Oak Park Real Estate & Estate Planning Blog

Could a significant amount of holiday spending result in a rise in consumer bankruptcy cases in the New Year? While there are multiple factors that impact the overall rate of consumer bankruptcy in Illinois and throughout the country, significant and widespread upticks in spending could trigger an increase in overall Chapter 7 and Chapter 13 bankruptcy filings. According to a recent report from ABC News , the overall increase in spending during the 2022 holiday season could result in a rise in consumer bankruptcy filings in 2023. Our Oak Park bankruptcy lawyers want to discuss the article and help you understand your options if you are struggling with debt. Consumer Holiday Spending Increased in 2022 Data from Mastercard SpendingPulse shows that consumer sales during the holiday season rose by approximately 7.6 percent, with varying increases for different types of gifts and spending. More specifically, apparel sales purchased rose by about 4.4 percent, while restaurant spending rose ...

When a debtor files for consumer bankruptcy , can that debtor be responsible for a debt that has resulted from another party’s fraud even if the debtor did not know about the fraud? That is the question at the heart of a current case that is pending before the U.S. Supreme Court. The case is Bartenwerfer v. Buckley , and the case was argued on December 6, 2022. What do you need to know about the case and its potential implications for bankruptcy filings in Illinois? Our Oak Park bankruptcy attorneys can explain. Understanding the Facts of Bartenwerfer v. Buckley In Bartenwerfer, the married couple David and Kate Bartenwerfer purchased a house in San Francisco. They moved out of the house, and David started renovating it with Kate’s consent. However, Kate was not involved in the renovation process. After the renovation, they sold the house to the defendant, Kieran Buckley. Buckley identified defects and filed a claim against the Bartenwerfers, alleging fraud. Buckley was awarded damages...

Anyone in Oak Park who is considering personal bankruptcy and who also owns a small business should begin working with a lawyer as soon as possible to understand the potential implications of consumer bankruptcy for their business. If you are considering personal bankruptcy and you are wondering whether your small business will be impacted, the short answer is that it depends upon your situation. In many circumstances, a small business owner can file for personal bankruptcy without affecting the business. However, in situations where the small business and the business owner are the same legal entity, personal bankruptcy will also have to be business bankruptcy. Then, depending on the type of bankruptcy you are planning to file for, you may be able to keep your business open. Our Oak Park bankruptcy attorneys can provide you with more information. Personal Bankruptcy for Sole Proprietors If you are planning to file for personal bankruptcy and you are a sole proprietor, you should know...

If you have student loan debt and you have been considering bankruptcy , you may already know that the U.S. Department of Justice (DOJ) recently issued new guidance concerning the discharge of student loan debt. Given that there has been a significant amount of discussion about amending the way that student loan debt is handled in bankruptcy cases, it is critical to understand that the new guidance does not change the overall process for discharging student loan debt in bankruptcy. To be clear, the requirement of proving an “undue hardship” still exists, but the DOJ has clarified some of the elements of the process and has made some changes to the way it will approach the issue of student loan debt. Our Oak Park bankruptcy attorneys can provide you with more information about how the new guidance could impact student loan discharges in bankruptcy (including your student loan debt if you are considering bankruptcy). Debtors Still Need to Prove an Undue Hardship The new guidance does no...

Making the decision to file for bankruptcy can be difficult, especially if you are planning to file for Chapter 7 bankruptcy and trying to determine which of your assets will need to be liquidated in order to be eligible for a bankruptcy discharge. If you are considering Chapter 7 bankruptcy or any type of consumer bankruptcy, you may know that specific bankruptcy exemptions allow debtors to exempt certain assets. In a Chapter 7 bankruptcy case, exempt assets are not liquidated, and the debtor can keep those assets while remaining eligible for a discharge of their debts. In a Chapter 13 bankruptcy case, the fact that an asset is exempt does not mean that a debtor can keep the asset (because debtors do not have to give up assets in a Chapter 13 case), but rather that the value of an exempt asset does not have to be considered in the debtor’s repayment plan. Many debtors in Illinois receive some type of benefit, and some debtors receive multiple types of benefits from the government. Ho...

