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Lake County IL Bankruptcy Law Blog

How much does medical debt affect creditworthiness?

According to the Consumer Financial Protection Bureau, individuals with medical debt in Illinois and throughout the country may see an unnecessarily harsh hit to credit scores if that debt goes to collections. Not only does medical debt impact creditworthiness in a way that some experts say is inaccurate, but the Federal Reserve study indicated that medical debt made up over 50 percent of reported collections.

In a study of 5 million anonymous credit reports, the Consumer Financial Protection Bureau found that all that medical debt was having a harsh impact on individual credit worthiness. Specifically, creditworthiness of individuals with medical debt seemed to be underrated. The Bureau says that medical debt is treated the same as non-medical debt when it enters collections,which isn't an accurate interpretation of a person's ability to maintain accounts.

These is a good chance that a credit report in Illinois is wrong

Recent reports have shown that many people struggle with issues on their credit reports, but these reports are essentially wrong, not reflecting their true position as a borrower. In some cases, this can keep people from getting home loans or credit cards. It can also mean that they have to take higher interest rates on the loans that they do take out than they should.

For example, one man said that he was told that he owed around $3,500 for credit card debt. It was an old debt, and he says that he did not even know what it was from. He did not want to pay, but he felt like he had no choice since the collection agency was able to get a legal judgement in their favor, and against him.

Bankruptcy contributes to sale of Applebee's locations

Knowing exactly how bankruptcy is going to impact any assets that a person owns is very important before they decide to declare it. They must have a grasp of the different types of bankruptcy -- such as Chapter 7 or Chapter 13 -- and they must know the intricacies of each. This is the only way for them to choose the one that fits their situation, and it ensures that they know exactly what is coming in the future.

The way that this plays out can clearly be seen in Arlington Heights, Illinois. In that town, a building that used to be an Applebee's location was just sold on E. Algonquin Road. It is around 5,500 square feet, and it carried a sale price of $1,360,000. Pictures of the building show its distinctive style, though the awnings, signs and other decorative items that marked it as part of the chain have been taken down.

Frequently asked questions about bankruptcy in Illinois

Before declaring personal bankruptcy, those in Illinois may have a number of questions about the process. It is important to get the answers to all of those questions before moving forward. Not only does this give someone peace of mind about the process, but it also ensures that everything is done correctly.

For example, some people are concerned that collection agencies or creditors are still going to be asking for money, even after bankruptcy has been declared. They wonder what they should do if this happens. The answer is actually quite simple. They just have to give the creditor the case number for the bankruptcy filing to ensure that they know what steps are being taken.

A tactic for letting Illinois students use bankruptcy for loans

Back in 2011, Occupy Wall Street raised some awareness around the United States, from Illinois to California, for the student loan debt crisis. One important thing to note is that student loans cannot be erased at this time by the use of personal bankruptcy. This is a tactic that people can use to get rid of other things, such as credit card debt or business debt.

The idea has long been that student loans should be outside of bankruptcy court for two reasons. First, lenders need to be responsible about whom they give money to in the first place, and ensuring that they do not get the money from the taxpayers has been seen as a way to maintain this. The other idea is that students may borrow without caution, or use the money for pointless degrees, if they plan to erase the debt with bankruptcy.

Alleged fraud in Illinois linked to student and credit card debt

Lawsuits that are being put forth in Illinois allege that companies there used fraudulent practices to take advantage of people who were facing student debt. In fact, the lawsuits claim that these debt consolidation or relief companies even went so far as to charge people for services that were not real.

For example, some people who were involved were apparently charged for something known as the "Obama forgiveness program." The prosecution says that this is not a real program.

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.

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