Oak Park Real Estate & Estate Planning Blog

If you are an individual (and not a business) who is thinking about filing for Chapter 7 bankruptcy , you need to know up front that you will need to be able to pass the “means test” in order to be eligible for Chapter 7 bankruptcy in Oak Park. The means test was instituted as part of the bankruptcy reforms that occurred in 2005 to prevent individual consumers who have the ability to repay debts from obtaining a swift discharge. The drafters of the bankruptcy reform measure thought it would be abusive to allow a consumer who earns a regular paycheck to have assets liquidated. When you are considering Chapter 7 bankruptcy, which is a liquidation bankruptcy, you are probably wondering, “Can I pass the means test?” We want to give you more information about the means test, and to clarify what your options might be in the event that you cannot pass the means test to file for Chapter 7 bankruptcy. Determining Household Income In general, the first step toward passing the means test is to...

For most consumers in Oak Park, Illinois, one of the major benefits of filing for personal bankruptcy is that you can be eligible to have debts discharged—either quickly in a Chapter 7 bankruptcy case or the end of a reorganization plan in a Chapter 13 bankruptcy case. For many debtors in Illinois, the bankruptcy discharge allows for a fresh financial start and the ability to stop worrying about unmanageable debt. There are also other reasons to file for personal bankruptcy, especially if you are at risk of foreclosure. Filing for Chapter 13 bankruptcy can allow you to stop a foreclosure and to get back on track with monthly mortgage payments. Yet if you are currently considering filing for bankruptcy in order to have your debts discharged, you should know that certain types of debts are not eligible for discharge. The following should give you a sense of some of the major types of debts that are considered “non-dischargeable” under the U.S. Bankruptcy Code . Family Support Debt I...

If you are thinking about filing for bankruptcy and you own a small business, it is important to understand definitively whether your business bankruptcy case is likely to affect your personal finances. In other words, if you file for business bankruptcy, could you also be filing for personal bankruptcy? Or, if you file for business bankruptcy and have made a personal guarantee on a loan, what does that mean for your financial situation as a consumer? Could you ultimately need to file for personal bankruptcy in order to manage the debts associated with your business? A recent article in Fortune explains how many business debtors might not be thinking carefully about how a business bankruptcy could impact their personal situation. The following are some important facts you should consider as you make plans to speak with an Illinois bankruptcy lawyer. Business Bankruptcy for Sole Proprietors is the Same as Personal Bankruptcy Depending upon how your small business is structured, i...

Struggling with debt can produce significant anxiety, and it can be difficult to know whether you are making the right choices when it comes to your finances, the economic needs of yourself and your family, and your credit score. Missing payments on credit card debt or medical bills can result in penalties and fees being added onto the total amount you owe, not to mention interest. If you do owe a substantial amount of consumer debt, you may be wondering whether personal bankruptcy is the right choice for you. There are many benefits to both Chapter 7 bankruptcy and Chapter 13 bankruptcy , which are the two most common forms of consumer bankruptcy in the U.S. The following are some of the benefits that come with filing for bankruptcy protection. Automatic Stay Will Prevent Additional Actions from Creditors or Debt Collectors Whether you file for Chapter 7 or Chapter 13 bankruptcy , one of the immediate benefits is that the automatic stay will prevent creditors or debt collectors ...