Oak Park Real Estate & Estate Planning Blog

Filing for personal bankruptcy is complicated under any circumstances, but the process can be more complex when you are self-employed. When a person is self-employed, it can be difficult to know what kind of documentation she or he might need in order to pass the “means test” for Chapter 7 bankruptcy , or to prove that the debtor has sufficient and regular income to file for Chapter 13 bankruptcy. These complications can become more significant when a self-employed person is also a small business owner. We want to discuss consumer bankruptcy for self-employed individuals, and to provide additional information about personal bankruptcy when you are self-employed and a small business owner. Proof of Income for Chapter 7 or Chapter 13 Bankruptcy In order to qualify for Chapter 7 bankruptcy under the U.S. Bankruptcy Code as an individual (as opposed to a business), you need to be able to show that you can pass the “means test.” In effect, passing the means test is evidence that a liqui...

Consumer debt affects adults of all ages, from young adults to the elderly. When it comes to tracking personal bankruptcy filings, many older adults past the age of retirement are filing for bankruptcy, yet younger adults also file for consumer bankruptcy with some frequency. There may be a significant difference in the way that very young adults who are part of Generation Z manage their debts in comparison with adults of other generations, according to a recent article in Ladders . That article cites a Lending Point study that reports “Gen Z may be just getting into their credit-using years, but they are already showing significant differences in their credit profiles from the Millennials and GenXers that preceded them.” In short, the article intimates that Generation Z adults may be on a trend to have less difficulty managing consumer debt, and thus ultimately could be less likely to file for bankruptcy than consumers in other generations. Generation Z Consumers Have Higher Credi...

When someone in Oak Park decides to file for consumer bankruptcy , that debtor usually will make the decision to seek bankruptcy protection under the assumption that she or he will get a discharge of all eligible debts once the bankruptcy case is complete. However, there are many reasons that the bankruptcy court can dismiss a case. In some instance, a dismissal in bankruptcy occurs because of an honest mistake. At the same time, a dismissal in bankruptcy can also happen when the debtor intentionally engages in fraudulent behavior. If you are considering bankruptcy, you may be wondering: Can the court dismiss my bankruptcy case without discharging my debt? To ensure that you remain eligible to have your debt discharged, it is extremely important to work with an experienced Oak Park bankruptcy attorney on your case. In the meantime, we will provide you with some examples of common reasons that a Chapter 7 bankruptcy or Chapter 13 bankruptcy case can be dismissed without a discharge. ...

If you are currently managing a substantial amount of debt, chances are good that you are not alone. According to a recent report from Consumer Affairs , consumer debt has reached a new high of about $14 trillion. That information comes from the Center for Microeconomic Data, which is part of the Federal Reserve Bank of New York. The consumer debt included in that figure includes debt from a variety of sources, including “mortgages, credit cards, student loans, personal loans, auto loans, and all other forms of consumer debt.” While some consumers may be able to manage debt , others are struggling with it. We want to discuss the rise in consumer debt and to consider options for dealing with debt. Consumer Debt Amounts Steadily Rising The $14 trillion amount of consumer debt is part of a rising trend. According to the article, “the total has been rising for 21 straight quarters and has now surpassed the previous high reached in the third quarter of 2008, just as the financial crisis h...

In recent years, more older adults and the elderly have been seeking bankruptcy protection. In some cases, filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy can allow a person to get a fresh start financially. Chapter 13 bankruptcy can be especially beneficial to consumers who are facing foreclosure and want to find a way to stay in their homes and get back on track with mortgage payments. But is bankruptcy really the best option for seniors? According to a recent article in Investment News , bankruptcy may not be the best way for older adults to deal with debt. While younger people can rebuild savings and credit profiles, that work is more difficult for someone at the age of retirement. The older a person is, the more difficult those tasks become. Accordingly, for an adult aged 70 and up, getting back on track financially can be more difficult than it may seem. Yet whether bankruptcy is the right decision for you always depends upon your particular circumstances. If you have...

The question of whether a debtor can seek and obtain emotional distress damages in a consumer bankruptcy case might seem like an odd one given that most debtors are concerned primarily with getting debt under control and achieving a discharge. However, it is important to keep in mind that there are legal protections in place to protect debtors when creditors do not abide by federal bankruptcy law. Following other court, the Seventh Circuit Court of Appeals (which includes Illinois) has ruled that, in some cases, a debtor may be eligible to receive emotional distress damages when a creditor willfully violates the terms of the automatic stay in a personal bankruptcy case. Why Would Emotional Distress Damages Come Into Play in a Bankruptcy Case? Under Section 362 of the U.S. Bankruptcy Code , the automatic stay applies as soon as a debtor files for bankruptcy. The automatic stay prevents creditors from continuing with any attempts to collect on the debts owed by the debtor, from maki...