The Texas based company filed a lawsuit against Anthony in state court to recover the approximately $100,000 it say she owes the company as the result of their search efforts back in 2008. Now that Anthony has filed bankruptcy, Equusearch has filed a petition in federal court asking the court not to allow Anthony to discharge her debt to the company. The company didn't find Anthony's daughter, but it contends that her false representations spurred the company's employees to continue searching and incur several thousands of dollars in expenses.
]]> Equusearch may not be the only creditor of Anthony's that is objecting to her discharge. There are at least two other creditors that have indicated that they believe she should be ordered to pay. It remains to be seen whether the Bankruptcy Court judge agrees. Illinois residents that file for Chapter 7 bankruptcy protection may need to know that creditors have the right to file objections to the discharge of a debt owed them. Usually, creditors that file objections are seeking payment for a secured debt such as a mortgage or car loan.Occasionally, there are other unsecured creditors such as Equusearch that believe its debt should be paid. In these cases, the Bankruptcy Court may deny discharge of that debt, but only after the creditor can prove fraud to the court. Filing for Chapter 7 bankruptcy can provide a fresh start for people that are struggling with their debt, but the process can be complicated and sometimes lengthy. Anyone that has a creditor object to his or her discharge may benefit from assistance in overcoming this potential obstacle.
Source: Orlando Sentinel, "Search group objects to Casey Anthony's bankruptcy discharge," Jeff Weiner, May 6, 2013
]]>Illinois consumers know how easy it can be to get into debt. The trick is knowing how to get out, but it can be done. Patience and perseverance are critical in getting out of credit card debt. One common mistake that people make when trying to get out of debt is also trying to save money at the same time. For the meantime, it may help consumers to think of saving money on interest payments as their savings goal.
]]> Starting with the card with the highest interest rate and attacking it with all available resources will help begin that process. While this card is being paid off, it is important to continue to make the minimum payments on all of the other credit cards, but not more than the minimum. Each card will have its turn to be paid off. If a consumer is spreading funds too thin by trying to make more than the minimum payment on everything he or she will never get out of debt. Over time, each card will get paid off, and then the savings can begin.The question is whether a consumer has the ability to follow a plan such as this. Many Illinois consumers have been in the unenviable position of having to live off of their credit cards. For these struggling consumers, debt relief can come in the form of bankruptcy. Consumers can either reorganize their debt in a Chapter 13 or liquidate their debt in a Chapter 7. Which type of bankruptcy is best for a consumer will depend on several factors, so seeking the advice of someone familiar with the bankruptcy laws can be beneficial.
Source: business2community.com, "4 Rules for Paying Off Credit Card Debt," Logan Abbott, May 1, 2013
]]>From this information, each consumer is given a credit score. That credit score has a lot to do with whether a consumer can receive additional credit for things such as car loans or home mortgages. Each time a consumer is unable to make a payment on a debt, his or her credit score suffers. Even though a positive report remains on a consumer's credit history forever, that one report does not continue to affect a person's credit score. The same is true for negative reports, but creditors are more likely continuously report negative information for as long as the debt goes unpaid.
]]> For instance, if a patient is unable to pay a medical bill and it becomes delinquent, the provider may send a report to the credit agencies each month that the bill goes unpaid. The fact the bill was paid off will remain on the patient's credit history forever; however, the provider's negative reports will affect that person's credit for up to seven years. The patient's financial crisis could have passed, but the impact will be felt for many years to come.When consumers in Illinois are unable to pay debts for a long period of time, it may be time to look at filing for bankruptcy protection. As mentioned above, each month that a consumer is unable to pay a debt, his or her credit report and credit score will suffer. Filing for bankruptcy will stop creditors from reporting on the delinquent account. This may provide the filer with the opportunity to stop the downward spiral, get a fresh start financially, and work on repairing the damage.
Source: courier-journal.com, "Bad credit score can last long after debt paid off Medical costs biggest problem," April 25, 2013
]]>Once the rules were established it became clear that the Illinois Supreme Court needed to establish some sort of effective date for these rules to go into effect. Lenders needed to know just how are back they would need to go in order to comply with the rules. With thousands of foreclosures filed across the state, the potential to backlog the system was apparent.
