bankruptcy debt liquidation Archives - Peoria Bankruptcy Lawyer Charles Covey

Credit Counseling Versus Bankruptcy Protection

January 26, 2022

Many have seen the commercials for credit counseling services and ask, what is the difference between credit counseling and bankruptcy protection? Credit Counseling Services With so many struggling to pay their bills, credit counseling services have popped up across the nation offering to help people consolidate their debt into one or more affordable payments. This approach involves paying a credit counselor to reach out to your creditors to reach a new repayment plan - something an … [Read more...]

Discharging Student Loans in Bankruptcy

August 31, 2021

Student loans are difficult to discharge in bankruptcy. A person must be able to show that payment of student loans poses an undue hardship on the debtor and the debtor’s dependents, however, few are able to pass the test required to prove they are worthy of consideration. However, recent developments may help those who have taken loans from private lenders. The Second, Fifth and Tenth Circuits Courts have joined in ruling that a private student loan is NOT an obligation to repay funds … [Read more...]

HELOC and Bankruptcy Protection

May 4, 2021

Bankruptcy debt can be secured or unsecured, each subject to different treatment under the Bankruptcy Code. Debt that is secured with collateral of the ‘right to setoff’ or a ‘lien on property’ ensures the repayment of the obligation if a borrower declares bankruptcy. Can an automatic stay protect a home used as collateral for a loan? Many who are considering bankruptcy want to know if they can protect property used as collateral, such as their home (think HELOC) or automobile. Although a … [Read more...]

Financial Recovery May Include Bankruptcy Protection

April 23, 2021

A common misconception is that bankruptcy is a result of poor financial decisions when more often than not, bankruptcy is caused by unfortunate circumstances outside of our control. A job loss, divorce, unexpected medical bills, or as we've seen recently, a global pandemic, can all wreak havoc on individual or family finances, leading many to consider bankruptcy protection as a strategy to get back on their feet. It is estimated that between 800,000 and 1.5 million Americans file for … [Read more...]

Personal Bankruptcy Likely to Surge in 2021

March 15, 2021

With the number of Covid-19 cases plummeting across the country, many are looking forward to getting back to normal hoping to recover financially following a year of closures and limited employment. When trying to tackle debt, many may consider Chapter 7 bankruptcy protection to either discharge unsecured debt such as credit cards, medical bills and personal loans, or, some may opt for Chapter 13 bankruptcy, which can provide a way out of debt through a structured repayment plan. To … [Read more...]

Illinois Chapter 7 Bankruptcy Exemptions at a Glance

February 27, 2021

Illinois Chapter 7 bankruptcy protection offers filers a fresh financial start by liquidating much of their debt while allowing them to hold on to certain assets. Working with an experienced bankruptcy attorney can help Illinois residents eliminate debt and maximize chapter 7 bankruptcy exemptions. Chapter 7 Bankruptcy Exemptions Retirement Savings - Typically retirement accounts such as 401Ks and IRAs are exempt in charter 7 bankruptcy meaning that creditors cannot cash in on these … [Read more...]

Americans In Over Their Heads Trying to Stay in the Middle

August 13, 2019

While some believe that middle class is defined by economic resources, others say it is a state of mind revealed through behavior, cultural tastes, or certain kinds of consumption. Whatever your take, staying in the middle class is getting more expensive and financial stress is running high across the nation. As cars, homes and healthcare skyrocket, wages have remained stagnant. But, that hasn't stopped consumers from piling on more debt. According to a recent Wall Street Journal article, … [Read more...]

Cram Down Debt with Illinois Chapter 13

March 16, 2016

When you are considering Chapter 13 bankruptcy, you may be able to reduce or "cram down" the principle balance of certain secured debts. The most common examples of secured debts are your mortgage or car loan. In a chapter 13 bankruptcy, you can cram down your car loan, investment property mortgages or other personal property such as furnishings or household goods to the actual value of the item making it easier to pay it off. If you choose to cram down a car loan for example, an automobile … [Read more...]