Oak Park Real Estate & Estate Planning Blog

Filing for consumer bankruptcy can come with multiple benefits and protections for homeowners and renters, including those who are facing foreclosure or eviction. The automatic stay initially protects debtors from foreclosure or eviction as soon as you file for bankruptcy, and in some cases, filing for bankruptcy can permanently stop a foreclosure or eviction, allowing you to remain in your home. Our Oak Park consumer bankruptcy attorneys can provide you with more information about how bankruptcy impacts foreclosures and evictions in different types of bankruptcy cases. Automatic Stay Temporarily Stops Foreclosure and Eviction Regardless of the Type of Bankruptcy Whether you are filing for Chapter 7 bankruptcy in Illinois or Chapter 13 bankruptcy , or even if you are filing for Chapter 11 bankruptcy as a consumer, the automatic stay will stop all creditor actions against you for the time being. What this means is that, if you are facing foreclosure or eviction, as soon as you file fo...

When you are considering consumer bankruptcy , our experienced Oak Park bankruptcy attorneys know that you probably have a wide variety of questions about the bankruptcy process. Indeed, we often work with clients in the early stages of bankruptcy planning who want to know more about bankruptcy exemptions, types of assets they will be able to retain if they file for bankruptcy, and how different types of personal bankruptcy affect both debts and assets. One question we frequently receive from debtors concerns the bankruptcy process in relation to staying in your home or your condo. So, if you file for bankruptcy, can you keep your house? The answer to that question will depend upon several different factors, and we want to provide you with some of the key information you will need to answer that question for yourself. Ultimately, you should seek advice from a bankruptcy attorney who can assess the particular facts of your case to determine whether or not you are likely to be able to...

Struggling with debt can produce significant anxiety, and it can be difficult to know whether you are making the right choices when it comes to your finances, the economic needs of yourself and your family, and your credit score. Missing payments on credit card debt or medical bills can result in penalties and fees being added onto the total amount you owe, not to mention interest. If you do owe a substantial amount of consumer debt, you may be wondering whether personal bankruptcy is the right choice for you. There are many benefits to both Chapter 7 bankruptcy and Chapter 13 bankruptcy , which are the two most common forms of consumer bankruptcy in the U.S. The following are some of the benefits that come with filing for bankruptcy protection. Automatic Stay Will Prevent Additional Actions from Creditors or Debt Collectors Whether you file for Chapter 7 or Chapter 13 bankruptcy , one of the immediate benefits is that the automatic stay will prevent creditors or debt collectors ...

While consumer bankruptcy and foreclosure are not necessarily linked to one another, there are many situations in which bankruptcy and foreclosure are closely related to one another. On the one hand, for example, you may know that some individuals file for bankruptcy in order to stop a foreclosure. You also may know that some debtors seek bankruptcy protection to avoid a deficiency judgment. The following are a few examples of the basic links between consumer bankruptcy and foreclosure. If you have additional questions, a bankruptcy lawyer in Oak Park can help. Filing for Chapter 13 Bankruptcy to Avoid Foreclosure One of the most common ways that consumer bankruptcy and foreclosure are linked is in situations where a homeowner files for Chapter 13 bankruptcy in order to avoid foreclosure. Since Chapter 13 bankruptcy is a type of reorganization bankruptcy, a debtor who files for Chapter 13 bankruptcy first gets the benefit of the automatic stay, which will stop any further foreclo...

Last year, the U.S. Supreme Court agreed to hear a case concerning a possible link between the Fair Debt Collection Practices Act (FDCPA) and businesses engaged in foreclosure proceedings. That case, Obduskey v. McCarthy & Holthus LLP , had the potential to expand the FDCPA’s definition of debt collectors to include certain attorneys who engage in debt collection practices . We discussed the case in some detail, and explained that, depending upon how the U.S. Supreme Court ruled on the case, Obduskey could have broader implications that ultimately could impact debtors in Illinois. The Court heard the case in January, and it released its ruling on March 20, 2019. In short, in a unanimous ruling, the Court found that, in the specific case, the business engaged in nonjudicial foreclosure proceedings was not a “debt collector” under the FDCPA. However, the ruling was a narrow one. We want to say more about the case and its potential implications. Facts of the Obduskey Case Before w...

If you are thinking about filing for personal bankruptcy in Oak Park , you may be overwhelmed and a bit confused by the different types of consumer bankruptcy. For example, you might have heard that a friend or family member recently filed for Chapter 7 bankruptcy , but that another acquaintance was ineligible to file for Chapter 7 and ended up filing under Chapter 13 instead. Or, perhaps you know someone who learned their consumer debts made them ineligible for Chapter 13 bankruptcy, which led them to file for Chapter 11 bankruptcy instead. While most consumers file for either Chapter 7 or Chapter 13 bankruptcy, some also file for Chapter 11 bankruptcy depending upon their income and debt levels. We have some questions to help you learn more about the type of bankruptcy that is right for you. Do You Have a Steady Income? If you have a steady income and you earn a decent salary, you may be ineligible to file for Chapter 7 bankruptcy. As the U.S. Courts website clarifies...

Once you have received a bankruptcy discharge , your past creditors are supposed to stop trying to collect debts from you, right? While going through a Chapter 7 or Chapter 13 bankruptcy should result in previous creditors ceasing to attempt to collect on debts you no longer owe, sometimes creditors or debt buyers are persistent, even after you have provided them with a copy of your discharge order. While it can be extremely frustrating to receive a bankruptcy discharge only to be hounded by creditors, there are steps you can take against these actions. In addition to collection after a bankruptcy discharge, sometimes creditors do not abide by the rules even earlier in the process. A recent Illinois case, Melnarowicz v. Pierce & Associates , makes clear that creditors must abide by the Fair Debt Collection Practices Act (FDCPA) when a debtor files for bankruptcy. The particular case involved a Chapter 13 bankruptcy and a mortgage foreclosure. If we take a closer look at ...