Anyone who is struggling with debt can feel overwhelmed, whether they owe $10,000 or $100,000 to creditors. Yet the total amount of debt you owe can determine whether personal bankruptcy is the right decision for you and whether it is the right decision to make currently. There are other factors to consider, including your income and assets and your employment prospects for the future, which could allow you to begin repaying some of the debt you owe. These issues can be complicated, and you should not make the decision to file for consumer bankruptcy until you have spoken with an experienced bankruptcy lawyer in Oak Park who can help you to assess your circumstances and to weigh the pros and cons of a bankruptcy filing. In the meantime, we know you might be wondering: how much debt is enough to file for bankruptcy? There is no specific number, but our firm can give you some things to consider. There is No Specific Debt Amount to Trigger a Personal Bankruptcy Filing You should know tha...

Medical debt has long been a major source of consumer debt and a primary reason that many individuals file for Chapter 7 or Chapter 13 bankruptcy. In the past, medical debt has often involved patients owing various debts to different facilities or owing money on a consumer credit card after charging a hospital bill or the costs of prescription medications. According to a recent report from NPR , a new kind of medical debt is taking hold across the country. In recent years, hospitals and other healthcare facilities have encouraged patients to sign up for hospital-specific credit cards or lines of credit to “consolidate health expenses.” This type of patient financing has led to even more medical debt, much of it unmanageable for consumers struggling to pay what they owe for health care. What do you need to know about hospital credit card debt, and what are your options for dealing with it? Our Oak Park consumer protection lawyers can provide you with more information. Medical Debt Now ...

If you currently have student loan debt and you are considering the possibility of consumer bankruptcy , you should know that the U.S. Department of Justice (DOJ) recently announced a new process for discharging student loans. According to an article in The New York Times , working with the U.S. Department of Education (DOE), the DOJ “announced a new process that it said would help ensure that people in bankruptcy seeking relief on their federal student loans were treated more fairly, with clearer guidelines about what types of cases would result in a discharge.” Does this shift mean that more bankruptcy discharges will involve student loans, and more consumers with student debt will be able to wipe out that debt in Chapter 7 bankruptcy cases? It might, but it will depend on how many current student loan borrowers are actually eligible to have their student debt discharged under the existing bankruptcy system. Our Oak Park bankruptcy attorneys can say more. New Approach Will Provide Cl...

As the holiday season approaches, it is important to consider a range of issues if you are thinking about filing for personal bankruptcy . Depending upon your circumstances, it could make sense to file for bankruptcy before the holidays, or it could be more sensible to file for bankruptcy after the holidays. You should discuss your specific circumstances with a bankruptcy lawyer in Oak Park before you make any decisions. In the meantime, the following are some important considerations to keep in mind when you are thinking about bankruptcy around the holiday season. Debt Accumulated Close to a Bankruptcy Filing Will Not Be Dischargeable If you use your credit card to make charges for holiday gifts, holiday travel, holiday decor, or other expenses close to the time when you are planning to file for bankruptcy, you should know that these debts are unlikely to be discharged in a consumer bankruptcy case. Under the U.S. Bankruptcy Code , any purchases that are made within 90 days from the d...

When an individual files for Chapter 7 or Chapter 13 bankruptcy in Illinois , they typically do so with the aim of receiving a bankruptcy discharge at the end of the bankruptcy case. Yet it can be confusing for a debtor to understand their rights in relation to a debt discharge and contact from debt collectors. For example, at what point, if any, can a debt collector attempt to collect on a debt that will soon be discharged in a bankruptcy case? Or, is there any time at which a debt collector can try to collect a debt that has been discharged? Our Oak Park bankruptcy lawyers can clarify your rights when it comes to debt discharges and debt collectors. The following are five things you should know about debt collectors and bankruptcy discharges in Illinois. 1. Debt Collectors Cannot Attempt to Collect Debts That Have Been Discharged Once you have received a bankruptcy discharge — meaning that eligible debts have been discharged — debt collectors cannot attempt to collect those debts. As...

