Oak Park Real Estate & Estate Planning Blog

Many debtors in Oak Park who cannot pass the means test required for Chapter 7 bankruptcy due to assets or income may decide to file for Chapter 13 bankruptcy . Chapter 13 bankruptcy is most often the best option for consumers who want to find a way to manage debt but do not qualify for Chapter 7 bankruptcy. Yet, are there consumers who do not qualify for either types of bankruptcy? In such a case, what options do these consumers have? As the U.S. Courts website clarifies, there are indeed some consumers who cannot qualify either for Chapter 7 or Chapter 13 bankruptcy, and in these situations the debtor may need to file for Chapter 11 bankruptcy (which is most frequently used for business bankruptcy). While there is no means test for Chapter 13 bankruptcy, there is a debt limit. If you have too much debt, Chapter 13 is not an option for you. A recent article in Bloomberg BNA , some consumer advocates believe that the debt limits on Chapter 13 bankruptcy either should b...

Many student borrowers in Oak Park and throughout the country are struggling with debt and trying to determine whether consumer bankruptcy might allow them to get a fresh start. As many people know, it can be extremely difficult to discharge student loan debt through personal bankruptcy, and as such, not many debtors often try to do so. Given the difficulty of discharging student loans in bankruptcy and the rising level of student debt in the country, many borrowers have been contacted by student loan debt relief companies. However, as a recent article in Consumer Affairs underscores, some student loan debt relief companies are engaging in fraudulent consumer practices. The Federal Trade Commission (FTC), along with state attorneys from eleven different states, has “launch[ed] a coordinated attack on student loan debt relief services, alleging they have fraudulently collected roughly $95 million in fees, according to the article. Illinois Attorney General Lisa Madigan is ...

If you file for Chapter 13 bankruptcy , how long does information about that consumer bankruptcy remain on your credit report? According to a recent article in ProPublica , for most consumers who look at their TransUnion and Experian credit reports, they will find that the credit reporting agencies report Chapter 13 bankruptcies for seven years. However, Equifax had been reporting consumers’ Chapter 13 bankruptcies for a longer period of time. Indeed, “hundreds of thousands of people who had filed for bankruptcy under Chapter 13” discovered that their history of bankruptcy remained on their credit report for 10 years if they failed to complete their bankruptcy plans. The good news is that Equifax has changed this policy, but it is not yet clear how many consumers have been affected. If you filed for Chapter 13 bankruptcy more than seven years ago and were denied credit, the denial may have been a result of Equifax’s policy. You should talk to a bankruptcy attorney in Oak ...

Are there correlations between personal bankruptcy filings and the race of the individuals who file? On a related note, are there correlations among race, Chapter 7 bankruptcy filings, and Chapter 13 filings? According to a recent report in ProPublica , there is a clear racial disparity when it comes to consumers who are filing for bankruptcy and choosing between Chapter 7 and Chapter 13. Specifically, the report notes that black Americans choose to file under Chapter 13 more often, and fewer complete their repayment plans to have debts forgiven: “[O]nly 39 percent of Chapter 13 cases filed by debtors from majority black zip codes ultimately resulted in a discharge of debts. In contrast, 58 percent of the cases filed by debtor from majority white zip codes were discharged.” This data speaks to bankruptcy trends nationwide, and even when other factors (such as income) are taken into account and controlled for, this disparity remains, according to the report. Where does Chi...

According to a recent news release from the Consumer Financial Protection Bureau (CFPB), about 40% of adults in the U.S. are struggling to make ends meet. In other words, a large percentage of Americans do not feel that they earn enough money each month to pay bills and to have the minimum money remaining for savings or for activities of daily living. While avoiding bankruptcy can be beneficial for some consumers, for many debtors, filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy can provide a fresh start or a way to get back on track. To better help consumers to understand their financial well-being, the CFPB has created an interactive tool. When so many consumers are struggling with bills and debt, when is it time to begin thinking about personal bankruptcy? CFPB Develops Interactive Tool to Help Consumers Many consumers need help managing their finances and figuring out when their debt may be insurmountable. With about 40% of adults indicating that ...