Oak Park Real Estate & Estate Planning Blog

Over the first half of 2023, bankruptcy filings have risen significantly from this same time last year, according to a recent report from MSN.com . The report underscores that the rise in overall bankruptcy filings has occurred despite the fact that the pandemic student loan forbearance remains in effect through September. By October, when a large percentage of Illinois residents begin making payments on federal student loans again — which is now definite, given that the Supreme Court struck down the Biden administration’s student loan cancellation plans in Biden v. Nebraska (2023) in June — bankruptcy may be a good option for those struggling with student loans. What do you need to know about rising rates of consumer bankruptcies in the country, and what are the potential implications? Our Oak Park bankruptcy attorneys can say more. More Than 200,000 Bankruptcy Cases Have Already Been Filed in 2023 According to data from the American Bankruptcy Institute and Epiq Bankruptcy cited in ...

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...

Anyone who is thinking about bankruptcy and is learning more about different consumer bankruptcy processes has likely come across information about bankruptcy schedules. While the term “schedule” in other contexts refers to a timeline or listing of events, bankruptcy “schedules” are something different. Under the Bankruptcy Code , rather than referring to a timeline of events in a bankruptcy case, schedules are actually different documents that contain various personal and financial information that will be necessary for the bankruptcy court to have and to consider in your bankruptcy case. These schedules typically are filed alongside the bankruptcy petition or just afterward. Schedules are identified by letter, and there are schedules A through J for consumer bankruptcy cases. Whether you are filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy, you will need to identify the schedules that must be completed and filed in order for your bankruptcy case to move forward and, ultimatel...

Are you considering personal bankruptcy ? If so, you might have discussed your circumstances with close friends or family members, and you might have done some of your own research into the different types of consumer bankruptcy that are available. Yet, many people in the Chicago area who are struggling with debt encounter a lot of misinformation or incomplete information before they have spoken with an attorney. We know that filing for bankruptcy is a big decision, and we want to ensure you have the information and the answers you need. Here are answers to five top bankruptcy concerns our Oak Park bankruptcy lawyers often hear. 1. Bankruptcy Concern: I Will Lose All of My Property Many debtors reach out to bankruptcy lawyers with the initial concern that filing for bankruptcy will result in them losing all of their property or being required to turn over all of their property to the bankruptcy trustee. This is simply not how any type of consumer bankruptcy works. Under the Bankruptcy ...

Understanding how the consumer bankruptcy process works when you are the only one filing is complicated, so when spouses decide that they both plan to file for bankruptcy, the process can seek even more complicated. On the one hand, you might be wondering if it is even possible to file for bankruptcy with your spouse or whether you will each need to file separately. On the other hand, you might have questions about how your plans to file for personal bankruptcy can affect your spouse or partner if your spouse or partner does not want or does not intend to file for bankruptcy. There are many questions that often come up when you are considering or filing for bankruptcy that concern spouses and partners, and our Oak Park bankruptcy lawyers want to ensure that you have a general understanding of what is at stake and how spouses are affected by bankruptcy filings. If you have specific questions about your circumstances, you should always discuss the particular facts of your case with a la...

Are you considering bankruptcy and wondering whether you could be eligible to have your student loans discharged in bankruptcy? Millions of Americans currently have student loan debt. In fact, according to Best Colleges , at the end of 2022, approximately 43.5 million Americans had federal student loan debt, which is about 13 percent of the U.S. population. Of those with federal student loan debt, a majority owe between $20,000 and $40,000. Those figures do not include Americans who currently have private student loan debt and who are struggling to make those payments. While federal student loan payments have been paused since 2020, payments are scheduled to resume in 2023, and many debtors are concerned about how they will be able to afford the payments. If you want to have your student loans discharged in bankruptcy, what will you need to do? Our Oak Park bankruptcy lawyers can provide you with more information about the steps you will need to take and how the recent guidance could...

If you are currently thinking about personal bankruptcy , or if you have been doing some initial research into the consumer bankruptcy process, you will likely have come across the term “liquidation bankruptcy.” Understanding the distinctions among so many different bankruptcy terms can be difficult, and there are many overlapping terms that are used to describe different types of bankruptcy or bankruptcy processes. It is important to understand what liquidation means when it comes to consumer bankruptcy, but it is also important to know that there are types of consumer bankruptcies that do not involve any kind of liquidation. Our Oak Park consumer bankruptcy attorneys can give you more information about liquidation and the consumer bankruptcy process. Liquidation Refers to the Trustee Liquidating Non-Exempt Assets What does liquidation mean in a bankruptcy case? In short, in the consumer bankruptcy context, liquidation refers to the bankruptcy trustee liquidating non-exempt assets. Ac...

If you are thinking about filing for personal bankruptcy , you may already know that one of the major benefits of bankruptcy filing is the automatic stay. The automatic stay is an injunction that prevents creditors and debt collectors from taking any actions to collect on the debts you owe as soon as you file your petition. Accordingly, the automatic stay prevents creditors and debt collectors from initiating lawsuits against debtors, moving forward with lawsuits, initiating or moving forward with foreclosure proceedings, and even making calls or sending letters in an attempt to collect on debts owed. Yet what happens when a debt collector does not yet know that a debtor has filed for bankruptcy and takes action to collect on a debt? In other words, does the debtor have a claim against the debt collector for a violation of the U.S. Bankruptcy Code or a violation of the Fair Debt Collection Practices Act (FDCPA)? The U.S. District Court for the District of Puerto Rico issued a decision ...

