Oak Park Real Estate & Estate Planning Blog

Are you considering personal bankruptcy ? If so, you might have discussed your circumstances with close friends or family members, and you might have done some of your own research into the different types of consumer bankruptcy that are available. Yet, many people in the Chicago area who are struggling with debt encounter a lot of misinformation or incomplete information before they have spoken with an attorney. We know that filing for bankruptcy is a big decision, and we want to ensure you have the information and the answers you need. Here are answers to five top bankruptcy concerns our Oak Park bankruptcy lawyers often hear. 1. Bankruptcy Concern: I Will Lose All of My Property Many debtors reach out to bankruptcy lawyers with the initial concern that filing for bankruptcy will result in them losing all of their property or being required to turn over all of their property to the bankruptcy trustee. This is simply not how any type of consumer bankruptcy works. Under the Bankruptcy ...

Struggling with debt can be stressful and anxiety-inducing, and in some cases the stress can even result in physical consequences. If you are in a difficult financial situation, you may be considering the possibility of filing for consumer bankruptcy . Generally speaking, under the U.S. Bankruptcy Code , consumers can be eligible to file for a liquidation bankruptcy (Chapter 7 bankruptcy) or a reorganization bankruptcy (usually Chapter 13 bankruptcy, but sometimes Chapter 11 in certain circumstances). Eligibility for different types of bankruptcy is something that you should discuss with an experienced bankruptcy attorney, given your particular financial circumstances. However, you should know that both kinds of bankruptcy cases allow for the discharge of various types of debts. A discharge means that you will no longer be liable for the debt, and creditors or debt collectors cannot take action, or even attempt to take action, to collect on debts that have been discharged. To be sure, ...

Understanding how the consumer bankruptcy process works when you are the only one filing is complicated, so when spouses decide that they both plan to file for bankruptcy, the process can seek even more complicated. On the one hand, you might be wondering if it is even possible to file for bankruptcy with your spouse or whether you will each need to file separately. On the other hand, you might have questions about how your plans to file for personal bankruptcy can affect your spouse or partner if your spouse or partner does not want or does not intend to file for bankruptcy. There are many questions that often come up when you are considering or filing for bankruptcy that concern spouses and partners, and our Oak Park bankruptcy lawyers want to ensure that you have a general understanding of what is at stake and how spouses are affected by bankruptcy filings. If you have specific questions about your circumstances, you should always discuss the particular facts of your case with a la...

Are some student loan companies attempting to collect debt that has been discharged in consumer bankruptcy cases? According to a recent article in Business Insider , the Consumer Financial Protection Bureau (CFPB) reported that “student loan companies have been accused of violating discharge orders and unlawfully collecting debt,” which should put consumers on alert if they have received a debt discharge through bankruptcy. To be clear, discharged debt is not owed, and creditors cannot attempt to collect it. What else do you need to know? Our Oak Park bankruptcy lawyers have information to help. Learning More About Student Loan Companies Attempting to Collect Discharged Debt The recent report from the CFPB underscored that student loan debt can in fact be discharged in bankruptcy despite the frequently repeated misconception that student loan debt cannot be discharged. To be clear, while student loan debt can be more difficult to discharge than some other types of consumer debt, it c...

During the early stages of the COVID-19 pandemic, commentators and experts in the bankruptcy law field considered the possibility of a surge in consumer bankruptcy cases due to unemployment and mounting debt. Yet with extended unemployment benefits, stimulus checks, student loan forbearances, an eviction moratorium, and mortgage forbearances, many consumers have not faced the kind of financial fallout from the pandemic that was initially expected to occur relatively quickly. However, according to a recent NPR report , a mass move toward bankruptcy filings may be more likely in 2022. It is important for consumers to know about their options, including bankruptcy, and to understand whether personal bankruptcy could be an option for you and whether Chapter 7 or Chapter 13 bankruptcy is the better fit for your needs and circumstances. New Year Could See a “Flood” of Consumer Bankruptcy Filings The COVID-19 pandemic is not over, yet many people remain out of work. Moreover, in some cas...

If you are struggling with debt in Oak Park and you are weighing your options, you might be considering personal bankruptcy . Yet if you do not have any experience with the consumer bankruptcy process, and you do not have any friends or family members who have filed for bankruptcy, it can be difficult to understand how the process works. In particular, you might be wondering, “Is there more than one type of consumer bankruptcy ?” If you have done a quick internet search for bankruptcy, you have probably discovered that there are many different chapters under which a bankruptcy case can be filed, and it can be extremely confusing to navigate the U.S. Bankruptcy Code . You may notice that some types of bankruptcy can be used for individuals and businesses alike, while others are limited to individuals and others still are limited only to businesses. All of that is a lot of information to parse. Generally speaking, there are two major types of consumer bankruptcy, but sometimes consume...

