Just this week, I’ve talked with three prospective clients who want to try to discharge student loans in bankruptcy. I don’t like delivering bad news, but it’s close to impossible to get rid of student loans by filing a bankruptcy. Before 2005, private student loans were dischargeable in bankruptcy. Since then, very few federal, state [...]
Estate planning and real estate in the Land of Lincoln
Category Archives: Bankruptcy
File Chapter 7 – keep your guns
The House just passed this strange law that would allow those filing Chapter 7 bankruptcy to keep $3000.00 in rifles, pistols and shotguns. It’s estimated that this would affect about 1000 people yearly. But it makes the NRA happy in an election year. Not cool.
Getting credit after bankruptcy
How to rebuild credit after filing a chapter 7 bankruptcy. It can be done.
Foreclosure and deficiency judgments
One sign of a terrible economy, to me, is how many times per week I discuss with a client how foreclosure works. Clients are worried about foreclosure, but they are especially fearful that the foreclosing lender will obtaining a deficiency judgment against them. If you check any real estate advice website like Trulia, there are [...]
Bankruptcy filings sky high in Illinois
Bankruptcy filings in the Northern District of Illinois keep rising, reflecting the bad economy. In October 2009, there were 5433 filings, compared to 3841 the previous year.
Credit cards and bankruptcy
Clients often ask if it’s okay to keep one credit card when they file bankruptcy. The answer is no. All debts must be disclosed and this includes all credit cards. After filing bankruptcy, clients get many credit card offers. I have a client who filed chapter 7 (due to credit card debt) and has received [...]
Lenders seeking money back after short sale
Short sales of real estate are everywhere now. A short sale happens when there are not enough funds to pay the existing mortgage holder, so the seller and the lender agree that the mortgage can be paid short. After closing, the shorted lender can either: 1. Issue a 1099 to the seller for the amount [...]
Dealing with debt collectors
Here’s a nice, clear explanation of the fair debt collection act. It covers what debt collectors can and can’t do. It also explains what you can do if they go too far.
