Author Archives: Jessica Holguin
Do I Lose My Security Clearance if I File Bankruptcy?
For many people who work at or support Grissom ARB, Camp Atterbury, and other military installations, this question is often critical. The benefits of bankruptcy are difficult to ignore, but if these benefits essentially cost debtors their careers, bankruptcy might not be worth it. A little-known order first published in the 1990s, DoD Directive… Read More »
Can Bankruptcy Stop IRS Debt?
The Internal Revenue Service is the world’s largest collection agency. And, since the tax gap (difference between income taxes owed and paid) is over $400 billion a year, the IRS is also one of the most aggressive collection agencies in the world. Since income taxes are unsecured debts, they are dischargeable in a Chapter… Read More »
What is Zombie Debt?
If you feel like you’re being harassed by debt collectors, you may be right. The Fair Debt Collection Practices Act (FDCP) outlines what a debt collector can and cannot do to recover a debt. Of course, there’s a lot of money in collections and the law is not always accessible to the layperson. In… Read More »
Understanding Illegal Debt Collection Practices
The Fair Debt Collection Practices Act (FDCPA) protects consumers from certain actions related to debt collections. What most consumers don’t know is that collections agencies generally don’t keep attorneys on hand and will only file a lawsuit if the debt is significant enough to warrant the effort. Debt collectors are not allowed, however, to… Read More »
Top Five Reasons People File Bankruptcy in Illinois
People file bankruptcy for various reasons. But the benefits of bankruptcy are usually the same. This federal program halts adverse creditor actions, such as repossession and foreclosure. Section 362 of the Bankruptcy Code applies even if there is no evidence of lender wrongdoing or negligence. Bankruptcy also protects your family’s most important assets, like… Read More »
Three Insanely Rich People Who Filed Bankruptcy
Chapter 7 and Chapter 13 bankruptcy are not just for people who are at the end of their financial ropes. Frequently, due to misfortune, overspending, or a combination of both these things, people with substantial means also file bankruptcy. So, this filing does clearly not indicate failure. It simply means that the family was… Read More »
Does Bankruptcy Take Care of Back Taxes?
The economy is changing. Roughly a third of American workers freelance full time. That proportion has roughly doubled since 2014. Freelance income varies significantly from year to year and even month to month. So, it is easy to fall behind on estimated tax payments. Furthermore, some freelancers are unfamiliar with all the complex rules… Read More »
Chapter 13 Bankruptcy in Illinois: A Closer Look
One of the oldest bankruptcy principles on the books is that this federal debt relief program should give the “honest yet unfortunate debtor” a fresh start. This principle is still true today. Chapter 13 is an excellent way to obtain the promised fresh start. In short, Chapter 13 gives distressed debtors up to five… Read More »
Can Bankruptcy Keep My Family Safe at Home?
Most mortgage lenders are willing to overlook one or two missed payments, especially if the borrower has a good credit history. Technically, however, banks can initiate foreclosure proceedings after just one missed payment. That’s especially true in non-judicial foreclosure states like Indiana. Home foreclosure in the Hoosier State has almost no judicial oversight. Once… Read More »
What to Expect in an Illinois Chapter 7 Bankruptcy
The average credit card interest rate is over 20 percent. At that level, debtors can pay two or three times the monthly minimum, and the outstanding does not significantly decrease. It’s very frustrating to pay hundreds of dollars a month on several credit cards (most Americans have four credit cards) and barely make the… Read More »
