Category Archives: Bankruptcy
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 »
Does Bankruptcy Take Care Of Back Taxes?
The IRS claims that intentional and unintentional underpayment costs the government about $1 trillion a year. That figure is higher than the GDP of most of the world’s countries. Over the years, lawmakers have given the IRS powerful collection tools that private sector debt-buyers dream about. Usually, the IRS does not need a court… Read More »
How Does Filing Bankruptcy Protect My Car?
Other than housing, vehicle payments are usually the largest monthly bills in Indiana. The average new car payment is just under $600 a month. The average used or leased vehicle payment is not much lower. If a family falls a month or two behind, it’s almost impossible to catch up. And, most lenders have… Read More »
Should I File Chapter 7 Or Chapter 13?
Mortgage payment deferrals and other financial relief packages kept the bankruptcy filing rate low through the worst of the pandemic. Now, these programs are ending. Therefore, many experts predict that the bankruptcy filing rate will increase sharply in 2022 after many years of decline. A financial crisis, like a creditor’s lawsuit or a home… Read More »
Top Five Illinois Bankruptcy Exemptions
When divorce, job loss, and other financial storms hit, bankruptcy helps people regain control over their own finances. Since this control means little without additional property protections, Illinois law also contains a number of generous exemptions. Most of them are in Section 1001 of the Illinois Code of Civil Procedure. These exemptions prohibit creditors… Read More »
Does Bankruptcy Eliminate Student Loans?
The answer to this question varies in different jurisdictions, since the law in this area is unsettled. However, in Illinois, the answer is a resounding “yes,” at least in most cases. That’s very good news for student loan debtors. Over forty million debtors owe almost $40,000 apiece before they finish walking across the stage…. Read More »
Top Five Reasons People File Bankruptcy In Indiana
The underlying reason people file bankruptcy is they do not have sufficient income to pay their debts. That’s especially true if a crisis emerges. A third of Americans say they would have problems paying a $400 emergency expense. Crises like the ones discussed below often come at unexpected times. But they inevitably arise in… Read More »
Can I Buy A Car During Bankruptcy?
Most cars and trucks remain driveable for about 150,000 miles. Long before they reach the end of their lifespans, most trucks and cars begin having significant mechanical problems which affect their reliability. So, if you drive a used car when you file bankruptcy, and most people do, you will probably need a new car… Read More »
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 »
