Author Archives: Jessica Holguin
What’s The Difference Between Chapter 7 And Chapter 13 In Illinois?
The coronavirus pandemic seems to be dragging on indefinitely. Nevertheless, the relief packages the pandemic spawned are expiring. Many families counted on mortgage forbearances, additional unemployment benefits, and other such programs to make ends meet. Now, this vital assistance is drying up. Making matters worse, banks will probably not be very patient with families… Read More »
Does Bankruptcy Clear Back Taxes?
The record-law audit rate, which is less than 1 percent for taxpayers earning more than $1 million a year, gives many people a false sense of security. This percentage only refers to the formal audit rate. Informal audits, which usually consist of a series of “Dear Taxpayer” letters, is higher than ever. The IRS… Read More »
Buying A House After A Bankruptcy Filing? What You Should Know
Large mortgage lenders have set some post-filing waiting periods, and most smaller lenders follow these rules. The waiting period varies, mostly depending on the facts of the case and the circumstances which caused your filing (more on that below). Usually, however, it’s between one and four years, whether you file Chapter 7 or Chapter… Read More »
Am I Too Old To File Bankruptcy?
As a whole, the number of consumer bankruptcy filings has fallen sharply since the law changed in 2005. But a combination of disappearing pensions, escalating healthcare costs, and student loan debt, either for themselves, their children, or grandchildren, has caused the over-65 filing rate to increase significantly. “Grey bankruptcy” was almost unheard of as… Read More »
Formal And Informal Property Exemptions In An Illinois Bankruptcy
When Monopoly players declare bankruptcy, they instantly lose all their property. That’s because the rules of this board game do not include property exemptions. Fortunately for distressed, real-life debtors, Illinois law is much different. Section 735 of the Illinois Compiled Statutes contains some of the broadest property exemptions in the country. The written exemptions… Read More »
What To Expect In A Chapter 7
Most people file liquidation bankruptcies because of high medical bills. These expenses have increased faster than inflation since the Great Recession. Most health insurance companies look for ways to deny these claims. And, even if they pay them, the insurance usually only covers part of the cost. 20 percent of a cancer treatment bill… Read More »
Will I Lose My Social Security Benefits If I File Bankruptcy?
This common fear is valid yet completely unfounded. According to some estimates, as many as 40 percent of retirees depend almost exclusively on Social Security benefits to pay their bills. So, these people are understandably afraid to file bankruptcy, because in most cases, income is not exempt. But that’s just the point. Typically, Social… Read More »
How Does Bankruptcy Affect My Security Clearance?
Our Indiana clients ask this question a lot. The Hoosier State has a number of military bases which directly, and indirectly, employ thousands of people. Many of these individuals rely on their security clearances. They are understandably concerned about doing anything which may jeopardize their authorization levels. The Department of Defense is concerned as… Read More »
Am I Too Old To File Bankruptcy?
No. Bankruptcy has a residency requirement. In most cases, a legal status requirement applies as well. But there is no age requirement. Once upon a time, it was rare for people over 65 to file bankruptcy. But the filing rate in this age bracket has increased significantly since the 1990s, even as the overall… Read More »
What Can Chapter 13 Do For Me?
At a time when many Illinois families need more protection than ever from banks and debt collectors, bureaucrats have eliminated some important consumer protection rules. These moneylenders were already very aggressive when it comes to collecting past-due accounts. Now, they usually feel like they can push the envelope even further, because the government won’t… Read More »