Category Archives: Bankruptcy
What Is The Best Interest Of Creditors Test For Chapter 13?
The formal, written bankruptcy exemptions in Illinois protect most core financial assets. So, the idea that people who file bankruptcy lose most or all of their property is largely a myth. But most of these exemptions are value-based. For example, the motor vehicle exemption protects $2,400 of motor vehicle equity. Informal exemptions, such as… Read More »
What Does A Chapter 13 Bankruptcy Do?
This form of consumer bankruptcy, like Chapter 7, offers a fresh start to honest yet unfortunate debtors. So, bankruptcy doesn’t take care of debts related to fraudulent or illegal conduct. However, it does take care of most debts. Additionally, because of the repayment plan provision, Chapter 13 usually looks better on credit reports than… Read More »
How Does Bankruptcy Protect My House?
Illinois is a judicial foreclosure state, which theoretically means that homeowners have more protections when they fall behind on payments. But homeowners shouldn’t count on this protection. The Prairie State has the highest foreclosure rate in the country. Most banks can legally begin foreclosure proceedings after only one missed payment. These proceedings often begin… Read More »
Student Loan Cancellation Back In Court
One of the nation’s largest student loan companies filed suit against the Biden Administration, asking the court to cancel an extended payment pause. The payment pause, which began in March 2020, also suspends billing and freezes interest rates on all student loans. The pause, which is currently scheduled to end in summer 2023, could… Read More »
How To Put Bankruptcy In Your Rearview Mirror
According to the Supreme Court, the Bankruptcy Code gives honest yet unfortunate debtors a fresh start. But it doesn’t guarantee debtors a successful fresh start. After their bankruptcies end, former debtors can squander or savor their fresh starts. A good Chicago bankruptcy lawyer maximizes your fresh start, before, during, and after filing. Attorneys work… Read More »
Gray Bankruptcy In Illinois
Overall, the bankruptcy filing rate has declined since the 1990s. But the over-60 filing rate has more than tripled over the past thirty years. The double whammy of higher medical bills and lower public assistance benefits forces many older people into bankruptcy. Since the Great Recession, medical bill inflation has usually outpaced overall inflation…. Read More »
Can A Repossession Hurt You?
Yes, and in many cases, this pain comes very quickly. Many dealers now offer generous financing terms even to borrowers with poor credit. So, as soon as storm clouds gather, they take advantage of the fact that they can begin the repossession process if the borrower falls a single month behind. Many vehicles have… Read More »
Does Bankruptcy Get You Out Of Back Taxes?
Consumer bankruptcy shields people from most kinds of creditor adverse action, including adverse actions based on back taxes. The IRS aggressively goes after unpaid taxes. These unpaid taxes total about $500 billion, which is roughly 10 percent of the government’s annual budget. We may think about how a 10 percent income hike would change… Read More »
Why File Chapter 13 Instead Of Chapter 7?
Quite simply, people file bankruptcy, whether it’s Chapter 13 or Chapter 7, because their debts exceed their incomes. American households owe almost $17 trillion. The consumer debt load increases pretty much every year, often faster than wages increase. As outlined below, people file under different chapters of the Bankruptcy Code depending on the kinds… Read More »
Does Bankruptcy Affect Your Security Clearance?
Although most people believe the answer to this question is “yes,” the B-word does not appear in Guideline F of DoD Directive 5220.6, the relevant document in these situations. However, Guideline F does touch on a number of bankruptcy-related matters. It simply says some very unexpected things about the relationship between bankruptcy and a… Read More »