Tag Archives: Chicago Bankruptcy Lawyers
Prompted By Defective Airbag Imbroglio, Takata Files Bankruptcy
The Japanese manufacturer, which faces up to $24 billion in liability lawsuits, filed Chapter 11 Bankruptcy and said that its assets would be sold to a Chinese-led group. Attorneys for the Japanese manufacturer are probably hoping for a cramdown, a tool that’s also available in many consumer bankruptcies. Historically, Chapter 11 proceedings that also… Read More »
Using Bankruptcy To Protect Cash
Mostly because of the unfortunate “liquidation” nickname, many residents of Illinois and Indiana are afraid that if they file Chapter 7 bankruptcy, they will lose their savings. But in most cases, that is simply not the case. In both Chapter 7 and Chapter 13 actions, most assets are off limits to moneylenders, unless they… Read More »
When Do I Need To File Bankruptcy?
Timing is very important in bankruptcy cases. If distressed debtors file too early, they may not have fully exhausted all available non-bankruptcy remedies. However, if they wait too long, the case will probably be much more complicated, time-consuming, and expensive than it otherwise may have been. Similarly, there is some groundwork to lay before… Read More »
High Court Rules Against Consumers In Bankruptcy Proceedings
Debt buyers may file proofs of claim on “zombie debts,” effectively denying bankruptcy debtors a fresh start, according to a new decision from the United States Supreme Court. In Midland Funding v. Johnson, the moneylender filed a proof of claim for a credit card debt that was well outside Alabama’s six year statute of… Read More »
Court Decision Highlights What Bankruptcy Can And Cannot Do
In a March 2017 opinion, the Indiana Supreme Court distinguished between an in rem proceeding against property and an in personam proceeding against individuals to deny mortgage relief in a Chapter 7 case. McCullough v. CitiMortgage involved a long-running dispute between the homeowners and a mortgage company. According to court documents, in the early… 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 »