Bankruptcy exemptions are extremely important in any consumer bankruptcy proceeding. In a Chapter 7 bankruptcy case, which is a liquidation bankruptcy, it is important to know that bankruptcy exemptions allow a debtor to keep various assets so that they are not liquidated. To be clear, any assets that are exempt do not need to be sold, and the debtor can keep them while still receiving a discharge of eligible debts. In a Chapter 13 bankruptcy case or another type of reorganization bankruptcy, exemptions are used to determine the amount of debt that the individual debtor must repay over the course of the repayment plan. If you are considering filing for bankruptcy in Illinois, especially if you are planning to file for Chapter 7 bankruptcy, you may have started looking into bankruptcy exemptions to determine how they are likely to apply to your case. Yet it can be confusing to find that there are both federal bankruptcy exemptions and state bankruptcy exemptions. You may be wondering: ...

If you have been considering consumer bankruptcy in Illinois , or if you have been following discussions about potential changes to the consumer bankruptcy process, you may know that a bill was proposed in 2020 that aimed to change how consumer bankruptcy works. The bill will streamline the process and eradicate some of the current distinctions between Chapter 7 and Chapter 13 bankruptcy. According to a recent article in Bloomberg , Democrats in Congress have reintroduced a bankruptcy bill “that would radically alter how individuals file bankruptcy.” The article underscores that, in introducing the Consumer Bankruptcy Reform Act of 2022 , Senator Elizabeth Warren and Representative Jerrold Nadler are hoping to obtain support for this type of legislation after the 2020 bill “failed to gain traction.” What do you need to know about the newly proposed legislation and how it could potentially impact the consumer bankruptcy process? Key Aims of the Proposed Legislation The consumer bankrupt...

Are you planning to file for consumer bankruptcy in Oak Park ? If you are filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy in the near future, you may have done some preliminary research into any steps you will need to take in order to prepare for your bankruptcy case. You might have come across information about credit counseling, and you may be wondering if this is necessary or if you should consider attending credit counseling. Given that consumer bankruptcy cases have numerous and varied requirements, it is essential to work with an Oak Park consumer bankruptcy attorney who can advise you of all requirements for your bankruptcy case and can ensure that you take all necessary steps in order to be eligible to have your debts discharged. More specifically, a lawyer can explain that credit counseling is not optional but rather necessary, and it is not the only finance class that you must take in order to have your debts discharged. You Must Complete Credit Counseling Before You...

Will high inflation rates result in increased consumer bankruptcy filings in Oak Park and throughout Illinois? According to a recent article in Forbes , “the price for goods and services has increased 7.9% from the same time last year,” which means Americans are experiencing “the highest inflation rate since January 1982.” As a result, many households in the U.S. are struggling financially. The cost of groceries has increased, the cost of gas, electricity, and other utilities has risen sharply, and other expenses have gone up. As the article underscores, “forty percent of adults say their families are worse off financially now than prior to the pandemic,” and many households are struggling financially. Ultimately, inflation could mean that more consumers file for bankruptcy. What do you need to consider? Take Steps to Avoid Additional Costs Whether inflation has resulted in a struggle to pay your bills or has merely resulted in increased concern over finances in the future, it is impo...

