Oak Park Real Estate & Estate Planning Blog

A recent U.S. Supreme Court case considered whether a federally recognized Indian tribe is subject to the U.S. Bankruptcy Code’s provisions and, more specifically, the automatic stay that applies when a debtor files for bankruptcy protection. While there are no longer any federally recognized Indian tribes centered within the state of Illinois, the State of Illinois emphasizes that “the lands we now call Illinois are the ancestral homelands of many Tribal Nations,” and “Native peoples from over 100 Tribal Nations continue to call these lands home.” Accordingly, federally recognized Indian tribes may have businesses in Illinois or may be doing business with consumers in various capacities. The recently decided case, Lac du Flambeau Band of Lake Superior Chippewa Indians et al. v. Coughlin (2023), required the Court to consider whether a federally recognized Indian tribe is subject to the automatic stay and to the provisions of the Bankruptcy Code more broadly. The Court held, “The Bank...

Many consumers who file for bankruptcy in the Oak Park area are dealing with contact from creditors and debt collectors, and many are concerned that they may soon face a lawsuit from a creditor or debt collector to whom they owe money. At the same time, many debtors have already received notice of a civil lawsuit against them, and they often have questions about how a bankruptcy filing will impact such a lawsuit. Indeed, many individuals who file for Chapter 7 or Chapter 13 bankruptcy want to know: can I be sued for debt after I file for bankruptcy? In short, the answer is no, and our Oak Park bankruptcy attorneys can explain your rights to you in more detail. How the Automatic Stay Prevents You From Being Sued One of the most important tools in a bankruptcy case is the automatic stay . Under the Bankruptcy Code , the automatic stay applies to an individual bankruptcy case as soon as the bankruptcy petition is filed. This is true whether you are applying for Chapter 7 bankruptcy or Ch...

When an individual debtor files for Chapter 7 or Chapter 13 bankruptcy in the Oak Park area, they will need to complete a number of “schedules” in addition to the initial bankruptcy filing. Schedules are not timelines or outlines, or plans or procedures, as you might expect from the name. Rather, bankruptcy schedules are documents that provide the bankruptcy court with detailed information about your personal assets, debts, and other related information. The debtor must complete certain schedules (usually with assistance from a bankruptcy lawyer). The specific information required for each bankruptcy schedule is particular, and there are important requirements to consider. In many cases, failing to provide information in a bankruptcy schedule can complicate your case, so it is critical to ensure that you have the schedules filled out correctly. Schedules A through C are documents in which a debtor provides information about their personal property (including real property, tangible pro...

If you have student loan debt and have been following recent news concerning the Biden administration’s policy guidance for the U.S. Department of Justice (DOJ) and the memo issued by the DOJ about discharging student loans in bankruptcy , you probably know already that the process of discharging student loan debt in bankruptcy is supposed to be changed soon. While the “undue hardship” requirements to discharge student loans in bankruptcy will not change, the DOJ plans to streamline parts of the bankruptcy process so that more student loans are likely to be discharged in a personal bankruptcy case. According to a recent article in Forbes , the DOJ has “updated a key application form under [the] new process,” which suggests that bankruptcy filers could soon be able to have their student loan debt discharged in bankruptcy without many of the procedural difficulties that existed previously. What does this news from Forbes about the application form involve? Our Oak Park bankruptcy attorne...

What documents do you need to have if you are filing for Chapter 7 bankruptcy in the Oak Park area? The best way to ensure that you have all required documents and that you are taking all necessary steps for a smooth bankruptcy process is to work with an experienced bankruptcy attorney in Oak Park on your case. In the meantime, however, it is also important to gain an understanding of what is involved in the bankruptcy process, and what information you will need to have in order to ultimately be eligible for a bankruptcy discharge. Take a look at the following checklist to get an idea of the types of materials, documents, and evidence you will need to have a successful Chapter 7 bankruptcy case. Documents to Start Your Bankruptcy Case What do you need in order to initiate your Chapter 7 bankruptcy case in Illinois? According to U.S. bankruptcy law , you will need to do the following in order to get your Chapter 7 bankruptcy case started: File your Voluntary Petition for Chapter 7 bank...

