Oak Park Real Estate & Estate Planning Blog

For Chicago consumers who have credit card debt , private student loans, payday loans, and other accounts, arbitration clauses may pose serious limitations, according to a recent article in U.S. News & World Report . Indeed, the Consumer Financial Protection Bureau (CFPB) issued a report urging consumers to take a close look at their contracts to determine whether they have arbitration clauses. When you’re dealing with debt or financial dispute that could lead to personal bankruptcy , it’s important to discuss your case with an experienced Oak Park consumer protection attorney. Pitfalls of Arbitration Clauses for Consumers First, what is an arbitration clause? When it comes to consumer contracts, it’s a clause that “requires consumers who have a dispute with their phone carrier or financial institution to bring their disputes before a private arbitrator, not before a court.” What kinds contracts typically contain arbitration clauses? According to the art...

Most of us know that student loans are difficult, if not often impossible, to discharge in personal bankruptcy . However, a number of legislators believe that substantial student loan payments should be easier to discharge if you file for Chapter 7 bankruptcy . In particular, legislators have targeted those student loans issued by private lenders, contending that they should receive the same treatment “as other types of private unsecured debt in bankruptcy proceedings,” according to a recent article in Fortune Magazine . Fairness for Struggling Students Act of 2015 Earlier this month, thirteen Senators introduced a new bill, the “Fairness for Struggling Students Act of 2015.” The proposed legislation acknowledges the heavy burdens that private student loans put upon recent graduates, and it emphasizes that private student loan debt should be easier to discharge by filing for consumer bankruptcy. Right now, it’s extremely difficult—“nearly impossible,” according to ...

When you’re facing insurmountable payments from credit card debt or medical bills, filing for personal bankruptcy may be able to provide you with some relief. And while it’s much easier to recover from bankruptcy than most Americans believe, it’s important to understand how consumer bankruptcy is likely to affect you in the years immediately following your decision to file. In particular, you should know that bankruptcy may limit your access to student loans and certain kinds of educational funding. Parent PLUS Loans and Bankruptcy According to an article in U.S. News & World Report , Americans shouldn’t be so quick to discount the positive consequences of personal bankruptcy. To be sure, it can be the best way “to catch a breath and start to rebuild” after a period of unemployment or other financial hardship. At the same time, however, the article emphasizes that filing for bankruptcy can make it difficult, in the short term, to secure certain loans. Indeed, “the ...

According to a recent article in Reuters , consumer bankruptcy filings are likely to remain on the decline. Indeed, a Fitch Ratings’ Report showed that “annual U.S. personal bankruptcy filings are set for a fifth straight drop.” Based on that report, bankruptcy filings are predicted to fall by another 8 to 10 percent in 2015. In 2014, consumer bankruptcy filings fell by 12 percent from the previous year. However, such declines in bankruptcy filings aren’t expected to continue in the coming years. The housing crisis and economic decline resulted in many Americans turning to Chapter 7 or Chapter 13 bankruptcy to get a handle on their finances. In recent years, though, the market has been recovering, and fewer families find themselves with debt burdens. But how long will that trend last? More Consumer Credit Spending Likely The Fitch Managing Director, Michael Dean, indicates that “the continued loosening of lenders’ underwriting guidelines and the increase to consum...

When you’re behind on payments and have unpaid debts, you may be concerned about calls from debt collectors . In the age of the internet, however, it’s difficult to stay off the radar of debt collection agencies . And collection companies certainly use the internet as a tool to track your movements. Indeed, even when we think we’re keeping a low profile on Facebook or Twitter, it turns out that we may be making decisions in our private lives that become sources of information for debt collectors. According to a recent JD Supra article, consumers should know about ways they’re being monitored. Facebook, Twitter, and Public Lives Using social media means that at least some of your private life—depending on how you use platforms like Facebook and Twitter—will become accessible to others through the internet. To be sure, just the fact that you have a Facebook profile, a Twitter account, or even a Flickr photo-sharing page means that anyone can run an internet search for you an...