Category Archives: Bankruptcy
Does Bankruptcy Solve My Tax Problem?
The Illinois Department of Revenue has very broad wage garnishment powers. With as little as ten days’ notice, the IDR can order your employer to deduct up to 15 percent of your paycheck to pay past-due state taxes. Most families barely make ends meet. A 15 percent pay cut is often a devastating financial… Read More »
Is It Better To File A Chapter 7 Or A Chapter 13?
The expected flood of post-coronavirus lockdowns is more of a trickle. However, that statistic is not very comforting to the millions of people who are experiencing post-coronavirus financial stress. Making matters worse, in the mid-2010s, the Supreme Court diluted some key consumer protections in the Fair Debt Collection Practices Act. Therefore, creditors are more… Read More »
Does Filing Bankruptcy Affect My Ability To Buy A Car?
Yes, but in most cases, the effect isn’t nearly as drastic as some people believe it is, especially if the debtor filed a Chapter 13 bankruptcy. That’s good news for these debtors who drive used cars. Cars typically last about eight years. If a vehicle is more than three years old, and your Chapter… Read More »
Can You Have A Security Clearance With Bankruptcy?
The defense budget is the largest component of the federal budget. Much of this money goes to private security contractors. A high security clearance is usually a basic job requirement for these positions. Quite understandably, distressed debtors who rely on their security clearances are very hesitant to take any action that could threaten it…. Read More »
Reducing Debt Through Informal Talks
It is easy to see why medical debt is the leading cause of bankruptcy filings. Over 100 million American adults have such debt. Furthermore, a significant number of these people don’t think they’ll ever be able to pay it off. In as little as six months, Chapter 7 bankruptcy eliminates most medical and other… Read More »
Does Bankruptcy Protect Social Security Benefits?
In a word, yes. Generally, bankruptcy exemptions protect property, but they don’t protect income. According to the Social Security Administration, Social Security benefits are property, even though these benefits come in monthly installments, like income. So, even in the unlikely event trustees (people who oversee bankruptcies for judges) try to seize these benefits, the… Read More »
A Chapter 13 Timeline In Illinois
Most people file Chapter 13 bankruptcy to stop foreclosure. The mortgage delinquency rate has dropped since the 2008 crisis, but it’s on the way back up. One or two past-due mortgage payments usually trap homeowners in a downward spiral. After the bank sends an acceleration notice, which it usually sends quickly, it stops accepting… Read More »
What Causes People To File For Bankruptcy?
Overall, the bankruptcy filing rate has declined significantly since 2005. However, Illinois has bucked that trend. The Land of Lincoln has one of the highest bankruptcy filing rates in the country. Illinois’ unemployment rate, which is one of the highest ones in the nation, probably has much to do with the number of filings…. Read More »
Top Five Bankruptcy Exemptions In Illinois
When Monopoly players declare bankruptcy, they automatically lose all their green plastic houses, along with all their other property. Fortunately, the real world is different. Homestead exemptions vary in different states. Illinois’ homestead exemption is broader than most. So are the other bankruptcy exemptions in The Land of Lincoln. That’s good news for debtors…. Read More »
Financial Duress Over 65? You’re Not Alone
Since 1991, rising medical costs, a shrinking social safety net, and a few other factors have combined to triple bankruptcy filings in this age group. Usually, medical bill inflation outstrips overall inflation. Additionally, most doctors quickly send unpaid accounts to debt buyers, who are very aggressive, to say the least. As for Social Security,… Read More »
