Oak Park Real Estate & Estate Planning Blog

When you are struggling to pay your bills and your debts are piling up, you may be wondering if now is the right time for you to file for consumer bankruptcy . There are many different myths and misconceptions concerning the bankruptcy process. As such, you may be concerned about filing and wondering if you should hold out for as long as possible. In most situations where personal bankruptcy is most likely inevitable, waiting to file for bankruptcy can be more harmful in the long run. However, in some cases, you may want to wait to file for bankruptcy based on your circumstances. Whenever you are considering bankruptcy, you should seek advice from an Oak Park consumer bankruptcy attorney. In the meantime, ask yourself the following questions to determine whether it could be the right time to begin the bankruptcy process with assistance from an experienced attorney. Do You Qualify for Consumer Bankruptcy? The first question you will want to consider is whether you currently qualify unde...

You may be aware that relatively recent changes to federal regulations have resulted in the ability for debt collectors to contact consumers in a new manner: through text messaging. In 2020, the Consumer Financial Protection Bureau (CFPB) finalized amendments to Regulation F . With those new amendments, debt collectors have been permitted to make contact with consumers through electronic communications, including texting. Yet it is essential to know that the amendments to Regulation F do not exclude text messages or other forms of communication by debt collectors from the Fair Debt Collection Practices Act (FDCPA). To be sure, if a debt collector engages in texting in a manner that violates the FDCPA, the affected debtor may be able to file a claim. In addition, debtors may have options to opt out of receiving text messages from debt collectors. Our experienced Oak Park consumer protection lawyers can provide you with more information. Amendments to Regulation F Allow Debt Collectors ...

If you are thinking about filing for Chapter 7 bankruptcy , you likely know that this is a type of liquidation bankruptcy. What this means is that all non-exempt assets will be liquidated, and the money obtained from the liquidation of those assets will be used to repay creditors in order of their priority. Chapter 13 bankruptcy does not involve the liquidation of a debtor’s assets. When you are planning to file for Chapter 7 bankruptcy, you may be wondering: what property will I be able to keep if I file for liquidation bankruptcy? The good news is that Illinois law contains a variety of bankruptcy exemptions that can allow debtors to retain a wide range of assets even during and after a Chapter 7 bankruptcy case. Consider the following information from our Oak Park bankruptcy attorneys. You Will Need to Use Illinois’s Bankruptcy Exemptions The first thing to know when you are learning about which assets of yours will qualify for exemptions in your Oak Park bankruptcy case is that deb...

When a consumer wants to file for reorganization bankruptcy , that consumer will typically file for Chapter 13 bankruptcy. Yet Chapter 11 bankruptcy is also a type of reorganization bankruptcy, and in certain situations, consumers file for Chapter 11 instead of Chapter 13. In most cases, the reason that a consumer will file for Chapter 11 bankruptcy instead of Chapter 13 bankruptcy is the debt limit. Relatively recent changes to the Chapter 13 debt limits have resulted in an increase in the debt limits, thereby making it easier for consumers to qualify for Chapter 13 bankruptcy based on the amount of their debt. However, circumstances certainly may arise in which a consumer is ineligible for Chapter 13 bankruptcy due to the amount of debt they owe. Under such circumstances, the consumer will usually file for Chapter 11 bankruptcy. Our Oak Park consumer bankruptcy attorneys can provide you with more information. Understanding Debt Limits in Chapter 13 Bankruptcy Cases What are debt limi...

When you are planning to file for personal bankruptcy , it is important to understand how various bankruptcy exemptions in Illinois will apply to or impact your bankruptcy case. As you might already know, in a Chapter 7 bankruptcy case, all non-exempt assets will be liquidated so that creditors can be repaid and so that the debtor can receive a bankruptcy discharge. The debtor will be able to keep all exempt assets in a liquidation bankruptcy. In a Chapter 13 bankruptcy, exemptions are not used to determine which assets a debtor can keep since property is not liquidated. Rather, in a Chapter 13 bankruptcy case, exempt property does not count toward the total amount that the debtor must repay through a repayment plan. When you are researching bankruptcy exemptions, you might have come across an exemption described as a “tools of the trade” exemption. What is this exemption, and how does it work? Understanding the “Tools of the Trade” Bankruptcy Exemption Both the federal bankruptcy exem...

When a consumer owes debt to a creditor, or when the debt has been turned over or sold to a debt collector, the consumer will likely be contacted about the debt. It is important for consumers to know that they have certain protections under the Fair Debt Collection Practices Act (FDCPA), and that debt collectors cannot take certain actions or engage in particular behaviors according to the law. In order for a consumer to understand when they are being treated fairly (and when they are not), it is necessary to have an understanding of how the consumer debt collection process works. Debt Collectors are Permitted to Contact You But Must Comply With the FDCPA The Fair Debt Collection Practices Act (FDCPA) governs consumer debt collection practices. Under the FDCPA, debt collectors are permitted to contact consumers to try to collect debts, but there are certain restrictions, and some practices are unlawful. Consumers should know their rights under the FDCPA. Certain Debt Collection Pract...

Filing for consumer bankruptcy can come with multiple benefits and protections for homeowners and renters, including those who are facing foreclosure or eviction. The automatic stay initially protects debtors from foreclosure or eviction as soon as you file for bankruptcy, and in some cases, filing for bankruptcy can permanently stop a foreclosure or eviction, allowing you to remain in your home. Our Oak Park consumer bankruptcy attorneys can provide you with more information about how bankruptcy impacts foreclosures and evictions in different types of bankruptcy cases. Automatic Stay Temporarily Stops Foreclosure and Eviction Regardless of the Type of Bankruptcy Whether you are filing for Chapter 7 bankruptcy in Illinois or Chapter 13 bankruptcy , or even if you are filing for Chapter 11 bankruptcy as a consumer, the automatic stay will stop all creditor actions against you for the time being. What this means is that, if you are facing foreclosure or eviction, as soon as you file fo...