Category Archives: Chapter 7
Maximizing Exemptions In An Indiana Bankruptcy
Many people believe that a consumer bankruptcy, like a Chapter 7 or Chapter 13, is a lot like a bankruptcy in the Monopoly board game. No matter how well you drive your racecar during the game, just one bad decision or unlucky roll of the dice can force the player into bankruptcy. The player… Read More »
Special Issues In An Indiana ‘Grey Bankruptcy’
Medical bills are one of the leading causes of bankruptcy filings among all age groups. But this problem is especially acute for people over 55. The number of filers in this age group has doubled since 1994, even as overall bankruptcy filing statistics have fallen significantly. Even if they have medical insurance or Medicare,… Read More »
Which Type Of Bankruptcy Is Right For You?
Most families in Illinois and Indiana walk a very thin financial line. About half these households do not have the cash to cover a $400 emergency expense. If even a moderate disaster strikes, like a short-term period of unemployment or a brief but serious illness, the fallout could be devastating. As a result, it… Read More »
The Different Kinds Of Bankruptcy In Illinois
All the types of bankruptcy have the same goal that Supreme Court Justice James Clark McReynolds first articulated in 1915: “to relieve the honest debtor from the weight of oppressive indebtedness, and permit him to start afresh free from the obligations and responsibilities consequent upon business misfortunes.” So, to be eligible for debt relief… Read More »
Why Do Illinois Bankruptcy Judges Use Trustees?
Most baseball games have umpires and coaches. The umpire calls balls and strikes regardless of whether the call helps or hurts one team or the other; a coach pushes for the best interests of a team. Bankruptcy judges are like baseball umpires. In any dispute between the parties, the judge determines who is right… Read More »
Should I File Chapter 7 Or Chapter 13 Bankruptcy In Illinois?
Over the years, several Supreme Court Justices have declared that the Bankruptcy Code gives an “honest but unfortunate debtor” a fresh start. The vast majority of all debtors are honest, although the occasional fraud cases, like the 2016 Dance Moms bankruptcy saga, always make the headlines. Moreover, the vast majority of bankruptcy debtors are… Read More »
The Different Types Of Bankruptcy
The Bankruptcy Code provides for several different types of consumer bankruptcy, but nearly all these voluntary petitions fall under either Chapter 7 or Chapter 13. Both these plans have some things in common. In each case, the debtor must undergo pre-filing debt counselling, as well as a post-filing financial management class. Both types trigger… Read More »
Four Dischargeable Debts In Bankruptcy
The end result of a bankruptcy petition, in almost all cases, is a fresh financial start for the honest yet unfortunate debtor. To get this fresh start, the bankruptcy judge will discharge (legally forgive) many different kinds of debts. Sometimes, debtors want to pay what they owe, or at least most of it, but… Read More »
Exempting Houses And Cars In Illinois Bankruptcies
Whether the voluntary petition is filed under Chapter 7 or Chapter 13, most all common consumer assets are exempt in Illinois, meaning that debtors rarely, if ever, must forcibly surrender their property to the bankruptcy trustee (person who oversees the case for the judge). Bankruptcy protects assets to help fulfill the law’s mission of… Read More »
What’s The Difference Between Chapter 7 And Chapter 13?
A number of times over the last hundred years, and perhaps most recently in 1998, the Supreme Court has reaffirmed that the purpose of the Bankruptcy Code is to give the “honest but unfortunate debtor” a fresh start. There is only one kind of honest, but there are several kinds of misfortune, which is… Read More »
