Oak Park Real Estate & Estate Planning Blog

Consumers in Illinois and throughout the United States are routinely contacted by debt collectors attempting to recover money for various types of debts. In some cases, debt collectors are attempting to collect on legitimate debts, meaning debts that actually exist and which the consumer owes, and for which the statute of limitations has not run out. However, there are also debt collectors that try to collect on fraudulent debts, or that continue trying to collect on debts that have been discharged in bankruptcy , debts for which the statute of limitations has run, and debts that never belonged to that particular consumer in the first place. According to a recent news release from the Consumer Financial Protection Bureau (CFPB), the agency has reached a settlement with a “debt collection mill” that has been “bombarding consumers with junk lawsuits.” What should you know about the CFPB news, and what implications could it have for debtors in the Oak Park area? CFPB Sues for Illegal Deb...

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...

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 ...

You may be aware that relatively recent changes to federal regulations have resulted in the ability for debt collectors to contact consumers in a new manner: through text messaging. In 2020, the Consumer Financial Protection Bureau (CFPB) finalized amendments to Regulation F . With those new amendments, debt collectors have been permitted to make contact with consumers through electronic communications, including texting. Yet it is essential to know that the amendments to Regulation F do not exclude text messages or other forms of communication by debt collectors from the Fair Debt Collection Practices Act (FDCPA). To be sure, if a debt collector engages in texting in a manner that violates the FDCPA, the affected debtor may be able to file a claim. In addition, debtors may have options to opt out of receiving text messages from debt collectors. Our experienced Oak Park consumer protection lawyers can provide you with more information. Amendments to Regulation F Allow Debt Collectors ...

When you are being contacted by debt collectors, regardless of whether or not you owe the debt the collector is seeking, it is essential to know that you have rights as a consumer. Indeed, the Fair Debt Collection Practices Act (FDCPA) provides numerous protections to consumers, including protections against harassment from debt collectors, fraudulent or deceptive debt collection practices, and contact at odd hours of the day or at your place of employment. However, new rules that have been approved by the Consumer Financial Protection Bureau (CFPB) allow debt collectors to make more forms of contact. Those rules recently took effect, according to an NPR report . Our Oak Park consumer protection attorneys want to say more about the rules, what you should expect, and how to get help if you are facing unfair debt collection practices. Debt Collectors Can Make Contact through Social Media and Other Sources Have you noticed a new follower on Instagram, or a new friend request on Faceb...

As you might have read, President Biden recently signed the American Rescue Plan, which includes another round of stimulus payments to American households. Indeed, many Americans will be eligible to receive a $1,400 stimulus payment as part of the $1.9 trillion bill, a payment that millions of consumers need “for urgent expenses like food and housing,” according to an article in Fortune . Yet as that article underscores, debt collectors may be able to take this stimulus payment before it ever reaches the hands of consumers, marking a shift from the rules concerning the previous two rounds of stimulus payments. Debt collectors were not allowed to garnish stimulus checks sent through the CARES Act, but the American Rescue Plan is different due to the way in which the relief package was passed. In short, you should know that a debt collector might be able to take your stimulus payment, and it is important to learn more about what that means for you and what steps you may be able to tak...

Veterans, like many other Americans, are struggling with debt during the coronavirus pandemic. According to a recent article in Military.com , President Biden announced that he has asked the Department of Veterans Affairs to pause debt collection from veterans in an executive order. That executive order, according to the article, “will help approximately 2 million veterans [to] maintain their financial footing” during this difficult period for many veterans across the country. The pause on debt collections applies to “federal collections on overpayments and debts.” If you are a veteran, it is important to understand how the executive order benefits you, and when those benefits may come to an end. Executive Order to Help Struggling Veterans During the Pandemic During the COVID-19 pandemic, people across the U.S. are struggling with job loss and medical debt due to COVID-19 infections. Veterans, too, are struggling. In the executive order signed last month, President Biden did the fol...

