Monthly Archives: December 2024
Advanced Home Protection Loopholes in Bankruptcy
Illinois’ home equity exemption is different from many other bankruptcy exemptions. This exemption is value-based as opposed to item-based. So, it only protects a certain amount of home equity. Debtors who have lived in the same house for more than about fifteen years often have a substantial amount of equity in their homes. Furthermore,… Read More »
Bankruptcy and Social Security Benefits: A Primer
Social Security benefits, whether disability-related or age-related, are 100 percent exempt in an Illinois bankruptcy. The same exemption applies to most other government benefits, such as federal VA disability benefits and state workers’ compensation benefits. The bankruptcy exemption doesn’t suspend offset rules, so debtors may not get to keep all their benefits. However, the… Read More »
How Does Bankruptcy Affect My Security Clearance?
Contrary to popular myth, bankruptcy filings do not trigger security clearance revocation, denial, or other adverse action. Neither the government nor private entities, like employers or landlords, may discriminate against bankruptcy filers. However, a bankruptcy filing could trigger a DoD Directive 5220.06 inquiry. After notice and hearing, the DoD may take adverse action against… Read More »
Does Bankruptcy Make it Hard to Buy a Car?
Yes. If people say otherwise, they don’t know what they’re talking about or they’re telling you what you want to hear. Bankruptcy makes it hard, but not impossible, to buy a car. The same principle applies to other major purchases, including a house. In fact, in most cases, debtors can buy cars while they’re… Read More »
