Monthly Archives: September 2024
Does Bankruptcy Stop Foreclosure?
Yes. As soon as debtors file their voluntary petitions, Section 362 of the Bankruptcy Code stops most creditor adverse actions. Additionally, consumer bankruptcy exempts home equity, making it almost impossible for the trustee (person who manages a bankruptcy for a judge) to liquidate a home. Some informal exemptions are available that extend this protection… Read More »
Does Bankruptcy Adversely Affect Government Benefits?
No. Many people are surprised to learn that government benefits are exempt assets in Illinois. Furthermore, the exemption isn’t value-based, like the home equity or motor vehicle exemption. Social Security Insurance benefits, SSD benefits, workers’ compensation benefits, VA disability benefits, and all other such benefits are 100 percent exempt. Federal or state pension plan… Read More »
Does Bankruptcy Affect My Security Clearance?
Yes, but in most cases, bankruptcy has a positive effect, not a negative effect, on your security clearance. In fact, Guideline F of DoD Directive 5220.06, the controlling rule in this area, basically encourages people with financial problems to file bankruptcy in order to protect their security clearances. Filing bankruptcy to cure financial problems… Read More »
