Category Archives: Bankruptcy
Three Insanely Rich People Who Filed Bankruptcy
Chapter 7 and Chapter 13 bankruptcy are not just for people who are at the end of their financial ropes. Frequently, due to misfortune, overspending, or a combination of both these things, people with substantial means also file bankruptcy. So, this filing does clearly not indicate failure. It simply means that the family was… Read More »
Does Bankruptcy Take Care of Back Taxes?
The economy is changing. Roughly a third of American workers freelance full time. That proportion has roughly doubled since 2014. Freelance income varies significantly from year to year and even month to month. So, it is easy to fall behind on estimated tax payments. Furthermore, some freelancers are unfamiliar with all the complex rules… Read More »
Chapter 13 Bankruptcy in Illinois: A Closer Look
One of the oldest bankruptcy principles on the books is that this federal debt relief program should give the “honest yet unfortunate debtor” a fresh start. This principle is still true today. Chapter 13 is an excellent way to obtain the promised fresh start. In short, Chapter 13 gives distressed debtors up to five… Read More »
How Can an Illinois Bankruptcy Protect My Car?
Legally, bankers can repossess automobiles after just one missed payment. Other lenders can remotely disable vehicles after one missed payment. As outlined below, bankruptcy stops both kinds of adverse action. Additionally, many buyers give in to high-pressure sales pitches. As a result, they pay more for a new or used vehicle than they can… Read More »
Special Issues in an Illinois Grey Bankruptcy
The overall bankruptcy filing rate has declined significantly since the 1990s. However, mostly because of a shrinking safety net, the over-55 bankruptcy filing rate has tripled since 1991. Rising medical care costs have fueled much of this increase. Even if the debtor has health insurance, it usually only pays 80 percent of the total…. Read More »
Bouncing Back from an Indiana Bankruptcy
Thousands of your neighbors need a financial fresh start. That’s exactly what bankruptcy does. Chapter 7 eliminates most unsecured debts in only a few months. Chapter 13 gives distressed debtors up to five years to catch up on past-due secured obligations. While the case is pending, the Automatic Stay prohibits most creditor adverse actions,… Read More »
Three Quick Post-Bankruptcy Success Stories
Monopoly is a fun game, but it teaches some very bad lessons about bankruptcy. When players declare bankruptcy, they lose all their property. They must also quit the game permanently. Unfortunately, many people think that’s how bankruptcy works in the real world. That’s not true. Indiana law shields most assets from creditor seizure, even… Read More »
Does Bankruptcy Take Care of Student Loans?
As college costs have increased, student loan balances have increased even more. These accounts now total almost $1.5 trillion in the United States. That’s higher than auto loan and credit card balances. Younger people owe most of this money. Since their earning power is lower, these accounts often become delinquent. Even if debtors keep… Read More »
Should I File Chapter 7 or Chapter 13 To Protect My Assets?
Bankruptcy gives distressed debtors in Illinois a fresh start, if they are “honest but unfortunate,” as the Supreme Court has so often stated. Asset retention is a big part of that fresh start. If debtors lose most or all of their assets, they must go back behind the financial starting line. That’s not the… Read More »
Will I Lose My Social Security Benefits If I File Bankruptcy?
The rising number of over-65 bankruptcies has pushed this question from the background to the forefront, at least for many Illinois families. Almost half of unmarried seniors, and about a quarter of married seniors, count on Social Security benefits for 90 percent of their monthly income. Generally, bankruptcy does not affect Social Security benefits…. Read More »
