Category Archives: Bankruptcy
Debt Settlement or Bankruptcy: Which One is Best?
Usually, bankruptcy is hands-down more effective than debt settlement. Bankruptcy is a court-supervised process that’s guaranteed to provide relief to distressed debtors. The general bankruptcy process is outlined below. Debt settlement works on the simple principle that something is better than all of nothing. But during non-bankruptcy debt settlement, creditors usually decide how much… Read More »
Bankruptcy, Home Ownership, and Lasting Protections
Many people file bankruptcy because they’re behind on mortgage payments and need the protection of the Automatic Stay. Regardless of the amount of delinquency, and even if the foreclosure sale is scheduled for later that day, Section 362 of the Bankruptcy Code stops foreclosure in its tracks. The Automatic Stay is only part of… Read More »
Maximizing Social Security and Other Asset Exemptions
For many families, the Social Security benefits exemption is the most important property exemption in an Illinois bankruptcy. About 40 percent of Americans rely exclusively on Social Security benefits for retirement income. These benefits, along with VA disability, workers’ compensation, and most other government benefits are exempt in bankruptcy. The trustee (person who manages… Read More »
Bankruptcy Filings Increased in Q3 2023
The expected wave of pandemic-related bankruptcies may wash ashore after all. Consumer bankruptcy filings rose 13 percent in the third quarter of 2023. Business filings rose 29.9 percent, from 13,125 to 17,051, in the year ending Sept. 30, 2023. Non-business bankruptcy filings rose 12.4 percent to 416,607, compared with 370,685 in September 2022. This… Read More »
Are Bankruptcies on the Rise in 2024?
The overall number of consumer bankruptcy filings increased in 2023, for the first time in a very long time. However, the number of over-65 bankruptcies (gray bankruptcies) has risen almost every year since 1991. The combination of a shrinking social services safety net and increasing medical bills has caught many older adults in a… Read More »
Why Should I File Chapter 7 Bankruptcy?
In a nutshell, control is the best reason to file Chapter 7 bankruptcy, or more specifically, regaining control. Divorce, job loss, medical bills, and other unpredictable financial storms cause most bankruptcy filings. During these storms, ships are tossed around wherever the wind and other weather takes them. Bankruptcy calms the storm and allows your… Read More »
Repaying PPPs, EIDLs, and Other Alphabet Soup Loans
Some people have compared 2020, the lockdown year, to 1930, the first full year of the Great Depression. Some similarities exist. A sudden, unexpected event (coronavirus and the Stock Market crash) caused both economic downturns. However, statistically speaking, 2020 was a lot worse than 1930. So, the government offered loan programs to help businesses… Read More »
Is an IRS Installment Agreement Better than Bankruptcy?
No, but it’s the next best thing. An IRS long-term repayment plan is usually a good option for people who don’t qualify for bankruptcy or cannot overcome severe bankruptcy-phobia. Bankruptcy qualification usually isn’t a problem. If people don’t qualify for tax debt discharge, which is likely, they usually qualify for Chapter 13 repayment plan… Read More »
Bankruptcy vs. Non-Bankruptcy Debt Negotiation
Consumer debt has reached the point that, among many people, financial stress causes symptoms that resemble Post Traumatic Stress Disorder symptoms, such as depression, trouble sleeping, and anger. These symptoms make it difficult to function at work. That affects earning power, which increases financial stress, which increases PTSD symptoms, and the downward cycle continues…. Read More »
Can I Keep My Car if I File Bankruptcy?
More people than ever come into our office with this question. Auto loan delinquency rates recently hit a thirty-year high. Regardless of the amount of delinquency, and usually regardless of the vehicle’s financial value, you can keep your car if you file bankruptcy. Otherwise, a car or truck is subject to seizure after just… Read More »
