Oak Park Real Estate & Estate Planning Blog

Illinois residents and any debtors in states governed by the 7th Circuit Court of Appeals should know about a recent case concerning debt collection companies and their right to charge fees to debtors. According to a recent report in Reuters , the 7th Circuit Court of Appeals just held that the debt collector National Recovery Agency “did not violate federal collection law by charging consumers fees based on the percentage of the debt collected.” The 7th Circuit Court of Appeals covers Illinois, Indiana, and Wisconsin. Federal decisions in the Court are binding in those states, and the decisions can be persuasive in other jurisdictions. In other words, Oak Park residents will need to pay close attention to the recent case because the outcome could be applicable to them. Getting the Facts of Bernal v. NRA Group, LLC The recent 7th Circuit case is Bernal v. NRA Group, LLC (2019). As the Court explained the case, the primary issue it had to decide in this case was “whether a debt c...

When you file for personal bankruptcy , whether you are filing for Chapter 7 or Chapter 13 bankruptcy (or in some cases Chapter 11 bankruptcy), it is important to understand that there are specific rules you must follow. Indeed, filing for consumer bankruptcy is a complicated process, and it is essential to provide all required documentation and to fill out schedules appropriately. Since consumer bankruptcy is so complex, it is always a good idea to work with an experienced bankruptcy lawyer to ensure that you follow all steps correctly. Yet it is also important to know that making an error on your materials is distinct from bankruptcy fraud. While a mistake in your filing can still prevent you from being eligible for a discharge, bankruptcy fraud typically results in much more serious consequences. We want to be clear about the differences between errors in your bankruptcy materials and bankruptcy fraud. What is Bankruptcy Fraud? Bankruptcy fraud can take many forms, and it typical...

Could U.S. Bankruptcy courts in Illinois learn from a new bankruptcy program in Florida that is designed to help student loan debtors ? According to a recent article in the Orlando Sentinel, the U.S. Bankruptcy Court for the Middle District of Florida has developed a program for consumers with student loan debt who have filed for Chapter 13 bankruptcy . The program is designed to facilitate communication between the debtor and the lender so that the debtor can work out a modified student loan repayment plan as part of the Chapter 13 bankruptcy case. While this program is only available currently to debtors in Florida, we want to discuss it because a similar program ultimately may be able to help struggling student loan borrowers in the Chicago area. Purposes of the Student Loan Modification Program The student loan modification program, or SLM Program , will take effect for eligible debtors on August 1, 2019. According to the administrative order prescribing procedures for the pro...

If you are thinking about filing for Chapter 7 bankruptcy in the Oak Park area, you may have heard that creditors have the opportunity to object to your discharge. It is important to know that an objection to your discharge is distinct from a creditor asking questions at the meeting of creditors (which is also known as the 341 hearing). Should you be worried that you will not be able to have a discharge in your consumer bankruptcy case because a creditor will object? We want to say more about the objection to discharge, why it happens, and whether it is something that may apply in your case. Learning More About Discharges in a Consumer Bankruptcy Case To understand what an objection to discharge is and why it can happen, you will need to understand clearly what a bankruptcy discharge is. As the U.S. Courts website explains, a bankruptcy discharge “releases the debtor from personal liability for certain specified types of debts.” To put it another way, the discharge wipes out debt...

If a consumer files for personal bankruptcy in Oak Park, Illinois , current federal bankruptcy law allows that consumer to exempt—or keep—certain assets. In other words, some property is exempt from liquidation and cannot be used in a Chapter 7 bankruptcy case to repay creditors. For most individuals who file for bankruptcy , Social Security payments always are exempt. This means that anyone receiving Social Security payments cannot be required to turn over that money to creditors in order to receive a discharge in a Chapter 7 bankruptcy case. Yet not all federal benefits are treated equally in this regard. As a recent article in The Wall Street Journal explains, changes to the U.S. Bankruptcy Code back in 2005 have “disproportionately squeezed money from disabled veterans, retired people, and the unemployed, who have had to dip into pensions and public-assistance income to pay back debt through a much more arduous bankruptcy process.” Not All Benefits are Exempt in a Consumer Bank...