Oak Park Real Estate & Estate Planning Blog

Struggling with debt can be stressful and anxiety-inducing, and in some cases the stress can even result in physical consequences. If you are in a difficult financial situation, you may be considering the possibility of filing for consumer bankruptcy . Generally speaking, under the U.S. Bankruptcy Code , consumers can be eligible to file for a liquidation bankruptcy (Chapter 7 bankruptcy) or a reorganization bankruptcy (usually Chapter 13 bankruptcy, but sometimes Chapter 11 in certain circumstances). Eligibility for different types of bankruptcy is something that you should discuss with an experienced bankruptcy attorney, given your particular financial circumstances. However, you should know that both kinds of bankruptcy cases allow for the discharge of various types of debts. A discharge means that you will no longer be liable for the debt, and creditors or debt collectors cannot take action, or even attempt to take action, to collect on debts that have been discharged. To be sure, ...

Are you being contacted by debt collectors about debt you incurred many years ago or debts you do not even remember incurring? Or are you concerned about facing legal action over an older debt you have never repaid? These are issues that worry many debtors, especially when they are facing financial problems and are dealing with economic stressors. If you do have old debt, it is important to understand what a creditor or debt collector can do and what they cannot do. In addition, it is important to understand your options for dealing with old debt. Our Oak Park consumer protection attorneys can provide you with more information about older debt and can assist you with your options for resolving debt through bankruptcy or holding a debt collector accountable for deceptive practices that are prohibited under the Fair Debt Collection Practices Act (FDCPA). Debt Might Not Be Yours When you receive calls or text messages from debt collectors about old debt that you do not even remember inc...

Are some student loan companies attempting to collect debt that has been discharged in consumer bankruptcy cases? According to a recent article in Business Insider , the Consumer Financial Protection Bureau (CFPB) reported that “student loan companies have been accused of violating discharge orders and unlawfully collecting debt,” which should put consumers on alert if they have received a debt discharge through bankruptcy. To be clear, discharged debt is not owed, and creditors cannot attempt to collect it. What else do you need to know? Our Oak Park bankruptcy lawyers have information to help. Learning More About Student Loan Companies Attempting to Collect Discharged Debt The recent report from the CFPB underscored that student loan debt can in fact be discharged in bankruptcy despite the frequently repeated misconception that student loan debt cannot be discharged. To be clear, while student loan debt can be more difficult to discharge than some other types of consumer debt, it c...

If you owe a substantial amount of debt, there are a few ways you can get rid of that debt, and one is filing for personal bankruptcy. First, and perhaps most obviously, you can pay off the debt. Whether you pay it off all at once or over time will not change the fact that the debt has been paid off. Of course, if you repay it over a longer period of time, you could end up paying more money in the long run due to interest. However, in the end, the debt is still paid off. When you do not pay off a debt, there are generally two other ways to eradicate the debt, and it is important to understand that they are quite distinct from one another and have different consequences. We want to tell you more about discharging debt through consumer bankruptcy , and how that differs from having your debt canceled. What Happens When My Debt is Discharged through Bankruptcy? If you file for Chapter 7 or Chapter 13 bankruptcy , the end result is typically a discharge of eligible debts. While that disch...