Struggling with debt is incredibly difficult under any circumstances, but it has been particularly difficult for many individuals and families in Illinois during the coronavirus pandemic. You may be dealing with frequent calls from debt collectors, and you might be considering Chapter 7 bankruptcy or Chapter 13 bankruptcy as an option. At some point, you might learn that the creditor has charged-off your debt, and you might assume that you are no longer responsible for paying the debt. Whether or not you are considering personal bankruptcy , we want to make sure you understand what charged-off debt is and how it can affect you. What Does it Mean if My Debt Has Been Charged Off? If you learn that a particular debt has been charged off, you should know first and most importantly that this fact does not mean that you no longer owe the debt. In fact, many charged off debts are sold to debt collection companies and other debt buyers, and you will likely continue to receive calls about th...

If you do not already know that the federal Fair Debt Collection Practices Act (FDCPA) provides protections for consumers who are facing debt collection , now you know. The FDCPA prohibits various types of behavior and debt collection strategies by creditors and debt collection companies, including lying to consumers about debts they owe, making certain kinds of threats when contacting debtors, and even contacting debtors at odd hours of the day. These are just a few examples of some of the protections provided through the FDCPA. Yet the FDCPA does not explicitly address debt collection methods via social media, and the federal government recently changed the rules pertaining to social media use and debt collection strategies. As a report from ABC News explains, you still have rights under the FDCPA when it comes to debt collection methods and strategies, but you may not be able to prevent debt collectors from using social media or other forms of electronic communication to reach ...

If you are like many Americans in and around Chicago, you are struggling to pay your debts as a result of the COVID-19 emergency. You may have received your government stimulus payment in recent weeks. Depending on your income, you could have been eligible to receive a payment of up to $1,200, and up to $500 for each dependent child. Whether you already received your stimulus payment or you are still waiting to receive it, you may have concerns about whether a debt collector can take that money from you if you have outstanding debts. It is an important question to consider given that Congress is in talks about additional stimulus payments for Americans suffering financially as a result of the coronavirus pandemic. So, can a creditor or debt collector take your government stimulus payment? In short, maybe. According to a recent article in USA Today , stimulus checks are not “explicitly off-limits to debt collectors.” As a result, you could have a stimulus payment garnished. Amount ...

When an Oak Park consumer faces harassment or other unfair or deceptive practices from a debt collection company , that consumer might consider filing a claim under the Fair Debt Collection Practices Act (FDCPA). The FDCPA prohibits certain actions by debt collectors and gives consumers the ability to file a federal claim in situations where a debt collector violates the law. Yet one of the requirements to have standing to sue under the FDCPA (and other federal statutes) is that the consumer must have suffered an “injury in fact” under Article III of the U.S. Constitution. Without an “injury in fact,” the consumer’s complaint can be dismissed for lack of standing. A 2016 U.S. Supreme Court case, Spokeo, Inc. v. Robins (2016), made clear that a consumer must have suffered an injury that is “concrete” enough to be considered an “injury in fact.” In applying Spokeo, several circuit courts have concluded that the consumer did have standing. However, a recent case out of the Sixth Circ...

Struggling with debt can be extremely difficult under any circumstances, yet learning that you are facing a debt collection lawsuit can be considerably more complicated than dealing with debt collectors alone. The Consumer Financial Protection Bureau (CFPB) estimated that about 70 million Americans have had to deal with debt collectors at some point in their lives. Moreover, “around 25% felt threatened during their dealings with such agencies,” according to a recent article in Credit.com . While the Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using certain language on the phone with debtors and from making threats, many debtors face this kind of behavior from debt collectors anyhow. While the FDCPA prohibits debt collectors from making threats to debtors about physical harm or criminal arrest, debt collectors can file lawsuits against debtors when the claim is not time-barred. What should you do if you are served papers for a civil lawsuit that a debt c...

