Falling Behind on ComEd or Nicor? Here’s What a Chapter 7 Filing Can Actually Do Key Takeaways: Past due utility bills in Illinois are generally unsecured debts, so a Chapter 7 discharge typically wipes out personal liability for ComEd, Nicor Gas, Peoples Gas, and municipal water arrears just as it does credit card and medical […]
Recent Credit Card Charges and the Risk of a Discharge Objection in Illinois Key Takeaways: Under 11 U.S.C. § 523(a)(2)(C), consumer debts for luxury goods or services owed to a single creditor totaling more than $900 incurred within 90 days of filing may be presumed nondischargeable in Chapter 7, with a parallel rule for cash […]
When Life Derails a Chapter 13 Plan: Understanding Early Discharge in Illinois Key Takeaways: A Chapter 13 hardship discharge under 11 U.S.C. § 1328(b) is a discretionary, court-granted release from certain debts for debtors who cannot complete plan payments due to blameless circumstances, such as disabling illness or death of a wage earner. Illinois debtors […]
The Flexible Exemption That Helps Illinois Filers Keep What Matters Most Key Takeaways: The Illinois wildcard exemption, found at 735 ILCS 5/12-1001(b), protects up to $4,000 of a debtor’s equity in almost any personal property, making it one of the most flexible tools for Chapter 7 filers. It commonly applies to cash, bank balances, tax […]
Removing an Underwater Second Mortgage Through an Illinois Repayment Plan Key Takeaways: Chapter 13 lien stripping may allow an Illinois homeowner to reclassify a wholly unsecured second mortgage as ordinary unsecured debt when the home’s value is fully consumed by the first mortgage. This remedy flows from case law interpreting the anti-modification rule in 11 […]
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