A combination of interest rate increases, high inflation, and a cooling job market has resulted in many Americans falling behind on their car payments. Delinquencies and defaults are on the rise with the number of borrowers 60 days delinquent or more are up 27 percent from a year ago. Subprime borrowers are often the first to fall behind on car payments. Many who took out subprime loans have significantly higher rates, resulting in higher payments and insurance costs that are simply not … [Read more...]
Borrowers Await News on Federal Student Debt Cancellation
Individuals and families straddled with debt are struggling to make ends meet as inflation rises alongside stagnating wages and higher unemployment. The 43 million Americans with federal student loan debt anxiously await news of the federal student debt cancellation program, a plan to cancel 10K in federal student loan debt for individuals with annual income below $125K/$250K per household and $20K cancellation for Pell Grant recipients with the same income. With more families forced to tighten … [Read more...]
How to Stop the Foreclosure of Your Home
When you get behind on your mortgage payments, the foreclosure process typically takes anywhere from six to eight months, at which point the home may be sold at a sheriffs sale - a public auction that takes place at the end of a foreclosure process. When you are in a difficult financial situation and are facing the foreclosure of your home, being proactive can help you regain control of your financial situation. How to Stop a Sheriff's Sale and Foreclosure Process Stopping a foreclosure … [Read more...]
Keeping a Vehicle in Bankruptcy
Getting behind on bills is often a result of insufficient earnings caused by unemployment or reduced hours at work. It may also be that an unexpected expense makes it impossible to pay credit cards and car loans on top of basic, but necessary, monthly expenses. Those earning less than the median income in their area for an extended period, or those who have extraordinary expenses that make it impossible to make ends meet, may be eligible for Chapter 7 “liquidation” bankruptcy. For individuals … [Read more...]
Chapter 7 Bankruptcy Help for Upside Down Mortgage
The downturn in the housing market has resulted in upside down mortgages where home owners owe more on their mortgage than their house is worth. In 2022, it is estimated that tens of thousands of American homeowners are trapped in so called under water mortgages, with loan principles exceeding the fair market value of their homes. Being underwater is not uncommon, but fortunately there are a few strategies to consider when your mortgage is upside down, including bankruptcy when your financial … [Read more...]
Bankruptcy Look Back Period
If you are planning to file for chapter 7 bankruptcy, it is important to understand the look back period. What is the Bankruptcy Look-Back Period? As part of the Chapter 7 means test, individuals filing for bankruptcy will provide information dating back 6 months from the time of filing to determine if they qualify for chapter 7 or 13 bankruptcy. A look back may find evidence of avoidable preferences which wrongly prioritize the payment of one debt over another - a look back period could … [Read more...]
Chapter 11 or 13 Reorganization Bankruptcy
In a Chapter 11 or 13 reorganization bankruptcy, the court will approve a repayment plan that typically provides for the partial repayment of debts owed to various creditors over a period of 2 to 5 years. At the conclusion of the repayment period, any remaining balance may be discharged. With the help of an experienced attorney, individuals and businesses can file a petition for bankruptcy with the US Bankruptcy Court. After filing for bankruptcy protection, debtors are protected from creditors … [Read more...]
Maximize Bankruptcy Exemptions While Discharging Debt
Bankruptcy protection offers a legal strategy to eliminate debt for individuals who are facing financial difficulty. In a chapter 7 liquidation bankruptcy, a debtor's nonexempt assets are sold and their creditors are paid from the proceeds. Any claims that remain unpaid are discharged. Notable exemptions include but are not limited to: Illinois homestead exemption up to 15K Illinois motor vehicle exemption up to $2400 on one motor vehicle Illinois Wildcard Exemption of $4K that can … [Read more...]
The Chapter 7 Bankruptcy Process At a Glance
If you are eligible to file for Chapter 7 Bankruptcy, your attorney will file the bankruptcy on your behalf triggering an automatic stay which stops creditors from further collection efforts. Anywhere from 3 to 6 weeks after filing, you will meet with a bankruptcy trustee to go over your financial records. Creditors are provided a 60 day window to object to the findings, after which time eligible debt will be discharged. For Chapter 13 bankruptcy, the procedure is similar, but instead of … [Read more...]
Fresh Financial Start Possible Through Chapter 7 Bankruptcy
Because of worsening economic conditions, personal bankruptcy is on the rise across America. Many who are struggling with debt may consider bankruptcy as an opportunity to hit the restart button, to get a fresh financial start. Types of Personal Bankruptcy Individuals have two bankruptcy options to choose from depending on their situation including Chapter 7 and 13. The vast majority filers choose chapter 7 bankruptcy to erase unsecured debt such as credit cards and medical bills that have … [Read more...]