Oak Park Real Estate & Estate Planning Blog

When you apply for student loans , what do you need to know about the typical sixth-month grace period that comes with federal loans (and some other private loans)? According to a recent CNBC article , that grace period could end up costing you a lot of extra money in the long run. For some borrowers, it might make sense to take advantage of the grace period. For other borrowers, however, avoiding payments during the grace period can result in more debt later on, potentially putting you in a difficult financial situation. Keep in mind that it is extremely difficult to discharge student loans in bankruptcy in the event that you cannot make your regular payments. What do you need to know in order to make an informed decision? Limitations of the Student Loan Grace Period In short, if your student loans will accrue interest during the grace period, you may be better off making additional payments if you can. The only two types of federal loans that do not accrue interest ...

If you get behind on payments to a creditor or file for personal bankruptcy , will each credit score reflect your credit history in the same way? According to a recent report from NBC News , there are distinctions between new and traditional credit scores, and it is important to understand how your personal history can impact what creditors see. Alternative Credit-Scoring Methods As the article explains, the way in which credit scores are calculated is not the same as it used to be. If you have ever applied for credit and have had a potential creditor look into your financial history and your credit score, you may know that the three companies of Experian, Equifax, and TransUnion have been the ones providing credit reports and scores for many years now. However, “in the last few years, these companies have founded a new company, VantageScore Solutions, that provides an alternative credit-scoring tool.” What does this new credit-scoring tool mean for you? First, ...

What happens when a creditor files a claim for a time-barred debt in a consumer bankruptcy case? Not too long ago, the U.S. Court of Appeals for the Eleventh Circuit ruled that such a filing violated the Fair Debt Collection Practices Act (FDCPA), in effect ruling in favor of the debtor. However, according to a recent article from Bloomberg BNA , the U.S. Court of Appeals for the Eighth Circuit has “split from other circuit courts” by holding that “a claim subject to a statute of limitations defense could be filed in the bankruptcy case without violating the FDCPA.” The case is Nelson v. Midland Credit Mgmt., Inc. , and it was decided on July 11, 2016. Why should Oak Park residents who are thinking about filing for personal bankruptcy pay attention to a case like this one? Implications of Cases Regarding Stale Claims in Bankruptcy What does this mean for debtors in Illinois? While bankruptcy cases from the Chicago area are not governed by either the Eleventh C...

If you are thinking about purchasing a new automobile, do you need to be concerned about being treated fairly when it comes to an auto loan? According to a recent article in Auto Credit Express , consumers who take out auto loans need to be just as careful as other borrowers about predatory lending practices . While we often hear about issues of consumer fraud and deception when it comes to mortgages, for example, auto loans can also be risky. It is important to understand your rights when you visit a car dealership and to speak with an experienced Oak Park consumer protection lawyer if you think you may have been treated unfairly by a predatory lender. To better understand your rights, it is essential to know about federal laws that protect consumers who are taking out auto loans. The article highlights some of the following laws and the ways in which they protect borrowers in the Chicago area. Understanding How the Equal Credit Opportunity Act Protects You Und...

How should we interpret the fact that consumer credit card debt is on the rise in the Chicago area and across the country? According to a recent article in MarketWatch , more people are going into credit card debt, and the total amount is expected to reach $1 trillion by the end of the year. Why are more people spending on credit cards than they were in recent years? In short, since the economy has been improving, more consumers feel confident spending on credit. However, that does not necessarily mean that they are paying their balances in full—or even making minimum required payments on a monthly basis. As the article highlights, if consumers continue to spend but fail to pay off at the current rate, “U.S. households will accumulate $1 trillion in outstanding debt by the end of 2016,” which is “the most ever.” Should consumers be worried about spending on credit? And should some of those debtors think carefully about whether consumer bankruptcy may be able to help w...