Oak Park Real Estate & Estate Planning Blog

What are exemptions in bankruptcy cases? If you are considering bankruptcy, you should first learn about how exemptions work. Under the Bankruptcy Code, exemptions allow debtors to be “exempt from property of the estate,” which means that debtors can exempt the value of certain assets from the bankruptcy estate. Exemptions work differently in Chapter 7 and Chapter 13 cases for individuals. In Chapter 7 cases, exemptions allow debtors to exempt assets from the estate for liquidation (in other words, you can keep the exempt property). According to the American Bankruptcy Institute (ABI), a majority of Americans who file for bankruptcy are able to exempt all or nearly all of their property in a Chapter 7 bankruptcy case. In a Chapter 13 case, given that assets are not liquidated, exemptions play a role in determining the monthly and total amount of debt that must be repaid over the course of the bankruptcy case. Some bankruptcy exemptions are used more frequently than others, so it is i...

Filing for personal bankruptcy is a complicated process, and there is a wide range of documents that must be completed and submitted to the bankruptcy court at different points in time. Beyond merely filing a petition for Chapter 7 bankruptcy or for Chapter 13 bankruptcy, you will need to provide the court with evidence of completing two different financial education courses, and you will also need to supply detailed information about your assets and your debts. The primary way that the bankruptcy court will obtain initial information about your property (including assets and liabilities), as well as about your financial circumstances, is through a series of “schedules” that you will file. Whether an individual is filing under Chapter 7, Chapter 13, or even Chapter 11, these schedules are relevant to them. Schedules in the context of bankruptcy do not refer to timetables or a program with an order of events. Rather, these are documents through which a debtor must supply financial info...

Can Chapter 13 bankruptcy save your home? While this might not be a question you have thought to ask yourself, the answer could be a resounding “yes.” Dealing with significant debt while also facing foreclosure can be extremely stressful, and if you have never been in a financial position like this before, you might be assuming that you do not have any options left. However, it is essential for you to know that Chapter 13 bankruptcy is a type of bankruptcy that not only allows consumers to reorganize their debt and catch up with creditors, but it can also stop a foreclosure from happening and allow a homeowner to remain in their home. So, if you are wondering whether Chapter 13 bankruptcy might be able to save your home, it is important to get in touch with a consumer bankruptcy attorney in Oak Park who can learn more about your financial circumstances to determine whether Chapter 13 bankruptcy is an option for you. How Can Chapter 13 Bankruptcy Stop Foreclosure? Many people wrongly a...

When you are considering personal bankruptcy, you are likely looking at the possibility of either Chapter 7 bankruptcy or Chapter 13 bankruptcy . While individuals do occasionally file for Chapter 11 bankruptcy, this only happens when they are ineligible for Chapter 13 bankruptcy as a result of having too much debt, and it is a relatively uncommon situation. As you are looking into the possibilities for Chapter 7 or Chapter 13 bankruptcy, you may be asking yourself: How am I supposed to decide between Chapter 7 and Chapter 13 bankruptcy? Ultimately, it is unlikely that you will be eligible for both Chapter 7 and Chapter 13 bankruptcy at the same time since they have quite different eligibility requirements. Instead, you should be looking at the process for each type of bankruptcy and asking yourself the question: am I most likely to be eligible for Chapter 7 bankruptcy or Chapter 13 bankruptcy? And if you are seeking the particular benefits of one of these types of bankruptcy, you shou...

Consumer bankruptcy can be an extremely useful tool for debtors who are struggling with a wide range of debts, from medical debt and credit card debt to mortgage debt. Yet at the same time, bankruptcy is not necessarily the right choice for everyone. Given the complexity of the bankruptcy process and the different types of bankruptcy and eligibility requirements for consumers, it is always important to discuss your case with an experienced Oak Park bankruptcy attorney who can assist you. In the meantime, who should be thinking about the possibility of filing for bankruptcy? A recent article in Business Insider considers when debtors should be thinking about bankruptcy and when they should be thinking through other options. We can tell you more about bankruptcy and whether it might be helpful to consider its benefits given your particular financial circumstances. You Do Not Have Obvious and Clear Options for Repaying What You Owe Most often, bankruptcy is appropriate in situations whe...

Are you thinking about filing for bankruptcy? Or have you recently filed for bankruptcy or received a discharge? The answer to these questions can become more complex when you are also thinking about your options for buying a house. Whether you are a first-time homebuyer or you have owned a home in the past—even if the house has been at risk of or has gone into foreclosure—the most important thing to know is that you can be eligible to buy a house after bankruptcy. To be clear, filing for bankruptcy and receiving a discharge does not mean that you will never be able to buy a house. While you will need to learn about certain waiting periods and rebuilding your credit, you should be hopeful about home ownership following your bankruptcy case. A recent article in House Digest discusses the ins and outs of buying a house after filing for bankruptcy, and our Oak Park bankruptcy lawyers want to provide you with more information. Know Bankruptcy Will Impact Your Credit But Will Not Prevent Y...

