Oak Park Real Estate & Estate Planning Blog

Is there ever a situation in which a person or entity can file for two types of bankruptcy at the same time? For instance, if you are a business owner and have a struggling business, and you are also having immense difficulty with your own personal finances, can you file for two different forms of bankruptcy at the same time? Generally speaking, the Bankruptcy Code clarifies that an individual cannot file for two different types of personal bankruptcy at the same time, such as Chapter 7 and Chapter 13 bankruptcy . Likewise, a corporation cannot file for two different types of bankruptcy at the same time, such as Chapter 7 and Chapter 11 bankruptcy. For a single entity to file for two different types of bankruptcy, there are timetables and waiting limits for multiple discharges. We will talk you through the waiting times if you want to file for bankruptcy twice, and then we will explain scenarios in which a business owner could end up in two different types of bankruptcy ...

When approving the repayment plan for a Chapter 13 bankruptcy , the bankruptcy court takes into account the income of the debtor. In order to be eligible for Chapter 13 bankruptcy, the debtor needs to have a steady income that will allow her to complete the terms of the repayment plan. At the same time, the debtor does not necessarily have to have a substantial or significant monthly income in order to be eligible for the benefits of Chapter 13 bankruptcy. What happens when a debtor who is in the middle of completing a Chapter 13 bankruptcy plan loses his or her job and cannot make payments to creditors? What options are available for a bankruptcy discharge ? How Chapter 13 Bankruptcy Works To better understand what is likely to happen if a debtor loses his or her job during the Chapter 13 bankruptcy repayment period, it is important to understand how Chapter 13 bankruptcy works. When consumer debtors in Oak Park file for Chapter 13 bankruptcy, they are not eligibl...

Many unscrupulous debt collectors violate the Fair Debt Collection Practices Act (FDCPA) by harassing consumers and making fraudulent claims about debts that are owed. In numerous debt collection scenarios, the individuals on the receiving end of debt collection calls and other forms of contact never owed the debt in the first place. For other consumers, it is important to know that the statute of limitations may have passed on the debt, which means that the debt collector cannot file a claim in order to recover the debt. Although the statute of limitations does not change the fact that a consumer may owe the debt to a creditor, it does prevent a debt collector from taking action against a consumer after a specific period of time. In other words, a consumer should not need to worry about being the subject of a debt collection lawsuit once the limitations period has run out. This is also known as a time-barred debt. However, there are things that a consumer can do to reacti...

You might not expect to receive a debt collection call in which a collector is attempting to recoup a debt that is owed by a deceased relative, but it happens more often than you think. For instance, after a parent or sibling passes away, debt collectors still want to try to collect on any debts they owed and often turn to family members. Is it lawful to try to collect a debt owed by a deceased person by contacting a close family member, or does this type of contact violate the Fair Debt Collection Practices Act (FDCPA)? More generally, what are the rules when it comes to debt collection practices from family members of deceased debtors? We have collated information to help answer these questions from an article on CreditCards.com and a fact sheet from the Federal Trade Commission (FTC). You are Not Liable for the Debts of Your Deceased Family Members The first and most important thing for family members receiving these types of debt collection calls to know i...

There are many different reasons that older adults have to worry about their finances, from unexpected medical bills to bad investments. Many of those older adults end up struggling for years with a significant amount of consumer debt , unsure of how to make ends meet during retirement. For some, options such as a reverse mortgage might provide money to deal with high costs of living. For others, however, personal bankruptcy often becomes the best option. According to a recent article in The New York Times , we are beginning to see a “bankruptcy boom” among older adults. That information comes from a recent study conducted by the Consumer Bankruptcy Project. What is leading more seniors to file for divorce, and what do these bankruptcy rates mean for consumers more generally? Seniors Filing for Bankruptcy at Much Higher Rates As the article explains, there are many different reasons that more seniors are filing for bankruptcy, and consumer advocates probably sho...

When you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy , you are doing so because you have substantial debts and ultimately want to have those debts discharged. For many debtors, it can be confusing to understand how and when a discharge occurs, and what types of debts are not eligible for discharge. The U.S. Courts provide important information about bankruptcy discharge, and we want to go over some of that information for debtors who are considering consumer bankruptcy in Oak Park . How Does the Law Define Bankruptcy Discharge? What is a bankruptcy discharge? In short, it is a wiping away of debt. Bankruptcy discharge is a term that refers to a situation in which the debtor is released from his or her personal liability for certain debts incurred. To put it another way, a bankruptcy discharge means that the debtor does not have to pay for any of the debts that are discharged, and the creditors cannot seek to obtain any money owed on the debt once it is di...