Bankruptcy, Foreclosure & Loan Modification Posts in October, 2012

Fending Off Creditors in Bankruptcy with the Automatic Stay

In Bankruptcy, an automatic stay protects a debtor from creditors. The automatic stay prevents a creditor from collecting on debts incurred by the debtor. The automatic stay is effective immediately upon the filing of the bankruptcy. As soon as the bankruptcy is filed and a case number is obtained, creditors may no longer pursue judgments, garnishments, foreclosure proceeding, or repossessions. Creditors also must cease all phone calls, letters, e-mails, and any other form of communication with the debtor. It is not legal for them to continue attempts to collect on any debts....
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Foreclosure Rate Remains High in Illinois

In last August, the foreclosure rate of Illinois was the highest in the nation. However, it has decreased gradually in September and October, although the rate still remains relatively high, according to the Chicago Tribune....
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After Many Years of Providing Recycling to Illinois Residents, One Source Recycling Bankrupt

Waste and Recycling News reports that One Source Recycling has shut its doors due to Chapter 7 Bankruptcy. Residents who depended on the recycling service provided by One Source Recycling were surprised and concerned. There was already difficulty in locating nearby recycling centers and residents who traveled to the facility to drop off recyclables will have to find a new place to process the items. The change in service was quite sudden and there was no advance notice to customers....
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The Use of a Homestead Exemption

In order to protect spouses and children left behind when the provider of shelter has died, some states have enacted a homestead exemption.  If a homeowner dies and leaves behind a dependent spouse or dependent children, this exemption protects their home from taxes, creditors and other situations which could put that property in jeopardy....
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Debtors Owing Hospital Bills Have Some Legal Protections

In today’s economy, many people are facing massive debts, many of which are medical bills. As recently reported in a Chicago Tribune article, some studies estimate that up to half of all reported collections are made up of medical debts. Unexpected health issues, illness, and catastrophic injuries all can result in large hospital bills that people who lack comprehensive hospital insurance simply cannot afford to pay....
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  • Newland & Newland LLP, Attorneys, Arlington Heights, IL