What have general consumer bankruptcy trends looked like over the past decade and a half since the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) in 2005? How have bankruptcy filings remained stagnant or shifted over time? The United States Courts recently published an analysis of consumer bankruptcy trends from 2005-2021, which highlights key information about how the bankruptcy process has unfolded for many Americans and how trends have changed over time or sometimes remained the same. Consumer bankruptcy refers to any non-business bankruptcy cases filed — typically under Chapter 7 or Chapter 13, but sometimes under Chapter 11, depending upon the debtor’s circumstances. The analysis emphasizes that consumer bankruptcy filings actually account for about 97% of all bankruptcy filings in the U.S., so it is especially important to gain a clearer understanding of these trends. Our Oak Park bankruptcy lawyers want to discuss the analysis with you in order...

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...

When you are thinking about consumer bankruptcy , you may know that the automatic stay is one of the most powerful tools in a personal bankruptcy case. The automatic stay is an injunction that applies as soon as you file for bankruptcy, and it stops debt collectors and creditors from continuing to take any actions against you designed to collect on the debts you owe. This means a creditor cannot call you to try to collect the debt once the automatic stay applies, and a creditor cannot file a lawsuit against you, garnish your wages, or initiate or move forward on home foreclosure. In short, the automatic stay stops creditors and debt collectors from collecting the debt you owe. Yet you might be wondering: how long will the automatic stay remain in effect? And can the automatic stay permanently stop debt collectors from taking action against you? Our Oak Park bankruptcy attorneys have information to help you. Automatic Stay Will Remain in Effect Until Your Bankruptcy Case is Closed How l...

Are you thinking about filing for Chapter 13 bankruptcy ? You may know that Chapter 13 bankruptcy is one of two common types of bankruptcy for individuals or consumers, and it is a form of reorganization bankruptcy. What that means is that none of your assets will be liquidated in the bankruptcy process. Rather, Chapter 13 bankruptcy will allow you to reorganize your debts. If you want to file for Chapter 13 bankruptcy, one of the eligibility requirements involves showing that you do not have more debt than is permitted for this type of bankruptcy. In terms of Chapter 13 debt limits, there is good news for potential filers with a significant amount of debt: a recent change to the law means that the Chapter 13 debt limits have increased for at least two years, and that increase could be extended into the future. What should you know about Chapter 13 bankruptcy and the increase in debt limits? Consider the following information from our Oak Park bankruptcy lawyers. What is Chapter 13 Ban...

If you are considering filing for personal bankruptcy in Illinois, it is important to discuss your circumstances with an Oak Park bankruptcy lawyer to ensure that bankruptcy is the right course of action for you. To be sure, you should give significant thought to filing for bankruptcy before you actually do so since making changes to your case can be complicated. Yet you may be wondering if it will be possible to change your mind once you file a bankruptcy petition. It will depend upon what you mean by changing your mind, but in short, you may be able to have your case dismissed or to convert your bankruptcy case to a different chapter. Asking to Have Your Bankruptcy Case Dismissed After You Have Filed Once you have filed for bankruptcy, can you ask the bankruptcy court to dismiss your case so that you do not go through with the bankruptcy? Generally speaking, it is possible to have the bankruptcy court dismiss your case if you no longer want to go through with the bankruptcy. However...

Are you thinking about filing for consumer bankruptcy in the Oak Park area? If so, you are likely speaking with close friends or family members about the process, and you are likely searching for information about personal bankruptcy on the internet. In your discussions and web browsing research, you have likely come across information about debts that are non-dischargeable, or debts that fall into the category of “exceptions to discharge” under U.S. bankruptcy law . It is important to keep in mind that the most common types are usually dischargeable in a bankruptcy case, but it is nonetheless essential to determine whether you will be able to have your debts discharged in your bankruptcy case. What are exceptions to discharge? The following are five things you should know. 1. Exceptions to Discharge Means Non-Dischargeable Debts Under the U.S. Bankruptcy Code, the term “exceptions to discharge” refers to debts that are non-dischargeable in a bankruptcy case. The law lists 19 exceptio...

Whether you recently retired or you have been retired for quite some time, there are a variety of reasons that you may be struggling to pay off debt. For some retirees, planning ahead for retirement did not take into account all of the expenditures that would occur during retirement, and credit card debt can rise. For many people in retirement, unexpected medical bills can result in a significant amount of medical debt that may feel almost impossible to manage on a fixed retirement income. If you are in a situation where you are retired but you do not know how you can manage your debt, you might be thinking about the possibility of consumer bankruptcy. Should retirees file for bankruptcy ? There is no single answer to that question, and it will be important to consider the particular facts of your case with an Oak Park bankruptcy lawyer . In the meantime, the following are some factors that you should consider when deciding whether you may want to file for personal bankruptcy in retire...

Many debtors who file for consumer bankruptcy do so, at least in part, as a result of insurmountable medical debt. For those debtors, Chapter 7 bankruptcy offers a way to have most medical debt discharged and to get a fresh financial start in order to begin rebuilding credit. If medical debt were no longer reported by credit bureaus and it did not affect a consumer’s eligibility for loans and other forms of credit, would overall rates of personal bankruptcy decline? According to an article in The New York Times , the Consumer Financial Protection Bureau (CFPB) is considering the possibility of banning medical debt from consumer credit reports. What else do you need to know about this proposal and how it could affect consumer debt and bankruptcy filings? Medical Debt is Harming Consumers Even before the start of the COVID-19 pandemic, consumers struggled with many different types of consumer debt, including substantial medical bills. Even with health insurance, an unexpected medical em...

