The rights of creditors under the Fair Debt Collection Practices Act are being reviewed by the United States Supreme Court. Currently, the law prohibits creditors from filing claims for time-barred debts. However, a recent split between the Circuit Courts means that this may change.
Chapter 7 bankruptcy is a useful tool for some individuals to discharge most of their debt. Chapter 7 bankruptcy, or “straight bankruptcy,” allows the filer to keep certain property exempt, while the rest is liquidated to satisfy the debt. Liquidation is the forced sale of an asset to satisfy an obligation, like loans or credit. The Bankruptcy Trustee would liquidate all of the filer’s non-exempt property to satisfy outstanding debts.
The credits then accept the payments in satisfaction of the debt; often it can be pennies on the dollar. Anything that is unpaid is discharged by the bankruptcy court.
Bankruptcy to relieve debt is an option for many senior citizens on a fixed income. However, bankruptcy may not make sense in every situation. Bankruptcy lawyers can help senior citizens considering bankruptcy determine the best course of action.
Many people facing bankruptcy are hesitant to file because of the negative impact it may have on their future. Although getting a car loan, mortgage or credit card will be more difficult in the short term, it is not impossible and as long as you keep your debts down and maintain your job status afterwards, your credit will rebound faster than you think. A bankruptcy attorney can explain the negative impacts on a person’s specific situation.
When filing for Chapter 7 or Chapter 13 bankruptcy, federal debt may not be automatically discharged. Most tax debts are difficult to eliminate, and complicated bankruptcy laws are often difficult to understand without a bankruptcy attorney who understands federal laws.
Bankruptcy is a legal way to get a clean financial slate, but there are some limitations. When people file for personal bankruptcy in Arlington Heights, they start a federal process that usually leads to a creditor meeting, court hearing or both. They also put a pause on all debt collection. After a debtor has filed for bankruptcy, their creditors must wait for the results of the case. However, some of their debts may never go away, no matter what happens with their bankruptcy filing.
Foreclosures are down across the country, however, that’s little consolation for homeowners who are currently facing the loss of their homes. Homeowners who are behind on their payments and are facing foreclosure proceedings can file Chapter 13 bankruptcy to halt the process.
Married couples can file Chapter 7 or Chapter 13 bankruptcy together or separately. Understanding the impact of liability for the non-filing spouse is an important consideration before filing. A bankruptcy attorney who knows Illinois bankruptcy laws can provide legal advice for filing bankruptcy without a spouse.
Taxpayers who are unable to pay past due federal taxes have several options to choose from, including working with the IRS to create a payment plan or an offer in compromise to fulfill their tax obligations. However, if those options do not meet an individual taxpayer’s needs, bankruptcy might be an option to consider.
The data is out for new bankruptcy filings in January of 2016, and the trend of fewer filings continues. In fact, last January’s numbers were the lowest since 2008, and greatly lower than the number of filings from 2010 and 2011, when the worst of the recession was upon the Chicago area. Statistics from the Northern Illinois District of the U.S. Bankruptcy Court show that trend towards lower bankruptcy rates should be here to stay as the economic recovery continues.