Oak Park Real Estate & Estate Planning Blog

There are so many different misconceptions about bankruptcy on the internet, and these myths also circulate among friends, family members, co-workers, and other acquaintances. One of the most common misconceptions about bankruptcy we hear is that filing for bankruptcy means you will lose all of your assets and will be left with nothing in order to have your debts discharged. This is simply untrue, and it is critical to understand how different types of bankruptcy affect liquidation, and how bankruptcy exemptions can always allow debtors to protect certain types of property. Our bankruptcy attorneys in Oak Park are here to tell you more. Liquidation Bankruptcy Does Not Mean You Will Lose All of Your Property First, we want to clarify that, even in a liquidation bankruptcy, you will not lose all of your property. Under U.S. bankruptcy law , Chapter 7 bankruptcy is a type of liquidation bankruptcy, and it does result in non-exempt property being liquidated in order for the debtor to ...

When you are planning to file for consumer bankruptcy —either Chapter 7 bankruptcy or Chapter 13 bankruptcy—there are a number of steps you will need to take to prepare for your bankruptcy case. At the same time, it is important to know that there are actions you should not take as you are getting ready to file for bankruptcy for various reasons. In some situations, actions taken prior to a bankruptcy filing can be construed as a fraud, and you can risk your ability to receive a bankruptcy discharge, not to mention the risk of criminal charges. Differently, some actions that you might take concerning your money could result in otherwise exempt assets being liquidated in your Chapter 7 case. Anytime you are thinking about bankruptcy, you should work with an experienced bankruptcy lawyer to ensure that you put yourself in the best possible position to get back on track with your financial life and make the most of your bankruptcy case. In the meantime, you should be aware of the follo...

Whenever a consumer is considering the possibility of filing for bankruptcy , there are many misconceptions and myths that are available on the internet and that can, often, seem like truths. Given the complexities of U.S. bankruptcy law , and the difficulty in determining whether or not you are getting the correct and accurate information you need, it is critical to work with an experienced Oak Park bankruptcy attorney who has handled cases similar to your own and can help to ensure that your bankruptcy case goes as smoothly as possible. For now, we want to help dispel some common bankruptcy fictions and to replace those with facts that can help guide you as you plan for personal bankruptcy . Fiction: You Will Lose Everything You Own if You File for Bankruptcy Fact: You will not lose everything you own if you file for bankruptcy, and in fact, filing for bankruptcy may not result in any of your assets being liquidated. If you file for Chapter 7 bankruptcy, all non-exempt assets will...

When you are considering personal bankruptcy and some of your debt is tax debt, it is critical to understand that tax debt is not like other types of consumer debt when it comes to bankruptcy. To be sure, there are only specific circumstances in which you can be eligible to discharge tax debt, and only particular types of tax debt can be discharged in a consumer bankruptcy case. The following are three important things to know about tax debt and consumer bankruptcy. If you have additional questions or need assistance with your case, you should reach out to a Chicago consumer bankruptcy lawyer. 1. You Should Not Assume Your Tax Debt is Dischargeable in a Consumer Bankruptcy Case If you have tax debt and you are planning to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, you should not assume that your tax debt will be dischargeable. As the Internal Revenue Service (IRS) explains, bankruptcy can be an option to discharge tax debt in some circumstances, but not all tax debt ...

If you recently lost your job due to the COVID-19 pandemic or have been thinking about filing for bankruptcy given the seeming insurmountability of your consumer debt, it may be better to file for personal bankruptcy sooner rather than later. Indeed, according to a recent article in MarketWatch , you should think “defensively” about your debt, and you should consider filing for bankruptcy on the sooner side. In short, by filing for bankruptcy sooner, you may be able to avoid dipping into assets that are exempt, and you could end up in a better financial place once the pandemic eases. We want to refer to the article and to tell you more about why it could make sense to file for bankruptcy on the earlier side rather than waiting before talking to a bankruptcy lawyer. Letting Cash Accrue Could Lead to a Seizure by Creditors If you have begun making only the minimum payment on your credit cards in order to make sure that you have at least some cash on hand to pay for essentials during...

