The student loan repayment pause which was set to end February 1st is now been extended until May 2022. The pause on the repayment of federal student loans in response to the Covid-19 pandemic has provided many Americans with needed financial relief with the extension giving those who have fallen behind financially a few more months to come up with a plan to tackle their financial difficulties. For some, chapter 7 or 13 bankruptcy is a good strategy to recover from the economic downturn that … [Read more...]
Foreclosure and Repossession Stopped with an Automatic Stay in Bankruptcy
When an individual files a chapter 7, 11 or 13 bankruptcy, collection efforts stop under an automatic stay. Any collection activity against the debtor and the debtor's bankruptcy estate is off limits as the process moves forward. The bankruptcy estate is comprised of interests of the debtor including, but certainly not limited to, tangible property such as a home, car and cash, or in cases where a bankruptcy filer owns a business, may also include inventory, accounts receivable, unpaid … [Read more...]
Homestead and Wildcard Exemptions in an Illinois Bankruptcy
In an Illinois bankruptcy you may keep an exempt amount of equity in your home. An individual filer can protect up to $15k of equity in their homestead. If married, filing jointly, a couple may combine their homestead exemption up to $30k. If your equity does not exceed the exemption and you are current on your mortgage and are able to continue your payments, you may be able to keep the home in a bankruptcy. Can I use the wildcard exemption in to increase my homestead exemption? The wildcard … [Read more...]
How Can I Stop Creditor Harassment?
Sometimes creditors go too far to collect a debt, crossing the line into harassment. If a creditor is calling you at all hours, making threats, or refuses to provide you with more information, they are in violation of the Fair Debt Collection Practices Act (FDCPA). At a glance, your rights under the FDCPA prohibits a creditor from: Calling before 8 a.m. or after 9 p.m. Contacting you at your place of employment if your employer does not allow it Making misleading, deceitful or … [Read more...]
Credit Card Debt Leads Many to Seek Bankruptcy Protection
There are many forms of debt that can land individuals and families in trouble, but insurmountable credit card debt is among the most common reasons people seek bankruptcy protection. For many, credit card payments take a back seat as they try to make ends meet; affording the basics of food, shelter and transportation to get back and forth to work often leaves little left over to pay for other expenses. Credit card holders not only get behind on payments, but are assessed late fees and higher … [Read more...]
Bankruptcy Solutions for Wage Garnishment & Bank Levies
Both private creditors and government agencies can use bank levies and wage garnishment to collect a debt. Private creditors need to obtain a court judgment to garnish someone's wages --- a government agency such as the IRS, the Department of Education, or family courts will do the same to levy a bank account to recover unpaid taxes, defaulted student loans, or past due child support respectively. How Can Bankruptcy Help? The Automatic Stay If you are already stretched financially, having … [Read more...]
Chapter 7 Means Test at a Glance
If you are in a difficult financial situation, dealing with significant debt, chapter 7 bankruptcy protection may offer a way out so that you can get a fresh financial start. Although, you may be required to surrender certain nonexempt property, which is then liquidated to repay the debts you owe, Chapter 7 bankruptcy will allow you to discharge unsecured debt such as credit cards or medical bills so you are no longer required to pay them. To qualify for chapter 7 bankruptcy protection, you … [Read more...]
Discharging Student Loans in Bankruptcy
Student loans are difficult to discharge in bankruptcy. A person must be able to show that payment of student loans poses an undue hardship on the debtor and the debtor’s dependents, however, few are able to pass the test required to prove they are worthy of consideration. However, recent developments may help those who have taken loans from private lenders. The Second, Fifth and Tenth Circuits Courts have joined in ruling that a private student loan is NOT an obligation to repay funds … [Read more...]
Renters Look to Covid Relief and Bankruptcy Protection
The Supreme Court recently lifted the federal ban on evictions allowing landlords to start the eviction process for people behind on their rent. Because federal rental assistance, provided as part of the tens of billions of the Covid relief package, has been slow to reach renters struggling to pay rent, many local agencies have stepped in to provide temporary assistance to bridge the gap as the moratorium ends. Renters who need help are encouraged to turn to various local programs for … [Read more...]
Out of Network Medical Bills and Bankruptcy Protection
Many families face financial difficulties because unexpected medical costs were not covered by their health insurance. All too often, this is because a physician or health care provider is out of network, a fact unknown to the participant at the time of service. Fortunately for many, the No Surprises Act, effective January 1, 2022, minimizes the amounts that participants in a group health plan must pay for medical care received from physicians or other healthcare providers outside of their … [Read more...]