Oak Park Real Estate & Estate Planning Blog

Deciding to file for bankruptcy is certainly a major decision, and it is one you should make with assistance from an experienced Oak Park bankruptcy attorney . In nearly all consumer bankruptcy cases, the debtor has filed for bankruptcy because they need the kind of debt relief that can be offered through a bankruptcy case, or other benefits of bankruptcy, such as the way in which a Chapter 13 bankruptcy case can stop a foreclosure and allow the debtor to remain in their home. But what happens when a debtor files for bankruptcy without thinking the decision through? Or what happens if a person files for bankruptcy and then their financial situation changes suddenly and unexpectedly? In such scenarios, is it possible to withdraw a bankruptcy filing or to back out of the bankruptcy case? The answer depends on a number of factors. You Will Likely Need to Complete a Chapter 7 Bankruptcy Unless You Have Good Cause If you have filed for Chapter 7 bankruptcy —as opposed to Chapter 13 bank

When you are thinking about the possibility of filing for consumer bankruptcy , you may be considering Chapter 13 bankruptcy , particularly if you have a steady job or if you are hoping to stop a foreclosure on your home and to remain in that property. Chapter 13 bankruptcy is beneficial for so many Americans because it allows debtors to restructure their debts over a period of three to five years while taking advantage of the automatic stay, which can stop a foreclosure. Although the automatic stay does not mean that a debtor can remain in a home that is nearing foreclosure, in Chapter 13 bankruptcy in particular, it stops foreclosure proceedings from moving forward, and then the debtor can get back on track with mortgage payments through the Chapter 13 repayment plan. There are also many other benefits to Chapter 13 bankruptcy that an Oak Park bankruptcy attorney can discuss with you. In the meantime, we know that it can be difficult to understand how a Chapter 13 bankruptcy discha

If you have student loans and are considering the option of filing for bankruptcy because you cannot manage the debt, you are not alone. Millions of Americans are struggling with student loan payments, yet few decide to file for bankruptcy in order to discharge those loans because of the common perception that student loans are difficult or impossible to discharge in bankruptcy. It is certainly true that student loans are not as easy to discharge as other types of debt, it is possible to have student loans discharged in a Chapter 7 or Chapter 13 bankruptcy case. A recent federal court decision suggests that it may get even easier to have certain student loans discharged in a personal bankruptcy case. Indeed, a recent decision from the Second Circuit Court of Appeals held that “private student loans are not protected from discharge in bankruptcy,” according to an article in Reuters . While that federal court opinion occurred outside the circuit governing cases in Illinois, it may b

Going through any major life event or experience can be stressful, and a consumer bankruptcy or divorce on its own can be a time-consuming process. Yet many people are considering both personal bankruptcy and divorce at the same time for a variety of reasons. It is essential to take into account a number of considerations if you are thinking about bankruptcy and divorce, and our experienced Oak Park bankruptcy attorneys have three important considerations for you. If you have additional questions or need assistance with a Chapter 7 bankruptcy or Chapter 13 bankruptcy, the Emerson Law Firm is here to assist you. 1. Type of Bankruptcy May Determine Whether You Should File for Bankruptcy First The type of bankruptcy you are planning to file for ultimately may determine whether you should file for bankruptcy before you file for divorce or vice versa. Chapter 7 bankruptcy, which is a liquidation bankruptcy, is a relatively quick process—a few months, typically—after which point all el

How broad are the protections associated with the automatic stay under the U.S. Bankruptcy Code, and can they require a creditor to turn over property that was repossessed shortly before a consumer’s bankruptcy filing? The recent U.S. Supreme Court decision in City of Chicago v. Fulton (2021) makes clear that a creditor who repossesses an automobile before the debtor files for bankruptcy is not required under U.S. bankruptcy law to turn over an impounded automobile once the debtor has filed for bankruptcy and the automatic stay attaches. Yet as a recent article in Auto Finance News suggests, the Court’s decision leaves some questions unanswered, particularly with regard to repossessions. Understanding the Court’s Decision in Fulton In City of Chicago v. Fulton, debtors had their vehicles impounded by the City of Chicago for “failure to pay fines for motor vehicle infractions.” The debtors subsequently filed for consumer bankruptcy and argued that the automatic stay required the C

Many consumers file for personal bankruptcy because they have a substantial amount of both secured and unsecured debt. When it comes to unsecured debt, there is no need to be concerned about the possibility of a repossession unless you have pledged your personal property as collateral in order to get the loan. With secured debt, however, the creditor may attempt to repossess the property for which you have the secured debt—such as a car or rent-to-own furniture. Yet understanding how repossession works with regard to bankruptcy can be complicated. Our experienced Oak Park bankruptcy attorneys want to provide you with more information about consumer bankruptcy and repossession. What is Repossession? When you have secured debt, which means there is an asset to secure the loan, the creditor often can repossess the property that secures the loan. Secured loans include auto loans, as well as loans for any tangible item that is in your possession that you are paying off over time (such a

Making the decision to file for personal bankruptcy can be a complicated one, and it is important to reach that decision with guidance from an experienced consumer bankruptcy lawyer in Oak Park . While it is possible to file for bankruptcy without having an attorney, U.S. bankruptcy law is extremely complex, and there are many different reasons to have a lawyer on your side. The following are some of the top reasons to hire a consumer bankruptcy lawyer when you are considering Chapter 7 or Chapter 13 bankruptcy. You Will Need Assistance Determining the Best Type of Bankruptcy for You Although it is a common misconception, you cannot simply choose the type of bankruptcy for which you will file. To be clear, you cannot choose between Chapter 7 and Chapter 13 bankruptcy based on what you want to get out of the bankruptcy. Rather, you will need to prove that you are eligible for the particular type of bankruptcy for which you plan to file. Proving eligibility for Chapter 7 bankruptcy