Category Archives: Chapter 13 Bankruptcy
If I File Bankruptcy, Will I Lose My Security Clearance?
This question is on the lips of many people who work for the DoD or a defense contractor. In such positions, losing one’s security clearance could be worse than losing one’s hearing. There are accommodations available for hearing loss, but not for the loss of a security clearance. The powers that be have a… Read More »
Can Chapter 13 Erase Past Due Income Taxes?
The new gig economy has effectively transformed millions of wage earners into small business owners. These side hustles normally have significant income peaks and valleys, making tax planning very difficult. As a result, many of these individuals fall behind on income tax payments. If a tax debt looms like a shadow over everything you’ve… Read More »
How Does Filing Bankruptcy Affect My House?
In most cases, lenders may begin pre-foreclosure proceedings after just one missed payment. Additionally, in 2019’s Obduskey v. McCarthy & Holthus LLP, the United States Supreme Court gutted a key foreclosure prevention provision in the Fair Debt Collection Practice Act. So, many lenders are more aggressive than ever. In this environment, Chapter 13 bankruptcy… Read More »
Would Filing Bankruptcy Void my Security Clearance?
Absolutely not. Bankruptcy discrimination is illegal. Filing bankruptcy has no adverse effect on any employment relationship. However, the circumstances surrounding the bankruptcy filing are another story. The Department of Defense, or any other employer, may generally take adverse action, or refuse to hire someone, based on financial circumstances. That’s especially true with regard to… Read More »
Can Bankruptcy Save My Car?
In Illinois, moneylender may legally repossess vehicles after one missed payment. In these situations, lenders often promise to give owners more time to pay or change the payment date. But unless the lender makes such a promise in writing, which is very unlikely, these assurances are difficult to prove. Furthermore, the Supreme Court has… Read More »
Breaking Down an Illinois Chapter 13
Job loss, sudden illness, divorce, and other such financial storms can strike any family at any time. Most Illinois families live from paycheck to paycheck. So, they do not have the resources to deal with these storms. As a result, although they are able to tread water for awhile, they soon fall behind on… Read More »
Top Five Reasons People File Bankruptcy
Most people in Chicagoland do not have the cash to address a $400 emergency expense. So, most households are already on the edge of bankruptcy. Just one financial storm, like one of the ones discussed below, is enough to force most families underwater. In times of financial crisis, people used to be able to… Read More »
Can Chapter 13 Save My Old Illinois Home?
The Consumer Financial Protection Bureau recently passed a rule giving distressed homeowners 120 days before a mortgage lender could begin foreclosure proceedings. But this rule may not be as consumer-friendly as it seems. One missed payment is usually not a big deal. After two missed payments, the bank may still be willing to work… Read More »
Does Chapter 13 Erase Back Taxes?
Although the days of extensive tax audits are gone, the IRS is still very aggressive in back tax cases. Furthermore, the government has many collections tools that are unavailable to private debt collectors. For example, most moneylenders must obtain court orders before they can garnish wages. But the IRS can garnish wages unilaterally, and… Read More »
What You Need To Know About Chapter 13
Financial disruptions usually have a snowball effect. For example, high medical bills might eat up a family’s resources for a few months, so they get behind on other bills. With regard to home mortgages, this snowball effect is even worse. Most lenders begin foreclosure proceedings after just two missed payments. This process usually begins… Read More »
