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Lake County IL Bankruptcy Law Blog

Chiro One on brink of bankruptcy in Illinois

In 2013, a company called Chiro One Wellness Centers LLC was growing at an incredible rate in Chicago. This year, the company has only narrowly avoided bankruptcy by having an auction for most of its assets in the face of around $5 million of debt. What happened to cause this drastic turn of events?

As late in 2013 as December, Chiro One had 86 different chiropractic offices. They were spread out between Illinois, Kentucky and Texas. The company provided many support services for those offices, handling things like billing and finding real estate. Growth was incredible over a five-year span, to the tune of 382 percent. They did about $55 million for the year of 2012 when looking at revenue.

Supreme Court in Illinois looking at credit card debt collection case

A case that began with credit card debt has gone all the way to the Supreme Court in Illinois. The case has really been dragging on for years, with some judgments coming from lesser courts back in 2011, but it has just now fallen on the Supreme Court to make a final decision.

Everything began simply enough. A man had to hire someone for plumbing work, and he used his credit card to pay the plumber. After the work was done, he did not pay the entire amount that was owed back to the credit card company. That company then decided to resolve the situation on their end by selling the debt off to a collection agency.

When should you not use your credit card in Illinois?

One reason that is sometimes cited for bankruptcy is an insurmountable level of debt on a credit card. Even if credit card debt alone does not lead to bankruptcy, it can add to it and make the situation more dire, so it is important for those who use credit cards to understand how to handle them. This includes looking at the times when they should not use the cards.

First off, people should not use cards after they get a large amount of unexpected money, as they may feel like they have more money than they really do. For example, the passing of a grandparent could land them with a influx that they did not anticipate, which they could spend on a home renovation. Even if the cost of the renovation spirals out of control and goes over the amount that they were given, they still feel like they have this large pool of cash, though they could really end up accumulating a large amount of debt.

Understanding student loan debt and bankruptcy in Illinois

While many types of debt can be erased by filing for bankruptcy in Illinois, rules have been put in place to keep this from being possible when it comes to student loan debt, something that many people face. The basic idea behind these laws is that students could make it a plan to take out loans to get an education, knowing all along that they will simply file for bankruptcy before getting a job so that they don't have to pay the loans back.

However, things were not always that way. Decades ago, a lawyer in Illinois put out an ad in a local paper telling students that he could help them file for bankruptcy and get rid of their student loan debt, and he caught a fair amount of criticism for it. In the years following that, more alterations were made to the laws so that it could not happen.

Couple from Illinois admits to bankruptcy fraud

According to their own admission, a couple committed fraud by lying when they filed for bankruptcy. The couple is from Eldorado, Illinois, but they actually filed for bankruptcy over in Benton, Illinois, at the bankruptcy court there. This filing happened on the 25 of February, back in 2009.

Now, both of them admitted to multiple counts, which were for lying under oath, falsifying documents and committing perjury.

The impact of medical debt on credit reports could be unfair

Debt is a huge issue in Illinois, whether it relates to credit card debt, student debt or medical debt. It is important for anyone living in the state -- or anywhere in America, for that matter -- to understand the legal options that they have to get out of debt. Often, the only way to eliminate what is owed is to take action, and people must know what rights they have, what their choices are and how those choices can have an impact on their life.

When it comes to medical debt, an interesting report just came out, indicating that this type of debt has been damaging the credit scores of many Americans. Even with an insurance policy, it was seen that people could accumulate $10,000 to $30,000 of debt without much effort. Millions of people have medical debt across the country.

Waste removal company owners seeking Chapter 7 protection

Tippecanoe Waste Removal in Illinois' neighboring state of Indiana is facing some financial difficulties, as the owners of the company have chosen to file for personal bankruptcy. Official reports show that the pair is pursuing a Chapter 7 liquidation bankruptcy, which would allow them to expunge most of their consumer debt, and potentially some business debt, as well. The bankruptcy case could be complicated by the fact that a civil suit is pending against the pair, with prosecutors alleging that the business owners violated a law designed to protect Hoosiers from deceptive consumer sales.

Apparently, the business owners collected money through their waste removal service for a three-month period from November through January. However, the company stopped operating in December. Although Tippecanoe Waste Removal's site said that customers would be receiving services through Waste Management, which was slated to pick up their customers, it appears that no such agreement ever existed.

Chapter 7 or Chapter 13 bankruptcy? A quick guide

Are you an Illinois resident who is considering filing for bankruptcy, but you are not sure how to choose between Chapter 13 and Chapter 7 proceedings? If you have looked at all of your options and decided that one of these two bankruptcies is right for you, it is time to learn more about which applies to your personal situation. Choosing the right type of bankruptcy can help you get back on your feet faster and provide you with the financial relief you so desperately need.

Chapter 7 bankruptcy, also known as liquidation bankruptcy, allows borrowers to clear out most unsecured debts such as loans, medical bills and credit cards. It is critical to remember, however, that certain unsecured debts do not fall under the purview of the Chapter 7 umbrella. Those include student loans, certain tax liens and other special cases. Consulting with a professional will help you learn whether your debts are eligible for this process.

Conquer your credit card debt with this courtroom strategy

Some people fight the law, and the law wins. But in other cases, everyday people from Illinois and other states have been able to take on some of the nation's largest collections companies -- and win. In many cases, those who are hounded by credit card debt collectors simply accept that they owe a significant amount of money, and they pay the balance without determining whether that amount is correct. Sometimes, overcoming your creditor harassment may be as simple as hiring a legal aid attorney.

One Virginia man was able to have a collections lawsuit against him dismissed after he refuted credit card debt in court. A funding company sued that man for more than $5,000 they said he owed on an old debt. That amount did not seem right to the defendant, so he contacted an attorney. After a bit of investigation, the attorney determined that the company did not have the correct documentation to collect on the debt -- and the agency eventually dropped the suit.

Consider negotiating your credit card debt, get better terms

Did you know that the average American household is about $15,000 in debt? Although many Illinois residents are living under the shadow of their own credit card debt, they may not realize that they have some legal options when it comes to negotiating with creditors. Borrowers do not have to allow their credit card bills to dominate their finances; instead, there are a variety of negotiation techniques that can help consumers match their income to the amount they pay every month.

Experts say that credit card companies may be more eager to negotiate because your debt is unsecured. That is, a bank cannot seize your home or vehicle because you fail to pay. With that in mind, it can be helpful to contact your card company if you are having difficulty making payments. Two options include lump-sum payments and reduced monthly payments.

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