Category Archives: Bankruptcy
How Does An Indiana Bankruptcy Affect Social Security Benefits?
Most government benefits, like VA disability and Social Security benefits, come in the form of monthly payments, like income. Typically, bankruptcy exemptions don’t apply to income. But according to U.S. law, Social Security benefits are exempt assets. Regardless of what state exemptions provide, Social Security benefits are immune “from the operation of any bankruptcy… Read More »
Five Reasons People File Bankruptcy In Illinois
In general, most people file bankruptcy because, well, they are bankrupt. But the specific reasons might surprise you. Bankruptcy has immediate and long-term benefits for distressed debtors. Bankruptcy’s Automatic Stay instantly halts creditor adverse actions, such as foreclosure and repossession. In most cases, these creditors can repossess your house or car if you miss… Read More »
Student Loan Forgiveness Through Bankruptcy
Pressure is mounting on lawmakers to forgive at least some student loan debt. But due to the massive cost involved and powerful bank lobbyists, a comprehensive program might not happen. Fortunately, if you are one of the graduates saddled with tens of thousands of dollars of debt, other options are available, even if you… Read More »
What Happens In An Indiana Chapter 13 Bankruptcy?
During the coronavirus crisis, many homeowners took advantage of bank-offered mortgage payment deferrals. These programs end soon. When that happens, banks will most likely demand immediate payment of the past-due amount. Most families will have a hard time making a $15,000 or $20,000 mortgage payment, even if the bank generously gives them two or… Read More »
How Can Bankruptcy Protect My House?
According to the Federal Housing Finance Administration, 2.7 million homeowners are in COVID-19 mortgage deferral status. Many of these families have deferred payments for more than a year. When the deferral ends, these banks will most likely demand prompt payment. Families which barely made it through the coronavirus downturn will be hard-pressed to make… Read More »
Does Bankruptcy Affect My Car-Buying Ability?
Today’s vehicles last much longer than the ones which rolled out of factories in the twentieth century. Yet the average vehicle’s lifespan is only eight years. So, if you have a used vehicle in your garage, it probably will not be dependable much longer. Bankruptcy compromises your ability to buy a car. But in… Read More »
What’s the Difference Between Chapter 7 and Chapter 13?
Many more people are asking this question and exploring their bankruptcy options. At a time when consumers need more protection than ever, the Consumer Financial Protection Bureau recently increased the power of debt collectors. This CFPB rule was one of the last non-bankruptcy shelters available for distressed debtors. If you find yourself in this… Read More »
Does an Illinois Bankruptcy Take Care of Back Taxes?
Uber drivers and other gig workers fueled a dramatic rise in the number of freelance workers between 2014 and 2019. Many of these individuals are moonlighters, while others are full-time freelancers. All of them deal with significant income peaks and valleys, especially during these uncertain economic times. As a result, it is easy to… Read More »
Gray Bankruptcies in Illinois
Mostly due to a combination of a shrinking social safety net and rising life expectancy, more older adults than ever experience financial problems. In fact, the over-65 bankruptcy rate has increased over 200 percent since the 1990s. Older Americans are not immune from the financial storms of life, like job loss and serious illness…. Read More »
Three Famous People and Their Bankruptcy Stories
Many bankruptcy stories are inspiring tales of perseverance in the face of extreme financial difficulty. Others are don’t-let-this-happen-to-you cautionary tales. Both types of stories have important lessons for distressed Indiana debtors. These stories also emphasize the fact that, more than anything, bankruptcy is a fresh start. What you do with that fresh start is… Read More »
