Bankruptcy Archives - Peoria Bankruptcy Lawyer Charles Covey

Bankruptcy Strategies for Eviction : Foreclosure : Car Repossession and More

June 29, 2020

The Illinois rental property owners association recently came out in support of a lawsuit filed by a group of property owners challenging the Governor’s authority to deny housing providers access to the courts. Time may be running out of the moratorium on evictions providing tenants needed leeway during the economic shutdown as well as other programs and policies put in place to help Americans out in the face of Covid-19. During the early weeks of the pandemic, businesses and local, state, … [Read more...]

Millennial Bankruptcy as a Strategy for Financial Recovery

June 17, 2020

Nearly 50 percent of millennials were still recovering from the Great Recession when the Covid 19 economic fallout took hold. Double digit unemployment and stagnate wages that began in the 2006 downturn left many millennials unable to pay off bills or tuck away retirement funds; Covid-19 has only exacerbated the problem. Now, many Americans are in real financial trouble, unable to pay their rent or mortgage, credit card bills or keep up with car payments. Although creditors have provided … [Read more...]

Financial Relief for Everyday Americans Trying to Pay Bills During Covid

June 1, 2020

Despite the fact that the economy is starting to open back up in many areas across the country, Americans will likely continue to struggle to catch-up financially long after returning to work. With roughly 38 million Americans out of work during the pandemic, many will need time to get back on their feet and financial experts recommend that consumers start by discussing their financial situation with their landlords, creditors or banks to see what accommodations they can offer. Covid -19 Rent … [Read more...]

Creditors Balk at Suspension of Debt Collection During Pandemic

May 22, 2020

Early demands to freeze the collection of past due debt during the Covid 19 shutdown had debt collectors across the nation scrambling their lobbyists to push back, expressing concerns that the suspension of debt collection activities would "pose an undue burden to the industry's ethnically diverse workforce" and leave debtors "in the dark on how to handle their debt obligations". Many find the industry’s overt cries to protect their diverse workforce ironic considering many minorities suffer … [Read more...]

Bankruptcy Protection for Illinois Residents Hit Hard by Covid-19

April 29, 2020

Before the massive shutdowns, many workers made enough to live on but not enough to save, leaving Americans in a particularly precarious financial predicament when Covid-19 shut the doors of many businesses and leaving many workers now unemployed. Roughly half of Illinois households have no emergency savings - no one to borrow from, nothing of value to sell, and no rainy day funds to cover what is now over 6 weeks of shutdowns across the nation. Even with expanded unemployment benefits and … [Read more...]

Individual and Business Bankruptcy Resulting from Covid-19

April 23, 2020

Many predict that the widespread shutdowns related to Covid-19 will result in a record number of bankruptcy filings, both personal and business. Despite the Paycheck Protection Program (PPP) for small businesses and stimulus checks sent to individuals and families across the nation, many families and businesses are accumulating massive debt with limited resources flowing in. Over the next 12 months both personal and business bankruptcies may see a dramatic increase depending on how long the … [Read more...]

Personal Bankruptcy When Faced with Unexpected Medical Bills

March 27, 2020

Some believe that the Covid19 pandemic could lead to a rise in personal bankruptcy among Americans grappling with reductions in income and unanticipated medical costs. Although the country is facing a largely unprecedented emergency, medical bankruptcy is not a new phenomenon; many Americans are forced to declare bankruptcy every year because of unexpected medical expenses. Medical Bills Problematic for Insured and Uninsured Alike One of the challenges many insured face is that their employer … [Read more...]

Options for Borrowers Who Cannot Repay Student Loan Debt

March 22, 2020

On average, students are graduating college with more than $30,000 of debt translating into hefty payments often spanning a decade. Getting behind on federal student loan payments can lead to serious financial consequences so at the first sign of trouble, it’s important to act. Borrowers should first contact their loan servicer to see what repayment plans exist. Typically borrowers are enrolled in the standard repayment plan when payments begin, but there are a few to choose from that might … [Read more...]

Bankruptcy and Parent Plus Loans

February 27, 2020

Many parents take out Parent Plus Loans on behalf of dependent undergraduate students to bridge the gap between federal student loans and remaining college tuition. With college education costs at an all-time high, many parents wind up taking on substantial student loan debt to help their children get through school. Today, 3. 6 million parent borrowers owe over $96 billion in Parent Plus Loans and, unfortunately, many are struggling to pay them back. Of course, parents want their kids to … [Read more...]

Discharging Student Loan Debt Under Brunner Test

February 17, 2020

Recently an U.S. bankruptcy judge in New York discharged a Navy veterans $200,000 plus student loan debt for undue hardship creating a buzz among borrowers struggling with insurmountable student loan debt of their own. After all, the vet’s predicament was not unlike many other student loan borrowers’ stories. Like many students, he took a series of loans to pay for his undergraduate degree and a bit more when he decided to go to law school. As the years flew by, he piled on interest and … [Read more...]