Oak Park Real Estate & Estate Planning Blog

When you file for personal bankruptcy , whether you are filing for Chapter 7 or Chapter 13 bankruptcy (or in some cases Chapter 11 bankruptcy), it is important to understand that there are specific rules you must follow. Indeed, filing for consumer bankruptcy is a complicated process, and it is essential to provide all required documentation and to fill out schedules appropriately. Since consumer bankruptcy is so complex, it is always a good idea to work with an experienced bankruptcy lawyer to ensure that you follow all steps correctly. Yet it is also important to know that making an error on your materials is distinct from bankruptcy fraud. While a mistake in your filing can still prevent you from being eligible for a discharge, bankruptcy fraud typically results in much more serious consequences. We want to be clear about the differences between errors in your bankruptcy materials and bankruptcy fraud. What is Bankruptcy Fraud? Bankruptcy fraud can take many forms, and it typical...

Bankruptcy law is extremely complicated, and it is important to work with an Oak Park bankruptcy lawyer no matter how straightforward you think your case may be. Indeed, failing to work with an experienced advocate could result in significant difficulties in your case. In particular, omitting certain information can look like bankruptcy fraud. If you are considering Chapter 7 bankruptcy or Chapter 13 bankruptcy, it is important to learn more about bankruptcy fraud and how the failure to provide details about assets may result in bankruptcy fraud allegations.   Understanding Bankruptcy Fraud The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was designed, in part, to reduce the rate of bankruptcy fraud in consumer bankruptcy cases. One of the ways in which the law is supposed to prevent bankruptcy fraud is through the use of the “means test” to determine whether an individual is eligible to file for Chapter 7 bankruptcy. What does bankruptcy fraud act...

If you pay attention to news concerning big banks in America, you might already have heard about a big consumer fraud matter. Wells Fargo, the biggest bank in the United States, “scrambled . . . to contain the fallout from an investigation that found its employees set up 2 million fake accounts that customers didn’t ask for to get bonuses,” according to an article in the Chicago Tribune . Wells Fargo customers did not ask to open a new account, yet they had accounts fraudulently set up in their names by bank employees. Since the financial crisis began in 2008, most of the big banks in our nation have paid fines and settlements to remedy bad and sometimes fraudulent banking practices. Yet, as the article suggests, the recent issue “involved pervasive misconduct involving thousands of bank employees,” which begs the question of whether fines are sufficient to prevent “bad behavior” among banks and their employees. Moreover, what are banks doing to address the important issu...

Thousands of Chicagoans become victims of unfair and deceptive credit card collection practices every year. In many cases, Illinois residents who filed for Chapter 7 bankruptcy and received a discharge of their unsecured debts, including the debts they accrued on credit cards, will receive collection calls about those very same credit card debts. According to a recent article in The New York Times , “the Consumer Financial Protection Bureau (CFPB) and the attorneys general of 47 U.S. States and Washington, D.C. brought an enforcement action against JPMorgan Chase for abuse, deception, and unfairness in credit card collection cases.” Bank’s Failure to Comply with the Law If you had your credit card debts discharged in bankruptcy , you shouldn’t be receiving collection calls about the money you allegedly owe. However, hundreds of thousands of credit card accounts were not handled properly by the bank. According a news release from the CFPB, the agency identified the f...