Oak Park Real Estate & Estate Planning Blog

Bankruptcy law is extremely complicated, and it is important to work with an Oak Park bankruptcy lawyer no matter how straightforward you think your case may be. Indeed, failing to work with an experienced advocate could result in significant difficulties in your case. In particular, omitting certain information can look like bankruptcy fraud. If you are considering Chapter 7 bankruptcy or Chapter 13 bankruptcy, it is important to learn more about bankruptcy fraud and how the failure to provide details about assets may result in bankruptcy fraud allegations.   Understanding Bankruptcy Fraud The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was designed, in part, to reduce the rate of bankruptcy fraud in consumer bankruptcy cases. One of the ways in which the law is supposed to prevent bankruptcy fraud is through the use of the “means test” to determine whether an individual is eligible to file for Chapter 7 bankruptcy. What does bankruptcy fraud act...

It is no secret that student loan debt has become a serious problem in Illinois and throughout the country. For example, a report in Forbes reported on the “student loan default crisis” earlier this year, citing the total of student loan debt at approximately $1.4 trillion. The article described student loans as “a problem of out-of-control ballooning debt” that may soon lead to a default crisis. Are current bankruptcy laws to blame for a potential student loan default crisis in which thousands of borrowers simply stop making payments due to financial circumstances, leading to a larger economic crisis? According to a recent article in The Cap Times , some consumer advocates believe that shifts in U.S. bankruptcy laws have narrowed options for student loan borrowers in need of bankruptcy protection. Historical Changes to U.S. Bankruptcy Law The article suggests that a “series of incremental changes to federal bankruptcy laws” are to blame for making it “nearl...

Many older Americans in Oak Park and throughout the country are filing for personal bankruptcy . Indeed, as we have discussed previously, numerous seniors continue to file for bankruptcy due to medical debt . While consumers of all ages may have concerns about what will happen to retirement accounts, pensions, and certain benefits upon filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy, this question is often of utmost importance for consumers who are already in retirement. Generally speaking, Illinois’s bankruptcy exemptions allow debtors to keep most pensions and benefits. In Illinois, debtors who file for bankruptcy are required to use Illinois exemptions (as opposed to having the option of choosing the federal exemptions). At the same time, certain exemptions for retirement accounts require a closer look at the U.S. Bankruptcy Code. We will provide you with some detailed information aimed at seniors who are thinking about filing for bankruptcy in Illinois. S...

Are harmful stereotypes about race and responsibility impacting certain consumers who file for bankruptcy ? In other words, can racial stereotypes affect the bankruptcy process and American bankruptcy statistics more generally? Interdisciplinary Research into Race, Racism, and American Bankruptcy A recent interdisciplinary study from the University of Illinois acknowledges how “prior research has established that society appears to accord less forgiveness to African-Americans when they arrive in bankruptcy court,” which means that “proceedings take longer, cost more, and typically lead to lower levels of debt relief.” According to the new research, “practitioners inside the bankruptcy system have little knowledge of the racial disparities that exist, relying instead on common stereotypes about race, responsibility, and debt.” In other words, without acknowledging structural racial and socioeconomic disparities, assumptions get made about non-white consumers who file ...

If you are thinking about filing for consumer bankruptcy in Chicago , or if you filed for Chapter 7 or Chapter 13 bankruptcy relatively recently, you may be wondering about your options for a mortgage. For instance, will you be able to qualify for a mortgage again after filing for bankruptcy? Can homeownership be in your future? The answer to both of those questions is yes, but it can be more difficult to get some types of loans after you have filed for bankruptcy. According to a recent article from U.S. News & World Report , loans from the Federal Housing Administration (FHA) may be the best bet for consumers who have recently filed for bankruptcy or are planning to file for bankruptcy in the near future. How FHA Loans are Beneficial for Consumers After Bankruptcy There are many benefits to FHA loans, especially for consumers who are just starting to get back on track with their finances. For conventional mortgages (that are not FHA loans), borrowers typically need ...

For many consumers who are struggling with debt, filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy can be a powerful tool to manage debt and to get a fresh start. For anyone who is considering bankruptcy, it is important to be aware of some changes to current bankruptcy law. Recent amendments to the Federal Rules of Bankruptcy Procedure will take effect on December 1, 2017. What do you need to know about these amendments and how they will impact personal bankruptcy cases? Changes in the Rules for Proofs of Claim When a debtor files for bankruptcy, any creditors who want to make a claims against the assets of the debtor’s estate need to file a proof of claim. In the proof of claim, the creditor needs to state the amount of money owed. Rule 3002 of the Bankruptcy Code was amended recently to change the date upon which creditors must file proofs of claim. Once the changes to the law take effect on December 1, creditors will need to file proofs of claim in most C...