Author Archives: Jessica Holguin
Bankruptcy And Security Clearances
Fear is one of the most prominent effects of debt problems. Most all of these fears are real, especially since the Supreme Court recently approved aggressive debt collection tactics that are borderline illegal. But some of these fears are largely exaggerated, and the interplay between consumer bankruptcy and a security clearance is one example… Read More »
Could Illinois Be The Next Puerto Rico?
Congress just allowed the island commonwealth, which faces about $123 in pension and bond obligations, to file a form of municipal bankruptcy. Could the Prairie State, which faces over $130 billion in pension debt alone, be next? The economic problems that brought Puerto Rico to this point, including a crippling recession, rampant government borrowing,… Read More »
Why Do People File Bankruptcy?
It should come as no surprise that medical bills are once again the top reason that people seek bankruptcy protection. Medical bills are often very onerous in and of themselves. One in five working Americans with health insurance who are under 65 have had problems paying their medical bills in the past year; to… Read More »
Protecting Cash In An Indiana Or Illinois Bankruptcy
Fear of asset loss is one of the most frequently cited reasons when delaying a necessary bankruptcy filing, and in most cases, this fear is almost completely unfounded. Even in Chapter 7 liquidation bankruptcies, most consumer assets are legally exempt from creditor seizure. The purpose of the Bankruptcy Code is to give the debtor… Read More »
Report: Illinois In Dire Financial Straits
The Prairie State ranked 44th overall in a recent economic survey. Should Illinois lawmakers consider bankruptcy as a way to obtain a fresh start? Illinois’ rank was even lower (48th) in terms of outmigration, or the number of people leaving the state versus the number of people moving into the state. There are various… Read More »
How To Keep Your Assets In Bankruptcy
There is a persistent myth that debtors lose most or all of their property when they file bankruptcy, but most states have very generous bankruptcy exemptions, which means that the opposite is true, and most debtors get to keep most or all of their property. Both Illinois and Indiana mostly use value-based exemptions as… Read More »
The ITT Bankruptcy And Student Loans
According to a government estimate, Uncle Sam will eventually spend about $461 million in education debt bailouts for students of the now-defunct college, but as these debts are only dischargeable in bankruptcy in limited circumstances, a taxpayer-funded bailout is probably the only option. The closed school discharge — a loophole in most federally-guaranteed student… Read More »
Prison Defeats Eligibility For Chapter 13 Bankruptcy
An Illinois judge recently ruled that an incarcerated felon could not file Chapter 13 even though his parents agreed in writing to make the plan payments; the holding has some implications for debtors in the free world as well. While serving time for an aggravated DUI, Tristan Durov filed Chapter 13 bankruptcy to avoid… Read More »
Another Regional Department Store Chain Mulls Bankruptcy
Gordmans has operated in the midwest for over 100 years, and now according to sources, the department store chain may be closing its doors permanently. The chain began with a single store in Omaha, Nebraska operated by Russian immigrant Sam Richman in 1915. Some time later, Bloomingdale executive Dan Gordman had an unexpected layover… Read More »
Honk Honk: Parking Tickets And Bankruptcy
While the number of filings has declined overall, Chicago has the the highest number of non-business Chapter 13 bankruptcy filings in the country, and almost half of them list the Chicago Parking Bureau as one of the creditors. The Windy City is notorious for its high parking ticket fines and aggressive collection procedures. In… Read More »
