury lawsuits? And if you fail to disclose to the bankruptcy court that you have a cause of action that hasn’t yet been decided, can judicial estoppel prevent you from moving forward with your claim? Generally speaking, the judicial estoppel doctrine (which we’ll discuss shortly), is supposed to prevent debtors from “playing fast and loose with the courts,” according to an earlier case from the 7th Circuit. Now, the Illinois Supreme Court will decide whether a recent bankruptcy case included the required elements of judicial estoppel, thus preventing the plaintiffs from moving forward with their personal injury claim. The case, Seymour v. Collins , concerns a married couple that filed for Chapter 13 bankruptcy . They ultimately received a discharge, but they didn’t disclose information about a pending personal injury claim. Details of Seymour v. Collins In Seymour v...

Many Chicagoans might think that personal bankruptcy isn’t something that the wealthy need to think about. However, a recent article from Nasdaq.com emphasizes that, “when it comes to falling into financial distress, it turns out that the wealthy are more like the rest of us than you might think.” In other words, at one time or another, all of us may need to consider the benefits and costs of Chapter 7 or Chapter 13 bankruptcy . Similar Reasons for Bankruptcy Do wealthy Chicagoans file for bankruptcy for the same reason as middle-class residents? According to Todd Zywicki, a law professor at George Mason University, the “fundamental causes” for those with higher incomes aren’t much different from those who fall into lower income brackets. Thinking logically, it seems like someone who makes more money should have greater savings and flexibility in the event of a serious financial setback. However, many high-income Illinois residents had difficulties during the recession...