Oak Park Real Estate & Estate Planning Blog

When you are considering personal bankruptcy, you are likely looking at the possibility of either Chapter 7 bankruptcy or Chapter 13 bankruptcy . While individuals do occasionally file for Chapter 11 bankruptcy, this only happens when they are ineligible for Chapter 13 bankruptcy as a result of having too much debt, and it is a relatively uncommon situation. As you are looking into the possibilities for Chapter 7 or Chapter 13 bankruptcy, you may be asking yourself: How am I supposed to decide between Chapter 7 and Chapter 13 bankruptcy? Ultimately, it is unlikely that you will be eligible for both Chapter 7 and Chapter 13 bankruptcy at the same time since they have quite different eligibility requirements. Instead, you should be looking at the process for each type of bankruptcy and asking yourself the question: am I most likely to be eligible for Chapter 7 bankruptcy or Chapter 13 bankruptcy? And if you are seeking the particular benefits of one of these types of bankruptcy, you shou...

What documents do you need to have if you are filing for Chapter 7 bankruptcy in the Oak Park area? The best way to ensure that you have all required documents and that you are taking all necessary steps for a smooth bankruptcy process is to work with an experienced bankruptcy attorney in Oak Park on your case. In the meantime, however, it is also important to gain an understanding of what is involved in the bankruptcy process, and what information you will need to have in order to ultimately be eligible for a bankruptcy discharge. Take a look at the following checklist to get an idea of the types of materials, documents, and evidence you will need to have a successful Chapter 7 bankruptcy case. Documents to Start Your Bankruptcy Case What do you need in order to initiate your Chapter 7 bankruptcy case in Illinois? According to U.S. bankruptcy law , you will need to do the following in order to get your Chapter 7 bankruptcy case started: File your Voluntary Petition for Chapter 7 bank...

Struggling with debt is one of the most stressful experiences in a person’s life, and it can be difficult to know what options may be available to you. If you are unable to pay your bills and debts are piling up, you might be considering consumer bankruptcy. If so, you might know that there are different types of personal bankruptcy and that individuals most often file for Chapter 7 bankruptcy or Chapter 13 bankruptcy. These are very different types of bankruptcy, so it is important to understand the differences. Chapter 13 bankruptcy is a kind of reorganization bankruptcy that is commonly known as a wage earner’s plan, while Chapter 7 bankruptcy is a kind of liquidation bankruptcy. Is liquidation bankruptcy right for you? Before you make any decisions about filing for bankruptcy, you should discuss your specific circumstances with a bankruptcy lawyer in Oak Park. In the meantime, if you are wondering if liquidation bankruptcy is right for you, consider the following questions. Do You...

If you are thinking about filing for Chapter 7 bankruptcy , you likely know that this is a type of liquidation bankruptcy. What this means is that all non-exempt assets will be liquidated, and the money obtained from the liquidation of those assets will be used to repay creditors in order of their priority. Chapter 13 bankruptcy does not involve the liquidation of a debtor’s assets. When you are planning to file for Chapter 7 bankruptcy, you may be wondering: what property will I be able to keep if I file for liquidation bankruptcy? The good news is that Illinois law contains a variety of bankruptcy exemptions that can allow debtors to retain a wide range of assets even during and after a Chapter 7 bankruptcy case. Consider the following information from our Oak Park bankruptcy attorneys. You Will Need to Use Illinois’s Bankruptcy Exemptions The first thing to know when you are learning about which assets of yours will qualify for exemptions in your Oak Park bankruptcy case is that deb...

Bankruptcy trustees oversee consumer and commercial bankruptcy cases, but trustees perform different roles depending upon the type of bankruptcy filing. In reorganization bankruptcies, as a recent article in The Yale Law Journal notes, there are specific trustees that handle Chapter 13 consumer bankruptcy cases, while businesses filing for Chapter 11 typically perform the role of trustee themselves as a debtor-in-possession. In other words, trustees are different and distinct when it comes to consumer and commercial reorganization bankruptcy cases. Yet as the article points out, the same distinction does not exist in Chapter 7 bankruptcy cases, and consumers who are filing for a liquidation bankruptcy ultimately could suffer the consequences. Argument for Distinction Between Consumer and Business Trustees in Chapter 7 Bankruptcy Cases What is the argument for a clearer distinction between consumer and business trustees in Chapter 7 bankruptcy cases? The article in The Yale Law Journa...

If you are considering the possibility of filing for consumer bankruptcy , you are probably wondering how your bankruptcy filing will affect your property. Indeed, many consumers are worried that filing for bankruptcy will mean that they will lose all of their assets, or that all of their property will be liquidated. This is not how consumer bankruptcy works, and our Oak Park bankruptcy attorneys want to make sure you have the information you need. The following are three key things to know about asset liquidation in personal bankruptcy cases. 1. Assets are Only Liquidated in Chapter 7 Bankruptcy Cases First, you should know that assets will only be liquidated in a Chapter 7 bankruptcy case if you are an individual or married couple filing for bankruptcy. In Chapter 13 bankruptcy cases, assets are not liquidated. Instead, in a Chapter 13 case, the debtor creates an approved repayment plan through which she or he repays debts over a period of three to five years and is able to get caug...

