Oak Park Real Estate & Estate Planning Blog

Could a significant amount of holiday spending result in a rise in consumer bankruptcy cases in the New Year? While there are multiple factors that impact the overall rate of consumer bankruptcy in Illinois and throughout the country, significant and widespread upticks in spending could trigger an increase in overall Chapter 7 and Chapter 13 bankruptcy filings. According to a recent report from ABC News , the overall increase in spending during the 2022 holiday season could result in a rise in consumer bankruptcy filings in 2023. Our Oak Park bankruptcy lawyers want to discuss the article and help you understand your options if you are struggling with debt. Consumer Holiday Spending Increased in 2022 Data from Mastercard SpendingPulse shows that consumer sales during the holiday season rose by approximately 7.6 percent, with varying increases for different types of gifts and spending. More specifically, apparel sales purchased rose by about 4.4 percent, while restaurant spending rose ...

As the holiday season approaches, it is important to consider a range of issues if you are thinking about filing for personal bankruptcy . Depending upon your circumstances, it could make sense to file for bankruptcy before the holidays, or it could be more sensible to file for bankruptcy after the holidays. You should discuss your specific circumstances with a bankruptcy lawyer in Oak Park before you make any decisions. In the meantime, the following are some important considerations to keep in mind when you are thinking about bankruptcy around the holiday season. Debt Accumulated Close to a Bankruptcy Filing Will Not Be Dischargeable If you use your credit card to make charges for holiday gifts, holiday travel, holiday decor, or other expenses close to the time when you are planning to file for bankruptcy, you should know that these debts are unlikely to be discharged in a consumer bankruptcy case. Under the U.S. Bankruptcy Code , any purchases that are made within 90 days from the d...

The holiday season can be a joyful time of the year, but it is also traditionally a time in which consumers amass a significant amount of debt. For consumers who are already struggling with debt, charging gifts on credit cards and spending extensive amounts of money on holiday parties, dinners, and décor can be overwhelming, especially when the holiday season comes to an end and the debt remains. If you were already considering consumer bankruptcy before you took on additional debt over the holidays, you might assume that it makes sense to get started on your bankruptcy case in the early days of the New Year. Yet filing for consumer bankruptcy so soon after you have incurred a substantial amount of debt can actually be a problem. Our Oak Park bankruptcy lawyers can assist you with any questions you have about the consumer bankruptcy process or filing for bankruptcy during or after the holidays. In the meantime, the following are some things you should know about personal bankruptcy...

The holiday season often is expensive and stressful even under the best financial circumstances. Many families spend thousands of dollars every holiday season on gifts for other family members, friends, and co-workers, not to mention vacations involving extensive travel and hotel costs. Yet, if the holiday season is a financial stressor even for people who are feeling relatively stable financially, it is often extremely difficult for families struggling with debt. For those who have already filed for bankruptcy, the holiday season can be particularly challenging. Is it possible to enjoy the holiday season if you recently filed for Chapter 13 bankruptcy or are planning to file for bankruptcy in the near future? An article in The Balance addresses this question, and we want to discuss it with you as we move into the holiday season. Managing Holiday Spending After Filing for Chapter 13 Bankruptcy If you recently filed for Chapter 13 bankruptcy and are in the early stages of your rep...

When consumers struggle to repay debt, many turn to consumer bankruptcy as an option for relief. Some of those consumers file for Chapter 7 bankruptcy , which allows them to discharge most if not all debts and to get a fresh start, while others opt for Chapter 13 bankruptcy , which allows them to retain property while adhering to a repayment plan. We know that extensive individual consumer debt can lead to bankruptcy, but does a growing national consumer debt also suggest that more individuals will be filing for bankruptcy in the near future? Or does a rising national debt have different implications? According to a recent article from CNBC , the overall American debt is expected to reach $4 trillion by the end of 2018. Yet some commentators suggest a growing debt is not necessarily indicative of struggling consumers. American National Debt is Growing As the article explains, about five years ago the total consumer debt in the U.S. hit $3 trillion. By the end of...

The holiday season can be one of the most expensive times of year for many consumers, from throwing costly holiday parties to spending money on gifts for friends and extended family members. If you are already struggling with debt and considering consumer bankruptcy , it is extremely important to avoid taking on additional holiday debt this year. We want to discuss some tips from an article in Forbes for avoiding holiday debt, and then discuss the ways in which a consumer could face allegations of bankruptcy fraud if she were to charge significant amounts of money during the holiday season only to file for bankruptcy soon into the new year. How can You Avoid Holiday Debt This Year? Avoiding holiday debt is never easy. As the article highlights, “57% of American adults with children say they’re willing to take on debt to make their children happy,” and middle-income families are particularly susceptible to taking on unnecessary debt during the holiday season. To be s...

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 ...

As the holiday season approaches, it is important for consumers in Oak Park to think carefully about their finances and current consumer debt , and ways to avoid overspending on gifts, travel, and other costly ventures. As a recent report from Consumer Affairs explains, consumers often do not plan ahead for the economic costs of the holidays, and as a result, they end up taking on more credit card debt that they may not be able to pay off in the New Year. How can you be financially prepared for the holidays? What steps can you take to avoid insurmountable debt that could lead to personal bankruptcy ? Holiday Debt can ‘Snowball’ As the report notes, “debt accumulated during the holidays can stick around, and continue to snowball, well into the New Year.” Indeed, a recent study determined that Americans add more than $1,000, on average to their credit card debt during the holiday season. While that might not sound like a lot of money in the short term, if you alr...