Oak Park Real Estate & Estate Planning Blog

If you are thinking about filing for Chapter 7 bankruptcy , you might have heard the term “priority debt.” While the term might sound like it is referring to debts that are the priority of the consumer who is seeking bankruptcy protection, in fact, the opposite is true. When a consumer in Oak Park files for personal bankruptcy, some debts are considered priority debts under the U.S. Bankruptcy Code . In other words, federal law says that some debts need to be prioritized over others when creditors are being compensated from the bankruptcy estate. How will your bankruptcy case be affected by priority debt? Understanding How Priority Debts are Related to Secured and Unsecured Debt When an individual thinks about filing for bankruptcy, she or he likely has two different types of debt - secured debt and unsecured debt. Secured debt is the type of debt with collateral. In other words, the creditor has an interest in the property you have and can repossess that property if ...

Is the right to be free from unfair debt collection practices by payday lenders a human right? According to a recent news release from Human Rights Watch, the actions of the Consumer Financial Protection Bureau (CFPB)—or lack of actions under Mick Mulvaney, to be more precise, when it comes to holding payday lenders and debt collectors accountable—are putting consumers at significant risk of harm. As the news release emphasizes, the “payday lending industry is notorious for trapping borrowers in cycles of growing debt, fueled by extreme interest rates up to 300 and 500 percent.” When we talk about human rights, we do not typically think closely about consumer harms. However, as the news release intimates, matters of “business and human rights” present questions about consumer advocacy and how the financial well-being of a person affects his or her general health and security. What else does Human Rights Watch have to say about unfair debt collection practices and consumer...

For many consumers in Oak Park, dealing with “crushing debt,” as a recent article in CNBC describes it, can feel like an insurmountable burden. However, there is good news: Most types of consumer debt are in fact dischargeable through consumer bankruptcy . While there are certain types of debts that can be difficult to discharge by filing for personal bankruptcy , and some debts that simply cannot be discharged, the most common forms of consumer debt can be wiped out through a Chapter 7 bankruptcy filing. We will tell you more about debts that are usually dischargeable, debts that are sometimes dischargeable, and debts that cannot be discharged through consumer bankruptcy. Common Consumer Debt Often Can be Discharged in Your Chapter 7 Bankruptcy What types of consumer debt are among the most common? As the article explains, some of the most common forms of consumer debt include the following: Credit card debt; Medical debt; and Student loan debt. In...

Are your wages currently being garnished in Illinois, or do you have concerns that your wages will soon be garnished? You should speak with an Oak Park bankruptcy lawyer to learn more about how filing for Chapter 7 bankruptcy can stop or prevent wage garnishment. Under Illinois law ( 735 ILCS 5/ ), wage garnishment can occur in many different situations. To better understand how consumer bankruptcy may be able to provide you with relief, it is important to learn more about what we mean by wage garnishment, when and how it can be used, and how filing for personal bankruptcy can help. Learning More About Wage Garnishment What is wage garnishment, and what does it have to do with personal bankruptcy? Wage garnishment can happen in any state, and it is a deduction that your employer automatically takes from your paycheck as a result of a court order. For example, if you owe a significant amount of money to a creditor and the creditor sues you in order to recover what you ...

If you believe you may have a valid claim under the Fair Debt Collection Practices Act (FDCPA) or the Fair Credit Reporting Act (FCRA) in Oak Park, you should pay attention to a recent ruling out of the United States Court of Appeals for the Seventh Circuit. The Court recently ruled in favor of a debt collector , thereby affirming the lower court’s holding, in a case involving debt collection verification and proper investigation of the debt. The case, Walton v. EOS CCA , sets a binding precedent for courts in Illinois, and it could end up being persuasive in other parts of the country. We want to tell you more about the case and its potential implications. Procedural History and Facts of Walton v. EOS CCA In Walton v. EOS CCA , the debtor argued that EOS, the debt collection company, violated the FDCPA and the FCRA in two separate ways. First, the debtor contended that EOS violated the FDCPA when it failed to directly contact the creditor in order to obtain verificat...