Oak Park Real Estate & Estate Planning Blog

Often when we talk about bankruptcy and problems with mortgage servicers, we are talking about consumers who file for Chapter 13 bankruptcy to avoid foreclosure or consumers who file for Chapter 7 bankruptcy in order to get a fresh start financially. However, as a recent Chapter 11 bankruptcy case suggests, sometimes consumer issues and consumer advocacy work actually can impact a mortgage servicer’s bankruptcy case. A recent article in The Wall Street Journal describes the case as one in which “consumer concerns sink Ditech’s Chapter 11 exit plan.” We want to provide you with more information about the background of the case, and then we want to say more about the significance of consumer concerns in the case. Getting the Facts About the Ditech Financial, LLC Bankruptcy Case According to an article in Bloomberg , last week consumers were waiting to hear about how a judge would rule on the proposed bankruptcy plan put forth by Ditech Financial, LLC, a mortgage servicer that has ...

While consumer bankruptcy and foreclosure are not necessarily linked to one another, there are many situations in which bankruptcy and foreclosure are closely related to one another. On the one hand, for example, you may know that some individuals file for bankruptcy in order to stop a foreclosure. You also may know that some debtors seek bankruptcy protection to avoid a deficiency judgment. The following are a few examples of the basic links between consumer bankruptcy and foreclosure. If you have additional questions, a bankruptcy lawyer in Oak Park can help. Filing for Chapter 13 Bankruptcy to Avoid Foreclosure One of the most common ways that consumer bankruptcy and foreclosure are linked is in situations where a homeowner files for Chapter 13 bankruptcy in order to avoid foreclosure. Since Chapter 13 bankruptcy is a type of reorganization bankruptcy, a debtor who files for Chapter 13 bankruptcy first gets the benefit of the automatic stay, which will stop any further foreclo...

If you are considering consumer bankruptcy , you have probably done some research into your options. You may know that most people who file for personal bankruptcy will file either for Chapter 7 bankruptcy or Chapter 13 bankruptcy. In some situations in which a consumer does not qualify for Chapter 13 bankruptcy because of too much debt, that individual may file for Chapter 11 bankruptcy. Yet if you have been reading about liquidation and reorganization bankruptcy types, you may have come across information about Chapter 12 bankruptcy . Is Chapter 12 bankruptcy ever intended for consumers? In short, Chapter 12 bankruptcy is a specific type of bankruptcy that is not available to most consumers. However, we want to provide you with more information about it, and to clarify when and why Illinois residents may seek bankruptcy protection under Chapter 12. What is Chapter 12 Bankruptcy? You may have heard that individuals in Illinois are filing for Chapter 12 bankruptcy, and that it cost...

The decision to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy can be a difficult one, especially when you have been attempting to find other solutions to manage your debt. For many debtors in Oak Park, filing for bankruptcy can be a relief. Whether you receive a discharge of your debts and a fresh start with a Chapter 7 bankruptcy filing or the ability to restructure debts and avoid foreclosure by filing for Chapter 13 bankruptcy, bankruptcy protection can provide numerous benefits. Yet when your bankruptcy attorney makes a mistake in your case, it could be time to find new counsel. We want to provide more details about the process of replacing your bankruptcy lawyer, as well as information about why you may want to consider changing attorneys once your bankruptcy case is underway. How to Change Your Chapter 7 or Chapter 13 Bankruptcy Attorney In order to change your bankruptcy attorney in a Chapter 7 or Chapter 13 case, you will most likely need to seek the court’s permis...

The U.S. Department of Education (DOE) has been relying on private debt collection companies to collect unpaid or overdue student loan debt, and many consumers have experienced problems with those debt collection companies and their tactics. In some cases, consumers have alleged that the private debt collecting firms contracting with the DOE have engaged in unlawful debt collection practices in violation of the Fair Debt Collection Practices Act (FDCPA). According to a recent article in The Wall Street Journal , a federal judge just “cleared the way for the Education Department to stop using private debt collectors and revamp the way it handles overdue student loans.” What do debtors in Illinois need to know about the recent federal case and its impact on debt collection practices? Plans to Change the Scope of Student Loan Servicing If the DOE no longer plans to rely on private debt collection companies to recoup money owed by student debtors, what does it plan to do instead? As t...

While Oak Park residents will not find themselves in one of the states with the most drastic increases in consumer bankruptcy filings, according to a recent article in MarketWatch , the recent rise in bankruptcy filings suggests that both individual consumers and businesses alike are struggling to repay debt. The article cites new data from the American Bankruptcy Institute (ABI), which indicates that there were a total of 64,283 bankruptcy filings in July 2019. To put that number in perspective, it represents a 5% increase from the same period in 2018 in which there were a total of 62,241 bankruptcy filings. Given that they had recently reached a 10-year low, should consumers be worried about the increase rate of bankruptcy filings ? The following will discuss the above-mentioned article and consider the potential impact of a rise in consumer bankruptcy filings. Bankruptcy Filings Have Been Increasing in 2019 Over the course of 2019 thus far, bankruptcy filings have been increasin...

Struggling with debt can be extremely difficult under any circumstances, yet learning that you are facing a debt collection lawsuit can be considerably more complicated than dealing with debt collectors alone. The Consumer Financial Protection Bureau (CFPB) estimated that about 70 million Americans have had to deal with debt collectors at some point in their lives. Moreover, “around 25% felt threatened during their dealings with such agencies,” according to a recent article in Credit.com . While the Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using certain language on the phone with debtors and from making threats, many debtors face this kind of behavior from debt collectors anyhow. While the FDCPA prohibits debt collectors from making threats to debtors about physical harm or criminal arrest, debt collectors can file lawsuits against debtors when the claim is not time-barred. What should you do if you are served papers for a civil lawsuit that a debt c...