Oak Park Real Estate & Estate Planning Blog

When an individual files for Chapter 7 or Chapter 13 bankruptcy in Illinois , they typically do so with the aim of receiving a bankruptcy discharge at the end of the bankruptcy case. Yet it can be confusing for a debtor to understand their rights in relation to a debt discharge and contact from debt collectors. For example, at what point, if any, can a debt collector attempt to collect on a debt that will soon be discharged in a bankruptcy case? Or, is there any time at which a debt collector can try to collect a debt that has been discharged? Our Oak Park bankruptcy lawyers can clarify your rights when it comes to debt discharges and debt collectors. The following are five things you should know about debt collectors and bankruptcy discharges in Illinois. 1. Debt Collectors Cannot Attempt to Collect Debts That Have Been Discharged Once you have received a bankruptcy discharge — meaning that eligible debts have been discharged — debt collectors cannot attempt to collect those debts. As...

Are you being contacted by debt collectors about debt you incurred many years ago or debts you do not even remember incurring? Or are you concerned about facing legal action over an older debt you have never repaid? These are issues that worry many debtors, especially when they are facing financial problems and are dealing with economic stressors. If you do have old debt, it is important to understand what a creditor or debt collector can do and what they cannot do. In addition, it is important to understand your options for dealing with old debt. Our Oak Park consumer protection attorneys can provide you with more information about older debt and can assist you with your options for resolving debt through bankruptcy or holding a debt collector accountable for deceptive practices that are prohibited under the Fair Debt Collection Practices Act (FDCPA). Debt Might Not Be Yours When you receive calls or text messages from debt collectors about old debt that you do not even remember inc...

Since the beginning of the COVID-19 pandemic and over the last couple of years, more Americans have faced significant medical bills due to pandemic-related illnesses and other health issues. For many of those consumers, including the ones with health insurance, their medical debt has become substantial, and many are dealing with relentless debt collectors who are seeking payments for costly hospital and treatment bills. For example, a recent NPR report discussed the crippling nature of medical debt and reported that cancer patients in particular are likely to file for bankruptcy . Indeed, a study conducted by the Kaiser Family Foundation (KFF) and reported in that article found that about 25% of cancer patients have filed for bankruptcy, and about two-thirds have struggled to pay for basic needs as a result of medical debt. A recent article in Consumer Reports explains that consumers can take steps to “fight back” when they are contacted by debt collectors over medical bills. Our Oak ...

Medical debt is a serious problem in Illinois and across the country, and consumers routinely struggle with bills from health care. Even with health insurance, consumers still routinely pay extensive costs for even routine health care, and unexpected medical events can result in thousands of dollars of medical debt that they were not expecting. Indeed, as a result of medical debt, many Americans ultimately file for consumer bankruptcy. A recent report from the Consumer Financial Protection Bureau (CFPB) emphasizes there are numerous issues to consider when it comes to medical debt in the United States, including the way in which debt is incurred and managed by health care systems. If you have questions about handling medical debt, or if you want to learn more about filing for consumer bankruptcy, one of our experienced Oak Park consumer protection attorneys can provide you with more information. In the meantime, we want to provide you with more information about the CFPB report. Med...

When you are being contacted by debt collectors, regardless of whether or not you owe the debt the collector is seeking, it is essential to know that you have rights as a consumer. Indeed, the Fair Debt Collection Practices Act (FDCPA) provides numerous protections to consumers, including protections against harassment from debt collectors, fraudulent or deceptive debt collection practices, and contact at odd hours of the day or at your place of employment. However, new rules that have been approved by the Consumer Financial Protection Bureau (CFPB) allow debt collectors to make more forms of contact. Those rules recently took effect, according to an NPR report . Our Oak Park consumer protection attorneys want to say more about the rules, what you should expect, and how to get help if you are facing unfair debt collection practices. Debt Collectors Can Make Contact through Social Media and Other Sources Have you noticed a new follower on Instagram, or a new friend request on Faceb...

