affordable bankruptcy attorney in Peoria Illinois Archives - Peoria Bankruptcy Lawyer Charles Covey

Seniors Fastest Growing Segment of Bankruptcy Filers

July 23, 2018

If you are not financially ready for retirement, you are not alone. In fact, according to a Federal Reserve study as many as one quarter of all Americans have no retirement savings or pensions. Even those who have managed to set money aside may not have enough to see them through. Seniors are the fastest growing segment of bankruptcy filers in the U.S. In fact, a 2010 study out of the University of Michigan found a threefold increase in the number of bankruptcy filers 65 and older since … [Read more...]

Liquidating Medical Bills in a Chapter 7 Bankruptcy

October 19, 2017

The rising cost of healthcare and the growing number of under insured or uninsured Americans has resulted in many people struggling with medical debt. Unanticipated medical expenses can strike when you least expect it and many do not have sufficient emergency funds to cover all the costs. Even when people have insurance, high deductibles, co-pays and denied services can result in substantial medical debt. If you find yourself strapped with an unexpected medical bill, financial advisers … [Read more...]

Debt Collection Beyond Statutes of Limitations | Peoria Illinois Bankruptcy

May 17, 2017

Monday, the U.S. Supreme Court ruled that debt collectors can use bankruptcy proceedings to collect debts that have expired under state statutes of limitations without fear of reprisal under the U.S. Fair Debt Collection Practices Act. The court found that companies will not be held liable when they file claims on past debt, giving creditors the green light to pursue debtors for age-old debt that is not required to be paid back under state law. Without the ability to hold companies … [Read more...]

Illinois Student Loan Debt Relief Case

April 10, 2017

The Wall Street Journal reports that two state lawsuits filed in Illinois and Washington claim that from 2000 to 2009, Sallie Mae extended billions of dollars in predatory, subprime student loans to borrowers likely to default. New details that have emerged out of the legal action reveal how the lender used subprime loans to build its business with colleges and universities, knowing that many of the borrowers would not be able to repay the loans. A boon for the lender has, by many accounts, … [Read more...]

Irrevocable Trusts in a Bankruptcy

March 18, 2017

After an individual files for bankruptcy, the court will assign a trustee to the case. The job of a trustee is to make payments to creditors with liquidated assets in a Chapter 7 bankruptcy or make payments to creditors as arranged through a chapter 13 settlement agreement. In both Chapter 7 and 13 bankruptcies, certain property is protected from the process known as bankruptcy exemptions. Typically these include exemptions for a home, automobiles and retirement accounts. When it … [Read more...]

Bankruptcy Filings Increase for Ages 55 and Up

March 8, 2017

With more debt than that of previous generations, baby boomers are having to get by with less when retirement rolls around. In fact people ages 65 to 74 have saved 32% less in the past decade and have piled on five times the debt. This follows on the heels of the financial crisis, where many faced unemployment, pay cuts and a decline in the value of their homes. Everyday obligations, medical bills and college tuition debt left over from sending their kids to college drove many boomers to … [Read more...]

Is a Trust Safe from Bankruptcy?

January 9, 2017

I am a named beneficiary of a revocable trust. Will the assets be attached in a bankruptcy? When you file for bankruptcy, a trustee will look for assets that you own in order to sell and pay your creditors. Whether the assets in your trust are vulnerable in bankruptcy boils down to who has control of the assets in the trust. Revocable Trusts in a Bankruptcy If you have a revocable trust, the person waiting to receive something from the trust (called a trust beneficiary) does not … [Read more...]

Bankruptcy Protection If You Become Disabled

December 20, 2016

People who file for bankruptcy often do so as a result of a traumatic life experience, such as a divorce, job loss, or a medical emergency. Another common reason to file for bankruptcy is the presence of a disability. Some disabilities can prevent you from working temporarily or permanently, making it difficult, if not impossible, to keep up with your financial obligations. Fortunately, through personal bankruptcy, you may be able to eliminate some or all of your debts and keep creditors … [Read more...]

How to Protect Lawsuit Proceeds in Chapter 7 Bankruptcy

December 9, 2016

In a Chapter 7 bankruptcy, you can discharge many or all of your debts. As part of the process, the trustee may take your property, which he or she will sell in order to pay debts owed to your creditors. Proceeds from a Lawsuit and Bankruptcy There are some state and federal laws that exempt some property from the bankruptcy estate. However, in the state of Illinois, proceeds from a lawsuit may not be exempt. Money that you have received from a lawsuit prior to filing bankruptcy, money you … [Read more...]

Chapter 7 Bankruptcy Means Test

November 25, 2016

To determine whether you qualify for Chapter 7 bankruptcy, you may be subject to the means test, which will determine if your income is low enough for you to file a Chapter 7 bankruptcy and liquidate a good part of your debt. If your income is too high, you may be eligible for a Chapter 13 bankruptcy instead, where you would set up a payment arrangement to repay a portion of your debt. A Chapter 7 means test doesn't require that you are without income altogether. You may still qualify even … [Read more...]