Oak Park Real Estate & Estate Planning Blog

When a consumer wants to file for reorganization bankruptcy , that consumer will typically file for Chapter 13 bankruptcy. Yet Chapter 11 bankruptcy is also a type of reorganization bankruptcy, and in certain situations, consumers file for Chapter 11 instead of Chapter 13. In most cases, the reason that a consumer will file for Chapter 11 bankruptcy instead of Chapter 13 bankruptcy is the debt limit. Relatively recent changes to the Chapter 13 debt limits have resulted in an increase in the debt limits, thereby making it easier for consumers to qualify for Chapter 13 bankruptcy based on the amount of their debt. However, circumstances certainly may arise in which a consumer is ineligible for Chapter 13 bankruptcy due to the amount of debt they owe. Under such circumstances, the consumer will usually file for Chapter 11 bankruptcy. Our Oak Park consumer bankruptcy attorneys can provide you with more information. Understanding Debt Limits in Chapter 13 Bankruptcy Cases What are debt limi...

There are many small business owners in Oak Park and throughout the Chicago area. Yet running a small business can be extremely difficult and complicated, especially a business in a field or industry that has been struggling since the start of the pandemic. In most circumstances, small business owners who are having difficulty repaying business debts are also struggling with their debts and finances as consumers, and they may be considering bankruptcy. If a consumer owns a small business and wants to file for bankruptcy , what does that consumer need to know? Our Oak Park bankruptcy lawyers have some information and tips to help. Consumers Who File for Bankruptcy and Own Sole Proprietorships Will Also be Filing for Business Bankruptcy If you are planning to file for bankruptcy because of your consumer debt, or you are planning to file for bankruptcy largely because of your business debt, the distinction will not matter too much under U.S. bankruptcy law if your business is structured ...

Any individual or consumer in Illinois who is thinking about filing for bankruptcy will find a substantial amount of information about the different types of bankruptcy chapters. Yet much of the information that comes from friends or family members, and even information that can come from certain places on the internet, can be confusing. Indeed, individuals may not fully understand how to show that they are eligible for a particular type of bankruptcy, or even how to determine which types of bankruptcy are possible for individuals (as opposed to businesses). An Oak Park bankruptcy lawyer at our firm can provide you with more information about the different types of bankruptcy that are available for individuals under the U.S. Bankruptcy Code in various circumstances. Chapter 7 Bankruptcy Chapter 7 bankruptcy is a type of liquidation bankruptcy. Individual debtors can sometimes be confused about whether they are eligible to file for Chapter 7 bankruptcy since businesses can also file ...

Any debtor who is considering the possibility of filing for consumer bankruptcy has likely looked into the different options that are available to an individual debtor. In most cases, an individual debtor in Illinois will file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, depending upon the debtor’s particular circumstances. Debtors are not typically eligible for both types of bankruptcy, and as such, a debtor cannot choose between Chapter 7 and Chapter 13 bankruptcy. Rather, Chapter 7 bankruptcy is designed for individual debtors who can pass the “means test,” showing that they have insufficient income or resources to repay debts in any meaningful capacity. Chapter 13 bankruptcy, differently, is designed for wage earners who can prove that they have a regular income that will allow them to meet the terms of a three-to-five year bankruptcy plan. If Chapter 7 and Chapter 13 bankruptcies are the most common types of bankruptcies for individual debtors, why is there information abou...

For most consumers who are considering personal bankruptcy , it will not be necessary to file for Chapter 11 bankruptcy. Most consumers file for either Chapter 7 bankruptcy or Chapter 13 bankruptcy . When a consumer earns a regular wage and is interested in a reorganization bankruptcy, it is most often in that consumer’s best interest to file for Chapter 13 bankruptcy instead of Chapter 11 bankruptcy—assuming that consumer is eligible for Chapter 13 bankruptcy. As you might suspect, Chapter 11 bankruptcy is typically a backup plan for consumers who have too much debt to qualify for Chapter 13 bankruptcy. To explain, we want to provide you with more information about reorganization bankruptcies and situations in which a consumer might file for Chapter 11 bankruptcy. Chapter 11 and Chapter 13 are Both Types of Reorganization Bankruptcy Both Chapter 11 and Chapter 13 bankruptcy are forms of reorganization bankruptcy. Different from a Chapter 7 bankruptcy case—in which non-exempt assets ...