Are you familiar with Chapter 20 bankruptcy in Oak Park ? If you have not heard of Chapter 20 bankruptcy, you are not alone. It is not actually a chapter of bankruptcy relief under the U.S. Bankruptcy Code , but instead refers to a combination of Chapter 7 and Chapter 13 bankruptcy . When you add Chapter 7 and Chapter 13 together, in effect you end up with a “Chapter 20” bankruptcy. When consumers opt for Chapter 20 bankruptcy, they do not file for both Chapter 7 and Chapter 13 at the same time. Instead, debtors typically will file for Chapter 7 and then, almost immediately after receiving a discharge, will file for Chapter 13 bankruptcy. What are the benefits of Chapter 20 bankruptcy, and why would any individual consumers want to take this route? High Consumer Debts and Significant Secured Debt You Want to Keep can Make Chapter 20 Bankruptcy a Good Option Why would anyone file for Chapter 7 bankruptcy, receive a discharge, and then turn around and file for Chapt...

If you are struggling to repay debts in Oak Park and are looking at different options, you may be considering debt management plans. In many cases, debt management plans are pitched as an alternative to consumer bankruptcy . However, according to an article in the Chicago Tribune , sometimes debt management plans might not be as workable or as affordable as they initially sound. When you are dealing with seemingly insurmountable debt, it is possible that a debt management plan is not the best option for you. Although these plans can be helpful to some people, in other situations, personal bankruptcy could be the better choice for helping you to get back on track. How can you know whether a debt management plan or consumer bankruptcy is the right decision in your specific case? Debt Management Plans Do Not Work for Everyone How do debt management plans work? Typically, debtors will work with a credit counseling agency, and the agency will work out an agreement with...

Can parents with substantial student loan debt from PLUS loans have an easier time discharging this debt through consumer bankruptcy ? It is difficult to wipe out any student loan debt by filing for Chapter 7 bankruptcy, regardless of whether you are the student who borrowed the money or a parent who borrowed on behalf of your children. However, according to a recent article in MarketWatch , an appeals court settlement suggests that some parents may indeed be able to wipe out the PLUS loans they have borrowed under certain circumstances. While the recent case ended in a settlement—meaning that it will not create court precedent for other parent borrowers—it does suggest that student loan debt may not be as difficult to discharge as many of us assume. Parent PLUS Loans and Consumer Bankruptcy The debtor in this case, Robert Murphy, had borrowed around $200,000 in parent PLUS loans to finance his children’s education. What are PLUS loans? According to a fact sheet fr...

Last week was National Consumer Protection Week , a yearly coordinated campaign that seeks to encourage consumers to learn more about their rights when it comes to issues such as credit, consumer debt , banking, and identity theft. Among other tools, the campaign provides important information to Chicago residents to about repairing credit after bankruptcy , dealing with debt collectors, and knowing your rights when it comes to debt collection. The week-long campaign aims to raise awareness about issues plaguing consumers and to help debtors learn steps to help themselves. While raising awareness is important, is it actually changing the lives of Chicago consumers for the better? During National Consumer Protection Week, an article in The Telegraph reported that Attorney General Lisa Madigan’s office released its “annual top 10 consumer complaints for 2015,” and matters concerning consumer debt ranked at the top of the list. Education-Related Complaints and Student Deb...

Student loan debt in America is in the trillions. And student loan debt it is very difficult, if not impossible, to discharge through bankruptcy . So, if you are not likely to be able to discharge your student loans by filing for Chapter 7 bankruptcy, is there another way to wipe out that debt? According to a recent article in Fortune Magazine , you may be able to rely on the “borrower defense” to get rid of your monthly student loan payments. Students Seeking Loan Forgiveness for Fraudulent College Marketing Tactics According to the article, debtors throughout the country are looking to an obscure federal law that may allow them to wipe out their student loan debts. As the article notes, “for many of them, it’s working.” What is this obscure federal law? In short, it says that students can be eligible to “ditch their loans if they can show their school made false or fraudulent claims to recruit them.” What do false or fraudulent claims during recruiting look like? Su...