chapter 7 bankruptcy protection Archives - Peoria Bankruptcy Lawyer Charles Covey

Possible Exempt Property in a Chapter 7 Bankruptcy

June 30, 2021

If you are filing for bankruptcy in Illinois, the law allows you to keep certain personal property, excluding them from the bankruptcy. In a chapter 7 bankruptcy, property that is not exempt is sold by the trustee who will then use the proceeds to pay off the filer’s debt. When someone is considering bankruptcy, it is helpful to have a general idea of what property is exempt for planning purposes - working with an experienced bankruptcy attorney can provide individuals and families with … [Read more...]

Many Americans Lament Lack of Emergency Savings

May 20, 2021

Three quarters of Americans regret not having enough savings tucked away for emergencies, a widely shared sentiment especially in the wake of the pandemic. Having adequate savings for periods of unemployment or to cover unexpected expenses is something all too many Americans lack. Millennials and Gen Xers in particular have little tucked away in savings compared to people 55 and older, who have had more time to set funds aside for emergencies. Even so, most savers often come up short; it is … [Read more...]

Behind on Car Payments – Bankruptcy Protection Can Help

November 8, 2019

Cars are anything but inexpensive these days. Even the cost of a light vehicle, such as a typical sedan or a minivan that many people in the U.S. drive, approaches $40,000 - roughly $8,000 more that the average millennial earns in a year. Many looking for a way to afford a vehicle may look to longer loan terms that can sometimes exceed 6 years, a departure from the standard 4 year commitment of an earlier time. Although extending loans can drop the monthly payment, there are drawbacks. … [Read more...]

New Law to Help Those Who Cannot Pay Their Bills | Is It Enough?

July 30, 2019

Many people struggle to pay off debt, particularly credit cards with not-so-good interest rates which many rely on to make ends meet. When consumers get behind on payments, creditors may take them to court resulting in a judgement that requires payment of the debt with interest over very long periods of time - judgments that stay on credit history reports until they are paid in full. A new law offers help to low income consumers who are taken to court over unpaid bills in Illinois. Beginning … [Read more...]

Utility Shut Offs Loom as the Weather Improves

March 23, 2019

As the warmer weather approaches, some families face the prospect of having their utilities shut off for nonpayment. In many states a winter moratoriums run from November through the end of March (State Disconnection Rules), so as April approaches, some may lose power if they are running behind on their utility bills. Oftentimes an inability to keep up with utility bills is part of a larger financial struggle. Fortunately, Chapter 7 bankruptcy can provide immediate relief to those who are in … [Read more...]

Bankruptcy Discharge of Parking Tickets and Traffic Fines

January 10, 2019

Illinois Drivers can accumulate a number of parking tickets or traffic fines that can add up to big debt if they go unpaid. Many wonder if this type of debt can be tackled along with other debt through bankruptcy. Discharging Traffic or Parking Tickets in a Chapter 7 Bankruptcy Unfortunately, fines owed to a government unit/city such as traffic fines or penalties and parking tickets are typically not dischargeable in a Chapter 7 bankruptcy, although it may buy you some time. If you have … [Read more...]

Protecting Cosigners and Guarantors in a Chapter 7 Bankruptcy

November 28, 2018

Sometimes, borrowers seeking a loan may need a cosigner or guarantor to be approved by a lending institution. Reasons may include not having an established credit history, having no collateral to secure the debt, new businesses seeking funding, or perhaps a hiccup in a credit report such as a record of delinquent payments. Creditors may be willing to loan you money under any of these circumstances, but may require a cosigner or guarantor - typically someone with a higher income, assets and good … [Read more...]

Should I File a Chapter 7 or Chapter 13 Bankruptcy?

October 24, 2017

Chapter 7 and Chapter 13 are the two main bankruptcy options available to people overrun by consumer debt. Before we look at the differences between the bankruptcies, there are two important terms to understand when considering bankruptcy: Unsecured debt and secured debt. Differences Between Secured and Unsecured Debt in a Bankruptcy Unsecured debt means that someone loaned you money without a lien. Credit cards and student loans are good examples of unsecured debt, because there's nothing … [Read more...]

Can My Creditors Force Me Into Bankruptcy?

July 5, 2016

Former Duke basketball star, Christian Laettner, may soon find himself in bankruptcy court. His creditors have filed a petition with the court to pay his debt or file for an involuntary chapter 7 bankruptcy. According to a Wall Street Journal report, Laettner and his business partner may have outstanding loans to the tune of $30 million based on information revealed in earlier civil lawsuits brought by creditors. Bankruptcy law protects creditors by permitting them to file an involuntary … [Read more...]