credit card debt and bankruptcy Archives - Peoria Bankruptcy Lawyer Charles Covey

Credit Card Debt Leads Many to Seek Bankruptcy Protection

October 29, 2021

There are many forms of debt that can land individuals and families in trouble, but insurmountable credit card debt is among the most common reasons people seek bankruptcy protection. For many, credit card payments take a back seat as they try to make ends meet; affording the basics of food, shelter and transportation to get back and forth to work often leaves little left over to pay for other expenses. Credit card holders not only get behind on payments, but are assessed late fees and higher … [Read more...]

Renters Look to Covid Relief and Bankruptcy Protection

August 30, 2021

The Supreme Court recently lifted the federal ban on evictions allowing landlords to start the eviction process for people behind on their rent. Because federal rental assistance, provided as part of the tens of billions of the Covid relief package, has been slow to reach renters struggling to pay rent, many local agencies have stepped in to provide temporary assistance to bridge the gap as the moratorium ends. Renters who need help are encouraged to turn to various local programs for … [Read more...]

Many Consider Bankruptcy as Payments Become Due

January 11, 2021

Many Americans have had to adapt to harsh financial realities due to increased unemployment or under employment due to Covid-19. As of November, estimates reveal that for every 16 unemployed people, there are only 10 jobs available, with older workers losing jobs faster and returning to work slower than their younger, mid-career peers. Those who are able to find work may only secure part time employment, while some seasoned professionals have had to accept salaries well below … [Read more...]

Financial Relief for Everyday Americans Trying to Pay Bills During Covid

June 1, 2020

Despite the fact that the economy is starting to open back up in many areas across the country, Americans will likely continue to struggle to catch-up financially long after returning to work. With roughly 38 million Americans out of work during the pandemic, many will need time to get back on their feet and financial experts recommend that consumers start by discussing their financial situation with their landlords, creditors or banks to see what accommodations they can offer. Covid -19 Rent … [Read more...]

Information Is King When Considering Bankruptcy Protection

January 10, 2020

Bankruptcy is often the last resort for millions of families overburdened with debt. Bankruptcy serves as a financial safety net for families trying their best to stay financially afloat when they are faced with insurmountable debt such as uninsured medical expenses or credit cards used to make ends meet. Bankruptcy law offers individuals or couples bankruptcy protection under chapter 7 or chapter 13 bankruptcy. Generally speaking, in a chapter 7, debtors surrender their nonexempt assets to … [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...]

Drawbacks of Taking Out a Home Equity Line of Credit

December 19, 2018

With many Americans shouldering more debt and wages stagnating, home equity is being used as a lifeline to make ends meet. In fact, a recent survey reveals that 1 in 3 homeowners earning less than $30,000 a year and 22 percent of millennials agreed that tapping into home equity is okay to cover their everyday bills. Because many Americans have little savings, home equity often is also used to cover gaps when costly home maintenance is needed or when funds run short for other unexpected … [Read more...]

Actions to Avoid If You’re Considering Bankruptcy

October 19, 2018

Do not liquidate your retirement accounts to pay off debt that can be discharged in bankruptcy. Retirement accounts enjoy broad protections in a bankruptcy so it is not a good idea to cash them out. Do not take out an HELOC to pay off credit card debt that can be discharged in bankruptcy. Remember that credit card debt is unsecured debt meaning it is secured only by your signature, not collateral, a home or a car. If you pay off credit card with a HELOC, you not only risk losing your home if … [Read more...]

High Overdraft Fees Dig Bigger Hole for Struggling Consumers

February 1, 2018

According to a recent report from Pew Charitable Trusts, bank customers who use overdraft programs to bridge the gap when they are short on cash are really just getting caught in a trap of high cost credit. Of course, overdrafts on checking accounts occur when a customer spends more than is available in their account. Many overdraft protection programs allow the charge to go through, but the consumer can pay up to $35 bucks per overdraft. Not a bad deal for the banks, as it is estimated … [Read more...]

Maxing-Out Credit Cards Prior to Declaring Bankruptcy Can Spell Trouble

May 13, 2016

Credit card debt is often dischargeable in bankruptcy, however if you purchase luxury goods or take out cash advances prior to filing, you may run the risk of losing the option to discharge those debts. In some cases a credit card company can file an adversary proceeding within your bankruptcy asking the court to make certain debt nondischargeable. If you take out a certain amount of cash advances on a credit card within 70 days of declaring bankruptcy, the bankruptcy law presumes the debt to … [Read more...]