Before the massive shutdowns, many workers made enough to live on but not enough to save, leaving Americans in a particularly precarious financial predicament when Covid-19 shut the doors of many businesses and leaving many workers now unemployed. Roughly half of Illinois households have no emergency savings - no one to borrow from, nothing of value to sell, and no rainy day funds to cover what is now over 6 weeks of shutdowns across the nation. Even with expanded unemployment benefits and … [Read more...]
Understanding Bankruptcy Protection
When someone finds themselves with too much debt making it difficult to meet their financial obligations, they may consider bankruptcy protection. Bankruptcy is a court process that can provide protection from creditors. The two main types of bankruptcy a debtor can consider are Chapter 7 and Chapter 13. Illinois Chapter 7 Bankruptcy Protection Chapter 7 Bankruptcy, sometimes referred to as a debt liquidation bankruptcy, can help debtors to discharge or cancel debt such as medical bills or … [Read more...]
Bankruptcy in Retirement
In a survey of older Americans regarding their reasons for filing bankruptcy, about three in five report medical bills played a role, over two thirds say a drop in income was to blame, and nearly three quarters were victims of creditor harassment that led them to seek protection. Looking at the median household of Americans 65 and older reveals that on average most have only 60K in liquid savings, with the bottom 25 percent deterring around 3K. More people are also entering retirement with … [Read more...]
BonTon Employees Lose Jobs in Bankruptcy Liquidation
On the heels of the announcement that Toys R Us is closing, BonTon stores, including the Bergners in Pekin and Peoria, Illinois are expected to close as part of a bankruptcy liquidation. Like many other brick and mortar retailers struggling to keep up in a time of eCommerce and other newer shopping venues opening in other locations, BonTon, which operates 260 stores in the U.S. under the names of Bonton, Younkers, Bergners and others is calling it quits. Although the company had hoped that … [Read more...]
Liquidating Medical Bills in a Chapter 7 Bankruptcy
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...]
Payday Loans Can Spell Trouble for Consumers
The Consumer Finanacial Protection Bureau is taking aim at companies that offer high interest payday loans. New rules have been proposed to protect borrowers of these loans from an endless cycle of debt. Often times borrowers of payday loans are already living pay check to pay check and are using the loans to cover basic living expenses like rent and utility bills. Because of high interest rates, consumers end up having to borrow more and more to keep up, resulting in insurmountable … [Read more...]