If you are struggling with debt in Oak Park and you are weighing your options, you might be considering personal bankruptcy . Yet if you do not have any experience with the consumer bankruptcy process, and you do not have any friends or family members who have filed for bankruptcy, it can be difficult to understand how the process works. In particular, you might be wondering, “Is there more than one type of consumer bankruptcy ?” If you have done a quick internet search for bankruptcy, you have probably discovered that there are many different chapters under which a bankruptcy case can be filed, and it can be extremely confusing to navigate the U.S. Bankruptcy Code . You may notice that some types of bankruptcy can be used for individuals and businesses alike, while others are limited to individuals and others still are limited only to businesses. All of that is a lot of information to parse. Generally speaking, there are two major types of consumer bankruptcy, but sometimes consume...

Is there ever a situation in which a person or entity can file for two types of bankruptcy at the same time? For instance, if you are a business owner and have a struggling business, and you are also having immense difficulty with your own personal finances, can you file for two different forms of bankruptcy at the same time? Generally speaking, the Bankruptcy Code clarifies that an individual cannot file for two different types of personal bankruptcy at the same time, such as Chapter 7 and Chapter 13 bankruptcy . Likewise, a corporation cannot file for two different types of bankruptcy at the same time, such as Chapter 7 and Chapter 11 bankruptcy. For a single entity to file for two different types of bankruptcy, there are timetables and waiting limits for multiple discharges. We will talk you through the waiting times if you want to file for bankruptcy twice, and then we will explain scenarios in which a business owner could end up in two different types of bankruptcy ...

If you are thinking about filing for personal bankruptcy in Oak Park , you may be overwhelmed and a bit confused by the different types of consumer bankruptcy. For example, you might have heard that a friend or family member recently filed for Chapter 7 bankruptcy , but that another acquaintance was ineligible to file for Chapter 7 and ended up filing under Chapter 13 instead. Or, perhaps you know someone who learned their consumer debts made them ineligible for Chapter 13 bankruptcy, which led them to file for Chapter 11 bankruptcy instead. While most consumers file for either Chapter 7 or Chapter 13 bankruptcy, some also file for Chapter 11 bankruptcy depending upon their income and debt levels. We have some questions to help you learn more about the type of bankruptcy that is right for you. Do You Have a Steady Income? If you have a steady income and you earn a decent salary, you may be ineligible to file for Chapter 7 bankruptcy. As the U.S. Courts website clarifies...

When debtors in Oak Park are thinking about filing for bankruptcy , they are most often considering either Chapter 7 bankruptcy or Chapter 13 bankruptcy. You may know that, in order to be eligible for Chapter 7 bankruptcy , you must pass what is known as a “means test.” The means test takes a look at your assets and income, along with other factors, to determine whether a liquidation bankruptcy is appropriate for your situation. Chapter 7 bankruptcy, unlike Chapter 13 bankruptcy, results in a discharge of most consumer debts once the bankruptcy has been completed. Typically, when a consumer cannot pass the means test, he or she will rely on Chapter 13 bankruptcy to help get back on track with debts and finances. However, many consumers do not know that there are also eligibility requirements for Chapter 13 bankruptcy. What happens if you have too much debt to file for Chapter 13 bankruptcy protection? Determining Eligibility for Chapter 13 Bankruptcy in Oak Park If...

When most residents of Chicagoland hear the words personal bankruptcy or consumer bankruptcy, we think about how filing for Chapter 7 or Chapter 13 bankruptcy protection might be able to help us handle seemingly unmanageable debt. But in some instances, personal bankruptcy can be a way to avoid paying out certain types of awards or monies owed. According to a recent article in The Wall Street Journal , when a broker files for personal bankruptcy, it is unlikely that she or he will be held responsible for paying an arbitration award. Learning More About Arbitration and Brokerage Firm Employees Generally speaking, when brokerage firms and brokers are required to pay arbitration awards, they can actually “be booted from the industry” if they fail to pay those awards on time, according to the article. The Financial Industry Regulation Authority (FINRA) is a Wall Street watchdog that seeks to “take tough action to ensure awards to investors made under its arbitration pro...

Now that we have entered into 2016, many Chicagoans may be thinking about their finances with regard to New Year’s resolutions. Some of us might be resolving to pay off our debts and to take control of our financial situations. Others might be thinking about filing for Chapter 7 bankruptcy in order to get a clean start for 2016. How can you know whether personal bankruptcy is the right choice for you? According to a recent article from Quicken Loans , filing for consumer bankruptcy is a not a decision that anyone should make easily or quickly. While your financial profile is likely to recover more quickly than some might have you believe, bankruptcy will nonetheless have significant short-term and long-term impacts. Buying a Home in the New Year If you are thinking about buying a house in the next year or two but are also considering personal bankruptcy in 2016, then bankruptcy may place limitations on your future plans. As the article explains, mortgage lenders may...