Bankruptcy articles and news

If you fall into three situations, Chapter 13 may be a better fit for you. Individuals having financial problems have two types of bankruptcy to choose from-Chapter 7 and Chapter 13. Most people assume that Chapter 7 is the better fit for them, since it is filed more often. However, this is not always the case. In reality, there are three primary situations where filing Chapter 13 bankruptcy would potentially be a better fit. Foreclosure is imminent Most people that are at risk of … [Read more...]

In Illinois, a judgment creditor can obtain a court order to put in place a wage deduction from your earnings. This is commonly referred to as garnishment. This wage deduction takes a percentage of your wages, before you ever see them, and transfers them to your creditor. Wage Garnishment This wage deduction, or garnishment, can only be done where there is a valid judgment debt. In Illinois, the creditor then files an action in court to deduct the lesser of either 15 percent of your gross … [Read more...]

Some people think it has to do with the time necessary to complete the sale process, assuming that a short sale only takes a short period of time. In reality, though, short sales often take much longer to complete than traditional sales. The term short sale actually refers to the amount of money the bank or mortgage lender is willing to accept to allow the property to be transferred to a new owner. In layman terms, the bank is willing to short themselves, taking less than the mortgage value … [Read more...]

Having financial problems can be like a dark cloud over your head. For many people, filing for bankruptcy gives them much needed relief from mounting debt that they cannot pay, as well as peace of mind. But this piece of mind comes at a price, and before making the decision to file for bankruptcy, you should be aware of the ramifications that it will have on your finances and credit. For example, a bankruptcy will show up on your credit report for several years and can negatively affect your … [Read more...]

Most people assume that a serious illness or injury won\t happen to them, or, if it does, their health insurance coverage will take care of the expenses. Sometimes that is true. Other times, though, faith in health insurance is misguided. Consider this: the majority (up to 75 percent, by some estimates) of people seeking bankruptcy protection because of unmanageable medical debt has insurance. Furthermore, out-of-control medical expenses directly or indirectly contribute to more than 60 percent … [Read more...]

Our economy is slowly beginning to rebound, but the most recent recession has had a severe impact on the financial health of many individuals. A lot of people were out of work for a significant amount of time, draining any financial resources that they may have set aside. Home values plummeted, trapping many people into mortgages for way more that their homes would ever be worth. Some may have relied upon credit cards to get them through the difficult times. Others may have taken out home … [Read more...]

In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act, changing the qualifications and procedure for filing bankruptcy. Some claimed that too many people were abusing the protections that bankruptcy offered those who file, so the laws needed to be tougher. Many people who were struggling financially hurried to file before the new law went into effect in October 2005, as they were unsure how the new law would impact their eligibility to file. October 2013 was the … [Read more...]