Oak Park Real Estate & Estate Planning Blog

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...

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, ...

If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley , which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts. Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable The recent Bartenwerfer case involved a debtor attempti...

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...

When consumer debt rises, rates of consumer bankruptcy filings frequently will follow — especially when Americans are taking on more debt than their income and assets will allow them to repay. According to a recent report from CNBC , consumer debt has now reached an all-time high, and delinquencies are also rising. As consumer debt and delinquencies go up, foreclosure and bankruptcy rate increases certainly could follow. Our Oak Park consumer protection lawyers want to discuss the data with you and provide you with more information about how bankruptcy can allow you to discharge common types of consumer debt. New Record High for Consumer Debt Combined with Rise in Delinquencies Consumer debt has now reached an all-time high, as CNBC reports. Indeed, by the end of 2022, “debt across all categories totaled $16.9 trillion, up about $1.3 trillion from a year ago.” Mortgage debt increased while refinancing rates declined. Mortgage delinquency rates also rose, suggesting that more foreclosu...

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 ...

Anyone who is struggling with debt can feel overwhelmed, whether they owe $10,000 or $100,000 to creditors. Yet the total amount of debt you owe can determine whether personal bankruptcy is the right decision for you and whether it is the right decision to make currently. There are other factors to consider, including your income and assets and your employment prospects for the future, which could allow you to begin repaying some of the debt you owe. These issues can be complicated, and you should not make the decision to file for consumer bankruptcy until you have spoken with an experienced bankruptcy lawyer in Oak Park who can help you to assess your circumstances and to weigh the pros and cons of a bankruptcy filing. In the meantime, we know you might be wondering: how much debt is enough to file for bankruptcy? There is no specific number, but our firm can give you some things to consider. There is No Specific Debt Amount to Trigger a Personal Bankruptcy Filing You should know tha...

Medical debt has long been a major source of consumer debt and a primary reason that many individuals file for Chapter 7 or Chapter 13 bankruptcy. In the past, medical debt has often involved patients owing various debts to different facilities or owing money on a consumer credit card after charging a hospital bill or the costs of prescription medications. According to a recent report from NPR , a new kind of medical debt is taking hold across the country. In recent years, hospitals and other healthcare facilities have encouraged patients to sign up for hospital-specific credit cards or lines of credit to “consolidate health expenses.” This type of patient financing has led to even more medical debt, much of it unmanageable for consumers struggling to pay what they owe for health care. What do you need to know about hospital credit card debt, and what are your options for dealing with it? Our Oak Park consumer protection lawyers can provide you with more information. Medical Debt Now ...

As the holiday season approaches, it is important to consider a range of issues if you are thinking about filing for personal bankruptcy . Depending upon your circumstances, it could make sense to file for bankruptcy before the holidays, or it could be more sensible to file for bankruptcy after the holidays. You should discuss your specific circumstances with a bankruptcy lawyer in Oak Park before you make any decisions. In the meantime, the following are some important considerations to keep in mind when you are thinking about bankruptcy around the holiday season. Debt Accumulated Close to a Bankruptcy Filing Will Not Be Dischargeable If you use your credit card to make charges for holiday gifts, holiday travel, holiday decor, or other expenses close to the time when you are planning to file for bankruptcy, you should know that these debts are unlikely to be discharged in a consumer bankruptcy case. Under the U.S. Bankruptcy Code , any purchases that are made within 90 days from the d...

Are you planning to file for consumer bankruptcy in Oak Park ? If you are filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy in the near future, you may have done some preliminary research into any steps you will need to take in order to prepare for your bankruptcy case. You might have come across information about credit counseling, and you may be wondering if this is necessary or if you should consider attending credit counseling. Given that consumer bankruptcy cases have numerous and varied requirements, it is essential to work with an Oak Park consumer bankruptcy attorney who can advise you of all requirements for your bankruptcy case and can ensure that you take all necessary steps in order to be eligible to have your debts discharged. More specifically, a lawyer can explain that credit counseling is not optional but rather necessary, and it is not the only finance class that you must take in order to have your debts discharged. You Must Complete Credit Counseling Before You...

When you are thinking about consumer bankruptcy , you may know that the automatic stay is one of the most powerful tools in a personal bankruptcy case. The automatic stay is an injunction that applies as soon as you file for bankruptcy, and it stops debt collectors and creditors from continuing to take any actions against you designed to collect on the debts you owe. This means a creditor cannot call you to try to collect the debt once the automatic stay applies, and a creditor cannot file a lawsuit against you, garnish your wages, or initiate or move forward on home foreclosure. In short, the automatic stay stops creditors and debt collectors from collecting the debt you owe. Yet you might be wondering: how long will the automatic stay remain in effect? And can the automatic stay permanently stop debt collectors from taking action against you? Our Oak Park bankruptcy attorneys have information to help you. Automatic Stay Will Remain in Effect Until Your Bankruptcy Case is Closed How l...

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...

