Oak Park Real Estate & Estate Planning Blog

According to a recent press release from the Consumer Financial Protection Bureau (CFPB), millions of consumers have filed complaints about student loan servicing practices. The CFPB’s “monthly complaint snapshot” for April underscored “that both private and federal student loan borrowers nationwide report persistent servicing breakdowns that may sideline their path to repayment.” In other words, student loan borrowers have continued to file complaints with the CFPB about problems with the companies servicing their student loans. In some cases, it is possible that student borrowers are protected by the Fair Debt Collection Practices Act (FDCPA). We often read about student loan complaints when it comes to private lenders. However, as the recent press release emphasizes, student loan borrowers are having difficulties with servicers linked to private and federal loans alike. To better understand the nature of the complaints, we would like to take a closer look at the CFPB’...

If you owe substantial medical debt, as so many residents of the Chicago area do, you may be dealing with particularly aggressive, and in some cases illegal, debt collection practices . According to a news release from the U.S. PIRG Education Fund, the consumer group’s recent report on “ Medical Debt Malpractice ” suggests that many debt collection companies may be violating the Fair Debt Collection Practices Act (FDCPA) when attempting to collect on healthcare debts owed by consumers. Incorrect Medical Debt Information One of the major problems associated with medical debt is that the information on a consumer’s records often is inaccurate. As a result, medical debt collectors contact consumers and may even use tactics prohibited by the FDCPA to obtain debts that are not exactly owed. According to the news release, “medical debt items on credit reports are often wrong or about the wrong consumer.” A consumer will be contacted by a medical debt collector for healthca...

As a recent article in USA Today points out, if you are not struggling with debt, the possibility of a tax refund in April can give many Illinois consumers an opportunity to make a large purchase or to take a trip. However, for many Chicago residents, any tax refund received will be used to help pay off some of the debt they owe. For some of these debtors, though, the amount of a tax refund is not enough to “wipe out crushing debt” that is plaguing them. Instead, as the article suggests, tax returns can give those debtors just enough money to afford to file for Chapter 7 bankruptcy . The timing of certain consumer bankruptcy spikes seems to coincide with tax refunds. What else should you learn about the possible link between higher rates of Chapter 7 bankruptcy and tax season? Do Tax Refunds Really Coincide with Higher Rates of Consumer Bankruptcy? Tax season does not necessarily coincide with higher rates of all types of consumer bankruptcy. Chapter 13 bankrupt...

For many residents and small-business owners in the Chicago area, it may be difficult to determine whether you should file for consumer bankruptcy or for bankruptcy on behalf of your business when you are struggling with debt. I you decide to file for personal bankruptcy, will it impact your business, or vice versa? These are important questions, and we want to address some key issues concerning consumer and business debts, and how you can distinguish them from one another when you are thinking about filing for Chapter 7 bankruptcy . Should I File for Personal Bankruptcy? If you own a small business and have both personal and business debts, can consumer bankruptcy allow you to discharge those debts and to get a fresh start on your finances? The answer to this question depends on many different factors, including but not limited to: Way your business is organized; Types of debts you have; and Types of assets you want to protect from liquidation. Are ...

If you live in Oak Park and owe tax debt , you may have received a call from a debt collection company seeking to collect on the debt you owe. It is important to remember that, as a consumer, you have protections under the Fair Debt Collection Practices Act (FDCPA). According to a recent report from CNBC , the IRS has hired for-profit debt collectors to track down consumers, and the Consumer Financial Protection Bureau (CFPB) intimates that not all of these for-profit debt collection companies are operating clearly within the bounds of the law. Have you been harassed or misled by a for-profit debt collector seeking to obtain back taxes? It is important to discuss your situation with an Oak Park consumer protection lawyer. Why Did the IRS Hire For-Profit Debt Collection Companies? As the report explains, “for-profit debt collectors have been hired by the IRS to chase down long-overdue taxes that the government agency lacks the resources to work on.” The IRS extended c...