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Grayslake Real Estate And Bankruptcy Law Blog

How can you stay out of debt?

Illinois residents like you have two primary issues to worry about if you have been buried in debt: how to get out of it, and how to stay out of it. We at the Law Office of Paul R. Idlas will discuss a few methods that can keep you from falling back into debt once you have found a way out.

There are many different ways to stay out of debt. Sometimes, it might take some trial and error to find the methods that work best for you. One way to start is by removing your easy access to credit cards. This can include:

  • Setting a self-monitored credit limit
  • Only spending what you have the cash equivalent of
  • Leaving your credit card at home
  • Setting detailed budgets

Comparing Chapter 13 and Chapter 7 bankruptcy

Illinois residents who are looking into bankruptcy options in order to relieve debts have two primary options. Chapter 13 and Chapter 7 bankruptcy both have their unique benefits, allowing different people in different situations to find use in them.

The United States Courts examines Chapter 7 bankruptcy, which tends to be a better option for people who have no way to repay their debts. This option will allow for the person filing to liquidate their assets in order to pay back certain debts. Some, such as school debt, is not able to be paid off. However, most debts like credit card debt and medical bills can be. Through liquidation, the debt can be forgiven much faster. However, Chapter 7 bankruptcy will stay on a person's record for longer and they will usually not have a say in what items are liquidated.

What is a debt settlement company?

When experiencing crushing debt in Illinois, it is important to know your relief options. That way, you can make an informed decision about where to go for help. You may have questions about the legitimacy and effectiveness of debt settlement companies. 

According to the Consumer Financial Protection Bureau, there are legitimate debt settlement companies that must comply with rules set down by the Federal Trade Commission. Debt settlement companies are usually for-profit enterprises, which means that the law allows them to charge you a fee for their services. However, the company cannot collect any fee from you until negotiation has taken place with creditors and all parties have reached an agreement. 

3 functions of an attorney during a real estate transaction

When it comes time to sell your home, you want to make sure everything goes smoothly. After spending some time and money on prepping the house for sale, the last thing you want is for things to go wrong during the selling process.

An attorney is one member of your real estate team you may not have thought important. After your realtor gets buyers in the door and ready for a contract, your attorney can take over and handle these three details to make your selling experience more tolerable:

Will Chapter 7 discharge recent credit card debt?

You likely have heard that if you file Chapter 7 bankruptcy in Illinois, the Bankruptcy Court will discharge all of your credit card debts. In general, this is true. However, it may not discharge your very recent credit card debts.

Bloomberg News reports that Section 523(a)(2)(C)(I) of the Bankruptcy Code contains a little known presumption against such discharges. The presumption applies to any credit card debt of $675 or more that you assume for the purpose of buying consumer goods within 90 days of filing bankruptcy.

Common myths about selling a home

When Illinois residents decide to sell their home, they have lots of choices and important things to do before listing. While it may be exciting to sell a home and think of a new adventure with a new neighborhood and possibly a new city or state, there are several myths homeowners should be aware of when they start the selling process.

Some will say that if a home is to be updated, the updates must be drastic for the buyer to notice them. According to Realtor.com, just freshening up the kitchen or landscaping the front yard can be enough to give the home a facelift. Buyers may plan to renovate and update parts of the home anyway, so expensive updates can be a waste of money. Those who want a return on their investment make changes to the kitchen and the bathrooms, but do not do an entire gut and renovation.

What is the Chapter 7 means test?

If you are facing mounting bills and the constant threat of creditor action, personal bankruptcy may offer you the best pathway to stopping you from sliding deeper into debt and instead re-establishing yourself financially in Grayslake. A Chapter 7 bankruptcy offers the benefit of having certain debts discharged, freeing up additional resources to help you in settling others. Yet this is a benefit that is not extended to all; you must first qualify via the Chapter 7 means test. 

The first step in the means test is determining your current monthly income. If yours falls below the average for your particular demographic in your state, you do not need to go any further; you automatically qualify to file under Chapter 7. If, however, your income is above the state average, then the second stage of the means test is applied. 

Know the facts about short sales

When Illinois residents sell their homes, they may envision receiving more money than they paid for the house. In some situations, though, this may not be possible, and some homeowners may find that a short sale is their best option.

When people hear about short sales, they may think this is the same thing as a foreclosure. Realtor.com says there are important differences between short sales and foreclosures. If a house goes through foreclosure, this means that the lender has repossessed the property. With a short sale, though, the homeowners are the ones selling their house, not the bank. However, people typically do not receive a high offer on their home. A short sale means that the price a homeowner receives is less than he or she owes on the mortgage. Most of the time, people sell their home through a short sale because they are unable to make their mortgage payments.

4 signs you should consider filing for bankruptcy

Dealing with the burden of debt is overwhelming, and you may not know what to do to get out. Many options are available to you, each with its pros and cons. Which solution is right for you depends on your circumstances.

A common choice is bankruptcy, but despite its numerous benefits, it is not always the best answer in every situation. How can you tell that filing for bankruptcy is the right thing to do?

Three proactive ways to help sell your home faster

Illinois is a fantastic place to live, and every day people discover the beauty that the state has to offer. This is a benefit for anyone looking to sell or rent out a property in the state. While the process may seem daunting, FindLaw lists real estate laws in Illinois that are designed to handle things such as homestead protection, landlord-tenant relations and the rental market. These things become important once the home is sold and the transfer is in process, but homeowners can proactively prepare their homes for sale in three specific ways.

1. Seek out an inspection

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