Author Archives: Jay Butchko
If I File Bankruptcy, Can I Buy A Car?
Absolutely, and it’s a good thing too. Most new cars last about 175,000 miles. At 15,000 miles per year, a typical mileage rate for Chicagoland, that’s a little over eleven years. So, in some cases, a debtor might need another vehicle during bankruptcy. Assume Phil drives a ten-year-old car when he filed Chapter 13… Read More »
Why Does A Person File Bankruptcy?
The simple answer is people file bankruptcy because they owe more than they can pay. Generally, if you spend more than about a third of your income on mortgage debt, credit card debt, and other fixed monthly obligations, that’s too much debt to comfortably repay. Families in this situation have basically two choices. They… Read More »
How Can I Get My Debt Reduced?
Consumer debt spiked in 2022 to over $16 trillion. Because so many people are stretched so thin, seemingly minor issues, like a temporary income disruption, make a manageable debt load unmanageable. A missed payment or two is almost impossible to make up. Usually, Chapter 7 or Chapter 13 bankruptcy is the best way to… Read More »
Chapter 7 Bankruptcy Explained
Financial emergencies that are almost completely beyond their control, like high medical bills, prompt most bankruptcy filings. Unexpected storms on lakes and oceans often cause sailors to lose control of their boats. Likewise, unexpected storms, like high medical bills, job loss, or divorce, cause many people to lose control of their finances. These storms,… Read More »
What Is The Best Interest Of Creditors Test For Chapter 13?
The formal, written bankruptcy exemptions in Illinois protect most core financial assets. So, the idea that people who file bankruptcy lose most or all of their property is largely a myth. But most of these exemptions are value-based. For example, the motor vehicle exemption protects $2,400 of motor vehicle equity. Informal exemptions, such as… Read More »
What Does A Chapter 13 Bankruptcy Do?
This form of consumer bankruptcy, like Chapter 7, offers a fresh start to honest yet unfortunate debtors. So, bankruptcy doesn’t take care of debts related to fraudulent or illegal conduct. However, it does take care of most debts. Additionally, because of the repayment plan provision, Chapter 13 usually looks better on credit reports than… Read More »
How Does Bankruptcy Protect My House?
Illinois is a judicial foreclosure state, which theoretically means that homeowners have more protections when they fall behind on payments. But homeowners shouldn’t count on this protection. The Prairie State has the highest foreclosure rate in the country. Most banks can legally begin foreclosure proceedings after only one missed payment. These proceedings often begin… Read More »
Student Loan Cancellation Back In Court
One of the nation’s largest student loan companies filed suit against the Biden Administration, asking the court to cancel an extended payment pause. The payment pause, which began in March 2020, also suspends billing and freezes interest rates on all student loans. The pause, which is currently scheduled to end in summer 2023, could… Read More »
How To Put Bankruptcy In Your Rearview Mirror
According to the Supreme Court, the Bankruptcy Code gives honest yet unfortunate debtors a fresh start. But it doesn’t guarantee debtors a successful fresh start. After their bankruptcies end, former debtors can squander or savor their fresh starts. A good Chicago bankruptcy lawyer maximizes your fresh start, before, during, and after filing. Attorneys work… Read More »
Gray Bankruptcy In Illinois
Overall, the bankruptcy filing rate has declined since the 1990s. But the over-60 filing rate has more than tripled over the past thirty years. The double whammy of higher medical bills and lower public assistance benefits forces many older people into bankruptcy. Since the Great Recession, medical bill inflation has usually outpaced overall inflation…. Read More »
