Oak Park Real Estate & Estate Planning Blog

If you are considering Chapter 13 bankruptcy or if you recently started the process of going through a Chapter 13 bankruptcy case, you should know that this process takes much longer than a Chapter 7 bankruptcy case. Before Chapter 13 debts can be discharged, the debtor will need to develop a repayment plan in order to “reorganize” debts, and consumer bankruptcies under Chapter 13 typically have a timeline of anywhere from three to five years. In other words, your bankruptcy case will take the length of your repayment plan (from three to five years, depending upon your income and other factors), in addition to the amount of time from filing until your repayment plan is approved. Once the terms of the repayment plan are completed, the bankruptcy court will need to review your case to determine whether remaining debts are eligible for discharge. What all of this means is that, in brief, a Chapter 13 bankruptcy case takes quite a long time. During that time window, professional and ...

Earlier in the start of the pandemic, consumer protection advocates began discussing the risks of looming personal bankruptcy filings. As thousands, then hundreds of thousands, and ultimately millions of people lost their jobs due to the COVID-19 pandemic, more commentators discussed the increased risks of a wave of consumer bankruptcy filings. In large part, that wave has not come, but according to a recent article in The New York Times , the presence of federal aid may have something to do with the limited number of bankruptcy filings thus far in the pandemic. However, if Congress does not expand certain federal benefits for an extended period of time, the article suggests, then we could soon see a sharp rise in Chapter 7 bankruptcy filings in Chicago and across the country. Bankruptcy Filings Declined Despite “Soaring” Unemployment Much of the U.S. entered into state-based stay-at-home orders in March, and non-essential businesses closed. As a result, millions of people ultimat...

  If you are considering filing for consumer bankruptcy , you may be thinking carefully about the steps you need to take in order to get ready to file. Yet just important as the steps you need to take are the things you should not do before you file for bankruptcy. Whether you are planning to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, it is important to consider some of the common mistakes that people make when they file and to avoid making mistakes in the months prior to filing or during the bankruptcy process. The U.S. Bankruptcy Code governs most issues pertaining to consumer bankruptcy, along with Illinois laws pertaining to bankruptcy exemptions. As you are thinking about whether to file for consumer bankruptcy, you should take note of the following things you should avoid before you file. If you need assistance or have additional questions, you should seek advice from an Oak Park bankruptcy attorney as soon as possible.   Do Not Give Inaccurate Informat...

Consumers who are struggling with debt but do not want to file for bankruptcy may, in certain situations, end up facing an involuntary bankruptcy petition. While involuntary bankruptcy is much more common when businesses owe debts to creditors, there are situations in which creditors can file an involuntary bankruptcy petition against an individual debtor. In most situations, individual consumers do not need to be worried about facing an involuntary bankruptcy case. However, it is important to understand the kinds of scenarios in which the U.S. Bankruptcy Code allows a creditor (or a group of creditors) to file an involuntary bankruptcy petition against an individual debtor. Learning More About Involuntary Bankruptcy Before we discuss some of the situations in which creditors can and cannot file an involuntary bankruptcy petition against an individual debtor, we want to tell you more about involuntary bankruptcy. In general, there are voluntary and involuntary bankruptcy proceedi...

If you are considering whether consumer bankruptcy is the right path for you, we know that you probably have many different questions. When you have questions or concerns, it is important to know that the specific facts of your situation could affect certain answers to inquiries you have. As such, you should always speak directly with an Oak Park bankruptcy lawyer who can assess your case and provide you with tailored responses. In the meantime, the following are some frequently asked questions about consumer bankruptcy, along with replies that can be helpful to you as you consider whether bankruptcy is the right choice for you. Can I Choose Between Chapter 7 and Chapter 13 Bankruptcy? In most situations, the U.S. Bankruptcy Code does not permit a debtor to choose between Chapter 7 and Chapter 13 bankruptcy because each type of bankruptcy has different requirements. In order to qualify for Chapter 7 bankruptcy, you need to prove that your income and assets are low enough that ...

When you are having difficulty making payments on your debts and are considering personal bankruptcy, you may be debating between Chapter 7 bankruptcy and Chapter 13 bankruptcy —the two most common types of consumer bankruptcy. These forms of personal bankruptcy are quite different from one another, and it is important to understand the distinctions. While both types of bankruptcy will ultimately result in a discharge of eligible debts, the timeline for each is quite different, and each type of bankruptcy has its own pros and cons. We want to tell you more about the benefits and limitations of Chapter 13 bankruptcy . If you need assistance filing, you should contact an Oak Park bankruptcy attorney as soon as possible. Pros of Chapter 13 Bankruptcy There are a number of benefits of Chapter 13 bankruptcy. For many people who file for Chapter 13 bankruptcy, one of the primary benefits is that it can allow you to avoid foreclosure on your home and to remain in your property. Chapter 7 ...