Oak Park Real Estate & Estate Planning Blog

For any Oak Park debtors who have recently filed for personal bankruptcy or are considering consumer bankruptcy , it is important to know about punitive damages and the U.S. Bankruptcy Code’s automatic stay . In short, the U.S. Bankruptcy Code says that, in some cases, debtors can receive punitive damages when a creditor intentionally violates the automatic stay. To understand why this is significant, we will tell you more about punitive damages and the automatic stay, and then we will discuss situations in which punitive damages may be awarded for a violation of the automatic stay. What are Punitive Damages? Generally speaking, courts recognize two different types of damages awards - compensatory damages and punitive damages. Compensatory damages are those that are supposed to compensate a person for his or her losses, and they are typically characterized as general and special damages. The other type of damages award is known as a punitive damages award. Debtors may...

Facing a significant amount of consumer debt can be difficult for Oak Park residents of all ages, especially when the debt seems insurmountable. In many cases, consumers who are dealing with debt make the decision to file for bankruptcy in order to get a fresh start. But is such a decision the right one for older adults who are planning to retire soon? According to a recent report from NBC News , retiring with consumer debt can be complicated. In particular, many middle-class earners who are facing medical bills in older adulthood are finding that their options are limited to retiring with debt or filing for personal bankruptcy. Why are more people retiring with consumer debt, and what solutions might exist? What Happens When You do Not Reach the Goal of Being Debt Free Before Retirement? One of the most pressing questions for older adults who are nearing retirement is this: What happens when you do not reach the goal of being debt free before you retire? As t...

When consumers in Oak Park start having significant difficult paying or their bills while accumulating more debt, the prospect of filing for personal bankruptcy can seem daunting. Some consumers feel ashamed about their financial situation, while others are concerned about the potential credit hit that could result from filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy. However, consumers often see less of a hit to their credit than they would expect, and many are able to begin rebuilding their credit soon after filing for bankruptcy. Even more importantly, as a recent article in The Coalfield Progress argues, waiting to file for bankruptcy can hurt you even more in the long run. If you are thinking about filing for bankruptcy but continue putting it off—all while your debt load is becoming more and more unmanageable—it is important to talk with an Oak Park consumer bankruptcy lawyer as soon as you can. Waiting to File for Bankruptcy Usually Means More Str...

Since the foreclosure crisis in 2008, many consumers across Oak Park, Illinois and throughout the country have worried about whether another consumer debt crisis could occur. According to a recent report from NBC News , slow wage growth combined with added consumer debt suggests to some that another consumer debt crisis could be lurking. As the report points out, “subprime borrowers in particular aren’t as resilient when it comes to surviving a financial shock.” What do you need to know about the link between slow wage growth and the possibility of a looming consumer debt crisis? Could this result in another foreclosure crisis? Slower Wage Growth Than Expected Could Lead to Consumer Problems Workers in the United States have certain expectations with regard to wages, and according to the report, it is likely than many expected to be earning more than they currently earn. As a result of wage-earning expectations, many of those consumers have taken on additional ...

Like other consumers, veterans and military service members can have difficulty dealing with debt . For example, while a military service member is deployed or otherwise on active duty, a current salary may mean that she or he has difficulty making monthly payments on a mortgage or on credit cards. Or, perhaps, a military service member on active duty supports a spouse who has to deal with a medical emergency, and that medical emergency ends up costing thousands of dollars unexpectedly. In other situations, a veteran may have retired from the military years or even decades ago, and now may be having trouble making payments on monthly bills or may be having difficulty keeping a small business afloat. In addition to complications that can arise for active duty service members who are considering personal bankruptcy , there are also considerations for veterans of the military who are currently receiving Veterans Disability benefits. As a recent article in Forbes explains, Veter...

The Background on the Case Earlier this year we discussed the consumer bankruptcy case of Lamar, Archer & Cofrin, LLP v. Appling . In the case, the debtor told the creditor that he planned to repay the debt with a tax refund of $100,000. The debtor actually applied for a tax refund of only $60,000, and did not repay the debt. When all was said and done, he owed the creditor $104,000. The debtor filed for Chapter 7 bankruptcy , and sought to have the $104,000 debt discharged. The creditor argued that the debt was not dischargeable because it fell into the category of a “fraud exception” under the U.S. Bankruptcy Code. Under the U.S. Bankruptcy Code, a debtor cannot discharge a debt that has been “obtained by false pretenses, a false representation, or actual fraud.” However, there is an exception to this fraud exception. The Bankruptcy Code clarifies that, when a debtor makes a statement that looks like fraud, the debt can still be discharged if the statement was ...