Oak Park Real Estate & Estate Planning Blog

When you are considering the possibility of consumer bankruptcy , it is important to work with an Oak Park bankruptcy lawyer to ensure that the bankruptcy process goes smoothly and to identify any potential issues that may arise in your bankruptcy case. One such issue, depending upon your circumstances, is a loan or line of credit with a cosigner. If you do have a cosigner or a guarantor on any debt, it is critical to understand that your bankruptcy case could negatively impact your cosigner if you do not take certain steps in advance. As you likely know if you do have a cosigner or a guarantor, a cosigner is necessary in situations in which you cannot obtain a loan alone with your credit profile and history. Accordingly, in order to get the loan or line of credit, you might ask a family member with good credit to act as a cosigner for you. In such situations, you might be wondering if you are still eligible to file for bankruptcy. You can certainly file for bankruptcy and receive a...

Struggling with debt can be both frustrating and discouraging, especially when it feels as though you are not making any headway despite the fact that you continue to make payments on high-interest credit cards and other debt. Trying to deal with debt can be even more difficult for government employees during a government shutdown. While some government employees have savings to cover financial setbacks resulting from a government shutdown during which they do not receive a regular paycheck, that simply is not the case for most workers. According to a recent report from CNBC , a majority of government employees live paycheck-to-paycheck. Accordingly, not only will government employees who already are struggling with debt find themselves in a more distressing situation with a shutdown, but even employees without significant debt may find themselves in debt as a result of the shutdown. Given the length of the recent shutdown, we want to take a closer look at how a government shutdown—i...

Can local governments play a role in stopping harmful debt collection practices to help lower income families? According to a recent article in American Banker , correcting some of the present problems with the debt-collection system in the U.S. may involve local governments. More specifically, according to the article, “consumer advocates are urging local governments and courts to improve their debt-collection systems to take into account the ability of low-income households to pay fines or court costs related to traffic violations or other infractions.” While certain fines are unlikely on their own to lead a family to seek protection by filing for consumer bankruptcy , even small debts can add up quickly. If local governments could find a way to account for the financial difficulties faced by lower income families when assessing certain fines and fees, more families may be able to deal with their debts. In the event that debt does become too difficult to manage, an Oak ...

Are your wages currently being garnished in Illinois, or do you have concerns that your wages will soon be garnished? You should speak with an Oak Park bankruptcy lawyer to learn more about how filing for Chapter 7 bankruptcy can stop or prevent wage garnishment. Under Illinois law ( 735 ILCS 5/ ), wage garnishment can occur in many different situations. To better understand how consumer bankruptcy may be able to provide you with relief, it is important to learn more about what we mean by wage garnishment, when and how it can be used, and how filing for personal bankruptcy can help. Learning More About Wage Garnishment What is wage garnishment, and what does it have to do with personal bankruptcy? Wage garnishment can happen in any state, and it is a deduction that your employer automatically takes from your paycheck as a result of a court order. For example, if you owe a significant amount of money to a creditor and the creditor sues you in order to recover what you ...

Any consumer in the Oak Park area who is considering personal bankruptcy likely has wondered what will happen if he or she simply fails to pay his or her debts. In other words, if you have a significant amount of outstanding unsecured debt (like credit card debt or medical bills), can you simply stop paying, while also making the decision to stop answering your phone when debt collectors call? What will happen if you simply stop making payments on unsecured debt (such as your automobile)? Weighing the Benefits and Harms of Consumer Bankruptcy According to a recent article in U.S. News & World Report , many consumers consider whether the benefits of avoiding bankruptcy can outweigh the harms of simply avoiding their debts. In short, Chapter 7 bankruptcy or Chapter 13 bankruptcy often are better options than most consumers believe, and they can give individuals with a significant amount of debt the opportunity to get a fresh start. Indeed, the problems associated ...

If you are thinking about filing for bankruptcy in Oak Park , especially Chapter 7 bankruptcy , you are most likely planning to have your debts discharged so that you can get a fresh start. Since most debts are going to be dischargeable, getting a fresh start is especially appealing for debtors who are struggling to make ends meet while paying on credit cards and other loans that have high interest rates. There may be some situations, however, in which debtors filing for consumer bankruptcy want to sign a reaffirmation agreement. What is a reaffirmation agreement, and why would a debtor want to agree to one? Reaffirmation agreements can be useful in a number of situations. We will discuss them with you below. What is a Reaffirmation Agreement? A reaffirmation agreement is just what it sounds like - a contract through which a debtor reaffirms a particular debt even though he or she is filing for bankruptcy protection. For many different reasons, a debtor might not w...

According to a recent news release from the Consumer Financial Protection Bureau (CFPB), about 40% of adults in the U.S. are struggling to make ends meet. In other words, a large percentage of Americans do not feel that they earn enough money each month to pay bills and to have the minimum money remaining for savings or for activities of daily living. While avoiding bankruptcy can be beneficial for some consumers, for many debtors, filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy can provide a fresh start or a way to get back on track. To better help consumers to understand their financial well-being, the CFPB has created an interactive tool. When so many consumers are struggling with bills and debt, when is it time to begin thinking about personal bankruptcy? CFPB Develops Interactive Tool to Help Consumers Many consumers need help managing their finances and figuring out when their debt may be insurmountable. With about 40% of adults indicating that ...