For many people who are considering a personal bankruptcy case, there is a looming question: how can I keep my property? Indeed, many debtors thinking about bankruptcy wait too long to file because they are concerned about their assets being fully liquidated and losing most of their important property. It is important to know that there are multiple ways to keep your property when you file for bankruptcy — either through the type of bankruptcy you file for or by applying exemptions to your assets. Our Oak Park bankruptcy attorneys can explain in more detail. Determine Your Eligibility for Chapter 13 Bankruptcy The easiest way to keep your property — all of your property — in a bankruptcy case is by filing for Chapter 13 bankruptcy (or another type of reorganization bankruptcy). In a Chapter 13 bankruptcy, none of your assets are liquidated. Given that this is a type of reorganization bankruptcy, you will need to plan to make set monthly payments as part of a repayment plan to creditor...

Will high inflation rates result in increased consumer bankruptcy filings in Oak Park and throughout Illinois? According to a recent article in Forbes , “the price for goods and services has increased 7.9% from the same time last year,” which means Americans are experiencing “the highest inflation rate since January 1982.” As a result, many households in the U.S. are struggling financially. The cost of groceries has increased, the cost of gas, electricity, and other utilities has risen sharply, and other expenses have gone up. As the article underscores, “forty percent of adults say their families are worse off financially now than prior to the pandemic,” and many households are struggling financially. Ultimately, inflation could mean that more consumers file for bankruptcy. What do you need to consider? Take Steps to Avoid Additional Costs Whether inflation has resulted in a struggle to pay your bills or has merely resulted in increased concern over finances in the future, it is impo...

If you are struggling to repay debts you owe, and creditors are contacting you, you may be worried about the types of actions that creditors or debt collectors can take against you in order to recover the money you owe. You might be wondering, specifically, if you can be forced to file for bankruptcy. Involuntary consumer bankruptcies are not common, but they can happen under some circumstances. Our Oak Park bankruptcy lawyers can provide you with more information about involuntary bankruptcy, as well as details about your rights as a consumer under the Fair Debt Collection Practices Act (FDCPA) and other laws. Understanding How Involuntary Bankruptcy Works It is rare, but individuals can be forced to file for bankruptcy in limited circumstances through an involuntary bankruptcy petition. According to the U.S. Bankruptcy Code: “An involuntary case may be commenced only under Chapter 7 or 11 of this title, and only against a person, except a farmer, family farmer, or a corporation is n...

When you are considering filing for personal bankruptcy , it is extremely important to find an experienced bankruptcy lawyer who can represent you from start to finish in your bankruptcy case. Consumer bankruptcy law in the U.S. is extremely complicated, and it can be difficult for individuals to handle many aspects of a Chapter 7 or Chapter 13 bankruptcy filing on their own. Yet it is also important to work with a bankruptcy lawyer who has experience in the field, and who can ensure that your bankruptcy case is handled properly. Before you hire a bankruptcy lawyer, you should schedule a consultation to ask questions and to learn more about the attorney. When you do meet with a bankruptcy lawyer for a consultation, you should consider asking some of the following questions, which can provide you with essential information about the lawyer’s practice and the specifics of your own bankruptcy case. How Long Have You Been Handling Bankruptcy Cases in Illinois? You should ask any prospecti...

There are many small business owners in Oak Park and throughout the Chicago area. Yet running a small business can be extremely difficult and complicated, especially a business in a field or industry that has been struggling since the start of the pandemic. In most circumstances, small business owners who are having difficulty repaying business debts are also struggling with their debts and finances as consumers, and they may be considering bankruptcy. If a consumer owns a small business and wants to file for bankruptcy , what does that consumer need to know? Our Oak Park bankruptcy lawyers have some information and tips to help. Consumers Who File for Bankruptcy and Own Sole Proprietorships Will Also be Filing for Business Bankruptcy If you are planning to file for bankruptcy because of your consumer debt, or you are planning to file for bankruptcy largely because of your business debt, the distinction will not matter too much under U.S. bankruptcy law if your business is structured ...

