Category Archives: Chapter 7 Bankruptcy
What Is Chapter 7 And How Does It Work?
The current combination of high consumer debt, high inflation, and high interest rates is enough to push any family’s ability to pay monthly bills to the breaking point. If unsecured debts, like credit cards and medical bills, are the primary problem, Chapter 7 is an excellent solution. As outlined below, Chapter 7 eliminates such… Read More »
Do I Qualify For Chapter 7?
Most Illinois families are only one financial emergency away from disaster. These situations include serious illness, job loss, and other events everyone faces from time to time. About a third of Illinois families would be hard-pressed to pay a $400 emergency expense. Frequently, when money gets tight, unsecured debts, like credit card and medical… Read More »
Do I Qualify for Chapter 7 in Illinois?
Shortly before the coronavirus pandemic hit and caused significant economic hardship for thousands of Illini, the Supreme Court deleted some key consumer protections from the Fair Debt Collection Practices Act. As a result, many debt collectors will be more aggressive than ever in 2021, and consumers have very few ways to stop them. Chapter… 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 »
Five Dischargeable Debts in a Chapter 7
Financial problems do not just have financial effects. About a fourth of people with debt problems often experience Post Traumatic Stress Disorder-type symptoms. These symptoms often make it difficult or impossible to function at work or school. Bankruptcy offers both immediate and long-term solutions. As soon as debtors file their voluntary petitions, Section 362… Read More »
Some Special Issues in an Over-55 Bankruptcy
Older people are filing bankruptcy at historically high levels, and rising medical bills might be the main reason why. The average over-65 couple accumulates medical bills totalling $275,000, even if both spouses have Medicare. If that wasn’t bad enough, the Supreme Court recently watered down the consumer protections in the Fair Debt Collection Practices… Read More »
Can I File Bankruptcy on Student Loans?
Some forty-five million borrowers owe a collective $1.5 trillion in student loan debt. A significant number of these borrowers owe more than $100,000. Even if life goes perfectly after school, such debt is difficult to retire. And, as we all know, life is not perfect. As a result, many borrowers struggle to make monthly… Read More »
Will I Lose my Social Security Benefits if I File Chapter 7?
Statistically, many older people are in more debt than ever. The over-55 bankruptcy filing rate has increased 50 percent in recent years, even as the overall bankruptcy filing rate has reached historic lows. Furthermore, most seniors who file bankruptcy owe more than $101,000, which is more than three times their average annual income. For… Read More »
Chapter 7 Bankruptcy: What You Need to Know
In board games like Monopoly, players who file bankruptcy are utterly defeated. They lose everything they have and cannot continue the game. Fortunately, the real world is a lot different. The Supreme Court has consistently stated that the Bankruptcy Code is designed “to grant a fresh start to the honest but unfortunate debtor.” That’s… Read More »
Five Dischargeable Debts in a Chapter 7
Many area families live from hand to mouth. In fact, many families do not have enough cash to cover a $400 emergency expense. Frequently, when financial trials hit, people slowly fall behind on unsecured debt payments. The past due balance quickly builds up, and most creditors are not very patient. Bankruptcy may be a… Read More »