Oak Park Real Estate & Estate Planning Blog

Any consumer in the Oak Park area who is considering personal bankruptcy likely has wondered what will happen if he or she simply fails to pay his or her debts. In other words, if you have a significant amount of outstanding unsecured debt (like credit card debt or medical bills), can you simply stop paying, while also making the decision to stop answering your phone when debt collectors call? What will happen if you simply stop making payments on unsecured debt (such as your automobile)? Weighing the Benefits and Harms of Consumer Bankruptcy According to a recent article in U.S. News & World Report , many consumers consider whether the benefits of avoiding bankruptcy can outweigh the harms of simply avoiding their debts. In short, Chapter 7 bankruptcy or Chapter 13 bankruptcy often are better options than most consumers believe, and they can give individuals with a significant amount of debt the opportunity to get a fresh start. Indeed, the problems associated ...

Once you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy , can you apply and be approved for loans again? This is a common concern among individuals who file for consumer bankruptcy, and it is important to emphasize that filing for bankruptcy and receiving a discharge does not make it impossible to obtain credit again. According to a recent article in Consumer Affairs , having a bankruptcy discharge on your credit report could mean that a loan could end up costing a little bit more in terms of the interest rate, but a bankruptcy declaration does not mean that you will be unable to obtain credit. The article cites a recent study conducted by Lending Tree, which provides important data to consumers who are considering bankruptcy in Oak Park. Bankruptcy Might Add Costs But Will Not Prevent You from Getting a Loan There are many misconceptions about consumer bankruptcy. As the article explains, while bankruptcy can have some negative consequences, “it doesn’...

Will the Consumer Financial Protection Bureau (CFPB) remain an important tool for fighting unfair debt collection practices and protecting consumers from deceptive debt collectors ? That is a question that has been circulating this last year of the Trump presidency. While it is difficult to know what the CFPB’s funding will look like and what kind of power the Bureau will have in the coming years, we do know that the CFPB did substantial work in 2017 to “combat illegal debt collection practices.” The Bureau recently released an annual summary report that details some of the actions taken last year that helped to protect consumers against unscrupulous debt collectors. The report highlights how the CFPB plays a role in enforcing the Fair Debt Collection Practices Act (FDCPA), and how it works in conjunction with the Federal Trade Commission (FTC) to ensure that consumers are treated fairly. In addition to enforcing the FDCPA, the Bureau also plays a role in educating the pu...

Is there a gender gap when it comes to consumer bankruptcy in Oak Park ? When we talk about the gender gap, we often are referring to the gender pay gap. According to the American Association of University Women (AAUW), women are paid, on average, less than men for doing the same or similar work. While the AAUW underscores that the gender pay gap has narrowed since the 1970s, it remains salient across the United States. In Illinois in particular, the AAUW reports that women only earn on average 79% of the salary of their male counterparts. That number is lower than the national average of 80%, meaning that there is an even wider gender pay gap in Illinois than in other parts of the country. Does the gender pay gap also lead to a gender gap in bankruptcy filings ? According to a report in the Financial Times , it might. Different Reasons for Bankruptcy Between Men and Women If women earn less on average than men for doing the same work, are they also more likely...

Many Americans in Oak Park, Illinois and throughout the Chicago area are struggling to repay student loans but do not see a path to discharge through consumer bankruptcy . For many of those debtors, the student loans they owe are private loans that are ineligible for the income-based repayment options available to borrowers of federal student loans. Even when debtors have a mix of federal and private student loans, the lack of income-based repayment options for private loans can make their repayment difficult if not impossible. While income-based repayment options exist for most federal loans, there remain many debtors who do not realize they may be eligible for lower payments through income-driven repayment plans. Recognizing the financial devastation of student loans, the American Bankruptcy Institute (ABI) recently issued recommendations for reform when it comes to student loans and bankruptcy . We will give you some more information about the key takeaways from this set...