Oak Park Real Estate & Estate Planning Blog

In 2016, the Chicago Tribune reported that the for-profit ITT Technical Institute was shutting down. All of the campuses in the Chicago area and all 130 campuses across the country closed in September of 2016, and students received emails informing them that the school was closing. In the months leading up to the school’s closure, it had been the target of numerous investigations and lawsuits concerning consumer protection , as well as the school’s failure to be in compliance with accrediting standards set by the Accrediting Council for Independent Colleges and Schools. In total, more than 40,000 students were impacted by the closure. Why is this important now? A recent article in the Washington Post explains that “a federal judge approved a settlement Wednesday allowing former students at ITT Technical Institute to participate in the bankruptcy proceedings of its parents company, giving them a shot at the remaining assets of one of the nation’s largest for-profit college

Now that we have entered into a New Year, consumer advocates have begun to look back on consumer debt in 2017 and the ways in which consumers were harmed by unfair and deceptive debt collection practices . When consumers owe debts that they have difficulty repaying, they can be at risk of harmful and unlawful debt collection tactics. According to a recent report from NBC 5 Chicago , consumer credit card debt hit a new record high in 2017, and consumer debt more generally is on the rise. Will skyrocketing consumer debt levels lead to more personal bankruptcy filings and more claims under the Fair Debt Collection Practices Act (FDCPA)? More Consumers Taking on Credit Card Debt Despite a Healthy Economy When consumers begin taking on a significant amount of credit card debt, we might be tempted to assume that rising debt corresponds to a struggling economy more generally. However, according to the recent report, economists often link the fact that consumers are taking o

If you are thinking about filing for bankruptcy in Oak Park , especially Chapter 7 bankruptcy , you are most likely planning to have your debts discharged so that you can get a fresh start. Since most debts are going to be dischargeable, getting a fresh start is especially appealing for debtors who are struggling to make ends meet while paying on credit cards and other loans that have high interest rates. There may be some situations, however, in which debtors filing for consumer bankruptcy want to sign a reaffirmation agreement. What is a reaffirmation agreement, and why would a debtor want to agree to one? Reaffirmation agreements can be useful in a number of situations. We will discuss them with you below. What is a Reaffirmation Agreement? A reaffirmation agreement is just what it sounds like - a contract through which a debtor reaffirms a particular debt even though he or she is filing for bankruptcy protection. For many different reasons, a debtor might not w

If you are currently in default on your student loans , it is important to follow the news about the U.S. Department of Education’s (DOE) plans for debt collection . According to a recent article in Inside Higher Ed , earlier this month the DOE indicated that it “had awarded contracts to collect on defaulted student loans to two firms, Performant Recovery Inc. and Windham Professionals.” For a number of months now, consumer advocates and debtors have voiced concerns about the DOE’s debt collection practices, which some argue do not give consumers the opportunity to get back on track with their student loan payments. We want to say more about the DOE’s debt collection plans and to remind consumers about their rights under the Fair Debt Collection Practices Act (FDCPA). Debt Collectors Set to Makes Hundreds of Millions from New Contract There are numerous concerns about the DOE’s debt collection contracts with Performant Recovery Inc. and Windham Professionals. F

If you are thinking about filing for personal bankruptcy in Oak Park , you may be overwhelmed and a bit confused by the different types of consumer bankruptcy. For example, you might have heard that a friend or family member recently filed for Chapter 7 bankruptcy , but that another acquaintance was ineligible to file for Chapter 7 and ended up filing under Chapter 13 instead. Or, perhaps you know someone who learned their consumer debts made them ineligible for Chapter 13 bankruptcy, which led them to file for Chapter 11 bankruptcy instead. While most consumers file for either Chapter 7 or Chapter 13 bankruptcy, some also file for Chapter 11 bankruptcy depending upon their income and debt levels. We have some questions to help you learn more about the type of bankruptcy that is right for you. Do You Have a Steady Income? If you have a steady income and you earn a decent salary, you may be ineligible to file for Chapter 7 bankruptcy. As the U.S. Courts website clarifies

Can debtors file class action lawsuits against debt collection companies for fraudulent or abusive debt collection practices ? It is a question that has not yet been settled, but a recent case out of the federal U.S. Court of Appeals for the Third Circuit Court suggests that class actions may be appropriate for certain claims. While residents of Oak Park and other parts of Illinois are not directly affected by a Third Circuit decision—Illinois courts are bound by the U.S. Court of Appeals for the Seventh Circuit Court—the recent case could prove to be persuasive for other federal courts in Illinois and across the country. As such, it is important for anyone in Chicagoland to learn more about the case and its implications for consumer rights . Federal Court Revives Proposed Class Action According to a recent report from Reuters , the Third Circuit “revived a proposed class action accusing Portfolio Recovery Associates LLC (PRA), a large debt buyer, of waiting too long