Oak Park Real Estate & Estate Planning Blog

If you are struggling with student loan debt and have been wondering if you could be eligible to have that debt discharged in a consumer bankruptcy proceeding , you are not alone. Debtors across Oak Park and throughout the Chicago area have substantial student loan debt that makes it difficult to or even impossible to live a comfortable life. For many people with student loan debt, even federal loans can be difficult to repay, and forgiveness programs are difficult to understand and to navigate. While you may be considering personal bankruptcy, you also may know that it has traditionally been quite difficult to have student loan debt discharged in a bankruptcy case. Debtors need to pass a test that shows they have made a good faith attempt to repay their student loans, and that continuing to have the student loan debt would create a great hardship. Recognizing the difficulty of discharging student loan debt in bankruptcy —and the need to make this process easier—consumer advocates an...

The U.S. Supreme Court recently granted certiorari to a bankruptcy case out of Chicago concerning the automatic stay. In other words, the U.S. Supreme Court agreed to hear the case, City of Chicago v. Fulton . The U.S. Court of Appeals for the Seventh Circuit most recently heard and ruled on the case, which involves a question about the automatic stay in a Chapter 13 bankruptcy case. We want to tell you more about the case and to discuss its possible implications for consumers in Oak Park moving forward. Getting the Facts About City of Chicago v. Fulton The present case, involves a situation in which a debtor’s car was towed and impounded, and the vehicle was not returned to the debtor once she filed for Chapter 13 bankruptcy, which is required under the automatic stay. Here are the basic facts of the case. Robbin Fulton, the debtor, had a citation for driving on a suspended license. The City of Chicago towed and impounded Fulton’s car in connection with that citation. Then Fulton...

The U.S. Court of Appeals for the Seventh Circuit recently ruled in favor of a consumer in a case concerning the Fair Debt Collection Practices Act (FDCPA), Horia v. Nationwide Credit & Collection, Inc . (2019). The Seventh Circuit’s decisions govern cases in Oak Park and throughout Illinois, so it is important for consumers to know how the Court ruled in this recent case. In short, the Court determined that a consumer was permitted to bring a second FDCPA claim against a debt collector for failing to notify a credit agency that the claim was disputed. Why is this case significant for debtors’ rights ? The consumer previously filed a claim against the debt collector for the same issue (but for a different debt), and the claim was settled and dismissed with prejudice. While the debt collector argued that the consumer was trying to obtain “multiple recoveries for a single kind of wrong,” the Court agreed with the consumer. We will tell you more about this case and its implication...

The topic of consumer bankruptcy is a significant one for a number of the Democratic presidential candidates, including Elizabeth Warren and Bernie Sanders. Personal bankruptcy can allow debtors in Oak Park and across the U.S. to get a fresh start when they are struggling with a massive amount of consumer debt or can allow a struggling homeowner to prevent foreclosure with Chapter 13 bankruptcy . However, many of the Democratic presidential candidates contend that consumers should not even be grappling with much of this debt in the first place—especially medical debt. According to a recent article in Market Watch , Sen. Bernie Sanders has been focusing on medical debt and consumer bankruptcy, and the need to reconfigure the American healthcare system so that consumers are not considering bankruptcy solely as a result of medical debt. What do you need to know about consumer bankruptcy and medical debt? We will tell you a bit more about how Bernie Sanders and other Democratic hopeful...

If you are thinking about filing for consumer bankruptcy , you probably have a lot of questions. Even if a friend or family member has filed for bankruptcy in the past and you have some knowledge of how the process works as a result, it is still important to learn as much as you can before you file. Regardless of how much you read about personal bankruptcy, you should always work with an Oak Park bankruptcy lawyer to ensure that you meet all requirements and that you remain eligible for a bankruptcy discharge at the end of your case. In the meantime, however, we want to provide you with some information. Here are 10 things you should know about consumer bankruptcy before you file. There are Different Types of Consumer Bankruptcy Different types of consumer bankruptcy exist under the U.S. Bankruptcy Code . Most often, consumers will file for either Chapter 7 or Chapter 13 bankruptcy, but in some cases, consumers also may file for Chapter 11 bankruptcy. Not Everyone is Eligible for A...