]]> The Supreme Court recently decided that any foreclosure that has not reached a final judgment by April 30 will be subject to the new rules. Any final judgments issued from May 1 forward will only be given once the lender has certified to the court that the prescribed notifications have been given to the homeowner. Without this affidavit, a final judgment will not be granted.It is possible that some homeowners that are currently involved in or facing foreclosure proceedings may get one more chance to save their home. If the lender failed to give the proper notifications to homeowners regarding options such as modification or mediation, the lender will now have to reach out to those homeowners to whom these and other options are available. Whether having these options will benefit a particular homeowner remains to be seen.
Source: sj-r.com, "Illinois Supreme Court clarifies foreclosure rules," Tim Landis, April 11, 2013
]]>Even in today's economy, the price of medications and medical equipment continues to rise. Patients that would have not thought twice about going to the doctor for some routine ailments are now deciding to stay home. Many doctors have to close their offices and/or find employment at hospitals or larger facilities in order to make ends meet.
]]> Then there are some doctors that are deciding to leave the practice of medicine all together. One such doctor who was an oncologist ended up having to make cutbacks as he struggled to make ends meet. Eventually, he just couldn't continue to conduct his business as he incurred more and more debt related to his practice.Another doctor ended up getting behind on some tax payments and officials showed up at her door to close her down. She contacted an attorney right then who filed an emergency bankruptcy petition for her in order to keep her business open. She was able to straighten out her finances and is still open.
No doctor is immune to financial problems; and many are turning to the bankruptcy courts for protection. Whether the doctor is able to reorganize his or her debt or opts for a total liquidation, the federal Bankruptcy Code and corresponding Illinois statutes offer much needed breathing room for doctors and consumers alike to handle their financial situation. Sometimes the best medicine is a fresh start.
Source: Kiiitv3.com, "Doctors Driven to Bankruptcy," April 8, 2013
]]>What many consumers may not realize is that there are rules that debt collectors must follow. Unfortunately, the Fair Debt Collection Practices Act (FDCPA) may not be able to stop a debt collector from calling or being rude on the phone. However, it does dictate the amount of contact and the type of information they can ask for when contacting employers or family members.
]]> According to the FDCPA, debt collectors are only allowed to contact a consumer's employer or family member one time, and only to ask for the consumer's contact information. Debt collectors may verify employment, but may not tell the employer who they are or what they are calling about. As for being rude, it is only when that rudeness descends into threats of physical violence, publication of the consumer's name, the use of obscene language, or repeated contact that is specifically designed to harass a consumer that the behavior may be in violation of the FDCPA.The problem is that most Illinois consumers are not aware of the provisions of the FDCPA, and feel as if there is nothing they can do to stop the actions of a debt collector. Anyone that feels that a debt collector has violated the act may seek advice and assistance in handling the situation. Unfortunately, many debt collectors are skilled at simply skirting the line, but not crossing it when it comes to their contact with consumers. Consumers that are simply unable to pay back the debt may want to consider filing bankruptcy in order to stop creditors from contacting them about their credit card debt and other obligations. Creditors are not allowed to continue collection efforts during the course of a bankruptcy, so filing could give a consumer the time and space they need to deal with their financial situation.
Source: consumeraffairs.com, "Debt collectors: abusive or just aggressive?" Mark Huffman, April 1, 2013
]]>Dionne Warwick's troubles with the IRS began back in the 1990s. Since that time, she has paid about as much in penalties and interest as the principal balance had been. Now those tax liens have reached a point where they may be discharged in a bankruptcy. As a result, Warwick decided that it was in her best interest to file in order to finally be free of the liens.
]]> According to Warwick, a business manager that she had back in the 1990s was not careful with her money. That person's mismanagement landed her in hot water with the IRS. That was the beginning of decades of battling that even included the IRS possibly losing Warwick's file for some time.Most likely, there are taxpayers in Illinois that understand what Warwick has been through. However, many people may not know that it is possible to discharge at least some tax liens as long as they are over a certain age. Anyone struggling with the IRS may benefit from finding out whether his or her tax liens would qualify for possible discharge in a Chapter 7 bankruptcy. Like Dionne Warwick, those with old tax liens could finally be rid of them and have a fresh start financially.
Source: Atlanta Black Star, "Dionne Warwick Files for Bankruptcy to Clear IRS Tax Liens," March 26, 2013
]]>Many retailers, car rental companies, airlines and hotels don't accept debit cards unless they have the Visa or MasterCard logo on them. If a consumer already has one of these debit cards, it should be accepted just about everywhere. The big difference, however, is that there has to be enough money in the consumer's account to cover any charges. Many car rental companies, airlines and hotels will "hold" a certain amount of money on a credit card. This has to be factored into the equation before using a debit card.
