Bankruptcy articles and news

In a Chapter 11 or 13 reorganization bankruptcy, the court will approve a repayment plan that typically provides for the partial repayment of debts owed to various creditors over a period of 2 to 5 years. At the conclusion of the repayment period, any remaining balance may be discharged. With the help of an experienced attorney, individuals and businesses can file a petition for bankruptcy with the US Bankruptcy Court. After filing for bankruptcy protection, debtors are protected from creditors … [Read more...]

Bankruptcy protection offers a legal strategy to eliminate debt for individuals who are facing financial difficulty. In a chapter 7 liquidation bankruptcy, a debtor's nonexempt assets are sold and their creditors are paid from the proceeds. Any claims that remain unpaid are discharged. Notable exemptions include but are not limited to: Illinois homestead exemption up to 15K Illinois motor vehicle exemption up to $2400 on one motor vehicle Illinois Wildcard Exemption of $4K that can … [Read more...]

If you are eligible to file for Chapter 7 Bankruptcy, your attorney will file the bankruptcy on your behalf triggering an automatic stay which stops creditors from further collection efforts. Anywhere from 3 to 6 weeks after filing, you will meet with a bankruptcy trustee to go over your financial records. Creditors are provided a 60 day window to object to the findings, after which time eligible debt will be discharged. For Chapter 13 bankruptcy, the procedure is similar, but instead of … [Read more...]

Because of worsening economic conditions, personal bankruptcy is on the rise across America. Many who are struggling with debt may consider bankruptcy as an opportunity to hit the restart button, to get a fresh financial start. Types of Personal Bankruptcy Individuals have two bankruptcy options to choose from depending on their situation including Chapter 7 and 13. The vast majority filers choose chapter 7 bankruptcy to erase unsecured debt such as credit cards and medical bills that have … [Read more...]

Not surprisingly, keeping a car in a chapter 7 bankruptcy is a priority for many filers who depend on their car to get back and forth to work, take their children to school, or perform errands such as going to the grocery store - the day to day activities where a having a car is essential.. Fortunately, most states have a motor vehicle exemption under bankruptcy allowing filers to hold on to their car. In Illinois, cars and trucks worth up to $2,400 (or with that much equity) are exempt for … [Read more...]

Although spouses often file for bankruptcy jointly, there are situations where one spouse carries a much greater debt load and can no longer afford to make debt payments. Bankruptcy protection allows the spouse filing bankruptcy to liquidate or restructure individual debts if a couple does not wish to file jointly. Although one spouse may not be filing, the bankruptcy requires a computation of household income so the non-filing spouse will have to provide financial information as part of the … [Read more...]

Bankruptcy is a legal procedure to assist individuals and families experiencing financial difficulties. In a bankruptcy liquidation or Chapter 7, a filers nonexempt assets are sold and their creditors’ claims are paid with the available proceeds. After proceeds from the sale of assets are exhausted, most claims will be unpaid, however any remaining debt will be discharged (erased) at the conclusion of the Chapter 7 bankruptcy process allowing filers to start anew. For those who do not qualify … [Read more...]

With adult children experiencing more difficulty obtaining a mortgage or qualifying to purchase of a vehicle, family members may decide to cosign or become the guarantor on a loan to help them get started. Creditors often require a cosigner or guarantor for first time borrowers or borrowers who have poor credit histories. The difference between the two is that the cosigner is equally responsible for the payment whereas a guarantor is liable only if the borrower fails to fulfill their … [Read more...]

When someone gets into financial trouble they may have questions about bankruptcy protection, an important tool to restore financial health. There are two primary types of personal bankruptcy - chapter 7 and 13. For people with lower incomes, chapter 7 often results in a full discharge of unsecured debt on a short time line. A chapter 13, on the other hand, is a repayment plan where some of the debt is repaid over a 3 to 5 year period, at which point, remaining unsecured debt is … [Read more...]

To the relief of many, the federal government recently extended the pause on student loan repayment, interest, and collections through August 31, 2022.  The three month extension will provide additional time for borrowers to get ready for the resumption of their payments, thereby reducing the risk of delinquency and defaults in the future. Furthermore, the plan will allow all borrowers with paused accounts to start with a clean slate - existing delinquencies and defaults will be eliminated … [Read more...]