Oak Park Real Estate & Estate Planning Blog

If you are planning to file for consumer bankruptcy and you received a first-time homebuyer credit in the past, you might be wondering if this credit will be eligible for discharge in your Chapter 7 bankruptcy case or whether you will still owe this credit once you have received your bankruptcy discharge. A recent bankruptcy case suggests that the first-time homebuyer credit is a “tax” and not a “debt” in a Chapter 7 bankruptcy case, and thus it is not dischargeable if a debt files for Chapter 7 bankruptcy. The case is likely to have implications for future personal Chapter 7 bankruptcy cases involving the first-time homebuyer credit, and it will be critical to seek advice from a bankruptcy attorney about your situation. Understanding the First-Time Homebuyer Tax Credit In the Housing and Economic Recovery Act of 2008, a tax credit was available for first-time homebuyers who purchased a house between 2008 and 2010, according to an article in Forbes . In most cases, the tax credit ...

What age group makes up the largest segment of debtors in the U.S. population? According to a recent article in TheStreet.com , members of the Baby Boomer generation appear to have taken on the most consumer debt over the last several decades while Millennials, in large part, have shied away from large-scale consumer lending (including smaller automobile loans and larger mortgages for home purchases). In some cases, the fact that Americans in the Millennial generation have not taken on a substantial part of the consumer debt load may have to do with the amount of student loans that many owe, preventing them from getting a mortgage, for instance. What do these two age groups have in common? Both younger adults and aging Americans make up the two largest segments of the population, but their debt loads seem to be strikingly unequal. Baby Boomers Incurring the Larger Portion of America’s Consumer Debt The article cites a recent report from the New York Federal Res...

Now that we have entered into 2016, many Chicagoans may be thinking about their finances with regard to New Year’s resolutions. Some of us might be resolving to pay off our debts and to take control of our financial situations. Others might be thinking about filing for Chapter 7 bankruptcy in order to get a clean start for 2016. How can you know whether personal bankruptcy is the right choice for you? According to a recent article from Quicken Loans , filing for consumer bankruptcy is a not a decision that anyone should make easily or quickly. While your financial profile is likely to recover more quickly than some might have you believe, bankruptcy will nonetheless have significant short-term and long-term impacts. Buying a Home in the New Year If you are thinking about buying a house in the next year or two but are also considering personal bankruptcy in 2016, then bankruptcy may place limitations on your future plans. As the article explains, mortgage lenders may...