In order to Discharge a student loan in bankruptcy, the US Bankruptcy Code, Section 523 (a) (8) requires the Debtor to prove that repaying the loan(s) “would impose an undue hardship on the debtor and the debtor’s dependents”. Courts around the country have been left to interpret this statute. The recent history of student loan litigation in bankruptcy has relied on Bankruptcy Courts around the country using either the Bruner standard or the “totality of the circumstances” test. In order to discharge student loans, a Debtor has to file an Adversary Proceeding, which is a lawsuit within a Bankruptcy case.
Continue Reading Student Loans and Bankruptcy- New Guidance – Breakthrough or More of the Same?

  I have been practicing law for over 30 years, almost all of them in Bankruptcy Court. Over this time, I have advised clients in a wide range of issues.  I have represented Debtors, Creditors, and Trustees. All parts of the system.   Over these years, I have worked with, for, and against attorneys in the bankruptcy system.  And, in many situations, I have encountered attorneys with little to no bankruptcy experience. And, I have been a resource for other attorneys, to help them and their clients. Bankruptcy is a very complicated area of practice, and, being a Federal proceeding,…
Continue Reading Attorneys – I am Your Bankruptcy Resource!

Lately, many of my clients have been completing their Chapter 13 Bankruptcy Plans and getting Discharge Orders.  This is a HUGE accomplishment!  Chapter 13 is a 3 to 5 year Court-supervised plan where individuals pay their debt back in whole or in part. Creditors are paid through a Chapter 13 Trustee in a certain order based on the US Bankruptcy Code requirements. Why is the completion of a Chapter 13 case such a big deal?  An American Bankruptcy Study in 2019 of Chapter 13 Bankruptcy filings showed that only 40% of Bankruptcy cases were discharged (completed successfully).  And, when people…
Continue Reading Successfully Completed Chapter 13 Bankruptcy Cases!

Just when you thought that old debt was dead, old Court Judgments can come back to haunt you!  Now that Courts in Illinois are up and running, debt collectors are looking for opportunities to get some “found money” from debts that are very old.  The debts are very old, but the creditor would have obtained a Judgment many years ago. Lately, many clients have come to see me with these “Zombies” of debts that have come alive! This old debt may even drop off someone’s credit report.  When people think of their debt, they typically figure that if they don’t…
Continue Reading It’s Alive! Revival of Judgments in Illinois

Nothing could be further from the truth! My job as a Bankruptcy Attorney is to help clients understand the process, and how to navigate all of the complexities of Bankruptcy Law. My job is also to educate the public about common misconceptions of the Bankruptcy Process, and how it works. You may think, well, if the client is broke, how can they afford to hire a lawyer? That is a legitimate question. But, in reality, if you are having financial troubles, as a business owner, or as a consumer, you can’t afford NOT to hire an attorney. Many people might…
Continue Reading Bankruptcy is Just Filling Out Some Forms, Right?

Many of us will be getting the third “stimulus” check from the US Treasury as a part of the American Rescue Plan Act signed by the President on March 10th. People who qualify (those who earn less than $75,000.00 for singles and $150,000 for married people who filed their taxes jointly), will get $1400.00 per person. That can add up to a lot of money for families!! But, if you owe money to creditors, some of those that you owe may be able to garnish (seize) it right away. Which ones can get it and which cannot? Who cannot get…
Continue Reading Third Stimulus Check—Protected from Collectors or Not?

Most people think that they don’t have enough money to hire a financial advisor. That’s only for rich people!  In reality, there are professional financial advisors ready to help people at all income levels.  For advisors that pick stocks and mutual funds, some get paid a commission and others get fees just for the time they spend researching the investments and buying and selling them.  Much of their focus is on clients’ long term goals like retirement. Who Needs Financial Advice? Everyone! Most Americans don’t have enough money saved for a $1000.00 emergency, much less have the money to invest…
Continue Reading Is a Bankruptcy Lawyer a Financial Advisor? Yes!

What I do Well Being a practicing attorney for 30 years, I have been honing my skills every day. In these 30 years, I’ve met with hundreds of clients, and learned how to listen, then how to develop a specific financial plan based on my experience in the Bankruptcy Court. Not just hear, but actually listen to the clients and hear what they want, their goals, and needs. These listening skills help me have real-world conversations with my clients. I have detailed discussions about a topic that most people won’t talk about with their own family or friends, money. I…
Continue Reading In the process of rewriting my bio for my newly redesigned website, BankruptcyLawChicago.com, I reflected on exactly what I do well as an attorney in practice for 30 years. This update reflects the philosophy behind my practice