Bankruptcy, Foreclosure & Loan Modification Blog

Pawn America Files for Chapter 11 Bankruptcy

Pawn America, the largest pawn shop chain in the Upper Midwest, has filed for Chapter 11 bankruptcy. The bankruptcy comes after 26 years of operation in four states. According to the company’s bankruptcy filing, it owes somewhere between $10 million and $50 million to its creditors. Most of this debt is from the purchase of fixtures, furniture, and equipment used in its stores....
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Which Debt Collections are Not Halted by the Automatic Stay?

When you file for bankruptcy, an automatic stay goes into effect. This is a legal order to prohibit your creditors from continuing their collection attempts while you focus on working through the bankruptcy process. Do not assume that the automatic stay means that you are no longer liable for your debts or that your creditors cannot resume their collection attempts. Certain debts are not affected by the automatic stay, and in some cases, creditors for debts that are affected can file for relief from the automatic stay....
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What if I Do Not Qualify for Chapter 13 Bankruptcy?

If you are struggling with an intense level of personal debt, consider filing for bankruptcy. Individuals in this situation can file for Chapter 13 or Chapter 7 bankruptcy, depending on the chapter for which they qualify. Often, it is easier to qualify for Chapter 13 bankruptcy, but this is not always the case. Consider Chapter 7 Bankruptcy...
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Payless Shoes to File for Bankruptcy and Plans to Close 500 Stores

Payless Shoesource, Inc., a mall staple and go-to shoe supplier for consumers across the country, has announced that it will file for bankruptcy as soon as early April 2017 to address its $655 million debt. Much of this debt is outstanding payments to Chinese factories, which sparked protests at a container freight station in Xiamen, China....
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What is Chapter 22 Bankruptcy?

You might have recently heard or read that Radio Shack filed for “Chapter 22” bankruptcy. This is not an actual chapter of bankruptcy. Rather, it is a euphemism used to refer to a company’s second bankruptcy, playing on the idea that two Chapter 11 filings equal one Chapter 22 filing....
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Can Student Loan Debt Be Discharged in Bankruptcy?

Student debt cannot easily be discharged through bankruptcy like other types of debt, such as credit card and medical debt. This is because of 1970s legislation that arose over fears of federal student loan borrowers taking advantage of their ability to discharge their debt through bankruptcy. The legislation was extended to include private student loans in 2005. Now, individuals with substantial amounts of student debt often feel trapped by their debt because of the assumption that it cannot be discharged through bankruptcy....
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Should Illinois Cities be Permitted to File for Bankruptcy?

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....
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  • Newland & Newland LLP, Attorneys, Arlington Heights, IL
  • Lawyer.com