Are there situations in which you can be required to repay debts you owe even after you receive a bankruptcy discharge ? Can a creditor continue trying to collect on debts you owe after your bankruptcy case has been completed or, worse, force you to reaffirm your debts? There are relatively few types of debts that a debtor will still owe following a bankruptcy discharge, and some of those debts may be reaffirmed debts based on the particular situation of the party filing for bankruptcy. However, U.S. bankruptcy law does not permit debtors to continue taking legal actions in attempts to collect on debts that have been discharged in a bankruptcy case. Our Oak Park bankruptcy lawyers can tell you more about reaffirmed debt and how debt responsibilities can persist after a bankruptcy discharge. Reaffirming Debt is a Process That Will Occur Prior to a Bankruptcy Discharge One of the first things to know is that, if any debt is going to be reaffirmed such that a debtor still owes it fol...

For many Americans who are struggling with debt, one of the most difficult aspects of owing money is the constant contact from creditors and debt collectors. Even though consumers do have clear rights outlined in the Federal Debt Collection Practices Act (FDCPA), which include limitations on the times at which a debt collector can call and the ability for a debt collector to contact debtors at their places of employment, many people who owe substantial consumer debt still face seemingly relentless phone calls, emails, and other forms of communication from creditors or debt collection companies. If you are in this situation, you might be wondering: can consumer bankruptcy prevent creditor or debt collector harassment? Or, in other words, can filing for bankruptcy stop these creditors or debt collectors from engaging in this kind of constant contact? In short, the answer is yes due to the automatic stay in Chapter 7 and Chapter 13 bankruptcy cases. We want to provide you with more ...

The U.S. Supreme Court recently granted certiorari to a bankruptcy case out of Chicago concerning the automatic stay. In other words, the U.S. Supreme Court agreed to hear the case, City of Chicago v. Fulton . The U.S. Court of Appeals for the Seventh Circuit most recently heard and ruled on the case, which involves a question about the automatic stay in a Chapter 13 bankruptcy case. We want to tell you more about the case and to discuss its possible implications for consumers in Oak Park moving forward. Getting the Facts About City of Chicago v. Fulton The present case, involves a situation in which a debtor’s car was towed and impounded, and the vehicle was not returned to the debtor once she filed for Chapter 13 bankruptcy, which is required under the automatic stay. Here are the basic facts of the case. Robbin Fulton, the debtor, had a citation for driving on a suspended license. The City of Chicago towed and impounded Fulton’s car in connection with that citation. Then Fulton...

Oak Park residents who are struggling with debt and dealing with frequent contact from debt collectors may know that the Consumer Financial Protection Bureau (CFPB) recently released a proposal that would include additional protections from consumers but also would give debt collectors more opportunities to contact consumers. As a recent article in USA Today explains, “more than 20 U.S. Senators are calling on the Consumer Financial Protection Bureau to reconsider a proposal that would allow debt collectors to send unlimited texts and emails to consumers, as well as call them seven times a week per debt.” Concerns About How CFPB Plans Will Impact Fair Debt Collection Practices Act The Fair Debt Collection Practices Act (FDCPA) provides consumers with rights when it comes to debt collection, and it limits the amount and type of contact a debt collector can make with a consumer. For example, the FDCPA prohibits a debt collector from calling at inconvenient times—typically very earl...

When debt collectors contact consumers about debts they owe, the debt collectors are prohibited from using deceptive practices under the Fair Debt Collection Practices Act (FDCPA) in order to convince consumers to pay any debts that they owe. According to a recent report from CNBC , the Consumer Financial Protection Bureau (CFPB) recently filed a claim against a debt collection company, alleging that it “violated federal law by falsely representing to consumers that its attorneys were meaningfully involved in preparing the collection lawsuits against them.” Between 2014 and 2016, the debt collection company, Forster & Garbus, allegedly filed more than 99,000 lawsuits against consumers. While the debt collection company is based in New York, the CFPB’s decision to file a claim makes clear that debt collection companies that falsely inform consumers that attorneys are involved in filing lawsuits—when there are not actually attorneys involved—may have engaged in deceptive practices...