]]> Living a cash only life can be a challenge, but there are more options out there than most people realize. Layaway, cash, checks, PayPal or pre-paid cards are all good options for purchases without having to use a credit card. It is also a good idea to build up an emergency fund as soon as possible. It is often recommended that people have at least three months of living expenses in savings.Anyone trying to rebuild their credit in order to someday buy a house or car may find it necessary to have a credit card. However, this may only be necessary if there is the possibility of taking out a loan in the future. For example, not many people are able to buy a house for cash these days. At the end of the day, filing bankruptcy can give a consumer the fresh start they desire; and many people in Illinois are choosing to make the most of that opportunity by not getting back into debt.
Source: DailyFinance.com, "Living Without Credit Cards: She Made It Work, and You Can Too," Michele Lerner, March 13, 2013
]]>The fact that the home was sold at a loss of over $4 million only serves to further illustrate just how depressed the housing market in Chicago is right now. According to court documents, Kelly owed approximately $3 million on the home. Seeing a growing number of celebrities face foreclosure begs the question of how ordinary homeowners are supposed to be able to keep their homes when people who reportedly make millions of dollars a year are right next to them in court.
]]> As is the case with other struggling homeowners, Kelly isn't only in trouble with his mortgage. It has been reported that he also owes back taxes to the IRS in an approximate amount of $5 million. Even so, the singer denies he is in financial trouble.Many homeowners in Illinois don't have the luxury of denying that they are in trouble financially. Many are at the end of their rope with their lenders are looking for a way to either keep their home or walk away before the bank can either initiate or complete foreclosure. Filing for bankruptcy could give these homeowners a temporary reprieve from foreclosure proceedings in order to decide which way to go. In addition, filing for bankruptcy could eliminate other debt that is weighing on the filer. This would provide the fresh start that many people desire.
Source: Inquisitr.com, "R. Kelly Home Sold At Foreclosure For Huge Loss," March 18, 2013
]]>YTB International Inc. markets web-based travel products and services and operated on a business model of multilevel marketing. However, the company has had to restructure its business model. This is due, at least in part, to settlements with the California and Illinois attorney generals surrounding allegations of deceptive marketing. After this change, revenue declined and the company sold its headquarters and the property adjacent to it.
]]> The company has not been able to keep up with its regulatory filings for a variety of reasons including the loss of key staff. YTB was going to merge with another multilevel marketing company last March, but the deal was called off last September. The company is also having issues with mistakes in its financial statements.The current CEO of the company hopes that filing for Chapter 11 bankruptcy protection will shield YTB from its creditors long enough to reorganize. The company is said to have a commitment for a debtor-in-possession line of credit to help with the company's reorganization. There may be other companies in Illinois that could also benefit from filing for Chapter 11 bankruptcy protection. Having the time and space to review the company's financial situation and come up with viable options for reorganization could mean the difference between the business having a successful future or not.
Source: St. Louis Business Journal, "YTB International files for Chapter 11 bankruptcy," Diana Barr, March 5, 2013
]]>What this means is that people are borrowing money again. Consumer credit rose ever so slightly in the last quarter of 2012. Even though it wasn't by much, it was enough to show that people are increasing their total debt for the first time since 2008. There may be reason to be optimistic, but there is still a need for caution. With the increase in defaults of student loans, any recovery could be stalled once again.
]]> There has been an upturn in the housing market, and there are indications that people are making on time payments on their debts. In addition, the average credit card balance has also risen for the second quarter in a row; even though balances are still lower than they were pre-recession. The slight rise in credit card delinquencies in 2012 was still lower than in years past. Consumers seem to be slow to take on more debt and are still not sure that the economy is actually on the rebound. The events of the last four years have spurred consumers to pay off their debts in a way that hasn't happened for a long time.What all of this means in terms of economic recovery remains to be seen. For those that are still experiencing financial problems despite this optimism, recovery may seem a long way off. Illinois consumers that are having trouble paying their debts may want to consider filing for bankruptcy protection. Having the opportunity to start fresh financially could be the key to financial recovery for some consumers.
