Bankruptcy Archives - Peoria Bankruptcy Lawyer Charles Covey

Bankruptcy and Co-Signors to Student Loans

January 22, 2020

With the cost of education skyrocketing, more kids are turning to parents and grandparents to cosign on private student loans, leaving them liable for payments if the child cannot pay the loan, becomes disabled, or in the event of the borrower’s untimely death. Co-signors stepping up to the plate happens more often than one would think. The number of people over the age of 60 paying off student loan debt on behalf of a family member has quadrupled over the last decade. If you are considering … [Read more...]

Information Is King When Considering Bankruptcy Protection

January 10, 2020

Bankruptcy is often the last resort for millions of families overburdened with debt. Bankruptcy serves as a financial safety net for families trying their best to stay financially afloat when they are faced with insurmountable debt such as uninsured medical expenses or credit cards used to make ends meet. Bankruptcy law offers individuals or couples bankruptcy protection under chapter 7 or chapter 13 bankruptcy. Generally speaking, in a chapter 7, debtors surrender their nonexempt assets to … [Read more...]

Consumers in Over Their Heads on Car Loans

December 27, 2019

Reminiscent of the housing crisis, some car dealers in the U.S. appear to be fudging financial details to get borrowers approved. According to a recent article in The Wall Street Journal, inflating borrowers’ incomes so they can qualify for a car loan is a growing trend across the country resulting in some dealerships being sued by state and federal authorities. It’s not just a matter of turning a blind eye when borrowers fib about earnings, but a proactive approach on the part of … [Read more...]

Tax Exempt Hospitals Under Scrutiny for Aggressive Debt Collection Practices

December 11, 2019

Tax exempt hospitals are required by law to provide charity care to patients who cannot afford their hospital expenses. Furthermore, nonprofit hospitals cannot go after past due balances through extraordinarily aggressive debt collection actions such as suing these patients or seeking the garnishment of their wages. However, according to an investigation recently published by MLK50, a member of ProPublica, that is exactly what one of the largest healthcare systems in the country did when poor … [Read more...]

Bankruptcy Protection for Medical Debt Lawsuit

November 20, 2019

On paper, middle class earners appear to be able to afford their bills, but the reality is that many are struggling financially, particularly when you stack on medical expenses that are not covered by high deductibles. When push comes to shove, families have to prioritize payment of necessities such as housing, transportation and food, which sometimes means leaving medical bills unpaid. In the past, hospitals and clinics were reluctant to legally pursue patients with delinquent accounts … [Read more...]

Behind on Car Payments – Bankruptcy Protection Can Help

November 8, 2019

Cars are anything but inexpensive these days. Even the cost of a light vehicle, such as a typical sedan or a minivan that many people in the U.S. drive, approaches $40,000 - roughly $8,000 more that the average millennial earns in a year. Many looking for a way to afford a vehicle may look to longer loan terms that can sometimes exceed 6 years, a departure from the standard 4 year commitment of an earlier time. Although extending loans can drop the monthly payment, there are drawbacks. … [Read more...]

Discharging Debt in Bankruptcy to Target Student Loans

October 28, 2019

More than two decades ago, the student loan income dependent repayment plan was created to help stem the rising number of defaults. in a nutshell, the plan allows borrowers to make payments of anywhere from 10 to 20 percent of discretionary income (defined as income earned over 150 percent of the poverty level adjusted for household size) with the promise of forgiveness for any remaining balance after a period of 20 to 25 years. Sounds great, however, so far only a couple dozen borrowers have … [Read more...]

Peoria Lags Behind Job Gains in State

October 14, 2019

Despite the fact that unemployment in Illinois has dropped over the last 12 months, with job gains seen in many metro areas across the state, both Peoria and Kankakee have lost hundreds of jobs in the same period. In 2018, Peoria unemployment rates were at 4.1 percent with an estimated 7,300 Peoria residents unemployed. The lack of job growth over the last 12 months puts a further financial strain on residents in Peoria and surrounding areas. Some job losses in the area coincided with the … [Read more...]

Bankruptcy Protection Strategies to Tackle Student Loans

September 17, 2019

Every 28 seconds another student loan borrower defaults on their loan, underscoring how student loan debt is wreaking havoc on borrowers who are having a difficult time paying these large loans back. Whether they are federal or private student loans, the number of defaults highlight the difficulties student borrowers are facing. Currently, there is 1.5 million in outstanding student loan debt in the U.S. with student loans representing more than a third of severe derogatory balances. Federally … [Read more...]

Seniors Filing Bankruptcy Climbs to 12%

September 12, 2019

The number of seniors filing bankruptcy in the U.S. has increased dramatically over the last three decades. In the early 1990s, bankruptcy among seniors accounted for only 2% of bankruptcy claims. Over the years, bankruptcy among seniors has climbed to 12% with over a hundred thousand seniors filing for bankruptcy. Rising medical costs at a time when Medicare covers fewer expenses, stagnant or reduced wages, and fewer good pensions are one side of the equation; the other is that many seniors … [Read more...]