Given that it is tax time, now is a particularly good time for anyone who has tax debt—or anticipates owing tax debt after this year’s tax cycle—to understand how the Internal Revenue Service (IRS) handles debt collection for tax debt. A recent article in Forbes discusses how the IRS currently handles tax debt, and what debtors should expect. In some cases, tax debt can be discharged in a bankruptcy proceeding. However, in many cases, tax debt is not dischargeable. For anyone who owes tax debt, it is important to learn more about how the federal tax debt collection process works, and what your options might be for filing for consumer bankruptcy . How Does the IRS Handle Tax Debt and Debt Collection? As the Forbes article explains, starting in 2017 the IRS “was required to hand over some unpaid tax bills to private agencies for collections.” Even though previous efforts to use private debt collection companies for collecting tax debt, the IRS moved forward with a private debt colle...

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...

Have you faced harassment from debt collectors ? Has a debt collector threatened to sue you to collect a debt owed, or have you received notice that a debt collector has filed a lawsuit against you? Dealing with debt collection companies can be extremely frustrating, especially when you are already experiencing significant anxiety surrounding the debt you owe. While there are federal protections for consumers under the Fair Debt Collection Practices Act (FDCPA), consumers do not always know about their rights or how to access them. New legislation in Illinois wants to take steps toward changing that. Recently introduced legislation, House Bill 281 , would require any lawsuits filed by debt collectors against consumers to contain clear information about the consumer’s rights among other things. We want to say more about this legislation and how it could help to protect consumer rights if it becomes law. How House Bill 281 Aims to Protect Illinois Consumers There are many ways in w...

What is “overbiffing,” and how is it harming debtors ? According to a recent report from CBS News , “overbiffing” is a term used for a practice in which debt collectors overstate the amount of money that consumers owe. And, as the article underscores, it is “the latest outrage in unfair debt collection .” In effect, through “overbiffing,” a debt collector can trick a consumer into paying more than she or he actually owes. If you were contacted recently by a debt collector who said you owed more money than you do, or who attempted to collect a debt from you that you do not owe at all, you may have been a target of “overbiffing,” and you may have a claim under the Fair Debt Collection Practices Act (FDCPA). An experienced Oak Park consumer protection attorney can discuss your options with you. How Does “Overbiffing” Occur? How exactly does “overbiffing” work? In other words, what are some of the tactics or methods that debt collectors use in overstating the amount ...

Debt collectors contact consumers in many different ways, and they use numerous tactics to try to convince those consumers to pay money. In some cases, the methods debt collectors use may be unfair and unlawful under the federal Fair Debt Collection Practices Act (FDCPA). What about text messages? Are debt collectors permitted to send text messages to your smartphone or other mobile phone under the FDCPA? If they are allowed to send text messages, does the FDCPA or any other law regulate what those text messages can say? We will tell you more about your rights as a consumer under the FDCPA and the Telephone Consumer Protection Act (TCPA) when it comes to debt collection and text messages specifically. Can Debt Collectors Send You Text Messages? On the broadest level, debt collectors are allowed to send text messages to consumers about debts. The FDCPA makes clear that debt collectors are permitted to text consumers as long as any texts sent are in compliance wi...

If you think about an unscrupulous debt collector or debt collection company, do certain types of debt come to mind more than others? For many Oak Park residents, the image of aggressive debt collectors whose actions may rise to the level of harassment might be one involving unpaid credit card debt or student loan debt. Yet there are many different types of debt that consumers take on, and some debt collectors specializing in collecting particular kinds of debt. According to a recent report from the Consumer Financial Protection Bureau (CFPB), telecommunications debt collection is an area that has resulted in consumer complaints in recent years, and the CFPB has tracked data concerning this particular kind of debt. Telecommunications debt collection refers to telecom collections, or telecommunications providers. Debt collectors are required to abide by the laws set forth in the Fair Debt Collection Practices Act (FDCPA). What do you need to know about telecommunications...