For Debtors Blog Category – Law Office of William J. Factor, Ltd.

The Absolute Priority rule is alive and well for Chapter 11 cases

August 29th, 2018

I. Explanation of absolute priority rule Consumer debtors that do not qualify for protection under Chapter 7 or Chapter 13 of the Bankruptcy Code, are left with filing under Chapter 11, where they will come face-to-face with the absolute priority rul… Read More

Tags: bankruptcy, bankruptcy code, chapter 11

Discharge of debts in Chapters 7 and 13; important differences you should know

August 23rd, 2018

Through a Chapter 13 payment plan, a debtor may discharge multiple types of debt that cannot be discharged in a Chapter 7 bankruptcy (a liquidation). Thus, if you qualify for a Chapter 13 bankruptcy, and your debts would be nondischargeable in a Chap… Read More

Tags: Chapter 13 Bankruptcy, Chapter 7 Bankruptcy

Bankruptcy Filings among Elderly Increased Exponentially over Last 25 Years

August 5th, 2018

According to an article posted today in the New York Times by Tara Segal Bernard, “[f]or a rapidly growing share of older Americans, traditional ideas about life in retirement are being upended by a dismal reality: bankruptcy.” According… Read More

Tags: bankruptcy, retirement, senior citizen

Experts predicting increased ilIiquidity and link it to the climate that led to the 2008 crisis

July 29th, 2018

According to a recent report by Morgan Stanley “market liquidity across assets is in decline” and “low liquidity were the fundamental triggers of the 2008 crisis.” Those bankruptcy practitioners that had first hand experience… Read More

Tags: 2008 crisis, bankruptcy, recession

Law360 Satisfaction Survey finds that student loans are burdening lawyers too.

July 27th, 2018

According to Forbes magazine, “student loan debt is now the second highest consumer debt category – behind only mortgage debt – and higher than both credit cards and auto loans and according to Make Lemonade, there are more than 44… Read More

Tags: student debt

Merchant Cash Advances – A Trap for the Unwary

June 19th, 2018

Small business owners should think carefully before taking out merchant cash advances, which is a form of financing that is heavily marketed. Small businesses, like any other business, need cash to run. It can be difficult, though, for some small bus… Read More

Teamwork with business people analysis cost graph on the desk in the meeting room. The business team discussed meetings and briefing strategies. Negotiation, Analysis, Discussion

Rising Home Values Are Nudging More Chicago-Area Homeowners to Tap the Equity in Their Homes via Lines of Credit

June 19th, 2018

There appears to be an increase in consumer debt that is reminiscent of the near-collapse of 2008-2010. A recent article in Crain’s Chicago Business (reprinted below), reports that consumers are using increases in home equity to secure further… Read More

State law conversion claim allowed for improper disposition of attorney's fees

June 18th, 2018

In Deborah K. Ebner, as Chapter 7 Trustee for the Bankruptcy Estate of Santilli Law Group, Ltd.Plaintiff, v. Alfred Vano, Case 17-00293, (Bankr. N.D. Ill. 06/15/18), Judge Cox of the Northern District of Illinois held that an attorney that improperly… Read More

mature adult man working at home ( laptop, financial bill, credit card, smart phone)

Serial Bankruptcy Filings Initiated to Delay Creditor Action Can Lead to Criminal Charges

June 11th, 2018

In United States v. Williams, Case No. 17-2244 (7th Cir., June 6, 2018), the Seventh Circuit upheld jury trial verdict against Charlise Williams on five counts of bankruptcy fraud, resulting in 46 month prison sentence. Read More

Tags: Chapter 13 Bankruptcy, Foreclosed Properties, fraud

Student loans discharged even when Debtor was not required to make payments on loans

June 5th, 2018

In Murphy v. United States, 15-11240-j7 (Bankr. D. N.M. June 1, 2018), the Bankruptcy Court in New Mexico held that a debtor who was not obligated to make payments on student loans because she qualified for a -0- payment under an Income Based Repayme… Read More

Tags: discharge, hardship, Student Loans

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