If you are planning to file for Chapter 7 bankruptcy and you currently have a mortgage on a home, you likely have concerns about what will happen to your house. You might be considering bankruptcy in part because you have gotten behind on your mortgage payments and you are now facing foreclosure. Even if you are not facing foreclosure, you might be struggling to make mortgage payments and could be behind schedule by a couple of months. Combined with other consumer debt, you might be thinking that a liquidation bankruptcy is the best option to discharge your debts and to get a fresh start. What will happen to your home? Many people assume that anyone who owns a home and files for Chapter 7 bankruptcy will lose their home, and this is not automatically true. Indeed, the answer to that question depends on a handful of different questions and issues, and we want to give you an idea of where to get started. Is Your Home Going Into Foreclosure? One of the first questions you will want to c...

If you are considering Chapter 13 bankruptcy or if you recently started the process of going through a Chapter 13 bankruptcy case, you should know that this process takes much longer than a Chapter 7 bankruptcy case. Before Chapter 13 debts can be discharged, the debtor will need to develop a repayment plan in order to “reorganize” debts, and consumer bankruptcies under Chapter 13 typically have a timeline of anywhere from three to five years. In other words, your bankruptcy case will take the length of your repayment plan (from three to five years, depending upon your income and other factors), in addition to the amount of time from filing until your repayment plan is approved. Once the terms of the repayment plan are completed, the bankruptcy court will need to review your case to determine whether remaining debts are eligible for discharge. What all of this means is that, in brief, a Chapter 13 bankruptcy case takes quite a long time. During that time window, professional and ...

Credit card debt is one of the more common reasons that Americans file for personal bankruptcy , and it is at its “lowest level since 2006,” according to a recent article from ACA International . Consumer bankruptcy filings have been on the decline over the last four years, and new research from the American Bankruptcy Institute suggests that the reason may be less accumulation of credit card debt. Role of Bankruptcy Reform and Personal Bankruptcy Filings According to the American Bankruptcy Institute’s Executive Director Sam Gerdano, the recent decline in personal bankruptcy filings likely is tied to the “changing nature of consumer debt,” and that decline “may slow down in the near future.” In thinking about how personal bankruptcy filings have been on the decline—and considering the reasons—it is important to look at the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). As Gerdan and Consultant Ed Flynn point out, “BAPCPA, which took effec...

When it comes to filing for bankruptcy , most Americans have been operating under the assumption that they'll be able to exempt retirement funds when they file for a Chapter 7 bankruptcy.  In other words, retirement savings accounts, such as those contained in individual retirement accounts (IRAs), typically can be exempted under federal law when someone files for consumer bankruptcy.  However, the recent U.S. Supreme Court ruling in Clark v. Rameker emphasizes that some exceptions exist when it comes to this rule. Supreme Court Ruling: Inherited IRAs Aren't Retirement Funds We previously discussed the potential implications of Clark v. Rameker when the case was still pending before the Supreme Court.  As a quick reminder, the case involves Heidi Heffron-Clark's inherited $450,000 traditional IRA.  Heidi inherited the IRA from her mother, Ruth, who named her daughter as the sole beneficiary.  When Heidi and her husband later decided to file for p...

Many Illinois residents face debt collection companies regularly, and indeed, Americans have seen a rise in the number of debt collection cases since the recession began.  Even as homeowners face difficulty finding the money to pay their mortgages and other bills, debt collectors aggressively seek payments.  The American Bar Association (ABA) released an article about harmful debt collection practices in the ABA Journal .  In the article, one consumer attorney referred to modern collection companies as “scavengers, buzzards picking at the decaying carcass of a debt.” In many cases, these collection companies harass consumers and use other deceptive or fraudulent practices .  In these situations, it is extremely important to have an experienced consumer attorney on your side. At the Emerson Law Firm , we know how difficult it can be to deal with relentless debt collection companies.  If you believe you have been the victim of an unfair collection pract...

Debt collectors have a bad reputation of using questionable tactics to collect debt, but now there is an increase of debt collectors trying to collect debt you may not even owe. Of course it goes without saying that these “rogue” debt collectors need to be stopped. Millions of Americans find themselves in debt, from credit cards, student loans, medical bills and more.  Not surprisingly, organized debt collection operations have grown with the rising debt.  Some of these companies are dealing with so many individual claims that they get very sloppy with their work, including going after individuals for debt that they already paid or never owed. So how do we make sure that the debt they are collecting is really yours?             According to a letter sent by Sherrod Brown, an Ohio Democrat, to Richard Cordray the director of the Consumer Financial Protection Bureau rogue debt collectors need to be reigned in wi...

Everyone knows that life after bankruptcy can be stressful, but it is important that those who are considering filing for bankruptcy realize that this is not the end of the road for them. Bankruptcy always gets a bad rap as being a financial last option, but, in reality, more people filed for bankruptcy in the past decade than ever before, and recovery is more than possible.                A helpful article from Daily Finance includes a list providing readers with the “5 Steps to Rebuilding your Credit, Finances and Emotions” after bankruptcy.  It’s worse a quick look, including these recommendations: “Let Go of the Guilt and Shame.” You are not alone! Plus feeling sorry for yourself will not make your situation any better, and can even make it worse. Rebuilding your life after bankruptcy requires work, dedication, and a positive attitude. “Reflect and Regroup.” Look back on why you end...