When you are considering personal bankruptcy and doing preliminary research into the process, you are likely to come across a series of terms related to the end of a bankruptcy case. These terms are all distinct from one another, but their meanings likely are not obvious to a consumer who is seeking to learn more about personal bankruptcy and how different types of bankruptcy processes work. While there is a wide range of consumer bankruptcy terms that can be complex and may require an explanation from a dedicated bankruptcy lawyer, our firm wants to focus on three terms that are commonly used to describe the end of a bankruptcy case -- closure, dismissal, and conversion. What does it mean for a bankruptcy case to be closed, and how does that process differ from a bankruptcy dismissal or conversion? Our Oak Park bankruptcy attorneys can provide you with more information. Closing a Bankruptcy Case When a bankruptcy case is closed, or when there is a reference to the closing of a bankru...

When you are thinking about consumer bankruptcy , you may know that the automatic stay is one of the most powerful tools in a personal bankruptcy case. The automatic stay is an injunction that applies as soon as you file for bankruptcy, and it stops debt collectors and creditors from continuing to take any actions against you designed to collect on the debts you owe. This means a creditor cannot call you to try to collect the debt once the automatic stay applies, and a creditor cannot file a lawsuit against you, garnish your wages, or initiate or move forward on home foreclosure. In short, the automatic stay stops creditors and debt collectors from collecting the debt you owe. Yet you might be wondering: how long will the automatic stay remain in effect? And can the automatic stay permanently stop debt collectors from taking action against you? Our Oak Park bankruptcy attorneys have information to help you. Automatic Stay Will Remain in Effect Until Your Bankruptcy Case is Closed How l...

Are you being contacted by debt collectors about debt you incurred many years ago or debts you do not even remember incurring? Or are you concerned about facing legal action over an older debt you have never repaid? These are issues that worry many debtors, especially when they are facing financial problems and are dealing with economic stressors. If you do have old debt, it is important to understand what a creditor or debt collector can do and what they cannot do. In addition, it is important to understand your options for dealing with old debt. Our Oak Park consumer protection attorneys can provide you with more information about older debt and can assist you with your options for resolving debt through bankruptcy or holding a debt collector accountable for deceptive practices that are prohibited under the Fair Debt Collection Practices Act (FDCPA). Debt Might Not Be Yours When you receive calls or text messages from debt collectors about old debt that you do not even remember inc...

Anyone struggling significantly with debt may be thinking about filing for bankruptcy in Illinois . Generally speaking, bankruptcy is an essential tool for debtors who need to get a fresh start or who need to reorganize debt and prevent foreclosure. Yet, in some cases, there may be important reasons to delay a bankruptcy filing. If you are considering bankruptcy, what are the circumstances under which you should potentially delay your filing? Consider some of the following situations, which our Oak Park bankruptcy attorneys can discuss with you in more detail. You are Not Eligible for the Type of Bankruptcy Protection You are Seeking One of the most common reasons to delay a bankruptcy filing is that you are not eligible for the type of bankruptcy you were planning to file. This is particularly important for debtors who want to file for Chapter 13 bankruptcy in order to stop foreclosure and remain in their homes. There are very different eligibility requirements for Chapter 7 and Chapt...

If you are struggling to repay debts you owe, and creditors are contacting you, you may be worried about the types of actions that creditors or debt collectors can take against you in order to recover the money you owe. You might be wondering, specifically, if you can be forced to file for bankruptcy. Involuntary consumer bankruptcies are not common, but they can happen under some circumstances. Our Oak Park bankruptcy lawyers can provide you with more information about involuntary bankruptcy, as well as details about your rights as a consumer under the Fair Debt Collection Practices Act (FDCPA) and other laws. Understanding How Involuntary Bankruptcy Works It is rare, but individuals can be forced to file for bankruptcy in limited circumstances through an involuntary bankruptcy petition. According to the U.S. Bankruptcy Code: “An involuntary case may be commenced only under Chapter 7 or 11 of this title, and only against a person, except a farmer, family farmer, or a corporation is n...

