With the federal freeze on student loan payments coming to an end September 30, 2021, borrowers across the country will be required to resume payments on their loans. After the financial hit many took during the pandemic, having another bill coming due is certainly not welcome news. With a couple of months to go before the freeze ends, borrowers do have various options to consider for loan repayment such as a fixed plan with the same monthly payments, a graduated plan where payments increase … [Read more...]
Possible Exempt Property in a Chapter 7 Bankruptcy
If you are filing for bankruptcy in Illinois, the law allows you to keep certain personal property, excluding them from the bankruptcy. In a chapter 7 bankruptcy, property that is not exempt is sold by the trustee who will then use the proceeds to pay off the filer’s debt. When someone is considering bankruptcy, it is helpful to have a general idea of what property is exempt for planning purposes - working with an experienced bankruptcy attorney can provide individuals and families with … [Read more...]
Bankruptcy Protection When Covid-19 Eviction and Foreclosure Moratoriums End
The CDC has once again extended the moratorium on evictions and foreclosures until the end of July, commenting that this will be the final extension. Unfortunately, there are currently 7 million tenants behind on their rent and many homeowners behind on mortgage payments…when the moratorium ends, not only will back payments come due, but many could be facing evictions or foreclosures. For renters, help may come in the form of the 46 billion dollars in emergency funds approved by … [Read more...]
Many Americans Lament Lack of Emergency Savings
Three quarters of Americans regret not having enough savings tucked away for emergencies, a widely shared sentiment especially in the wake of the pandemic. Having adequate savings for periods of unemployment or to cover unexpected expenses is something all too many Americans lack. Millennials and Gen Xers in particular have little tucked away in savings compared to people 55 and older, who have had more time to set funds aside for emergencies. Even so, most savers often come up short; it is … [Read more...]
HELOC and Bankruptcy Protection
Bankruptcy debt can be secured or unsecured, each subject to different treatment under the Bankruptcy Code. Debt that is secured with collateral of the ‘right to setoff’ or a ‘lien on property’ ensures the repayment of the obligation if a borrower declares bankruptcy. Can an automatic stay protect a home used as collateral for a loan? Many who are considering bankruptcy want to know if they can protect property used as collateral, such as their home (think HELOC) or automobile. Although a … [Read more...]
Financial Recovery May Include Bankruptcy Protection
A common misconception is that bankruptcy is a result of poor financial decisions when more often than not, bankruptcy is caused by unfortunate circumstances outside of our control. A job loss, divorce, unexpected medical bills, or as we've seen recently, a global pandemic, can all wreak havoc on individual or family finances, leading many to consider bankruptcy protection as a strategy to get back on their feet. It is estimated that between 800,000 and 1.5 million Americans file for … [Read more...]
Payday Loans and Bankruptcy
The Illinois governor recently signed legislation to cap interest rates on payday loans, auto title loans, and installment loans at 36%. Although some worry that caps will reduce access to credit for borrowers, many more believe the new rate cap will rein in high cost lending that lands individuals and families in a debt spiral. Advocates for the measure believe the 36% rate cap strikes a balance between access to credit while protecting consumers from predatory lending. To understand how … [Read more...]
Personal Bankruptcy Likely to Surge in 2021
With the number of Covid-19 cases plummeting across the country, many are looking forward to getting back to normal hoping to recover financially following a year of closures and limited employment. When trying to tackle debt, many may consider Chapter 7 bankruptcy protection to either discharge unsecured debt such as credit cards, medical bills and personal loans, or, some may opt for Chapter 13 bankruptcy, which can provide a way out of debt through a structured repayment plan. To … [Read more...]
Illinois Bankruptcy Homestead Exemption | Tenancy in the Entirety
When filing for bankruptcy in Illinois there are a number of bankruptcy exemptions available, including the homestead exemption, which is a particular interest to home owners hoping to retain their domicile. Illinois Bankruptcy Homestead Exemption Under the Homestead Exemption, a homeowner is able to exempt up to $15,000 of equity on their home or other property used as a residence. That amount doubles to $30,000 for couples filing jointly. The Illinois statute has a special provision for … [Read more...]
Illinois Chapter 7 Bankruptcy Exemptions at a Glance
Illinois Chapter 7 bankruptcy protection offers filers a fresh financial start by liquidating much of their debt while allowing them to hold on to certain assets. Working with an experienced bankruptcy attorney can help Illinois residents eliminate debt and maximize chapter 7 bankruptcy exemptions. Chapter 7 Bankruptcy Exemptions Retirement Savings - Typically retirement accounts such as 401Ks and IRAs are exempt in charter 7 bankruptcy meaning that creditors cannot cash in on these … [Read more...]