Tag Archives: Bankruptcy Relief Illinois
What Happens To Property In A Chapter 7?
Probably because of the procedural nickname (“liquidation”), many people erroneously believe that they will lose most or all their property after they declare bankruptcy in order to pay their creditors. After all, that’s essentially what happens in Monopoly and some other finance-based party games. This belief does have some basis, because debtors do indeed… Read More »
Can I Keep My Sports Memorabilia In Bankruptcy?
Former basketball phenom and erstwhile actor Darius Miles, who made over $60 million in his brief professional career, may have to part with his sports memorabilia collection at an upcoming bankruptcy auction. The Los Angeles Clippers selected the 18-year-old East St. Louis High School standout in the first round of the 2000 draft; in… Read More »
The Financial Comeback Trail
Abraham Lincoln, one of Illinois’ favorite sons, declared bankruptcy in 1833. In his early 20s, Lincoln worked various jobs in Springfield, and that work included employment at a local general store. When the establishment closed, the young and enterprising Lincoln decided to open his own store in New Salem with a business partner. The… Read More »
Valuing Assets In Bankruptcy Cases
Most bankruptcy exemptions in Illinois and Indiana are dollar-based as opposed to item-based. So, a certain amount of home equity is exempt as opposed to the houses themselves, and a certain amount of vehicle equity is exempt as opposed to the vehicles themselves. For the most part, these exemptions are quite generous and debtors… Read More »
What Happens During Bankruptcy?
Trilogy Capital Management, one of the last holdout creditors in the ongoing Caesar’s Entertainment Corp. bankruptcy, agreed to support the reorganization plan. This development is good news for the newly-christened Caesars Entertainment Operating Company Inc., because it will probably allow the company to emerge from Chapter 11 and return to business as usual. In… Read More »
Trustee Files Motion To Convert In Yellow Cab Bankruptcy
Claiming that the company can no longer afford to pay its bills, U.S. Trustee Patrick Layng asked a bankruptcy judge to involuntarily change the tax company’s Chapter 11 reorganization to a Chapter 7 liquidation. Mr. Layng, who oversees bankruptcies in the Northern District of Illinois on behalf of the judge, added that Yellow Cab… Read More »
Of Bankruptcy And Taxes
In Wetmore v. Markoe (1904), Supreme Court Justice William Day summed up the intent and purpose of the Bankruptcy Code when he wrote that “Systems of bankruptcy are designed to relieve the honest debtor from the weight of indebtedness which has become oppressive, and to permit him to have a fresh start in business… Read More »
This Is The End?
A prominent financial planner has advised the city of Chicago and state of Illinois to file bankruptcy and start over, because their financial problems are completely overwhelming. Former FDIC head William Isaac said that now may be a good time to seek Chapter 9 protection, because the city and state are in “dire financial… Read More »
The Trustee Is Not…
Indiana and Illinois both have rather generous bankruptcy exemptions, so most debtors get to keep their homes and retirement accounts, even in a Chapter 7. However, ancillary assets like rental houses or second vehicles are sometimes more difficult to protect under either the standard or wildcard exemptions. Sadly, some people do not file necessary… Read More »
Former ITT Tech Students Begin Student Loan Strike
A few debt-ridden former students of the now defunct for-profit college are taking a stand against high student loan payments by intentionally refusing to make payments. More than 100 people announced the joint effort in a letter to President Barack Obama and Education Secretary John King. Despite the former college’s assurances that nearly three-fourths… Read More »
