Category Archives: Bankruptcy
Does Bankruptcy Erase Back Taxes?
For regular wage earners, income taxes are typically not a problem. If there is an imbalance between taxes owed and taxes paid, it is usually pretty small. But freelancing is different. If a person falls behind on estimated tax payments, it is difficult to catch up. And, since most workers will be freelancers by… Read More »
Student Loans And Bankruptcy In Illinois
Rising tuition costs and a competitive economy have produced a student loan crisis in America. Roughly 44 million people owe about $1.5 trillion in education debt. This debt load forces many recent graduates to put off certain purchases and also work at jobs they may not particularly like. Until about 1975, education debt was… Read More »
The Gray Bankruptcy Phenomenon In Illinois
Overall, the number of bankruptcy filings has declined dramatically since 2005. That was the year bankers convinced lawmakers to tighten the bankruptcy rules. But among debtors over 65, the filing rate has tripled since 1991. Here in Illinois, older people usually have substantially more assets than younger filers. So, these bankruptcies require a different… Read More »
3 Quick Exemptions In An Indiana Bankruptcy
In a long line of cases dating back to the early 1800s, the United States Supreme Court has said that bankruptcy’s purpose is to give the honest yet unfortunate debtor a fresh start. Asset exemption is an important part of that fresh start. If debtors lose their houses, cars, retirement accounts, and other assets… Read More »
Can Chapter 13 Bankruptcy Save My Car?
Legally, banks may begin automobile repossession procedures after just one missed payment. If the borrower has been late before, the lender may file repossession paperwork as soon as possible. It is almost impossible to undo automobile repossession. The original lender usually keeps the note for the duration of the loan, so there are usually… Read More »
Hanging Onto Your Car After You File An Indiana Bankruptcy
Many auto loan companies are somewhat patient with regard to late payments. But it is best not to depend on the kindness of strangers. Legally, the lender can repossess your vehicle after just one missed payment, in most cases. In a place like Indiana, such a sudden loss is highly disruptive to say nothing… Read More »
Why Do People File Bankruptcy In Illinois?
In board games like Monopoly, filing bankruptcy is more than just an admission of failure. It’s also the end of the game, and there is usually no way to recover. Fortunately, real life is much different. There is no doubt that reckless overspending causes some bankruptcy filings. But for the most part, the circumstances… Read More »
Exemption Strategies In An Indiana Bankruptcy
The Bankruptcy Code allows honest yet unfortunate debtors to obtain fresh starts free of crippling debt. So, debt discharge is only part of the equation. If bankruptcy debtors lose most of their assets, they go back behind the starting line. That’s not the intention of the Code. So, Indiana recognizes a number of bankruptcy… Read More »
Bouncing Back From An Illinois Bankruptcy
Nationwide, bankruptcy filing rates are at their highest level since 2006. In the wake of the 2005 bankruptcy reforms, credit card companies tried to scare people away from bankruptcy. That strategy worked, for a while. Moreover, during the Great Recession, many banks tightened their lending requirements and medical providers tried to keep prices low…. Read More »
What’s The Difference Between Chapter 7 And Chapter 13?
Shortly after they fought a war to rid themselves of British oppression, the Founding Fathers wrote the Constitution of the United States. Since they understood that oppression comes in many forms, the Constitution’s authors specifically include provisions for a bankruptcy law. Over the years, Congress has revised the bankruptcy law several times, most recently… Read More »