Bankruptcy Archives - Peoria Bankruptcy Lawyer Charles Covey

Americans In Over Their Heads Trying to Stay in the Middle

August 13, 2019

While some believe that middle class is defined by economic resources, others say it is a state of mind revealed through behavior, cultural tastes, or certain kinds of consumption. Whatever your take, staying in the middle class is getting more expensive and financial stress is running high across the nation. As cars, homes and healthcare skyrocket, wages have remained stagnant. But, that hasn't stopped consumers from piling on more debt. According to a recent Wall Street Journal article, … [Read more...]

New Law to Help Those Who Cannot Pay Their Bills | Is It Enough?

July 30, 2019

Many people struggle to pay off debt, particularly credit cards with not-so-good interest rates which many rely on to make ends meet. When consumers get behind on payments, creditors may take them to court resulting in a judgement that requires payment of the debt with interest over very long periods of time - judgments that stay on credit history reports until they are paid in full. A new law offers help to low income consumers who are taken to court over unpaid bills in Illinois. Beginning … [Read more...]

Bankruptcy Protection When Retirement Comes Too Early

July 5, 2019

Many older Americans are willing (or have to) stay in the workforce longer to ensure their retirement security. Working longer allows seniors to delay taking social security benefits, increasing monthly benefit amounts. Continuing to earn income can also be used to pay down debt while socking away extra savings for retirement. But counting on working longer to make a retirement plan work can be risky. While roughly a third of Americana expect to retire between the ages of 65 and 69 and … [Read more...]

Understanding Bankruptcy Protection

June 28, 2019

When someone finds themselves with too much debt making it difficult to meet their financial obligations, they may consider bankruptcy protection. Bankruptcy is a court process that can provide protection from creditors. The two main types of bankruptcy a debtor can consider are Chapter 7 and Chapter 13. Illinois Chapter 7 Bankruptcy Protection Chapter 7 Bankruptcy, sometimes referred to as a debt liquidation bankruptcy, can help debtors to discharge or cancel debt such as medical bills or … [Read more...]

Rebuilding Credit Following Bankruptcy

June 18, 2019

If you are considering bankruptcy, you may be concerned that you will be left with poor credit. Of course, after you file bankruptcy, it will appear on your credit report and certainly impact your credit score, but there are ways to rebuild your credit including secured credit cards. A secured credit card is an option for people with either very little credit history and those with low credit scores who want to improve their credit worthiness. A borrower makes a refundable cash deposit - … [Read more...]

Discharging Medical Bills in Bankruptcy

May 22, 2019

A study from American Cancer Society reveals that costs for prescription drugs to treat cancer, rheumatoid arthritis and multiple sclerosis among other illnesses can cost patients tens of thousands of dollars each year, whether they are insured or not. An estimated 137 million American struggle with financial hardship because of medical bills, many draining their savings accounts, taking out second mortgages, and cutting their spending just to afford the medicine they need. Sometimes it can … [Read more...]

Public Service Loan Forgiveness

May 9, 2019

The first wave of students eligible for debt forgiveness in professions such as teaching and nursing under the 2007 Public Service Loan forgiveness plan may be in for an uphill battle to have their loans paid off. Out of the more than 73,000 borrowers that have applied for Public Service Loan forgiveness as of March 31, only 864 have had their loans erased. The forgiveness program was supposed to help those working for a government entity or nonprofits seek relief in what are typically lower … [Read more...]

Financial Literacy Needed Before Taking Student Loans

April 30, 2019

Although many young adults in high school have their sights set on attending college, few are financially savvy enough to understand the long term consequences of taking student loans. This is especially troubling at a time when college tuition is skyrocketing. With student debt climbing, efforts to beef up financial literacy instruction in high schools has emerged and a number of states have moved to push legislation requiring basic financial courses to graduate. As it stands, however, only … [Read more...]

Bankruptcy Filings Peak With Tax Refunds

April 22, 2019

A popular saying "working too hard to make money" rings true for many Americans who are stuck in a cycle of working hard at their jobs to make ends meet, with little time or energy to gain additional training or skills to move up the ladder to a better paying job. Many have just enough money to cover the basics of food, shelter and transportation, which leaves a good number at risk for financial problems if an unexpected expense arises. Bankruptcy Filings Peak With Tax Refunds When families … [Read more...]

Should I Take an HELOC to Pay for Repairs to My Home?

March 26, 2019

Although many Americans look to home equity lines of credit to finance a needed repair such as a new roof or tackle other expenses, it is important to see an HELOC for what it is - a second mortgage resulting in a lien against your home. A home equity line of credit is a home's market value minus any outstanding loan balance giving homeowners access to cash using their home as collateral. Of course, when homeowners take out an HELOC, they increase the risk of losing their home if they are … [Read more...]

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