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 ...

If you are planning to file for Chapter 7 bankruptcy , it is important to understand that this is a liquidation bankruptcy. Accordingly, all of your non-exempt property will be liquidated in order to repay creditors, and you will receive a discharge of all eligible debts at the end of the bankruptcy process. The time from filing to discharge usually takes approximately four to six months, making the Chapter 7 bankruptcy process quite fast, especially in comparison with Chapter 13 bankruptcy, which requires a repayment plan over the course of three to five years. While many debtors want to file for Chapter 7 bankruptcy in order to get a fresh start, there are some situations in which a debtor might not want to give up secured property or receive a discharge because the debtor wants to keep that property and continue to make payments on it. Is this type of arrangement possible in a Chapter 7 bankruptcy case? For example, if you have an auto loan and want to keep the car and continue to m...

In both Chapter 7 bankruptcy and Chapter 13 bankruptcy cases, the debtor will be required to disclose information about all assets and income to determine eligibility for bankruptcy as well as to determine the course of the bankruptcy case. While assets are treated differently in Chapter 7 and Chapter 13 bankruptcy cases, receiving an inheritance can significantly affect both types of bankruptcy cases. Today, our Oak Park bankruptcy attorneys can explain in more detail how inheritances are handled in Chapter 7 bankruptcy cases. Chapter 7 Bankruptcy and Inheritances First, we want to discuss how inheritances will be treated in Chapter 7 bankruptcy cases. It will be extremely important to know when you become entitled to the inheritance, and whether that occurs before, during, or after your bankruptcy filing. If you find out that you will be entitled to receive the inheritance before you actually file for Chapter 7 bankruptcy, you will need to determine whether the inheritance can be...

If you are planning to file for Chapter 7 bankruptcy , you want to be certain that all—or at least the majority of—the major debts you owe will be discharged in your bankruptcy case. Accordingly, you might be wondering: will Chapter 7 bankruptcy erase all of the debt I owe? To confirm an answer to this question, it is critical to discuss the particular facts of your case with an Oak Park consumer bankruptcy lawyer who can help. Bankruptcy laws in the U.S. are extremely complicated, and there are some types of debt that are not dischargeable. As such, it is important to have an experienced attorney assess your situation before you move forward with your bankruptcy case. The good news is that most consumer debts are dischargeable in a Chapter 7 bankruptcy case, which means that you may indeed be able to erase all of the debt you owe. Yet some types of debt are not dischargeable, and there are some situations in which debt ultimately cannot be discharged even if the type of debt is dis...

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 people think about consumer bankruptcy , they often think about liquidation bankruptcy, or a type of bankruptcy in which non-exempt assets are liquidated and remaining eligible debts are discharged. Yet there are many misconceptions about liquidation bankruptcy out there, and it is important to understand key aspects of liquidation bankruptcy if you are thinking about your options. The following are five things to know about liquidation bankruptcy. If you have follow up questions or need assistance with your case, an Oak Park bankruptcy attorney at our firm can help. 1. Consumer Liquidation Bankruptcies are Chapter 7 Bankruptcies Anytime a consumer is talking about the possibility of filing for liquidation bankruptcy, they are likely referring to Chapter 7 bankruptcy. Chapter 7 bankruptcy is the most common type of liquidation bankruptcy for both consumers and businesses, and it is the type of bankruptcy you should anticipate if you are thinking about a liquidation bankruptcy. ...

Deciding to file for bankruptcy is certainly a major decision, and it is one you should make with assistance from an experienced Oak Park bankruptcy attorney . In nearly all consumer bankruptcy cases, the debtor has filed for bankruptcy because they need the kind of debt relief that can be offered through a bankruptcy case, or other benefits of bankruptcy, such as the way in which a Chapter 13 bankruptcy case can stop a foreclosure and allow the debtor to remain in their home. But what happens when a debtor files for bankruptcy without thinking the decision through? Or what happens if a person files for bankruptcy and then their financial situation changes suddenly and unexpectedly? In such scenarios, is it possible to withdraw a bankruptcy filing or to back out of the bankruptcy case? The answer depends on a number of factors. You Will Likely Need to Complete a Chapter 7 Bankruptcy Unless You Have Good Cause If you have filed for Chapter 7 bankruptcy —as opposed to Chapter 13 bank...

Making the decision to file for personal bankruptcy can be a complicated one, and it is important to reach that decision with guidance from an experienced consumer bankruptcy lawyer in Oak Park . While it is possible to file for bankruptcy without having an attorney, U.S. bankruptcy law is extremely complex, and there are many different reasons to have a lawyer on your side. The following are some of the top reasons to hire a consumer bankruptcy lawyer when you are considering Chapter 7 or Chapter 13 bankruptcy. You Will Need Assistance Determining the Best Type of Bankruptcy for You Although it is a common misconception, you cannot simply choose the type of bankruptcy for which you will file. To be clear, you cannot choose between Chapter 7 and Chapter 13 bankruptcy based on what you want to get out of the bankruptcy. Rather, you will need to prove that you are eligible for the particular type of bankruptcy for which you plan to file. Proving eligibility for Chapter 7 bankruptcy ...

