Oak Park Real Estate & Estate Planning Blog

For low-income people in the Chicago area who are dealing with large amounts of consumer debt, being harassed or treated unfairly by debt collectors can be particularly devastating. A recent case out of the U.S. Court of Appeals for the Second Circuit found in favor of debtors in the case, according to a report in the New York Law Journal . While the decision is only binding upon other courts within the Second Circuit, commentators expect that it could be persuasive and could end up playing a role in setting a similar precedent in courts across the country. As such, Oak Park residents should know about the case and how its outcome is a win for consumers who have been victims of illegal debt collection practices under the Fair Debt Collection Practices Act (FDCPA). The FDCPA and the Case of Arias v. Gutman, Mintz, Baker & Sonnenfeldt, PC The recent case decided by the Second Circuit, Arias v. Gutman, Mintz, Baker & Sonnenfeldt, PC (2017), could be an import...

While some reports suggest that consumer bankruptcy rates are falling in Oak Park and throughout the U.S., there are certain populations that may be struggling with debt at higher rates than others. More precisely, according to a recent article in Forbes Magazine , older Americans continue to file for bankruptcy at particularly high rates due to insurmountable medical bills. Many seniors who have already filed for Chapter 7 bankruptcy have described it as a “godsend,” emphasizing that they would not have been able to survive if they had not made the decision to file for bankruptcy in order to deal with hospital bills and surgery costs that were out of reach. Why do older Americans have higher medical debt than individuals in other age groups? If you are or an elderly loved one with substantial medical debt are thinking about filing for personal bankruptcy, what else do you need to know? Seniors Experience Serious Medical Conditions Requiring Costly Surgeries at Si...

As the holiday season approaches, it is important for consumers in Oak Park to think carefully about their finances and current consumer debt , and ways to avoid overspending on gifts, travel, and other costly ventures. As a recent report from Consumer Affairs explains, consumers often do not plan ahead for the economic costs of the holidays, and as a result, they end up taking on more credit card debt that they may not be able to pay off in the New Year. How can you be financially prepared for the holidays? What steps can you take to avoid insurmountable debt that could lead to personal bankruptcy ? Holiday Debt can ‘Snowball’ As the report notes, “debt accumulated during the holidays can stick around, and continue to snowball, well into the New Year.” Indeed, a recent study determined that Americans add more than $1,000, on average to their credit card debt during the holiday season. While that might not sound like a lot of money in the short term, if you alr...

Do you live in the Chicago area, and were you contacted in the last several years by a debt collection company attempting to collect a debt that you did not think you owed? In some cases, debt collection companies may not know that a debtor has settled a debt and thus continue to make collection attempts. In other cases, however, fake debt collectors violate the Fair Debt Collection Practices Act (FDCPA) and attempt to scam consumers. According to a recent press release from Attorney General Lisa Madigan’s office, the Illinois Attorney General and the Federal Trade Commission (FTC) have reached “three separate settlements totaling $47 million with the operators of a Chicago-area fake debt collection scheme.” If you have been harassed by a debt collector, it is important to learn more about the settlements and how they could impact consumers in Oak Park. Payday Loans and Phantom Debt The settlements arose from Operation Collection Protection, a crackdown operati...

According to a recent report from Bloomberg BNA , bankruptcy filings have reached a 10-year low. With bankruptcy rates falling again during the month of September, the past year period represents a “10-year low for any 12-month period,” based on data from the Administrative Office of the U.S. Courts. In total, bankruptcy filings were down by about 1.8% this September in comparison with filings the previous year. There were a total of 790,830 bankruptcy filings as of this September, a number that is several thousand filings lower than the 805,580 figure from the end of September 2016. In general, bankruptcy filings have been at a general low since 2011, but were are continuing to see a decline. However, according to the article, the fact that we have reached a bankruptcy filing low suggests that we may again see an upturn in consumer bankruptcy filing rates, as well as business filings. Numbers are Low, but the Numbers are Still High Even though bankruptcy filing r...

Consumers in Oak Park and throughout the Chicago area often receive calls from debt collectors informing them that they owe money to creditors. In some of these situations, the debt collector engages in practices that violate the Fair Debt Collection Practices Act (FDCPA), leading consumers to file complaints with the Consumer Financial Protection Bureau (CFPB). Even when debt collectors do not engage in clear violations of the FDCPA, they still might attempt to collect on debts that a consumer does not actually owe. We often describe these as “phantom debts.” When you continuously receive calls from debt collectors about phantom debt, what can you do to put an end to this contact? According to an article in USA Today , there are steps consumers can take to “vanquish a phantom debt for good.” Why do Debt Collectors Attempt to Collect Phantom Debt? As the article suggests, there are a few general reasons that consumers get calls concerning phantom debt. In some cas...