Bankruptcy articles and news

There are tens of billions in outstanding medical bills currently in collections, affecting one in five American families. For patients with little or no health insurance coverage, offers of medical credit cards with zero percent introductory interest have been growing to bridge the gap. In fact, between 2018 and 2020, families using specialty medical credit cards racked up over 23 billion dollars in medical debt. Taking a card out to afford the high cost of medical care has only … [Read more...]

The new SAVE (Saving on a Valuable Education) plan promises to reduce student loan payments, set to resume next month after the pandemic related pause. Much like previous income driven repayment plans, SAVE calculates monthly payments based on income and family size to make payments more affordable for borrowers.. SAVE is calculated using the difference between a borrower’s discretionary income and 225% of the poverty level compared to existing income driven plans that calculate discretionary … [Read more...]

In the first six months of 2023, bankruptcy filings increased dramatically in the first six months when compared to the same period in 2022. Chapter 11 bankruptcies, a form of bankruptcy that involves the reorganization of a debtor's business affairs, debts, and assets, surged nearly 70 percent with filings for small businesses at 55%. Chapter 13 bankruptcies, a type of bankruptcy where individuals, married couples, self-employed or incorporated business can reorganize debt into a … [Read more...]

Sometimes financial difficulties can continue after filing for bankruptcy, leaving many wondering if they can file for bankruptcy a second or third time to tackle lingering issues. The answer is technically yes, an individual can file for bankruptcy again, but whether debts will be discharged in a repeat filing depends on the timing and whether an individual files the same type of bankruptcy. If an individual files under Chapter 7, they will need to wait 8 years after filing to seek another … [Read more...]

Bankruptcy protection is a strategy for businesses and individuals to discharge debts and resolve disputes with creditors. Bankruptcy offers a fresh financial start to those facing financial difficulties, providing needed breathing room from creditor actions to reorganize or liquidate debt. There are six different types of bankruptcies: Chapters 7, 9, 11, 12, 13 and 15. Chapter 9 is used by municipalities. Chapter 12 applies to family farmers and fisherman, Chapter 13 bankruptcy is a … [Read more...]

Bankruptcy protection is a federal process, but if you live in Illinois, you will use state bankruptcy exemptions and federal non bankruptcy exemptions. Federal non bankruptcy exemptions are laws that protect government benefits from creditors. They are not part of the bankruptcy code, but bankruptcy filers in Illinois may take both state bankruptcy exemptions and federal non bankruptcy exemptions. Illinois Bankruptcy Exemptions at a Glance Homestead Exemption allows $15,000 for … [Read more...]

Payments on federal student loans, on pause since March 2020, will resume this fall. Student loan interest will start accumulating as of September 1, 2023 and student loan payments will be due in October. The pause on payments and interest were ordered at the onset of the Covid 19 pandemic to ease financial pressure on borrowers, many of whom were forced to stay home from work. However, recently Congress agreed that there would be no more extensions on payments. This, as the Supreme Court … [Read more...]

Whether married couples decide to file personal bankruptcy individually or jointly can be a complicated question. Sometimes a spouse that has single-handedly accumulated significant debt may wish to file for bankruptcy to discharge debt while their spouse, who has little debt of their own, may not want to be held responsible by taking part in the bankruptcy process. Because marriage conveys joint responsibility for some debt under bankruptcy, it is important to work with an experienced … [Read more...]

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...]