Oak Park Real Estate & Estate Planning Blog

One of the reasons that so many consumers worry about debt and often wait to file for bankruptcy is that they are concerned about a possible hit to their credit score. Creditors do look at credit scores when deciding whether to extend credit to a consumer, and credit scores can have a major impact on a consumer’s ability to buy a car or a house, and sometimes even to be considered for a particular job. What many consumers do not realize is that personal bankruptcy does not always have a long-lasting effect on their credit score. Indeed, many people who file for bankruptcy bounce back quickly and see their credit scores rebound in much less time than they expect. Yet we do not want to talk about credit scores in relation to consumer bankruptcy today. Rather, we want to say more about a recent NPR article discussing a change to FICO credit scores. According to the article, many consumers are likely to see a drop in their credit scores as a result of the changes. We will say more ab...

Debtors in Oak Park who are considering personal bankruptcy to discharge student loans should learn more about a recent bankruptcy case in New York. Although this case is not binding in Illinois, it demonstrates that bankruptcy judges are thinking about the “undue hardship” requirement in more flexible ways, allowing debtors to discharge student loan debt in a Chapter 7 bankruptcy case. According to a recent article in Forbes , this bankruptcy case involving the discharge of student loan debt could be a sign that bankruptcy courts across the country will begin looking at student debt a bit differently in Chapter 7 bankruptcy cases. Let us tell you more about the case. Chapter 7 Bankruptcy Case Involves Discharge of $221,000 in Student Loans The recent bankruptcy case discussed in Forbes involved the discharged of $221,000 in student loan debt. Many debtors in Illinois and across the country have heard that it is difficult—and maybe even impossible—to discharge student loan debt in...

When we think about consumer debt and personal bankruptcy filings, it is important to think beyond the socioeconomic bracket in which an individual or married couple falls. Indeed, according to a recent article in Forbes , many families who are struggling with consumer debt may be likely to file for bankruptcy in the near future, and race and ethnicity may be significant predictive factors. As that article explains, although white families have more consumer debt than non-white families, by and large, white families who are taking on consumer debt have more income and assets to cover what they are borrowing. However, for many African American and Latinx families with consumer debt, more borrowing could ultimately lead to bankruptcy as a result of underlying structural inequalities at work. More Consumers are Borrowing Similar to the late 1990s, more consumers are taking on debt as employment levels look promising. Yet the idea that this is a “good” kind of consumer borrowing may n...

Whether you are thinking about filing for bankruptcy or have recently filed for bankruptcy, you may be wondering if you need to tell your creditors about your bankruptcy plans. Are there any benefits to informing your creditors about your plans to file for bankruptcy or the fact that you have already filed for bankruptcy? Are there any laws that require debtors to alert their creditors about consumer bankruptcy plans or filings? In short, a consumer is never required to get in touch directly with a creditor to alert them to bankruptcy plans or filings. However, it could be helpful in some scenarios to alert a creditor about a bankruptcy case. If you have questions about your responsibilities as a debtor when you file for bankruptcy, it is important to have an experienced Oak Park bankruptcy lawyer who can assist you throughout your bankruptcy case. Potential Benefits of Informing Creditors About Bankruptcy Plans Before You File If you are considering bankruptcy but are also conside...

If you are currently considering personal bankruptcy but have read news stories about some of the presidential candidates’ plans to amend U.S. bankruptcy laws so that they are more consumer-friendly, you may be wondering if it makes sense to wait until after the presidential election to file for Chapter 7 or Chapter 13 bankruptcy . While there is a possibility that U.S. bankruptcy laws could change depending upon who fills the role of U.S. president in the coming years and how Congress handles consumer advocate concerns about personal bankruptcy issues, any kind of changes to the law might not happen quickly enough for you to wait. In other words, if you are struggling with debt and are thinking about bankruptcy, it may be in your best interest to speak with an Oak Park bankruptcy lawyer sooner rather than later. At the same time, it is important to understand recent news surrounding proposed changes to U.S. bankruptcy law and how they could affect consumers in the future. According...

When an Oak Park consumer faces harassment or other unfair or deceptive practices from a debt collection company , that consumer might consider filing a claim under the Fair Debt Collection Practices Act (FDCPA). The FDCPA prohibits certain actions by debt collectors and gives consumers the ability to file a federal claim in situations where a debt collector violates the law. Yet one of the requirements to have standing to sue under the FDCPA (and other federal statutes) is that the consumer must have suffered an “injury in fact” under Article III of the U.S. Constitution. Without an “injury in fact,” the consumer’s complaint can be dismissed for lack of standing. A 2016 U.S. Supreme Court case, Spokeo, Inc. v. Robins (2016), made clear that a consumer must have suffered an injury that is “concrete” enough to be considered an “injury in fact.” In applying Spokeo, several circuit courts have concluded that the consumer did have standing. However, a recent case out of the Sixth Circ...

When you file for consumer bankruptcy , it is essential to have an experienced bankruptcy lawyer you can trust to assist with each stage of the process. The U.S. Bankruptcy Code is extremely complicated, and both Chapter 7 bankruptcy and Chapter 13 bankruptcy have a variety of complexities that can be difficult to navigate without the help of an attorney. A recent Illinois bankruptcy case emphasizes just how important it is to have an experienced and dedicated lawyer on your side throughout your bankruptcy case. In the case In re: Charles V. Cook, Sr. , the U.S. Bankruptcy Court for the Northern District of Illinois found that the bankruptcy firm was liable for failing to disclose information in a consumer bankruptcy case. At the Emerson Law Firm, we have years of experience providing experienced practiced representation to our clients in a wide variety of consumer protection matters. We want to discuss this recent case and to say more about how it underscores the need for an exper...