Category Archives: Bankruptcy
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 »
Can Bankruptcy Protect My Indiana House?
Some people think the foreclosure crisis ended around 2010. But that’s not true. Every quarter, 250,000 families go into foreclosure. Many of these borrowers turn to the bank for relief. Technically, relief like a mortgage modification is usually available. But the bank typically drags out the application process for several months, only to deny… Read More »
Can I File Bankruptcy on Student Loans?
A staggering 45 million borrowers owe a collective $1.56 trillion in student debt. That amount is higher than vehicle loans and credit card debt. The average student loan debtor owes about $30,000. Many owe much more, and millions owe more than $100,000. As outlined below, bankruptcy offers a way out. Under certain circumstances, Chapter… Read More »
What’s the Difference Between Chapter 7 and Chapter 13 in Indiana?
Once upon a time, a vast network of strong laws protected American consumers from debt collectors. But the Supreme Court has recently diluted many of these protections. As a result, debt collectors are more aggressive than ever when families fall behind on secured or unsecured obligations. Due to these changes, bankruptcy might be the… Read More »
Does an Indiana Bankruptcy Affect Social Security Benefits?
This question is especially pressing in certain “grey bankruptcy” matters. The over-65 bankruptcy filing rate has increased over 200 percent since the 1990s. And, a significant number of these families are mostly or completely dependent on monthly Social Security benefits. As outlined below, bankruptcy might be the best way, or even the only way,… Read More »
Illegal Car Repossession in Illinois
All of Illinois’ car repossession laws can be found in 225 ILCS 422 of the Illinois legal code. These laws define what are and are not legal means of recovering a vehicle on which a borrower has defaulted. How Repossession Works When you purchase a vehicle, the loan you take out is secured by… Read More »
Do I Lose My Security Clearance if I File Bankruptcy?
For many people who work at or support Grissom ARB, Camp Atterbury, and other military installations, this question is often critical. The benefits of bankruptcy are difficult to ignore, but if these benefits essentially cost debtors their careers, bankruptcy might not be worth it. A little-known order first published in the 1990s, DoD Directive… Read More »
Can Bankruptcy Stop IRS Debt?
The Internal Revenue Service is the world’s largest collection agency. And, since the tax gap (difference between income taxes owed and paid) is over $400 billion a year, the IRS is also one of the most aggressive collection agencies in the world. Since income taxes are unsecured debts, they are dischargeable in a Chapter… Read More »
What is Zombie Debt?
If you feel like you’re being harassed by debt collectors, you may be right. The Fair Debt Collection Practices Act (FDCP) outlines what a debt collector can and cannot do to recover a debt. Of course, there’s a lot of money in collections and the law is not always accessible to the layperson. In… Read More »
Understanding Illegal Debt Collection Practices
The Fair Debt Collection Practices Act (FDCPA) protects consumers from certain actions related to debt collections. What most consumers don’t know is that collections agencies generally don’t keep attorneys on hand and will only file a lawsuit if the debt is significant enough to warrant the effort. Debt collectors are not allowed, however, to… Read More »