Oak Park Real Estate & Estate Planning Blog

Any individual or consumer in Illinois who is thinking about filing for bankruptcy will find a substantial amount of information about the different types of bankruptcy chapters. Yet much of the information that comes from friends or family members, and even information that can come from certain places on the internet, can be confusing. Indeed, individuals may not fully understand how to show that they are eligible for a particular type of bankruptcy, or even how to determine which types of bankruptcy are possible for individuals (as opposed to businesses). An Oak Park bankruptcy lawyer at our firm can provide you with more information about the different types of bankruptcy that are available for individuals under the U.S. Bankruptcy Code in various circumstances. Chapter 7 Bankruptcy Chapter 7 bankruptcy is a type of liquidation bankruptcy. Individual debtors can sometimes be confused about whether they are eligible to file for Chapter 7 bankruptcy since businesses can also file ...

Any debtor who is considering the possibility of filing for consumer bankruptcy has likely looked into the different options that are available to an individual debtor. In most cases, an individual debtor in Illinois will file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, depending upon the debtor’s particular circumstances. Debtors are not typically eligible for both types of bankruptcy, and as such, a debtor cannot choose between Chapter 7 and Chapter 13 bankruptcy. Rather, Chapter 7 bankruptcy is designed for individual debtors who can pass the “means test,” showing that they have insufficient income or resources to repay debts in any meaningful capacity. Chapter 13 bankruptcy, differently, is designed for wage earners who can prove that they have a regular income that will allow them to meet the terms of a three-to-five year bankruptcy plan. If Chapter 7 and Chapter 13 bankruptcies are the most common types of bankruptcies for individual debtors, why is there information abou...

Many people who are considering the possibility of filing for consumer bankruptcy , either as a Chapter 7 bankruptcy or Chapter 13 bankruptcy case, may be hesitant due to myths they have heard about the effects of bankruptcy. Numerous debtors are under the misconception that filing for bankruptcy means it will be impossible to get a loan or to rebuild your credit for many years following a bankruptcy discharge. In fact, it may be easier than you think to start the process of rebuilding your credit and obtaining certain types of loans relatively soon after a bankruptcy discharge. How can you get a loan or a line of credit after you receive a bankruptcy discharge? Our Oak Park bankruptcy lawyers have some information that can help you. Get the Facts About How Long Bankruptcy Will Impact Your Credit After a bankruptcy discharge, it is important to understand how long the bankruptcy will remain on your credit report and, ultimately, how long it will impact your ability to obtain loans. Th...

If you are planning to file for Chapter 7 bankruptcy , it is important to understand that this is a liquidation bankruptcy. Accordingly, all of your non-exempt property will be liquidated in order to repay creditors, and you will receive a discharge of all eligible debts at the end of the bankruptcy process. The time from filing to discharge usually takes approximately four to six months, making the Chapter 7 bankruptcy process quite fast, especially in comparison with Chapter 13 bankruptcy, which requires a repayment plan over the course of three to five years. While many debtors want to file for Chapter 7 bankruptcy in order to get a fresh start, there are some situations in which a debtor might not want to give up secured property or receive a discharge because the debtor wants to keep that property and continue to make payments on it. Is this type of arrangement possible in a Chapter 7 bankruptcy case? For example, if you have an auto loan and want to keep the car and continue to m...

When you have taken a close look at your finances and have considered your options to handle debt, you may have come to the conclusion that you want to move forward with a consumer bankruptcy filing. Yet once you have decided to file for bankruptcy, what are the next steps? The consumer bankruptcy process is lengthy and complicated, and it is important to have an Oak Park consumer bankruptcy attorney who can assist you from the beginning. In the meantime, the following are some of the key steps you will need to undertake or start planning for as part of your consumer bankruptcy case. Determine Your Eligibility for Consumer Bankruptcy Before you take any other steps in the consumer bankruptcy process, it will be critical to determine your eligibility for consumer bankruptcy under the U.S. Bankruptcy Code . There are several different types of bankruptcy that are available to individuals, but there are really two primary types of bankruptcy that individuals file on a regular basis — Ch...