Oak Park Real Estate & Estate Planning Blog

Are you currently paying your child’s college tuition? If you’re thinking about filing for personal bankruptcy , you should be aware that bankruptcy trustees have begun recovering tuition payments from colleges and universities on behalf of the creditors of insolvent parents. Indeed, according to a recent article in the Wall Street Journal , “the trustees argue the funds should be recovered to pay off the parents’ debt instead” of the kids’ tuition, and “in many cases, they’re succeeding.” Universities Return Tuition Payments Back in February, a bankruptcy trustee sued the University of Bridgeport in an attempt to recover money for creditors. Previously, the parents of Orlando M. Morales, a student at the University of Bridgeport, had paid tuition money for their child. They later filed for Chapter 7 bankruptcy . After returning $4,000 to the trustee, the university made clear that it “reserved the right to go after Mr. Morales himself.” Other colleges and univers...

Is Bank of America upholding its promise to provide consumer relief when it comes to mortgages and other kinds of loans? According to a recent article in the New York Times , “questions are arising about whether the promised assistance is actually getting to the right people and whether the bank will be allowed to claim credit for consumer relief that far exceeds its actual value.” In other words, questionable dealings concerning foreclosure and consumer bankruptcy might still be lurking. Consumer Relief and the Terms of the Settlement Last summer, Bank of America agreed to a $16.7 billion settlement “over dubious mortgage practices.” Of the money from that settlement, $7 billion was supposed to go toward consumer relief measures, including loan modifications in the years following the agreement. In addition, the settlement required the bank to “make a wide array of loans more affordable for borrowers” and to “forgive or reduce the amounts owed on first and second mo...

How can you avoid personal bankruptcy ? While filing for Chapter 7 or Chapter 13 bankruptcy can provide enormous relief to Chicago debtors, it’s important to think carefully about your financial well-being before you reach the point of requiring bankruptcy protection . Or, if you’ve recently declared bankruptcy, learning more about financial well-being can help you to have a rewarding future. Personal Financial Well-Being, According to Consumers The Consumer Financial Protection Bureau (CFPB) recently released a report concerning financial well-being throughout the country. It created a research team that spoke with consumers of many different income levels. By and large, it turns out that, regardless of income, consumers tend to associate similar things with financial health: Having current financial security, which often means feeling in control over day-to-day and month-to month finances; Having future financial security, or the ability to “absorb a financi...

In cases where consumers are unfairly targeted or harassed by collection agencies , where can they turn for help with issues related to the Fair Debt Collection Practices Act (FDCPA)? What happens when your personal and financial information is held by a company that gets hacked? The U.S. Consumer Financial Protection Bureau (CFPB) was created, in part, to ensure that consumers are treated fairly by creditors and other debt collectors. However, funding to the CFPB looks to be at risk, according to a recent article in Reuters . Provision Seeks to Cap CFPB’s Funding Between 2020 and 2025 Newly proposed legislation related to the CFPB was designed to “establish special advisory groups,” or “outside committees to advise it on actions related to community banks and credit unions.” Under the new legislation, these kinds of groups would be “mandatory” and would require a “panel made up of small business leaders” to assist in consumer protection measures. However, President Oba...

The U.S. Supreme Court won’t be weighing in on whether consumers can be liable for debts, for which the statute of limitations has run out, when they file for bankruptcy . Instead, the U.S. Supreme Court will allow the recent consumer-friendly decision from the 11th Circuit to stand. Although the facts of the case don’t directly implicate consumers or debt collectors in the Chicago area , the U.S. Supreme Court’s decision to deny the petition for writ of certiorari likely will have a positive impact on Oak Park consumers. Facts of the Case: Crawford v. LVNV Funding In order to understand how the Supreme Court’s decision not to hear a case may have an impact on debtors in Illinois and other states across the country, we need to take a close look at the facts of Crawford v. LVNV Funding . The Crawford case began in the U.S. Bankruptcy Court for the Middle District of Alabama. Prior to filing for bankruptcy, the debtor owed money to a furniture company. The debtor incurred...