What is the relationship between wage garnishment and bankruptcy in Illinois ? Many consumers learn that they could have their wages garnished, or receive information about their wages being garnished as a result of a judgment. They also often hear that they may be eligible to stop the wage garnishment by filing for personal bankruptcy . In many cases, filing for consumer bankruptcy can stop a garnishment, but it is important to understand how wage garnishment works and then how bankruptcy laws might stop a wage garnishment. What is Wage Garnishment? Many debtors in the Oak Park area have heard of wage garnishment, but confusion still exists about this term. In short, wage garnishment refers to a process of collecting on a judgment against a debtor (although garnishments can also affect companies and other entities) by having that debtor’s employer deduct a certain amount from his or her paycheck. In some cases, garnishment can also affect a debtor’s personal property that is not exe...

The Fair Debt Collection Practices Act (FDCPA) currently limits when debt collectors can make calls to debtors and, in some cases, where those debt collectors can attempt to make contact with debtors. For example, if you ask a debt collector to avoid calling you at work, the FDCPA says that the debt collector must abide by your request. In addition, debt collectors are not allowed to call at any time of day. Debt collectors are prohibited from calling you at unusual or inconvenient times, which include anytime before 8:00 a.m. and anytime after 9:00 p.m. However, the Consumer Financial Protection Bureau (CFPB) believes that more restrictions need to be in place to protect debtors from harassment and abuse by debt collectors , according to a recent article in The New York Times. Proposed Rules Would Restrict Number of Phone Calls from Debt Collectors One of the most significant of the proposed rules concerns the number of times that a debt collector can call a debt. According to th...

Should debt collectors be punished if they continue to try to collect on debts that have been discharged in bankruptcy ? Consumer protection advocates argue that they should, but courts across the country have not agreed about the answer to this question. Given that bankruptcy judges have reached different conclusions concerning “how easy it should be to punish debt collectors who pursue debt even after a person is no longer obligated to pay,” according to a recent article in The Wall Street Journal , the U.S. Supreme Court will now decide the issue. We previously discussed this case, Taggart v. Lorenzen , after the U.S. Supreme Court agreed to hear the case. Now that the Supreme Court has heard arguments in the case, we have a better sense of the types of questions the Court focused on during oral arguments. We want to say more about how the Court approached the issues in the case, and to discuss possible outcomes. Key Facts from Taggart v. Lorenzen As a brief reminder about what is...

The holiday season can be a stressful time for many consumers in Oak Park, especially if finances are tight. For many consumers in Chicagoland, the holiday season is also a reminder of credit card debt and the inability to cover the high costs associated with holiday gifts, parties, and other expenditures. While some consumers know their rights under the Fair Debt Collection Practices Act (FDCPA), many others do not understand their rights—or the responsibilities of debt collectors—according to the federal law. The FDCPA, in short, prohibits deceptive, fraudulent, and otherwise unfair debt collection practices . One question that consumers might ask who have some familiarity with the FDCPA and its protections is, “Is it unlawful under the FDCPA for a debt collector to contact me during the holidays? More specifically, can a debt collector call me multiple times on, for example, Thanksgiving Day or Christmas Day?” An article in Credit.com addresses this question, and we ...

You might not expect to receive a debt collection call in which a collector is attempting to recoup a debt that is owed by a deceased relative, but it happens more often than you think. For instance, after a parent or sibling passes away, debt collectors still want to try to collect on any debts they owed and often turn to family members. Is it lawful to try to collect a debt owed by a deceased person by contacting a close family member, or does this type of contact violate the Fair Debt Collection Practices Act (FDCPA)? More generally, what are the rules when it comes to debt collection practices from family members of deceased debtors? We have collated information to help answer these questions from an article on CreditCards.com and a fact sheet from the Federal Trade Commission (FTC). You are Not Liable for the Debts of Your Deceased Family Members The first and most important thing for family members receiving these types of debt collection calls to know i...