Archives for November 2015

In Illinois, a judgment creditor can obtain a court order to put in place a wage deduction from your earnings. This is commonly referred to as garnishment. This wage deduction takes a percentage of your wages, before you ever see them, and transfers them to your creditor. Wage Garnishment This wage deduction, or garnishment, can only be done where there is a valid judgment debt. In Illinois, the creditor then files an action in court to deduct the lesser of either 15 percent of your gross … [Read more...]

Some people think it has to do with the time necessary to complete the sale process, assuming that a short sale only takes a short period of time. In reality, though, short sales often take much longer to complete than traditional sales. The term short sale actually refers to the amount of money the bank or mortgage lender is willing to accept to allow the property to be transferred to a new owner. In layman terms, the bank is willing to short themselves, taking less than the mortgage value … [Read more...]

Having financial problems can be like a dark cloud over your head. For many people, filing for bankruptcy gives them much needed relief from mounting debt that they cannot pay, as well as peace of mind. But this piece of mind comes at a price, and before making the decision to file for bankruptcy, you should be aware of the ramifications that it will have on your finances and credit. For example, a bankruptcy will show up on your credit report for several years and can negatively affect your … [Read more...]

Most people assume that a serious illness or injury won\t happen to them, or, if it does, their health insurance coverage will take care of the expenses. Sometimes that is true. Other times, though, faith in health insurance is misguided. Consider this: the majority (up to 75 percent, by some estimates) of people seeking bankruptcy protection because of unmanageable medical debt has insurance. Furthermore, out-of-control medical expenses directly or indirectly contribute to more than 60 percent … [Read more...]

Our economy is slowly beginning to rebound, but the most recent recession has had a severe impact on the financial health of many individuals. A lot of people were out of work for a significant amount of time, draining any financial resources that they may have set aside. Home values plummeted, trapping many people into mortgages for way more that their homes would ever be worth. Some may have relied upon credit cards to get them through the difficult times. Others may have taken out home … [Read more...]

In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act, changing the qualifications and procedure for filing bankruptcy. Some claimed that too many people were abusing the protections that bankruptcy offered those who file, so the laws needed to be tougher. Many people who were struggling financially hurried to file before the new law went into effect in October 2005, as they were unsure how the new law would impact their eligibility to file. October 2013 was the … [Read more...]

On behalf of Charles Covey Contrary to popular belief, not all debt must be repaid during Chapter 13 bankruptcy. If you have heard anything about Chapter 13 bankruptcy, you may know that it involves repayment of debts. Knowing this, you may ask yourself what the point of it is. After all, if you could repay your debts, you would hardly need to file bankruptcy. However, the truth is that Chapter 13 works differently than you may think. In reality, not all of your debts must be fully repaid … [Read more...]

If you are overwhelmed by debt, bankruptcy could help you get your financial life back on track. But which type of bankruptcy is best for you? Generally, there are two types of consumer bankruptcy, Chapter 7 and Chapter 13. Each has its own distinct advantages, and depending on your unique situation, either could be a better fit. Chapter 7 offers a quick discharge of debt Chapter 7 bankruptcy is a good choice to secure a quick, clean escape from debt. In a Chapter 7 case, most types of debt … [Read more...]

On behalf of Charles Covey Abandoning your home is often a foolish move if you are faced with foreclosure. When some are struggling to pay their mortgages, they give up all hope and abandon their homes as soon as they receive a foreclosure notice. They believe there is nothing that can be done to avert the foreclosure process. By abandoning their homes, they think that the lender will sell the property, freeing them of further financial obligation. Although this does happen in some … [Read more...]

On behalf of Charles Covey Although federal law prohibits abusive collection tactics, its protection is limited. If you have fallen behind on your bills, you are probably already familiar with the unpleasant and annoying phone calls from creditors that people in your situation often receive. If you owe the debt, you may feel like you "deserve" the disagreeable creditor harassment techniques that some creditors resort to. However, in reality, if a creditor crosses a line, you do not have to … [Read more...]