Illinois bankruptcy protection lawyer Archives - Peoria Bankruptcy Lawyer Charles Covey

Convert a Chapter 13 Bankruptcy to a Chapter 7

March 27, 2022

An individual who has filed Chapter 13 bankruptcy may not be able to make the required payments because of unforeseen financial difficulties. Many who find themselves in this situation may wonder if they can convert a Chapter 13 bankruptcy to a Chapter 7. First it’s important to look at the differences between Chapter 7 and 13 Bankruptcy protections. Chapter 7 bankruptcy is a good option for someone who has limited income and few assets. With the exception of a handful of exemptions, the few … [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...]

Chapter 12 Farm Bankruptcies On the Rise

August 17, 2020

A new report from the American Farm Bureau Federation reveals that farm bankruptcies are on the rise, increasing 8% over the last 12 months. In 2019 alone, Chapter 12 bankruptcy filings tied with or exceeded decade-high levels in 10 states across the Midwest including Illinois. Chapter 12 Bankruptcy at a Glance Chapter 12 bankruptcy protection allows family farmers to restructure their finances to avoid liquidation of their assets and foreclosures by proposing a plan to repay creditors over a … [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...]

Wages Not Keeping Up

September 30, 2018

Despite the fact that the economy is strong with unemployment down and millions of jobs going unfulfilled, many who are working just don’t earn enough to make ends meet. For many, wages have remained flat for decades making it difficult to keep up as the cost of living has increased across the country. Many Americans continue to turn to credit cards to bridge the gap, putting out one fire at a time as unexpected expenses pop up on top of everything else. With credit card debt cresting at $1 … [Read more...]

Older Americans Filing Bankruptcy Protection Sooner Than Later

August 26, 2018

The rate of older Americans filing bankruptcy at age 65 and up is three times what it was in 1991. A perfect storm of declining income, reduced savings, increased out-of-pocket spending on healthcare and a shrinking social security safety net, has many older Americans seeking bankruptcy to stave off creditors and stay afloat. (Read Abstract: Graying of U.S. Bankruptcy: Fallout from Life in a Risk Society) However, many older Americans tend to wait too long to file bankruptcy. Only after they … [Read more...]

Filing Bankruptcy Before or After Retirement?

July 25, 2018

If you are approaching retirement and are considering bankruptcy protection, you may have questions such as “what happens to retirement funds in bankruptcy before you retire?" Or, if you have carried debt into retirement and are considering bankruptcy after the fact, you may wonder if your disbursements will be up for grabs or even your social security benefits. As with any bankruptcy, filed at any age, timing can be a factor. Sometimes it makes sense to file right away while other times it is … [Read more...]

Some Student Loan Debt Dischargeable in Bankruptcy

April 23, 2018

Of interest to individuals considering bankruptcy with student debt, a bankruptcy judge in Texas has denied a request by the student loan company, Navient, to dismiss a class action suit accusing the company of collecting on loans discharged through bankruptcy. As the case moves forward, it may provide the appellate court the opportunity to ring in on the question of whether loans historically exempt from bankruptcy discharge can now be considered when wiping the slate clean in a chapter 7 … [Read more...]

Bankruptcy Protection and Utility Shut Offs

February 26, 2018

Many states prohibit utility shut-offs in cold weather, however, as temperatures begin to warm, people may be concerned about losing their gas, electricity and water service if they are behind on their utility service payments. Bankruptcy Protection for Utility Service Shut Off If you are facing an imminent utility shut-off along with other financial difficulties, you may want to explore bankruptcy protection. If you owe utility back payments and file for bankruptcy, the utility cannot … [Read more...]

Creditor Proof of Claims in Chapter 7 & 13 Bankruptcy

September 8, 2017

A proof of claim is a written statement notifying the bankruptcy court, the debtor filing chapter 7 or 13 bankruptcy, and the trustee handling the case, that a creditor has a right to a distribution from the bankruptcy estate. All unsecured creditors must file a proof of claim and, as of December 1, 2017, secured creditors and equity security holders must also file if they want to get paid through the debtors bankruptcy as part of an update to Federal Bankruptcy Rule 3002. In addition to … [Read more...]