Since the beginning of the COVID-19 pandemic and over the last couple of years, more Americans have faced significant medical bills due to pandemic-related illnesses and other health issues. For many of those consumers, including the ones with health insurance, their medical debt has become substantial, and many are dealing with relentless debt collectors who are seeking payments for costly hospital and treatment bills. For example, a recent NPR report discussed the crippling nature of medical debt and reported that cancer patients in particular are likely to file for bankruptcy . Indeed, a study conducted by the Kaiser Family Foundation (KFF) and reported in that article found that about 25% of cancer patients have filed for bankruptcy, and about two-thirds have struggled to pay for basic needs as a result of medical debt. A recent article in Consumer Reports explains that consumers can take steps to “fight back” when they are contacted by debt collectors over medical bills. Our Oak ...

When you are struggling to pay your bills and your debts are piling up, you may be wondering if now is the right time for you to file for consumer bankruptcy . There are many different myths and misconceptions concerning the bankruptcy process. As such, you may be concerned about filing and wondering if you should hold out for as long as possible. In most situations where personal bankruptcy is most likely inevitable, waiting to file for bankruptcy can be more harmful in the long run. However, in some cases, you may want to wait to file for bankruptcy based on your circumstances. Whenever you are considering bankruptcy, you should seek advice from an Oak Park consumer bankruptcy attorney. In the meantime, ask yourself the following questions to determine whether it could be the right time to begin the bankruptcy process with assistance from an experienced attorney. Do You Qualify for Consumer Bankruptcy? The first question you will want to consider is whether you currently qualify unde...

When a consumer owes debt to a creditor, or when the debt has been turned over or sold to a debt collector, the consumer will likely be contacted about the debt. It is important for consumers to know that they have certain protections under the Fair Debt Collection Practices Act (FDCPA), and that debt collectors cannot take certain actions or engage in particular behaviors according to the law. In order for a consumer to understand when they are being treated fairly (and when they are not), it is necessary to have an understanding of how the consumer debt collection process works. Debt Collectors are Permitted to Contact You But Must Comply With the FDCPA The Fair Debt Collection Practices Act (FDCPA) governs consumer debt collection practices. Under the FDCPA, debt collectors are permitted to contact consumers to try to collect debts, but there are certain restrictions, and some practices are unlawful. Consumers should know their rights under the FDCPA. Certain Debt Collection Pract...

Anyone who is struggling with debt can experience significant stress and anxiety upon receiving a phone call or written notice from a creditor or debt collector that threatens to sue if the debt is not paid. For many consumers in the Oak Park area, the possibility of facing a lawsuit over debt can be scary, and it is difficult to know what steps you should take. You might be wondering: should I file for bankruptcy if a creditor has threatened to sue me? In answering that question, it will be essential to consider the specific facts of your case and whether bankruptcy is the right option for you. In many cases, bankruptcy can be beneficial if you are facing a lawsuit from a creditor. Our Oak Park bankruptcy lawyers can explain in more detail, and we can also speak with you about your circumstances to help you determine the best path forward. Creditors Cannot Make Threats When Trying to Collect Debts While the threat of legal action can be unnerving, it is important to know that there a...

Debtors in Illinois have a variety of rights under the Fair Debt Collection Practices Act (FDCPA) whether they are considering a bankruptcy filing or are taking steps to get debt under control without filing for bankruptcy. The FDCPA also provides protections to debtors who have filed for bankruptcy in the past. Our Oak Park consumer protection lawyers want to provide you with more information about your rights as a debtor and the protections that are available to you under federal law. The following are five things you should know about your rights under the FDCPA. 1. Debt Collectors Cannot Contact You at Inconvenient Times and Places The Fair Debt Collection Practices Act prohibits creditors and debt collectors from calling you at inconvenient times, such as before 8:00 a.m. or after 9:00 p.m. In addition, the FDCPA prohibits debt collectors from calling you at your place of employment as soon as you ask that you not be contacted at the place you work. If a debt collector contacts...

Whether you are considering the possibility of consumer bankruptcy or you have already made the decision to file, it is important to understand how your debts will be treated in a bankruptcy case. As such, you may be wondering if all debts are treated the same in a personal bankruptcy case, or if certain debts are handled differently. Generally speaking, debts in a bankruptcy case can be categorized as secured debt, priority unsecured debt, and non-priority unsecured debt. In addition, you should know that student loans are handled a bit differently in bankruptcy cases, and there are also types of debt that are ineligible for discharge. Our Oak Park bankruptcy lawyers have more information to explain the types of debts in bankruptcy cases and how they are handled. Secured Debt, Priority Unsecured Debt, and Non-Priority Unsecured Debt First, it is important to understand the differences between secured and unsecured debt. Secured debt is debt for which there is collateral, which means...

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...

Medical debt is a serious problem in Illinois and across the country, and consumers routinely struggle with bills from health care. Even with health insurance, consumers still routinely pay extensive costs for even routine health care, and unexpected medical events can result in thousands of dollars of medical debt that they were not expecting. Indeed, as a result of medical debt, many Americans ultimately file for consumer bankruptcy. A recent report from the Consumer Financial Protection Bureau (CFPB) emphasizes there are numerous issues to consider when it comes to medical debt in the United States, including the way in which debt is incurred and managed by health care systems. If you have questions about handling medical debt, or if you want to learn more about filing for consumer bankruptcy, one of our experienced Oak Park consumer protection attorneys can provide you with more information. In the meantime, we want to provide you with more information about the CFPB report. Med...