Oak Park Real Estate & Estate Planning Blog

More older adults, including those who have retired, are filing for consumer bankruptcy . For some people, filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy is the best decision to deal with debt. Yet bankruptcy presents particular difficulties for seniors given that there is not as much time to bounce back financially. Indeed, filing for bankruptcy after retirement can result in the debtor needing to return to work in order to get back on his or her feet. A recent article in Kiplinger discusses tips for older adults dealing with debt in retirement. We want to provide you with more information about managing debt after you retire, and to give you more information about what you might expect after a bankruptcy during your retirement. Tips for Managing Particular Types of Debt As the article emphasizes, “declining income and medical expenses are the leading causes of older Americans’ financial stress.” About two-thirds of retirees who file for bankruptcy do so as a result of ...

The holiday season often is expensive and stressful even under the best financial circumstances. Many families spend thousands of dollars every holiday season on gifts for other family members, friends, and co-workers, not to mention vacations involving extensive travel and hotel costs. Yet, if the holiday season is a financial stressor even for people who are feeling relatively stable financially, it is often extremely difficult for families struggling with debt. For those who have already filed for bankruptcy, the holiday season can be particularly challenging. Is it possible to enjoy the holiday season if you recently filed for Chapter 13 bankruptcy or are planning to file for bankruptcy in the near future? An article in The Balance addresses this question, and we want to discuss it with you as we move into the holiday season. Managing Holiday Spending After Filing for Chapter 13 Bankruptcy If you recently filed for Chapter 13 bankruptcy and are in the early stages of your rep...

If you are thinking about filing for consumer bankruptcy and are currently a homeowner, you may also be someone who pays fees to a homeowners association. When it comes to homeowners association (HOA) fees, it is important to understand how this type of debt gets handled in a bankruptcy case. It will be essential to understand the distinctions between Chapter 7 bankruptcy and Chapter 13 bankruptcy for the purposes of HOA fees. To be clear, there are particular considerations for HOA fees that are different from other types of debt. We will explain more below. Understanding HOA Dues and HOA Debt As an article in The Balance explains, HOA fees consist of money that is paid to the homeowners association when you own a home in a particular neighborhood or building. In effect, HOA fees are better thought of as “dues” that “help you share costs with others in your community.” The homeowners association typically is “a group of homeowners in the same neighborhood or building who share c...

When you make the decision to file for consumer bankruptcy , it can be confusing to understand what property is exempt and how your current assets will be handled in your bankruptcy case. There are also important distinctions between Chapter 7 bankruptcy and Chapter 13 bankruptcy , since the former is a “liquidation” bankruptcy in which all non-exempt assets are liquidated in order to repay creditors. One issue that can be especially unclear is how inheritances are handled in a bankruptcy case. For example, if you inherit property either before you file for bankruptcy or after you file your bankruptcy petition, will you be able to keep that property? The answer to this question can vary depending upon a number of different factors. We want to address some of those key factors for you below. Is the Inheritance Exempt? One of the first considerations is whether an inheritance would be exempt property under Illinois law . In Oak Park, debtors who are filing for bankruptcy are required...

Many consumers in the Oak Park area who struggle with various types of consumer debt also struggle to make monthly mortgage payments. For some of those consumers, filing for personal bankruptcy can be an option for managing what feels like insurmountable debt. However, consumer bankruptcy may not be the best option for people who are dealing with non-dischargeable debt. While there are various types of non-dischargeable debt that cannot be erased through a bankruptcy filing, we want to say more about tax debt—and mortgage tax debt—specifically when it comes to filing for bankruptcy. According to a recent article in Bloomberg , numerous consumers make the decision to file for bankruptcy as a result of an inability to pay the taxes on mortgage debt that is forgiven after a foreclosure or a short sale. As the article explains, consumers previously could exclude forgiven debt from taxable income, but that may be more complicated now. How Forgiven Mortgage Debt can Affect Your Taxable ...