Oak Park Real Estate & Estate Planning Blog

If you currently are struggling to repay student loan debt, you may know that you are not alone. With student loan debt totaling approximately $1.5 trillion dollars and 45 million borrowers in the U.S., many people who are having difficulty managing student loan debt want to know if they should file for consumer bankruptcy . Indeed, as an article in Forbes underscores, student loan debt currently is “the second highest consumer debt category—behind only mortgage debt—and higher than both credit cards and auto loans.” At the same time, however, many consumers who are grappling with student loan debt have heard that discharging student loans in bankruptcy can be difficult or even impossible. A recent report from U.S. News & World Report considers student loans and bankruptcy, and discusses situations in which debtors should consider filing for personal bankruptcy in order to discharge student loans. It is a Myth That Student Loans Cannot be Discharged in Bankruptcy The recent re...

In August, Congress passed several laws designed to amend current bankruptcy law in the U.S. in order to make it easier for certain people to file for bankruptcy . As an article in The Guardian explains, the legal changes will make it easier for certain individuals and small business owners alike to seek bankruptcy protection. If you are considering filing for Chapter 7 bankruptcy and currently receive veterans’ disability payments, you should learn more about recent changes to U.S. bankruptcy law. In addition to providing help for disabled veterans who want to seek bankruptcy protection, recent changes to the law also may be able to help some consumers who are also small business owners. We want to tell you more about these changes to the law and to discuss some ways in which they may be able to provide relief for consumers in Oak Park, Illinois. How the HAVEN Act Will Make it Easier for Disabled Veterans to File for Bankruptcy The first of the recent changes to the law is the Ho...

Are you considering filing for Chapter 7 bankruptcy ? While a liquidation bankruptcy may seem relatively straightforward upon initial consideration, it is important to remember that consumer bankruptcy is extremely complex. Even when you have relatively few assets, Chapter 7 bankruptcy requires individuals to provide detailed information in a wide variety of documents. As such, you should always work with a dedicated Oak Park bankruptcy attorney on your Chapter 7 filing. In the meantime, however, we want to provide you with some basic facts about Chapter 7 bankruptcy. The following are five things you should know before you consider filing. Individuals Must Pass the “Means Test” in Order to Qualify The “means test” is a way of determining whether a debtor has enough income or assets such that it does not make sense for that person to file for Chapter 7 bankruptcy. In general, a consumer takes the means test by deducting monthly expenses from his or her current monthly income to dete...

When a couple is considering filing for bankruptcy , it is often a real possibility that those spouses also are considering divorce. As an article in Business Insider explains, financial difficulties, including consumer debt, often are listed as a primary cause for divorce. Yet when you are considering both personal bankruptcy and divorce, it can be difficult to know whether you should file for bankruptcy before you file for divorce, or vice versa. If you are thinking about bankruptcy and divorce, you should get in touch with an Oak Park bankruptcy lawyer as soon as possible who can help you to determine a course of action that is best suited to your individual circumstances. In the meantime, however, we want to provide you with some information that can help you to get a sense of whether filing for bankruptcy before divorce may be in your best interests. Which Type of Bankruptcy are You Considering? If you are planning to file for Chapter 13 bankruptcy, which is a type of reorgan...

When you are considering consumer bankruptcy , it is important to know that the processes for both Chapter 7 bankruptcy and Chapter 13 bankruptcy are complicated. As such, you should always work with an experienced Oak Park bankruptcy attorney throughout your case. At the same time, it is also a good idea to understand the process of filing for bankruptcy before you actually do it, as well as the documents you will need in order to be eligible for a discharge of your debts or to have the court approve your Chapter 13 repayment plan. The following is a checklist of all of the documents you will need to have in order to properly disclose income and assets, as well as to provide the bankruptcy court with the information it needs to move forward with your case. Tax Returns You will need to have copies of your tax returns in order to complete your Chapter 7 or Chapter 13 bankruptcy petition. If you are filing for Chapter 7 bankruptcy, you will need the last two years of tax returns. If y...

Often when we talk about bankruptcy and problems with mortgage servicers, we are talking about consumers who file for Chapter 13 bankruptcy to avoid foreclosure or consumers who file for Chapter 7 bankruptcy in order to get a fresh start financially. However, as a recent Chapter 11 bankruptcy case suggests, sometimes consumer issues and consumer advocacy work actually can impact a mortgage servicer’s bankruptcy case. A recent article in The Wall Street Journal describes the case as one in which “consumer concerns sink Ditech’s Chapter 11 exit plan.” We want to provide you with more information about the background of the case, and then we want to say more about the significance of consumer concerns in the case. Getting the Facts About the Ditech Financial, LLC Bankruptcy Case According to an article in Bloomberg , last week consumers were waiting to hear about how a judge would rule on the proposed bankruptcy plan put forth by Ditech Financial, LLC, a mortgage servicer that has ...