Sometimes in bankruptcy cases, you will hear about something known as the “absolute priority rule.” Sometimes the absolute priority rule is known as “liquidation preference” in some bankruptcy cases, and it may not necessarily affect or make a difference in your specific bankruptcy case. However, it is important to know what the absolute priority rule is and how it works. Our Oak Park bankruptcy lawyers can provide you with more information about the absolute priority rule, and we can begin working with you today on your bankruptcy case. U.S. Bankruptcy Code and the Absolute Priority Rule The absolute priority rule, in short, refers to the priority order of creditors and shareholders in a bankruptcy case. In other words, it is a rule concerning the order in which particular classes or categories of creditors must be repaid in a bankruptcy case. It can be applicable in some liquidation bankruptcy cases, as well as in some reorganization bankruptcies. The terms of the absolute priority ...

Are you self-employed and considering the possibility of filing for personal bankruptcy in Illinois? Our experienced Oak Park bankruptcy lawyers know that you are likely to have many questions and concerns about the bankruptcy process, including your eligibility to seek bankruptcy protection without W-2s or more common ways of showing your average wages and general income. In short, self-employed people can be eligible to file for both Chapter 7 and Chapter 13 bankruptcy in Illinois, but there are some important things that you need to know. Proving Your Self-Employment Income Bankruptcy cases can be slightly more complicated for individuals who are self-employed because they do not have the same type of documentation concerning their regular income and the income they have earned in recent years. Under U.S. bankruptcy law , when a self-employed person wants to file for bankruptcy, they will need to ensure that they have sufficient information and documentation to prove their income. ...

Are you thinking about filing for Chapter 13 bankruptcy ? You may know that Chapter 13 bankruptcy is one of two common types of bankruptcy for individuals or consumers, and it is a form of reorganization bankruptcy. What that means is that none of your assets will be liquidated in the bankruptcy process. Rather, Chapter 13 bankruptcy will allow you to reorganize your debts. If you want to file for Chapter 13 bankruptcy, one of the eligibility requirements involves showing that you do not have more debt than is permitted for this type of bankruptcy. In terms of Chapter 13 debt limits, there is good news for potential filers with a significant amount of debt: a recent change to the law means that the Chapter 13 debt limits have increased for at least two years, and that increase could be extended into the future. What should you know about Chapter 13 bankruptcy and the increase in debt limits? Consider the following information from our Oak Park bankruptcy lawyers. What is Chapter 13 Ban...

Struggling with debt is one of the most stressful experiences in a person’s life, and it can be difficult to know what options may be available to you. If you are unable to pay your bills and debts are piling up, you might be considering consumer bankruptcy. If so, you might know that there are different types of personal bankruptcy and that individuals most often file for Chapter 7 bankruptcy or Chapter 13 bankruptcy. These are very different types of bankruptcy, so it is important to understand the differences. Chapter 13 bankruptcy is a kind of reorganization bankruptcy that is commonly known as a wage earner’s plan, while Chapter 7 bankruptcy is a kind of liquidation bankruptcy. Is liquidation bankruptcy right for you? Before you make any decisions about filing for bankruptcy, you should discuss your specific circumstances with a bankruptcy lawyer in Oak Park. In the meantime, if you are wondering if liquidation bankruptcy is right for you, consider the following questions. Do You...

Since the beginning of the COVID-19 pandemic and over the last couple of years, more Americans have faced significant medical bills due to pandemic-related illnesses and other health issues. For many of those consumers, including the ones with health insurance, their medical debt has become substantial, and many are dealing with relentless debt collectors who are seeking payments for costly hospital and treatment bills. For example, a recent NPR report discussed the crippling nature of medical debt and reported that cancer patients in particular are likely to file for bankruptcy . Indeed, a study conducted by the Kaiser Family Foundation (KFF) and reported in that article found that about 25% of cancer patients have filed for bankruptcy, and about two-thirds have struggled to pay for basic needs as a result of medical debt. A recent article in Consumer Reports explains that consumers can take steps to “fight back” when they are contacted by debt collectors over medical bills. Our Oak ...