Any debtor who is considering the possibility of filing for consumer bankruptcy has likely looked into the different options that are available to an individual debtor. In most cases, an individual debtor in Illinois will file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, depending upon the debtor’s particular circumstances. Debtors are not typically eligible for both types of bankruptcy, and as such, a debtor cannot choose between Chapter 7 and Chapter 13 bankruptcy. Rather, Chapter 7 bankruptcy is designed for individual debtors who can pass the “means test,” showing that they have insufficient income or resources to repay debts in any meaningful capacity. Chapter 13 bankruptcy, differently, is designed for wage earners who can prove that they have a regular income that will allow them to meet the terms of a three-to-five year bankruptcy plan. If Chapter 7 and Chapter 13 bankruptcies are the most common types of bankruptcies for individual debtors, why is there information abou...

When you have taken a close look at your finances and have considered your options to handle debt, you may have come to the conclusion that you want to move forward with a consumer bankruptcy filing. Yet once you have decided to file for bankruptcy, what are the next steps? The consumer bankruptcy process is lengthy and complicated, and it is important to have an Oak Park consumer bankruptcy attorney who can assist you from the beginning. In the meantime, the following are some of the key steps you will need to undertake or start planning for as part of your consumer bankruptcy case. Determine Your Eligibility for Consumer Bankruptcy Before you take any other steps in the consumer bankruptcy process, it will be critical to determine your eligibility for consumer bankruptcy under the U.S. Bankruptcy Code . There are several different types of bankruptcy that are available to individuals, but there are really two primary types of bankruptcy that individuals file on a regular basis — Ch...

If you owe a significant amount of debt and a portion of that debt includes federal student loans, you may be able to more easily have that debt discharged by filing for personal bankruptcy . According to a recent article in The Washington Post , a student financial aid point person for the U.S. Department of Education informed Congress “that the agency is working with the Justice Department to revise its bankruptcy policy for federal student loans.” This could mean that debtors who are struggling largely with student loan debt may soon be able to avoid the complicated process of seeking to have that debt discharged in bankruptcy even if there is not an overhaul of U.S. bankruptcy law. Changing the Approach to Student Loan Debt According to Richard Cordray, the current chief operating officer of the Office of Federal Student Aid, the current process for seeking a discharge of student loan debt in bankruptcy “doesn’t work well” and “needs to be reformed.” Speaking before a House educa...

When you are having significant difficulty paying your debts but you are continuing to work and need a long-term solution to getting your finances back on track, Chapter 13 bankruptcy could be a beneficial tool for you. There are different types of personal or consumer bankruptcy, and they have different eligibility requirements. Different kinds of personal bankruptcy also have specific ways of helping consumers with their debt, and some of the solutions are more immediate while others occur over a period of time. To determine the best type of bankruptcy for you, it is important to seek advice from an Oak Park bankruptcy lawyer who can evaluate the particular facts of your situations. In the meantime, however, the following are some questions you can ask yourself to get a head start on determining whether you may be a good candidate for Chapter 13 bankruptcy. Are You Seeking to Have All Eligible Debts Discharged and to Get a Fresh Start? If you are considering filing for bankruptcy...

After you have retired, you are most likely living on a fixed income and are relying on Social Security for income, as well as income from a retirement account or pension that you built up during your working life. For many older adults in retirement, the possibility of having to consider bankruptcy due to debt can be devastating, and most seniors want to do everything they can to end up in a situation where they cannot afford to live while paying off substantial and crushing debt. For many elderly Americans, overwhelming debt after retirement results from unexpected medical bills or long-term care, or in some cases, the decision to file for a “gray divorce.” No matter what the underlying reason for your debt, should you be considering consumer bankruptcy if you have already retired? And is bankruptcy even an option for you? The following are some key pieces of information to keep in mind. You Might Not Have Any Non-Exempt Assets First, and most importantly, you should seek advice ...

When people think about consumer bankruptcy , they often think about liquidation bankruptcy, or a type of bankruptcy in which non-exempt assets are liquidated and remaining eligible debts are discharged. Yet there are many misconceptions about liquidation bankruptcy out there, and it is important to understand key aspects of liquidation bankruptcy if you are thinking about your options. The following are five things to know about liquidation bankruptcy. If you have follow up questions or need assistance with your case, an Oak Park bankruptcy attorney at our firm can help. 1. Consumer Liquidation Bankruptcies are Chapter 7 Bankruptcies Anytime a consumer is talking about the possibility of filing for liquidation bankruptcy, they are likely referring to Chapter 7 bankruptcy. Chapter 7 bankruptcy is the most common type of liquidation bankruptcy for both consumers and businesses, and it is the type of bankruptcy you should anticipate if you are thinking about a liquidation bankruptcy. ...