Oak Park Real Estate & Estate Planning Blog

If you have been considering consumer bankruptcy in Illinois , or if you have been following discussions about potential changes to the consumer bankruptcy process, you may know that a bill was proposed in 2020 that aimed to change how consumer bankruptcy works. The bill will streamline the process and eradicate some of the current distinctions between Chapter 7 and Chapter 13 bankruptcy. According to a recent article in Bloomberg , Democrats in Congress have reintroduced a bankruptcy bill “that would radically alter how individuals file bankruptcy.” The article underscores that, in introducing the Consumer Bankruptcy Reform Act of 2022 , Senator Elizabeth Warren and Representative Jerrold Nadler are hoping to obtain support for this type of legislation after the 2020 bill “failed to gain traction.” What do you need to know about the newly proposed legislation and how it could potentially impact the consumer bankruptcy process? Key Aims of the Proposed Legislation The consumer bankrupt...

The process of filing for personal bankruptcy is extremely complicated, and the U.S. Bankruptcy Code has many complexities that can be difficult for a consumer to understand with certainty. As such, it is important to have an experienced Oak Park bankruptcy attorney on your side from the very start of your case. At the same time, it is important to learn as much as you can about the consumer bankruptcy process. The following are some of the key terms that are used in consumer bankruptcy cases that can help you to understand more about the processes for different types of personal bankruptcy. Automatic Stay The automatic stay is an injunction that takes effect as soon as a person (or entity) files for bankruptcy. The injunction prevents creditors from continuing to take any debt collect actions against you (such as moving forward with an existing lawsuit) or initiating any new debt collect actions. The automatic stay applies to Chapter 7 and Chapter 13 bankruptcy cases, and to Chapter...

If you are considering the possibility of filing for personal bankruptcy under Chapter 7 or Chapter 13, you might have encountered information about a recently proposed law that would change the consumer bankruptcy process. In December, Elizabeth Warren and Jerrold Nadler introduced the Consumer Bankruptcy Reform Act of 2020 (CBRA), which aims to streamline the consumer bankruptcy process and to make it easier for certain types of debts to be discharged. You may be wondering if this proposed legislation can affect your existing bankruptcy case. In other words, if you file for consumer bankruptcy at some point in the coming weeks or months, and if this law passes, can it change your case or affect your discharge? Or, if you have filed for Chapter 13 bankruptcy and are making payments on a repayment plan that will last from three to five years, can the Consumer Bankruptcy Reform Act change the nature of your repayment plan or your ultimate discharge? In short, if the law does pass, it ...

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...

The consumer bankruptcy process could look quite different in 2021 if proposed reforms pass in the new year. You might already know that U.S. Senator Elizabeth Warren (D-Mass.) has introduced the Consumer Bankruptcy Reform Act of 2020 (CBRA) with House Judiciary Chairman Jerrold Nadler (D-N.Y.). We have discussed some of the proposed changes that would come with the bankruptcy reform package, and its relation to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), which made it more difficult for many consumers to be eligible for Chapter 7 bankruptcy. As we near the early weeks and months of 2021, we want to highlight some of the top changes that could come for personal bankruptcy if the proposed legislation passes. 1. Credit Counseling Will Not be Required The BAPCPA required any consumer seeking a bankruptcy discharge to go through credit counseling and to provide the court with a certificate of completion before any debts could be discharged. The newly...

When a debtor in Oak Park files for consumer bankruptcy , there are many steps that are necessary to complete in the filing process as well as throughout the bankruptcy case. Bankruptcy forms and document requirements can be extremely complicated, and many debtors who attempt to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy on their own make errors in the paperwork. For example, debtors almost always need to provide tax returns, income documentation that might include W-2s or self-employment forms, proof of real estate owned and its current market value, proof of vehicles owned and the remaining amount owed, information about bank accounts and retirement accounts, documentation of child support or alimony paid or received, and many other materials. When you file for bankruptcy, you also need to disclose any and all assets that are exempt. In a consumer bankruptcy case, certain assets are exempt. Exempt assets cannot be liquidated in order to repay creditors—the deb...

There are a series of new bankruptcy rules that will take effect on December 1, 2017, and they will have an impact on consumer bankruptcy proceedings. Generally speaking, most of these new rules will have the greatest impact on financial institutions, but it is important for individual debtors who are thinking about filing for bankruptcy to understand how the new rules will work and how they will change aspects of personal bankruptcy. First, we will say a few words about how these changes came about. Then we will discuss some of the changes and will explain what consumers in Oak Park should know about bankruptcy proceedings once the rules take effect on December 1. In the meantime, if you have questions about filing for consumer bankruptcy in the Chicago area, you should speak with an experienced bankruptcy lawyer. Supreme Court Submits Amendments to the Federal Rules of Bankruptcy Procedure Official changes to bankruptcy rules began when Chief Justice John Rober...