Peoria Illinois chapter 7 bankruptcy lawyer 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...]

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...]

Deciding When to File Bankruptcy

October 11, 2018

If you are considering Chapter 7 bankruptcy protection, you may wonder if the timing of your bankruptcy matters. For most, the answer is yes. After all the goal, is to emerge from bankruptcy in better financial shape so discharging as much debt as you can is in your best interests. For example, if your financial situation has worsened because of medical costs related to an illness, you may want to wait until you have incurred the bulk of medical charges before filing bankruptcy so that they will … [Read more...]

Qualifying for Chapter 7 Following a Job Loss

June 14, 2018

The Toys R Us bankruptcy liquidation sale is nearly over and, unfortunately, that means that roughly 30,000 employees will be out of work by the end of the month. Workers, many of whom have been with the company for years, say that they will not receive severance pay or be compensated for accumulated sick time, leaving many scrambling to find alternate work as quickly as possible. While some will be successful in landing on their feet following a job loss, particularly in the strong job … [Read more...]

Can Bankruptcy Wipe Out Past Due Income Tax?

December 30, 2017

Not surprisingly, many people who are in a difficult financial situation may not only fall behind on credit cards or house payments, but also the payment of past due income tax. While most taxes cannot be eliminated in a bankruptcy, there are certain situations which may allow you to discharge tax debt. If you are seeking a liquidation of your debts, Chapter 7 may be your best option. Under Chapter 7, federal income taxes may be discharged if certain conditions are met, such as: ~ the … [Read more...]

Delaying the Foreclosure of Your Home

December 26, 2017

Many people will file Chapter 13 bankruptcy to stop home foreclosure. Rather than liquidate your debts through a Chapter 7, a Chapter 13 allows you to restructure or reorganize your debts while protecting your assets. However, sometimes people are not in a financial position to continue to make payments on their home and may have no equity, so they may decide to file a Chapter 7 and walk away. The filing of a Chapter 7 “liquidation bankruptcy”, stops a pending home foreclosure while the … [Read more...]

Top Five Reasons People File for Bankruptcy

May 8, 2017

In my many years as a Peoria Illinois Chapter 7 Bankruptcy Lawyer I have had the privilege of working with individuals and families struggling with difficult financial situations, helping them to get the information they need to make important decisions. After taking the initiative to gain an understanding of the bankruptcy process and their potential eligibility, many clients express relief that bankruptcy protection is an option they can pursue, now or in the future. The key boils down to … [Read more...]

Peoria Illinois Chapter 11 Business Bankruptcy Lawyer

November 29, 2016

During the last recession, hundreds of thousands of companies went bankrupt in the U.S., but some of them were able to recover. Economists claim that Chapter 11 bankruptcy is one reason our economy bounced back faster than some others. The U.S. system of second chances is seen as our economy's secret weapon, even prompting other countries to adopt chapter 11-style laws. While some business owners may be reluctant to file, those that do are able to wield the protection that Chapter 11 … [Read more...]

How Can I Raise My Credit Score Following Bankruptcy?

October 31, 2016

Many clients who have filed for bankruptcy express a sense of relief when everything is settled. They often look forward to getting off to a financial fresh start. One question that clients ask is how they can start to rebuild their credit after the bankruptcy process is complete. The good news is that just by filing bankruptcy, you may have actually helped your score. Researchers report that credit scores typically plunge in the 18 months prior to filing bankruptcy and steadily rise … [Read more...]