Monthly Archives: September 2025
Key Property Exemptions in a Chapter 7 Bankruptcy
Many people erroneously believe that Chapter 7 bankruptcy is a liquidation bankruptcy. In fact, Chapter 7 bankruptcy stops liquidation. The Automatic Stay prohibits adverse creditor pre-liquidation actions, such as foreclosure and repossession. Additionally, Illinois law includes generous property exemptions that put a force field around most property for the duration of a Chapter 7… Read More »
What is the Main Problem in Chapter 13?
Many people don’t know what they’re getting into when they file Chapter 13. Filing a voluntary petition is just the beginning. Chapter 13 is an exhaustive legal process that often includes adversarial actions, disputes with the trustee (person who manages the bankruptcy for the judge), and especially in a Chapter 13, modification and dismissal… Read More »
Bankruptcy Loopholes That Protect Your Home
Home protection is a key priority for many bankruptcy debtors. Many debtors file Chapter 7 or Chapter 13 to take advantage of bankruptcy’s Automatic Stay and stop home foreclosure. A pair of loopholes buried deep within the Bankruptcy Code may also apply in consumer bankruptcy cases. These loopholes often make a home more affordable… Read More »
Scheduling SS Benefits: What’s the Big Deal?
For most purposes, it doesn’t matter if a debtor lists Social Security benefits on Schedule A (Assets) or Schedule I (Monthly Income). Social Security benefits, and other government benefits as well, such as workers’ comp payments, are exempt in bankruptcy. But when the case goes to court, listing these payments as an asset or… Read More »
How Much Debt Disqualifies You from a Security Clearance?
Technically, any amount of debt disqualifies you from a security clearance, if that debt creates a security concern under Guideline F of DoD Directive 5220.6. This provision considers the amount of debt, but mostly focuses on the circumstances of that debt. Guideline F also includes some mitigating circumstances which, if proved, protect a security… Read More »