Anyone who is considering the possibility of filing for consumer bankruptcy in light of the new guidance from the Biden administration and the U.S. Department of Justice should learn more about what is involved in the process of seeking a discharge of student loan debt in bankruptcy. You should get in touch with one of our Oak Park bankruptcy attorneys to find out more about having student loans discharged in bankruptcy given your particular circumstances. In the meantime, the following are some of the top things for you to consider about student loans and bankruptcy. New Guidance Has Been Issued As we noted above, new guidance on discharging student loans in bankruptcy has been issued. Specifically, the new guidance addresses the process for a debtor to seek to have student loans discharged, and the process by which the Department of Justice and Department of Education will determine the debtor’s eligibility for a discharge. Most significantly, the process will now involve an “attes...

If you have student loan debt and have been following recent news concerning the Biden administration’s policy guidance for the U.S. Department of Justice (DOJ) and the memo issued by the DOJ about discharging student loans in bankruptcy , you probably know already that the process of discharging student loan debt in bankruptcy is supposed to be changed soon. While the “undue hardship” requirements to discharge student loans in bankruptcy will not change, the DOJ plans to streamline parts of the bankruptcy process so that more student loans are likely to be discharged in a personal bankruptcy case. According to a recent article in Forbes , the DOJ has “updated a key application form under [the] new process,” which suggests that bankruptcy filers could soon be able to have their student loan debt discharged in bankruptcy without many of the procedural difficulties that existed previously. What does this news from Forbes about the application form involve? Our Oak Park bankruptcy attorne...

Consumer bankruptcy in the U.S. can be filed by an individual or by a married couple according to U.S. bankruptcy law . Yet it is important to know that, even if you or your spouse are considering personal bankruptcy, the other spouse is not required to file for bankruptcy in a joint petition. At the same time, if spouses are married, even if they are separated, one spouse’s bankruptcy could have a major impact on the other spouse’s current and future finances. What do you need to know if your spouse or your ex is considering bankruptcy? Our Oak Park bankruptcy attorneys have more information for you. If You are Already Divorced, You Do Not Need to Consider Your Ex’s Bankruptcy If your divorce has already been finalized, it does not matter if your ex-spouse is filing for bankruptcy as far as your personal financial situation goes. In other words, your ex-spouse’s decision to file for bankruptcy will not impact your current assets or debts. At the same time, if your ex-spouse does file...

Are you thinking about filing for bankruptcy? Or have you recently filed for bankruptcy or received a discharge? The answer to these questions can become more complex when you are also thinking about your options for buying a house. Whether you are a first-time homebuyer or you have owned a home in the past—even if the house has been at risk of or has gone into foreclosure—the most important thing to know is that you can be eligible to buy a house after bankruptcy. To be clear, filing for bankruptcy and receiving a discharge does not mean that you will never be able to buy a house. While you will need to learn about certain waiting periods and rebuilding your credit, you should be hopeful about home ownership following your bankruptcy case. A recent article in House Digest discusses the ins and outs of buying a house after filing for bankruptcy, and our Oak Park bankruptcy lawyers want to provide you with more information. Know Bankruptcy Will Impact Your Credit But Will Not Prevent Y...

What is consumer bankruptcy , and how does it work? How does consumer bankruptcy differ from other types of bankruptcy? And is consumer bankruptcy right for you if you are struggling with debt? In order to gain a clearer understanding of the overall consumer bankruptcy process and whether you should consider filing, it is important to learn more about the different aspects of consumer bankruptcy and the U.S. Bankruptcy Code . Our experienced Oak Park bankruptcy attorneys are here to provide you with more information, and we can speak with you today about your circumstances if you are considering the possibility of filing for bankruptcy. Consumer Bankruptcy is a Term Referring to Bankruptcy for Individuals The term “consumer bankruptcy” is used to refer to bankruptcy cases that are filed by individuals as opposed to businesses. Consumer bankruptcy can go by various terms, including “personal bankruptcy” and “individual bankruptcy.” While consumer bankruptcy is sometimes known as individ...

In the New Year, you may be considering the possibility of filing for personal bankruptcy . As you may already know, the two most common types of personal bankruptcy are Chapter 7 bankruptcy cases and Chapter 13 bankruptcy cases. Both types of bankruptcy require the debtor to show eligibility, and the proof required to show a person’s eligibility for Chapter 7 will be much different from that required for a Chapter 13 case. In short, Chapter 7 requires the debtor to show that their income and assets are limited enough for liquidation bankruptcy to make sense. Differently, Chapter 13 bankruptcy requires the debtor to show that they have a regular income that is stable enough and of a high enough value for the debtor to reliably be able to make payments for three to five years in a reorganization bankruptcy. Both types of bankruptcy come with pros and cons. When it comes to the “pros,” what are the top benefits of bankruptcy in 2023? Our Oak Park bankruptcy attorneys have more informatio...

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 ...

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...