Oak Park Real Estate & Estate Planning Blog

Many debtors in Oak Park and throughout Chicagoland have concerns about filing for personal bankruptcy because they are concerned that it will impact their credit scores immensely. There are a couple of reasons that this is a bad reason to avoid filing for bankruptcy, however. First, regardless of the impact that consumer bankruptcy might have on your credit score, bankruptcy is often the only way for people to get out from underneath immense debt and get a fresh start. Second, and perhaps more importantly for anyone who is avoiding bankruptcy because of concerns about the hit to a credit score, bankruptcy simply may not affect your credit score as much as you think. Why Bankruptcy Likely Will Not Result in a Significant Drop in Your Credit Score According to a recent report from Fox 25 News , debtors’ assumptions about how bankruptcy filings will impact their credit often are incorrect. While it is certainly true that filing for bankruptcy can impact your credit sc...

If you are considering Chapter 7 bankruptcy , you might be wondering whether you need to hire a bankruptcy lawyer to help with your case. You might be thinking that consumer bankruptcy is relatively straightforward in that you provide information to the bankruptcy court and receive a discharge of your debts. However, the U.S. Bankruptcy Code is extremely complex, and making even a minor mistake could put your entire bankruptcy case at risk. There are numerous steps to a Chapter 7 bankruptcy proceeding, and these steps require the debtor to show that he or she can pass the “means test,” as well as to fill out and submit precise information about assets and exemptions. In addition to the complicated process of filing for Chapter 7 bankruptcy, it could turn out that this is not the best bankruptcy chapter for your specific situation. An Oak Park bankruptcy lawyer can ensure that you are eligible for Chapter 7 bankruptcy, that it is the best course of action for you, and that...

When you file for consumer bankruptcy in Oak Park, Illinois or anywhere else in the country, you will probably hear the phrase “meeting of creditors” used to describe one of the necessary steps in your Chapter 7 bankruptcy filing. In fact, whether an individual or a business files for Chapter 7 bankruptcy, the “meeting of creditors” will take place. What does this term mean, and what is involved in a meeting of creditors? Defining the Meeting of Creditors Under the U.S. Bankruptcy Code Under the U.S. Bankruptcy Code , the meeting of creditors falls under § 341, and thus it is often referred to as the “341 meeting of creditors” or the “341 hearing.” The statute specifically states that, “within a reasonable time after the order for relief in a case . . . the United States trustee shall convene and preside at a meeting of creditors.” In other words, once a consumer has filed for Chapter 7 bankruptcy and has submitted all required documentation (such as financial schedu...

Have you been contacted by Midland Funding LLC about debts you do not owe or debts for which the statute of limitations has passed? Debt collection companies like Midland Funding LLC are required to abide by the Fair Debt Collection Practices Act (FDCPA), and they cannot use unfair or fraudulent methods to collect debts . The FDCPA also protects consumers against harassment from debt collectors. When a debt collection company is alleged to have wronged a wide variety of consumers, can those consumers take part in a class action lawsuit? That question arose in a recent case against Midland Funding LLC, Midland Credit Management, Inc., and Encore Capital Group, Inc. Illinois consumers got a win in this case, which involved aggrieved consumers seeking class action certification, according to a recent article in Reuters . The case, Wheeler v. Midland Funding, LLC , was decided in late April by U.S. District Court Judge Virginia Kendall in the Northern District of Illinois. ...

U.S. Supreme Court Hears Bankruptcy Case Concerning Fraud Exception The U.S. Supreme Court recently heard arguments in bankruptcy-related case that has been ongoing for quite some time. Back in January 2018, the U.S. Supreme Court agreed to hear the case, Lamar, Archer & Cofrin, LLP v. Appling . In brief, the case deals with an individual debtor who made false promises about repaying a portion of his debt. The debtor ultimately filed for Chapter 7 bankruptcy and attempted to discharge the debt. The creditor argued that the debt fell under the U.S. Bankruptcy Code’s fraud exception, and as such the debt was a nondischargeable debt in the Chapter 7 bankruptcy proceeding. The debtor disagreed, and the issue is now up to the U.S. Supreme Court. The U.S. Supreme Court’s decision could impact certain debtors in Oak Park who file for consumer bankruptcy . We will tell you more about the recent case and its possible implications. Getting the Facts of the Case: Lamar, ...