Oak Park Real Estate & Estate Planning Blog

When an individual debtor — as opposed to a business debtor — is considering the possibility of filing for bankruptcy , there are a number of terms that can be used to describe the type of bankruptcy case. For a person who is contemplating bankruptcy, understanding when terms overlap and when they are distinct can be confusing, and the use of various terms can appear to complicate the overall bankruptcy process. While the bankruptcy process and U.S. bankruptcy law are, indeed, complex, our Oak Park bankruptcy attorneys can provide you with clarification concerning consumer bankruptcy or personal bankruptcy in Illinois. Consider the following information, and do not hesitate to reach out to our firm if we can answer any questions about getting started on a consumer bankruptcy case. Personal Bankruptcy, Consumer Bankruptcy, and Individual Bankruptcy are Interchangeable Terms Consumers are often confused about the different uses of the terms “personal bankruptcy,” “consumer bankruptcy,” ...

A recent U.S. Supreme Court case considered whether a federally recognized Indian tribe is subject to the U.S. Bankruptcy Code’s provisions and, more specifically, the automatic stay that applies when a debtor files for bankruptcy protection. While there are no longer any federally recognized Indian tribes centered within the state of Illinois, the State of Illinois emphasizes that “the lands we now call Illinois are the ancestral homelands of many Tribal Nations,” and “Native peoples from over 100 Tribal Nations continue to call these lands home.” Accordingly, federally recognized Indian tribes may have businesses in Illinois or may be doing business with consumers in various capacities. The recently decided case, Lac du Flambeau Band of Lake Superior Chippewa Indians et al. v. Coughlin (2023), required the Court to consider whether a federally recognized Indian tribe is subject to the automatic stay and to the provisions of the Bankruptcy Code more broadly. The Court held, “The Bank...

What are exemptions in bankruptcy cases? If you are considering bankruptcy, you should first learn about how exemptions work. Under the Bankruptcy Code, exemptions allow debtors to be “exempt from property of the estate,” which means that debtors can exempt the value of certain assets from the bankruptcy estate. Exemptions work differently in Chapter 7 and Chapter 13 cases for individuals. In Chapter 7 cases, exemptions allow debtors to exempt assets from the estate for liquidation (in other words, you can keep the exempt property). According to the American Bankruptcy Institute (ABI), a majority of Americans who file for bankruptcy are able to exempt all or nearly all of their property in a Chapter 7 bankruptcy case. In a Chapter 13 case, given that assets are not liquidated, exemptions play a role in determining the monthly and total amount of debt that must be repaid over the course of the bankruptcy case. Some bankruptcy exemptions are used more frequently than others, so it is i...

The term “exemption” is extremely important for any individual or married couple considering bankruptcy and is particularly important in Chapter 7 bankruptcy cases since exemptions allow debtors to exempt assets from liquidation. If you own a home in the Oak Park area and you are considering bankruptcy, it will be essential for you to learn more about the homestead exemption and how it works in Illinois. While the term “homestead” might seem old-fashioned or inapplicable to any assets you might currently own, the term actually refers to your primary residence (such as your home or your condominium). How does the homestead exemption work under Illinois law ? Our Oak Park bankruptcy attorneys can explain. Homestead Exemption Generally The general point of a homestead exemption is to allow a debtor to exempt a certain amount of equity or interest they have in their primary residence. Each state has its own homestead exemption. Some states permit debtors who are filing for bankruptcy to c...

Many consumers who file for bankruptcy in the Oak Park area are dealing with contact from creditors and debt collectors, and many are concerned that they may soon face a lawsuit from a creditor or debt collector to whom they owe money. At the same time, many debtors have already received notice of a civil lawsuit against them, and they often have questions about how a bankruptcy filing will impact such a lawsuit. Indeed, many individuals who file for Chapter 7 or Chapter 13 bankruptcy want to know: can I be sued for debt after I file for bankruptcy? In short, the answer is no, and our Oak Park bankruptcy attorneys can explain your rights to you in more detail. How the Automatic Stay Prevents You From Being Sued One of the most important tools in a bankruptcy case is the automatic stay . Under the Bankruptcy Code , the automatic stay applies to an individual bankruptcy case as soon as the bankruptcy petition is filed. This is true whether you are applying for Chapter 7 bankruptcy or Ch...

Filing for personal bankruptcy is a complicated process, and there is a wide range of documents that must be completed and submitted to the bankruptcy court at different points in time. Beyond merely filing a petition for Chapter 7 bankruptcy or for Chapter 13 bankruptcy, you will need to provide the court with evidence of completing two different financial education courses, and you will also need to supply detailed information about your assets and your debts. The primary way that the bankruptcy court will obtain initial information about your property (including assets and liabilities), as well as about your financial circumstances, is through a series of “schedules” that you will file. Whether an individual is filing under Chapter 7, Chapter 13, or even Chapter 11, these schedules are relevant to them. Schedules in the context of bankruptcy do not refer to timetables or a program with an order of events. Rather, these are documents through which a debtor must supply financial info...