Many Illinois cities are facing financial difficulties that can potentially be resolved through bankruptcy. According to the policy nonprofit Manhattan Institute, this is exactly what needs to happen. When a municipality is unable to pay back its debt, it may file for Chapter 9 bankruptcy, which allows certain contracts to be broken so the intervening trustee can reallocate money to help the municipality repay its debt.
A recent article published by the Association of American Retired Persons Bulletin (AARP) exposes a new crisis in our country. It appears that seniors are under siege due to delinquent property bills and haunted by credit collection agencies ready to either secure the debt or take control of the home through a tax lien foreclosure.
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.
Bankruptcy can help most Cook County residents who have fallen on hard times financially because of unexpected and excessive medical bills or loss of income due to sudden unemployment. However, some debts cannot be eliminated through bankruptcy and must be paid regardless of the circumstances affecting the individual needing relief from crushing bills.
Since the 2005 changes to federal bankruptcy laws, filing for bankruptcy has become a more tedious, time-consuming task. Among the changes made were income specifications that affect which type of bankruptcy claim an individual can file.
Chapter 7 Bankruptcy (Liquidation)