Tag Archives: Chicago Debt Relief Lawyer
Some Debt Discharge Basics In Illinois
In addition to the temporary relief from repossession, foreclosures, and other adverse action, many people believe that bankruptcy eliminates most unwanted debts. For the most part, that’s true. Technically, however, bankruptcy only eliminates personal liability to repay the debt, but the obligation itself remains. Once again, technically speaking, that debt never, ever goes away,… Read More »
Feds Scrutinize Student Loan Repayments
Shortly before President Donald Trump was sworn into office, the Consumer Financial Protection bureau filed suit against one of the country’s largest student loan servicers. According to court documents, Navient was guilty of two sins. First, it failed to properly credit additional payments on existing loans, although part of the blame may fall on… Read More »
Dischargeable Bankruptcy Debts
Mortgage underwriters talk a lot about debt-to-income ratio, and as a rule of thumb, a 43 percent DTI ratio is the ceiling for mortgage qualification purposes. The thinking is that people who owe more money than that cannot afford to pay it back, and therefore they are very poor credit risks. So, according to… Read More »
The Freshest Start Of All
General Motors intends to take its ignition switch liability argument all the way to the Supreme Court. Earlier, the Second Circuit Court of Appeals in New York ruled that the automaker is still responsible for damages stemming from defective ignition switches, even though the company declared bankruptcy in 2009 and emerged a short time… Read More »
Eliminating Debt Through Bankruptcy
It would be nice if bankruptcy was a magic wand that instantly discharged all consumer debts. After all, bankruptcy is a fresh start, and people cannot obtain this fresh start while still saddled with debts they cannot pay. Alas, the world does not work that way, largely because moneylenders have financial rights as well,… Read More »
Trump Adds ‘King Of Bankruptcy’ To His Cabinet
President-elect Donald Trump tapped multi-millionaire investor Wilbur Ross to be his Commerce Secretary. Some people in and around industrial Northwest Indiana call Mr. Ross the “king of bankruptcy,” because in the past, he has purchased companies in distressed industries at a discount, often while they are in bankruptcy, and either liquidated their assets or… Read More »
The Financial Comeback Trail
Abraham Lincoln, one of Illinois’ favorite sons, declared bankruptcy in 1833. In his early 20s, Lincoln worked various jobs in Springfield, and that work included employment at a local general store. When the establishment closed, the young and enterprising Lincoln decided to open his own store in New Salem with a business partner. The… Read More »
The Changing Face Of Bankruptcy And Student Loans
There is an old axiom among lawyers that “bad facts make bad law,” and the law regarding student loans and bankruptcy is an excellent example of this old saying. Congress passed the Bankruptcy Act in 1867, and passed substantive amendments in 1898. The Bankruptcy Code remained essentially unchanged until 1938, when lawmakers introduced the… Read More »
Valuing Assets In Bankruptcy Cases
Most bankruptcy exemptions in Illinois and Indiana are dollar-based as opposed to item-based. So, a certain amount of home equity is exempt as opposed to the houses themselves, and a certain amount of vehicle equity is exempt as opposed to the vehicles themselves. For the most part, these exemptions are quite generous and debtors… Read More »
Hard Times In The Oilfields
Two hundred and thirteen oil and gas companies in North America have filed bankruptcy since energy prices crashed in late 2014, and these companies have listed a collective $85 billion in debt. Things have been particularly tough in the oil exploration service industry, as 108 of these firms have filed bankruptcy in the last… Read More »