Bankruptcy exemptions are important in both Chapter 7 and Chapter 13 consumer bankruptcy cases. While you might already know about some bankruptcy exemptions in Illinois such as the homestead exemption or automobile exemption, there are a wide range of bankruptcy exemptions that could be applicable to your case. Our Oak Park bankruptcy lawyers want to provide you with more information about some of the less common bankruptcy exemptions that exist in Illinois that could help with your case. How Bankruptcy Exemptions Work in Consumer Cases Before we discuss some of the less common bankruptcy exemptions that are important for you to know and consider, we want to make sure you understand how these exemptions work. In a Chapter 7 bankruptcy case involving consumer debt, exemptions allow the individual or married couple filing for bankruptcy to exempt certain assets from liquidation. Since Chapter 7 bankruptcy is a type of liquidation bankruptcy, all non-exempt assets will be liquidated so...

If you are considering consumer bankruptcy , it is important to make an appointment with an Oak Park bankruptcy attorney who can assess your situation and can provide you with more information about your eligibility for different types of bankruptcy. Given the complexity of U.S. bankruptcy law , it is essential to have a lawyer on your side throughout your case. Yet it is also important to gain more knowledge about the process and the specifics of your case. As such, it is important to know what questions you have about your bankruptcy case and to plan in advance to discuss those questions and any concerns you have with a bankruptcy lawyer. What questions or issues should you plan to discuss when you meet with a bankruptcy attorney about your case? We have a list of questions for you to consider. Am I Eligible for Chapter 7 or Chapter 13 Bankruptcy? You should plan to find out immediately about your eligibility for Chapter 7 or Chapter 13 bankruptcy. Depending upon your particular fin...

When you are getting ready to file for consumer bankruptcy , it is essential to create a checklist to be sure that you have all materials and documents in place, and that you have all of your bankruptcy plans in order. While bankruptcy checklists may vary slightly depending upon the individual debtor’s circumstances and the type of bankruptcy the debtor is filing for, the following elements will most likely be included on a majority of consumer bankruptcy checklists. While you are working on your checklist, it is critical to begin working with an experienced Oak Park bankruptcy lawyer on your case. U.S. bankruptcy law is extremely complicated, and making even a minor filing in your petition or during the bankruptcy process can affect your case. As such, you should always work with a bankruptcy attorney from the start. In the meantime, however, the following checklist can help you as you begin to plan for your personal bankruptcy case. Eligibility and Requirements First, your checklist...

Do consumer bankruptcy trends reflect larger economic trends in the U.S. at any given point in time? According to a recent news release from the University of Illinois, a new paper co-written by law professor Robert M. Lawless suggests that, over the last 30 years, we can learn about larger economic issues by looking into consumer bankruptcy data. Ultimately, the paper suggests that we can understand specific “economic stressors faced by U.S. debtors” by examining information about consumer bankruptcies from the last three decades, and that we may be able to rely on that information for the good of consumers in the present and future. Indeed, Lawless’s research could “afford policymakers a rough blueprint of how to make the current bankruptcy system more efficient and effective.” Details of the Consumer Bankruptcy Research The paper is the work of Lawless and two co-authors, including Pamela Fooehy at Benjamin N. Cardozo Law School and Deborah Thorne of the University of Idaho. In co...

When you are struggling with debt, you might be considering personal bankruptcy as an option, but you also may be thinking about debt settlement. Debt settlement is often depicted as an alternative to bankruptcy that can allow struggling consumers to deal with debt without having to go through the bankruptcy process. Yet debt settlement is not always so straightforward, and bankruptcy is not nearly as devastating to your financial record or credit as you might think. Our Oak Park bankruptcy attorneys can provide you with more information about debt settlement and bankruptcy, and we can help you to find the best solution to your debt problems. Debt Reduction Versus Debt Elimination A debt settlement is a particular kind of agreement that a consumer enters into with one or more creditors in order to reduce the amount of debt the consumer owes, and to repay a smaller portion of the money borrowed. Differently, in both Chapter 7 and Chapter 13 bankruptcy, remaining eligible debt at the...

