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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...]

One of the biggest fears consumers have about filing for bankruptcy is financial ruin. Many believe that if they file for bankruptcy, their credit score will plummet and they'll never be able to regain financial trustworthiness again. This is simply a myth, and here's why. While it's true that bankruptcy does hinder an individual's ability to, for instance procure a mortgage on a home shortly after discharge, it doesn't mean that it will last forever. In fact, there are actions consumers can … [Read more...]

If you fall behind on your credit card bills and other unsecured debts, one of the options your creditors have is to seek garnishment of your wages. You may already know that wage garnishment is a court order that directs your employer to withhold a portion of your wages for the benefit of your creditors, but may not understand the rules surrounding it or the ways of avoiding this unpleasant process completely. The following will provide a brief summary of the main rules of garnishment in … [Read more...]

Rebuilding Credit After Bankruptcy Once you have filed for bankruptcy, you have the opportunity to start fresh and to rebuild your credit. It is important to consider the factors that led to your unmanageable debt and to learn from mistakes and missteps before obtaining new lines of credit. At the Peoria law office of Charles E. Covey, Attorney at Law, we understand the challenges you face as you begin rebuilding credit after bankruptcy. We know the potential pitfalls that often appear and … [Read more...]