Considering the possibility of consumer bankruptcy can be stressful for many Americans, particularly given the varied bankruptcy myths in circulation. From unintentional misinformation provided by friends or family members to information that may be aimed at deceiving consumers on the internet, there are so many misconceptions about losing assets and personal property if you decide to file for bankruptcy. One frequent source of anxiety in this regard concerns technology assets that people have become accustomed to using—and often need for work or school—in their day-to-day lives, such as smartphones and laptop computers. You should know up front that Illinois bankruptcy exemptions exist that you can rely on to avoid having necessary property liquidated, including your smartphone or laptop. At the same time, we want to emphasize that asset liquidation might not even be an issue you have to consider based on the type of bankruptcy you are considering. Our Oak Park bankruptcy attorneys...

The consumer bankruptcy process is extremely complicated, even for people who have some familiarity with the law because of the recent bankruptcy case of a family member or close friend. As such, it can be difficult to know what exactly you should expect when you do file for bankruptcy. For consumers, there are two types of bankruptcy that make up most personal bankruptcy cases — Chapter 7 bankruptcy and Chapter 13 bankruptcy. Since these types of bankruptcy are quite different from one another, it is important to understand that, while there will be some similarities after the initial bankruptcy filing, these types of cases will take different paths. Today we want to focus on Chapter 7 bankruptcy, which is a type of liquidation bankruptcy. Once you do file your bankruptcy petition—which you should always do with assistance from a bankruptcy lawyer—what should you expect to happen? The following are some of the central events that you should anticipate once you have filed for Chapte...

If you are considering filing for Chapter 7 bankruptcy , you may already know that Chapter 7 is a type of liquidation bankruptcy. What this means is that the bankruptcy trustee will liquidate (i.e., sell) all of your non-exempt assets in order to repay creditors so that you can be eligible for a debt discharge. When people hear about the liquidation process in a Chapter 7 bankruptcy, they can get worried about whether they will lose assets that they need for their daily lives, from a motor vehicle to get to work to a cell phone to communicate with others both personally and professionally. As such, you might be wondering if your cell phone will need to be liquidated as part of your Chapter 7 bankruptcy case . Generally speaking, most people who are going through a Chapter 7 bankruptcy will be able to use one of the Illinois bankruptcy exemptions in order to keep their smartphone. However, it is important to learn more about how this will work. Your Smartphone Might be a High-Value As...

If you are considering personal bankruptcy , especially a Chapter 7 liquidation bankruptcy , owing money to a close friend or family member can put you and your loved one in a very difficult position. While it can be much easier to seek a discharge of debt you owe to a seemingly nameless creditor, realizing that your debt can pose problems for a friend or family member can be much more complicated if you are seeking a bankruptcy discharge. How often does this kind of situation arise? What are your options if you want to file for Chapter 7 bankruptcy but you do not want to negatively affect a friend or family member who is now linked to your debt? Friends and Family Members are Negatively Affected by Financial Issues More Frequently Than You Might Think According to an article in Bankrate , more people borrow money from loved ones or ask loved ones to serve as co-signers on loans than you might think. With some frequency, those friends and family members ultimately end up bearing the...

When you owe a significant amount of debt and you do not have options for paying it off, consumer bankruptcy could make a lot of sense for you. However, you likely have concerns about how certain types of property will be handled in your bankruptcy case, and whether you will lose property that you need. For example, if you rely on your car to get to work and to run errands such as going to the grocery store or picking your kids up from school, the prospect of losing your car can be devastating. As such, you may be wondering, “Can I keep my car if I file for personal bankruptcy?” The answer to that question may not be the same for everyone, and it will depend upon your particular circumstances. However, we want to be clear that you certainly may be able to keep your car if you file for personal bankruptcy , and we will explain how that can work. You Will Not Lose Your Car if You are Filing for Chapter 13 Bankruptcy First, if you are filing for Chapter 13 bankruptcy, you should know t...

If you are considering the possibility of filing for Chapter 7 bankruptcy , you may know that you need to meet certain requirements in order to show your eligibility for this type of bankruptcy. Back in 2005, changes to U.S. bankruptcy law made it more difficult for consumers to be eligible for Chapter 7 bankruptcy, which is a type of liquidation bankruptcy. Those changes to the law were designed to prevent abusive bankruptcy filings in situations where the debtor actually has the means to repay some of the debt that they are seeking to discharge. In practice, however, those changes to the law have made the bankruptcy process more difficult and complicated for many debtors in Oak Park and across Illinois. The U.S. Department of Justice recently issued changes to median household incomes, which will result in changes concerning which debtors will need to take the “means test” in order to qualify for Chapter 7 bankruptcy in the U.S. We want to tell you more about these changes and to en...