In both Chapter 7 bankruptcy and Chapter 13 bankruptcy cases, the debtor will be required to disclose information about all assets and income to determine eligibility for bankruptcy as well as to determine the course of the bankruptcy case. While assets are treated differently in Chapter 7 and Chapter 13 bankruptcy cases, receiving an inheritance can significantly affect both types of bankruptcy cases. Today, our Oak Park bankruptcy attorneys can explain in more detail how inheritances are handled in Chapter 7 bankruptcy cases. Chapter 7 Bankruptcy and Inheritances First, we want to discuss how inheritances will be treated in Chapter 7 bankruptcy cases. It will be extremely important to know when you become entitled to the inheritance, and whether that occurs before, during, or after your bankruptcy filing. If you find out that you will be entitled to receive the inheritance before you actually file for Chapter 7 bankruptcy, you will need to determine whether the inheritance can be...

Many Americans are dealing with overwhelming debt and experience significant anxiety, depression, and grief over their financial situations. While consumer bankruptcy can be an option for many consumers who are struggling to make ends meet while repaying debt, there are far too many people who worry about the stigma of personal bankruptcy . Indeed, concerns about bankruptcy stigma can sometimes prevent people from filing for Chapter 7 or Chapter 13 bankruptcy, which can result in further financial devastation. A recent article in Business Insider discusses the ways in which the stigma surrounding consumer bankruptcy can have a harmful effect on debtors, and emphasizes that we need to destigmatize the bankruptcy process. Our Oak Park bankruptcy lawyers want to discuss some of the reasons that bankruptcy should not have any stigma attached, and that struggling debtors should feel comfortable discussing the benefits of the bankruptcy process with a lawyer. Length of Time Bankruptcy W...

There are so many different misconceptions about bankruptcy on the internet, and these myths also circulate among friends, family members, co-workers, and other acquaintances. One of the most common misconceptions about bankruptcy we hear is that filing for bankruptcy means you will lose all of your assets and will be left with nothing in order to have your debts discharged. This is simply untrue, and it is critical to understand how different types of bankruptcy affect liquidation, and how bankruptcy exemptions can always allow debtors to protect certain types of property. Our bankruptcy attorneys in Oak Park are here to tell you more. Liquidation Bankruptcy Does Not Mean You Will Lose All of Your Property First, we want to clarify that, even in a liquidation bankruptcy, you will not lose all of your property. Under U.S. bankruptcy law , Chapter 7 bankruptcy is a type of liquidation bankruptcy, and it does result in non-exempt property being liquidated in order for the debtor to ...

Making the decision to file for personal bankruptcy can be a complicated one, and it is important to reach that decision with guidance from an experienced consumer bankruptcy lawyer in Oak Park . While it is possible to file for bankruptcy without having an attorney, U.S. bankruptcy law is extremely complex, and there are many different reasons to have a lawyer on your side. The following are some of the top reasons to hire a consumer bankruptcy lawyer when you are considering Chapter 7 or Chapter 13 bankruptcy. You Will Need Assistance Determining the Best Type of Bankruptcy for You Although it is a common misconception, you cannot simply choose the type of bankruptcy for which you will file. To be clear, you cannot choose between Chapter 7 and Chapter 13 bankruptcy based on what you want to get out of the bankruptcy. Rather, you will need to prove that you are eligible for the particular type of bankruptcy for which you plan to file. Proving eligibility for Chapter 7 bankruptcy ...

During the COVID-19 pandemic, consumer bankruptcy filings have remained relatively low, and surprisingly low based on some expectations voiced by commentators. Yet many bankruptcy law experts and consumer protection advocates have worried that consumer bankruptcy filings would rise once the pandemic began to cease, unemployment benefits stopped coming, and Americans who lost their jobs were unable to find suitable or equal employment to the work they had been doing prior to the pandemic. It is possible that such a “spike” in consumer bankruptcy filings may soon occur, according to a recent article in Bloomberg Law , yet the article cites the end of the COVID-19 eviction ban as the likely reason for a rise in personal bankruptcies . Unpaid Rent May Lead to Bankruptcy Filings As the article argues, “an unprecedented amount of unpaid rent is making bankruptcy a more attractive option for millions of Americans grappling with paying their landlords as COVID-19 relief measures come to an...