Bankruptcy Archives - Peoria Bankruptcy Lawyer Charles Covey

Bankruptcy Solutions for Wage Garnishment & Bank Levies

October 1, 2021

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

September 28, 2021

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

August 31, 2021

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

August 30, 2021

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

July 28, 2021

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...]

End of Student Loan Repayment Freeze

July 19, 2021

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

June 30, 2021

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

June 27, 2021

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

May 20, 2021

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

May 4, 2021

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...]