Oak Park Real Estate & Estate Planning Blog

Bankruptcy trustees oversee consumer and commercial bankruptcy cases, but trustees perform different roles depending upon the type of bankruptcy filing. In reorganization bankruptcies, as a recent article in The Yale Law Journal notes, there are specific trustees that handle Chapter 13 consumer bankruptcy cases, while businesses filing for Chapter 11 typically perform the role of trustee themselves as a debtor-in-possession. In other words, trustees are different and distinct when it comes to consumer and commercial reorganization bankruptcy cases. Yet as the article points out, the same distinction does not exist in Chapter 7 bankruptcy cases, and consumers who are filing for a liquidation bankruptcy ultimately could suffer the consequences. Argument for Distinction Between Consumer and Business Trustees in Chapter 7 Bankruptcy Cases What is the argument for a clearer distinction between consumer and business trustees in Chapter 7 bankruptcy cases? The article in The Yale Law Journa...

When debtors in the Oak Park area file for Chapter 13 bankruptcy , they create a repayment plan that lasts for a period of three to five years. During that time, the debtor will make regular payments to the Chapter 13 bankruptcy trustee, who will then pay creditors. Once the debtor completes the terms of the repayment plan, remaining eligible debts can be discharged. However, during that period of three to five years, a debtor’s circumstances can change. For example, a debtor might get laid off from their job and may be unable to find work. Or, the debtor might suffer a workplace injury or be diagnosed with a debilitating disease that prevents that debtor from returning to work in a meaningful capacity and earning a regular income that will allow that debtor to continue making Chapter 13 plan payments. In short, circumstances can change, and a debtor might struggle to make regular payments. If you are currently making payments as part of a Chapter 13 plan but a change in circumstances ...

When you are considering filing for Chapter 7 or Chapter 13 bankruptcy in Oak Park, it is important to learn more about the bankruptcy process in general and the various steps you will need to go through in a liquidation or reorganization bankruptcy. Since U.S. bankruptcy law is quite complicated, it can be difficult to have a clear understanding of some of the terms that are used in discussing bankruptcy law and consumer cases. An important party in a bankruptcy case is the trustee, yet many debtors do not fully understand what a trustee is, or what role the trustee plays in a bankruptcy case. The trustee’s role will depend upon the type of bankruptcy, but in general, the trustee’s job is to administer the bankruptcy estate and to handle issues in the bankruptcy case. Our Oak Park bankruptcy lawyers can explain. Who is a Trustee? Bankruptcy trustees are neutral or impartial third parties who are responsible for the debtor’s assets and administering aspects of the bankruptcy case. The...

Whether you owe child support and are considering filing for bankruptcy in Illinois , or you receive child support and are concerned about how your bankruptcy case will affect the child support payments you receive, it is important to learn more about child support and bankruptcy. Generally speaking, child support payments are usually exempt in bankruptcy cases for the party receiving child support, and child support debts cannot be discharged in a bankruptcy case. Yet there is more you should know, and if your bankruptcy case involves child support in any way, it is important to seek advice from a bankruptcy lawyer in Oak Park as soon as you can. The following are some of the key things you should know about child support and bankruptcy. Child Support Debt Cannot be Discharged in a Consumer Bankruptcy Case Child support, along with any other kind of family support debt, is not dischargeable in a bankruptcy case. Accordingly, whether you owe child support or you are concerned about an ...

Anyone who is struggling with debt can experience significant stress and anxiety upon receiving a phone call or written notice from a creditor or debt collector that threatens to sue if the debt is not paid. For many consumers in the Oak Park area, the possibility of facing a lawsuit over debt can be scary, and it is difficult to know what steps you should take. You might be wondering: should I file for bankruptcy if a creditor has threatened to sue me? In answering that question, it will be essential to consider the specific facts of your case and whether bankruptcy is the right option for you. In many cases, bankruptcy can be beneficial if you are facing a lawsuit from a creditor. Our Oak Park bankruptcy lawyers can explain in more detail, and we can also speak with you about your circumstances to help you determine the best path forward. Creditors Cannot Make Threats When Trying to Collect Debts While the threat of legal action can be unnerving, it is important to know that there a...