Category Archives: Bankruptcy
If I File Bankruptcy, Can I Buy a House?
According to many metrics, 2021 is a good time to buy a house. For example, mortgage rates recently hit an all-time low. The buyer’s market is expected to continue for much of 2021. At the same time, however, many people are going through severe financial stress, especially people who lost their jobs during a… Read More »
How Does Bankruptcy Affect Social Security Benefits in Indiana?
We receive this question a lot from retirees in Indiana. Roughly 40 percent of these individuals count on Social Security for their entire monthly income. Quite understandably, if bankruptcy threatened this financial lifeline, these families should be gravely concerned. But as outlined below, in almost all situations, that’s not the case. Fundamentally, bankruptcy protects… Read More »
Top Five Reasons People File Bankruptcy in Illinois
Although people file bankruptcy for various reasons, there is normally a common denominator. At least for the most part, the circumstances leading to the filing were beyond the debtors’ control. The Bankruptcy Code was written with people like this in mind. There is no other way for these honest yet unfortunate debtors to get… Read More »
How Can Bankruptcy Protect My Security Clearance?
Bankruptcy protects visible assets, like your house, and invisible assets, like your security clearance. Yes, pursuant to DoD Directive 5220.6, financial problems could trigger adverse action against a security clearance, such as denial or refusal to renew. However, as outlined below, there is a big difference between filing bankruptcy and financial concerns. In general,… Read More »
Does Bankruptcy Clear Back Taxes?
The sudden emergence of the gig economy is the main reason Americans owe about $131 billion in back taxes. Self-employment income often has significant, and unexpected, peaks and valleys. If these individuals prepay their taxes monthly and are a few dollars short each month, that could mean a big tax bill at the end… Read More »
What’s the Difference Between Chapter 13 and Chapter 7 in Indiana?
Many more people might be asking this question in the coming months. Most observers predict that, after coronavirus financial relief programs expire, there may be a record number of consumer bankruptcies in 2021. Typically, people file bankruptcy because a financial storm hits them. Usually, that storm is medical bills, unemployment, business downturn, or a… Read More »
Five Post-Bankruptcy Success Stories
In Monopoly, a bankruptcy ends the game. But in real life, bankruptcy is a fresh start. Below are a few people who made the most of that fresh start. These individuals have something else in common. They all overcame significant obstacles to be successful. Your family can do the same thing. A good Chicago… Read More »
Special Issues in an Illinois Grey Bankruptcy
The overall bankruptcy filing rate has declined over the last several decades. But the over-65 filing rate has increased 600 percent since 1991. Relaxed consumer credit standards as well as a shrinking social safety net are largely responsible for the increase. The average over-65 individual has several credit cards which each have very high… Read More »
Breaking Down a Chapter 13 Bankruptcy in Indiana
Mostly because of the coronavirus pandemic, the mortgage delinquency rate in Indiana recently hit a forty-year high. Legally, banks can initiate the foreclosure process after one missed payment. The first step in this process is usually an acceleration notice, which means the bank stops accepting partial payments. Therefore, the homeowner’s financial hole gets deeper… Read More »
Top Five Bankruptcy Exemptions in Illinois
Many people hesitate to file bankruptcy because they are afraid they will lose their house and other assets. But these bankruptcy creditor seizures only occur in board games like Monopoly. In the real world, Illinois has some of the broadest bankruptcy exemptions in the country. Since state law prohibits creditors from liquidating these assets,… Read More »
