Oak Park Real Estate & Estate Planning Blog

The U.S. Department of Education (DOE) has been relying on private debt collection companies to collect unpaid or overdue student loan debt, and many consumers have experienced problems with those debt collection companies and their tactics. In some cases, consumers have alleged that the private debt collecting firms contracting with the DOE have engaged in unlawful debt collection practices in violation of the Fair Debt Collection Practices Act (FDCPA). According to a recent article in The Wall Street Journal , a federal judge just “cleared the way for the Education Department to stop using private debt collectors and revamp the way it handles overdue student loans.” What do debtors in Illinois need to know about the recent federal case and its impact on debt collection practices? Plans to Change the Scope of Student Loan Servicing If the DOE no longer plans to rely on private debt collection companies to recoup money owed by student debtors, what does it plan to do instead? As t...

For many debtors in Oak Park, filing for consumer bankruptcy can be one of the best ways to get a fresh financial start and to recover after going into substantial debt. However, it is important to understand the ways in which Chapter 7 bankruptcy , for instance, might impact your ability to finance an education. According to an article from U.S. News & World Report , bankruptcy can indeed “allow borrowers suffocating under medical bills, credit card debt, and home foreclosures to catch a breath and start to rebuild.” At the same time, though, seeking personal bankruptcy protection can make it more difficult to secure a loan of any sort. If you are thinking about going back to school to complete your undergraduate education or to earn a bachelor’s degree, you should talk first with an experienced Oak Park bankruptcy attorney. Education Loan Consequences for Bankruptcy Filers As the article notes, securing college financing can be difficult after you have filed...