Author Archives: Jessica Holguin
What Is A Personal Guarantee In Bankruptcy?
Typically, a personal guarantee is first party collateral for a lease or loan, or the guarantor is a third party co-signer. For example, Ramon might personally guarantee a property lease in which Ramon LLC is the lessee. If Ramon LLC fails to pay, Ramon must pay personally. Or. Ramon could co-sign (guarantee) his daughter’s… Read More »
Bankruptcy Exemptions In A Chapter 7
For some reason, Chapter 7 bankruptcies are often called liquidation bankruptcies. However, because of the Automatic Stay, creditors cannot usually liquidate assets in bankruptcy, regardless of the delinquent payment amount. Section 362 of the Bankruptcy Code also prohibits most other kinds of adverse creditor action, like wage garnishment and collection lawsuits. Furthermore, the trustee… Read More »
What Happens When I File Chapter 13 In Illinois?
In a word, or actually in three words, people who file Chapter 13 get a fresh start, both financially and emotionally. Financially, Chapter 13 gives families the tools they need to eliminate debt on their terms. A zero past-due account balance is the essence of a fresh financial start. Emotionally, bankruptcy relieves the significant… Read More »
Five Quick Ways To Help Put Bankruptcy Behind You
In most cases, filing bankruptcy is a once-in-a-lifetime last resort. Unfortunately, a significant number of debtors find themselves in the same situation a few years after they receive their discharge orders. About 10 percent of consumer bankruptcy petitioners are repeat filers. No one is immune to the financial crises, like job loss and serious… Read More »
Special Issues In Grey Bankruptcies
Overall, the consumer bankruptcy filing rate has declined significantly since 2005. That year, some major changes to the Bankruptcy Code, mostly regarding Chapter 7 eligibility, took effect. However, the over-65 filing rate has tripled since that date. Medical bill inflation is the primary culprit. Since the end of the Great Recession, medical bill inflation… Read More »
How Does Bankruptcy Protect My House?
As coronavirus mortgage relief programs expire, the predicted wave of foreclosures is washing ashore. The September 2021 foreclosure rate was more than twice as high as the September 2020 foreclosure rate. This drastic increase probably means that banks are quickly addressing delinquent accounts. Usually, that process involves sending bills to owners that they cannot… Read More »
Bankruptcy And Your Post-COVID Monthly Budget
In October 2021, inflation rose to its highest level in more than twenty years. The last time inflation was at nearly this level, high prices on durable goods, like washing machines, television sets, and automobiles, were the main culprit. Most families can put off these purchases if needed. Today is different. Higher prices on… Read More »
Are Eviction Records Public In Cook County?
In most cases, yes. As outlined below, Cook County judges only seal evictions in limited cases. A recent eviction makes it almost impossible to get a home loan or rent another residence in a desirable location. Elsewhere in Illinois, and in most of Indiana, it’s even harder to seal an eviction record. The rules… Read More »
Biden Forgives Additional Student Loans
The administration says that retooling the Public Service Loan Forgiveness initiative will forgive an additional $1.7 billion in student debt. That figure would bring the running total to $11 billion. This program began in 2007. However, mostly because of strict eligibility requirements, only about 2 percent of applicants qualified for student loan forgiveness. The… Read More »
Does Bankruptcy Affect My Social Security Benefits?
As the calendar inches toward 2022, Social Security recipients are looking forward to one of the largest COLA increases ever. A 5 percent increase is hardly a fortune, but it is a noticeable increase, especially for families who struggle to make ends meet. This one-time bump takes place against a disturbing long-term trend. For… Read More »