Source: Fox Business, "Consumer Debt Market Shows Signs of 'Healing'," Kelly Dilworth, March 5, 2013
]]>For some homeowners, this means that they lender never properly took title to the property as it should have. The now former homeowner later discovers that he or she is still on the hook for costs such as property taxes and homeowners' association dues. It is believed that lenders sometimes delay taking title in order to avoid having to pay these expenses themselves.
]]> Yet other homeowners may discover that their second mortgage lender never completed paperwork to forgive the debt even though the first mortgage lender foreclosed the property. Others find that they are still held liable for the difference between the amount of the mortgage and the amount the house sold for despite being told that debt would be forgiven. In these instances, the first time many homeowners hear about this is when a collection agency contacts them.When a homeowner discovers that their foreclosure was not properly completed for whatever reason, it may be too late to recover financially. The damage that is done to that homeowner's credit may be irreparable. For some former homeowners in Illinois, this may be the straw that broke the proverbial camel's back financially. In those instances, filing for bankruptcy may be a way to erase past mistakes and begin with a fresh start.
Source: CNN, "Zombie foreclosures: Borrowers hit with debts that won't die," Les Christie, Feb. 20, 2013
]]>Many people like to use home equity loans to consolidate their debt since interest rates may be lower, and the interest may be tax deductible. However, in today's real estate market, having equity in a home is not as prevalent as it used to be before the housing market collapsed. Additionally, when a consumer takes out a home equity loan, all of their debt is now considered secured by the home. Debts that would have otherwise been dischargeable in a bankruptcy are now secured.
]]> Combining credit card debt onto one card also has its risks. It may seem attractive to put all credit card debt onto a card that boasts zero interest for a period of time, but many credit card companies charge a "balance transfer fee" that is usually a percentage of the amount being transferred to the card. There is an additional risk that consumers may reuse those cards that now have a zero balance. The only way to be sure not to use those cards again is to close the accounts.Debt consolidation may be a good idea, but if not executed correctly, it can be a financial disaster. Of course, a consumer would need to qualify to consolidate their debts first. The economy has left many in Illinois unable to acquire new credit. For those consumers that need other debt relief choices, filing for bankruptcy may provide the fresh start they desire.
Source: The Daily Courier, "PRACTICAL SAVER: Avoid risk when consolidating your debt," Kara Rozendaal, Feb. 13, 2013
]]>The new law is designed to reduce the foreclosure process in Illinois from approximately two years down to just a few months. This may get homes up for sale more quickly by reducing the amount of time those homes are sitting empty. Getting these homes on the market faster may help with the recovery of property values in neighborhoods across the state.
]]> Secondly, the law will provide approximately $13 million to help families that are facing foreclosure. One way these families will be assisted is through housing counseling. It is hoped that this assistance will keep upwards of 18.000 families from losing their homes by helping them prevent foreclosure.Unfortunately, in spite of this new law, there will still be thousands of families that will face foreclosure. For those families, filing for bankruptcy protection may the best way to deal with their mortgage. Filing bankruptcy could give homeowners that are struggling to meet the terms of their mortgage and other debt the space and time they need in order to deal with their financial situation. For some homeowners, this will mean working out a modification with their lender; and for others, it may mean the chance to walk away completely. Regardless of what option individual homeowners end up taking, filing bankruptcy can provide a fresh start financially.
Source: abc7news, "New Illinois law will fast-track foreclosures," Feb. 8, 2013
]]>There are warning signs that things may be taking a turn for the worse for those who are using their credit cards. One indicator is credit limit. If a consumer is reaching their credit limit, or if that limit is reduced by the bank, there may be a problem. Another indicator is if the credit card company raises the interest rate on a card.
]]> Of course, a more dire indicator is if a consumer is struggling to make the minimum payment or is unable to make that payment at all. To make matters worse, once a payment is missed, the bank may increase the interest rate on the card upwards of 29 percent. If a consumer was having trouble making the payments before, it may become impossible. Some people may find they have stopped contributing to their retirement plan in order to make payments, or that their credit card payments are more than 15 percent of their income.All of these factors are indicators that financial problems are around the corner, if not already present. Illinois residents that are buried under their credit cards and other bills may find solace in filing for bankruptcy. Filing for bankruptcy protection can give the filer the time and space to address their financial issues free from the stress and anxiety of dealing with creditors. In the end, it could provide a financial fresh start.
Source: The Arizona Republic, "7 red flags of credit-debt overload," Robert Anglen, Jan. 26, 2013
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