Bankruptcy Archives - Peoria Bankruptcy Lawyer Charles Covey

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...]

Debt Collectors ‘Get Around’ Statute of Limitations on Collecting Debt

August 22, 2019

In many states, debt collectors lose the right to sue consumers after a period of anywhere from 3 to 5 years. However, if a consumer makes a payment - regardless of whether they do so intentionally or otherwise - it restarts the clock on debt collection and allows debt collectors to "get around" the statute of limitations on collecting old debt. To illustrate how it can happen, consider someone who falls hopelessly behind on a store credit card. As the years tick by, the consumer may believe … [Read more...]

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...]