Oak Park Real Estate & Estate Planning Blog

Many consumers borrow money to pay for automobiles. For Oak Park residents who rely on their vehicles for transportation to work in Chicago and the surrounding area, it can be extremely anxiety-inducing to fall behind on their car payments. However, many Americans simply do not have the requisite savings to pay for an emergency situation and to continue paying monthly bills. For instance, if a medical emergency arises, many consumers prioritize those payments over auto loan payments, especially if someone in the family is in need of life-saving treatment. Sometimes consumer bankruptcy may be the best option. According to a recent post from the Consumer Financial Protection Bureau (CFPB), getting behind on your car payment does not always result in repossession. In some cases, filing for personal bankruptcy may allow you to discharge medical debt and to get back on track for paying off a car loan. Reduce the Risk of Falling Further Behind on Your Car Payment The...

Can a debt collector file a time-barred claim as a result of the statute of limitations running out against a debtor in a consumer bankruptcy proceeding without violating the Fair Debt Collection Practices Act (FDCPA)? That was the question the U.S. Supreme Court had to decide in Midland Funding, LLC v. Johnson . The Court found ruled against the debtor in a 5-3 decision, overturning the Eleventh Circuit’s ruling in favor of the debtor. Debtor Argues Time-Barred Claims in Bankruptcy Proceedings Prohibited by FDCPA We have discussed this case previously, prior to it being decided by the U.S. Supreme Court. It is important to understand the facts of the case in order to appreciate the Supreme Court’s ruling. As such, we would like to give you a brief recap: In 2014, a debtor filed for Chapter 13 bankruptcy. Shortly thereafter, Midland Funding, LLC, a debt collector, filed a “proof of claim,” which asserted that the debtor owed $1,879.71 in credit card debt. The proof o...

Are there state-specific protections in place to prevent student loan borrowers from abusive debt collection practices ? The Fair Debt Collection Practices Act (FDCPA) provides protections at the federal level, but according to a recent article in Consumer Affairs , Illinois Attorney General Lisa Madigan is supporting a bill that is designed to provide specific consumer protections in the state of Illinois. More specifically, the proposed legislation, Senate Bill 1351 , is designed to “create a Student Loan Bill of Rights to protect borrowers from abuse.” What protections would the bill provide on a more specific level, and what else needs to happen for it to become law? Bill Passes in the Senate As the article explains, SB 1351 has already passed in the Illinois Senate by a 34 to 15 vote. It is now time for the bill to be considered by the Illinois House of Representatives. Attorney General Madigan’s office drafted the bill along with Senator Daniel Biss. Repre...

Now that the House of Representatives has passed its version of the law aimed at repealing and replacing the Affordable Care Act (ACA), it is an important time for Chicagoland residents to look closely at the ways in which the ACA has had a positive impact not only on American healthcare, but also on consumer debt . As an article in Consumer Reports makes explicit, since the adoption of the ACA, “far fewer Americans have taken the extreme step of filing for personal bankruptcy.” Since the ACA took effect in 2010, American bankruptcy filings “dropped by about 50%, from 1,536,799 in 2010 to 770,846,” according to the article. Given that medical bills are among the leading causes of consumer bankruptcy across the U.S., some experts suggest that the decline in filings could in fact be causally related to the passage of the ACA. What else do you need to know about this connection, and how could a new law result in a surge in personal bankruptcy filings? Previously Uninsur...

If you are thinking about filing for bankruptcy in Oak Park , will you still be able to keep child support payments that you are receiving from your child’s noncustodial parent? On the flip side, if you are considering bankruptcy, can filing for Chapter 7 bankruptcy ever eliminate a child support obligation? If you are a custodial parent who receives child support and the child’s noncustodial parent is filing for liquidation bankruptcy, will that bankruptcy filing be able to eliminate the child support obligation that she or he owes to you? These are important questions to ask whenever someone with a family support obligation is filing for bankruptcy. Generally speaking, consumer bankruptcy cannot allow a person who owes child support to wipe out that obligation. However, it is important to learn more about how this works. Priority Debt in Chapter 7 Bankruptcy Proceedings When you file for Chapter 7 bankruptcy in the Chicago area or elsewhere in the country, there...

How to Keep a Debt Collector from Contacting You Have you been receiving unwanted calls from a debt collection company ? Has the contact risen to the level of harassment ? Have the calls been coming at inconvenient times? Have the collection agencies been calling you at work, even after you requested that they stop? Are you receiving calls about a debt you do not owe, or calls about debts owed by a family member to whom you have no financial connection? According to a recent report from CNBC , about one third of all consumers have been contacted by a debt collector in the last year, and many of those consumers have raised complaints about the content of the phone call or the manner in which they were contacted. What can you do to keep a debt collector “off your back,” as the report poses? The following are some tips. The first step in keeping debt collectors “off your back,” so to speak, is by knowing your rights under the FDCPA. Who is protected by the FDCPA? It pro...