Illinois Bankruptcy Blog - Peoria Bankruptcy Lawyer Charles Covey

Personal Bankruptcy for Mounting Medical Bills

May 25, 2023

A common reason that people file for bankruptcy is because of mounting medical bills. A 2019 NIH study reveals that roughly three fifths of respondents attribute their bankruptcies to overwhelming medical expenses, a trend likely to continue with the costs of medical care rising with more than half of American adults carrying medical debt. As many who have weathered a medical event can attest, it is not just about the medical bill, it is all the other bills that increase or do not get paid … [Read more...]

Waiting Time Between Bankruptcy Filings

April 20, 2023

Chapter 7 bankruptcy offers individuals and families struggling with debt the opportunity to eliminate unsecured debt to get a fresh start financially. While some debt such as taxes, child support, alimony, student loans, and certain court judgements may not be dischargeable, unsecured debt including credit card debt and medical bills often are dischargeable in a Chapter 7 bankruptcy. That said, every case is unique, so it is important to discuss your situation with an experienced bankruptcy … [Read more...]

Reasons a Bankruptcy Case May be Dismissed

April 10, 2023

Individuals struggling with debt may look to bankruptcy protection to get a fresh start, but it is important to avoid making mistakes when filing for Chapter 7 or Chapter 13 bankruptcy. There are a number of reasons a bankruptcy case may be dismissed. Bankruptcy Case Dismissal It is very important to not only carefully prepare for your bankruptcy case, but to fulfill all requirements. The court can dismiss your bankruptcy case with or without prejudice. A case may dismissed without prejudice … [Read more...]

Debts Not Dischargeable in a Personal Bankruptcy

March 23, 2023

When individuals or spouses experience a difficult financial situation, they may wonder if bankruptcy protection is a good strategy to discharge their debt so that they can get a fresh start. It is important to note that regardless of the type of bankruptcy filed - Chapter 7, 11 or 13 - some debts may not be discharged in a personal bankruptcy. Non dischargeable debts in a bankruptcy may include but are not limited to certain tax claims, debts for spousal maintenance in a divorce, child … [Read more...]

Reorganize Debt with a Chapter 11 Business Bankruptcy

March 13, 2023

A Chapter 11 Business Bankruptcy is a strategy businesses may employ to solve a difficult financial situation without having to close their doors. Chapter 11 allows businesses to reorganize assets and debts making it possible to return to being a strong, more profitable company. Many debts that a business has accumulated may be renegotiated in a Chapter 11 bankruptcy. Credit card debt, unsecured bank loans, liability for broken contracts or leases, and certain tax obligations may be … [Read more...]

Bankruptcy Protection for Americans Behind on Car Payments

February 26, 2023

A combination of interest rate increases, high inflation, and a cooling job market has resulted in many Americans falling behind on their car payments. Delinquencies and defaults are on the rise with the number of borrowers 60 days delinquent or more are up 27 percent from a year ago. Subprime borrowers are often the first to fall behind on car payments. Many who took out subprime loans have significantly higher rates, resulting in higher payments and insurance costs that are simply not … [Read more...]

Borrowers Await News on Federal Student Debt Cancellation

February 10, 2023

Individuals and families straddled with debt are struggling to make ends meet as inflation rises alongside stagnating wages and higher unemployment. The 43 million Americans with federal student loan debt anxiously await news of the federal student debt cancellation program, a plan to cancel 10K in federal student loan debt for individuals with annual income below $125K/$250K per household and $20K cancellation for Pell Grant recipients with the same income. With more families forced to tighten … [Read more...]

How to Stop the Foreclosure of Your Home

January 30, 2023

When you get behind on your mortgage payments, the foreclosure process typically takes anywhere from six to eight months, at which point the home may be sold at a sheriffs sale - a public auction that takes place at the end of a foreclosure process. When you are in a difficult financial situation and are facing the foreclosure of your home, being proactive can help you regain control of your financial situation. How to Stop a Sheriff's Sale and Foreclosure Process Stopping a foreclosure … [Read more...]

Keeping a Vehicle in Bankruptcy

January 27, 2023

Getting behind on bills is often a result of insufficient earnings caused by unemployment or reduced hours at work. It may also be that an unexpected expense makes it impossible to pay credit cards and car loans on top of basic, but necessary, monthly expenses. Those earning less than the median income in their area for an extended period, or those who have extraordinary expenses that make it impossible to make ends meet, may be eligible for Chapter 7 “liquidation” bankruptcy. For individuals … [Read more...]

Chapter 7 Bankruptcy Help for Upside Down Mortgage

December 31, 2022

The downturn in the housing market has resulted in upside down mortgages where home owners owe more on their mortgage than their house is worth. In 2022, it is estimated that tens of thousands of American homeowners are trapped in so called under water mortgages, with loan principles exceeding the fair market value of their homes. Being underwater is not uncommon, but fortunately there are a few strategies to consider when your mortgage is upside down, including bankruptcy when your financial … [Read more...]