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Real Estate Lawyer in Elgin, Illinois: Avoid Closing Delays

Fri, 03 Apr 2026 03:54:46 GMT

Are you worried that your home closing in Elgin, Illinois, might be delayed due to unforeseen issues? Buying or selling a home is an exciting milestone, but it can quickly become stressful if the closing does not go as planned. Many delays arise from overlooked legal details, unresolved disputes, or last-minute surprises during the transaction process. Partnering with a real estate lawyer in Elgin, Illinois, ensures that potential risks are addressed early, creating a smoother path to a successful closing.

In this article, we will explore common causes of closing delays and share a step-by-step guide on how legal expertise helps you avoid them.

Why You Need a Real Estate Lawyer in Elgin, Illinois

Real estate transactions involve complex paperwork, strict deadlines, and multiple parties working in coordination. Having a real estate lawyer on your side offers several advantages: clear contract review, diligent title examination, proper management of inspection contingencies, and guidance through closing procedures. These factors decrease the chance of surprises on closing day and reduce risks that cause delays.

A skilled real estate lawyer understands local laws and real estate practices in Elgin, Illinois, providing reliable real estate legal services from contract negotiation to final document signing. This expertise protects your interests and ensures a smoother transaction experience overall.

Common Causes of Real Estate Closing Delays in Elgin

To avoid frustration at closing, it helps to understand what typically causes delays:

Contract Issues

Incomplete, ambiguous, or unfavorable terms in the purchase agreement lead to last-minute disputes or renegotiations. A real estate lawyer will carefully review the contract to clarify all provisions, identify potential loopholes or unfavorable clauses, and ensure the document fully protects your interests. Early legal review prevents avoidable complications as the closing date approaches.

Title Problems

Title defects such as outstanding liens, unresolved ownership claims, or errors in public records can prevent transferring a clean title. Sometimes these issues are unexpected and surface only during the title search. Attorneys work closely with title companies to identify and resolve these concerns quickly so the closing is not postponed.

Inspection and Repair Disputes

Home inspections may reveal defects or safety issues that buyers request to be repaired or credited before closing. Without legal guidance, negotiating these repairs can stall the process or lead to disagreements. Experienced real estate legal services include advising clients on how to handle inspection results with clear, enforceable addenda to the contract, avoiding misunderstandings that cause delays.

Financing and Documentation Delays

Issues with mortgage approval, delays in underwriting, or insufficient documentation frequently cause closings to be rescheduled. A real estate lawyer coordinates with lenders and reviews all mortgage documents and disclosures in advance to help ensure that financial approvals and paperwork are ready on time.

Last-Minute Changes or Requests

Requests for changes to closing terms, additional documentation, or unexpected demands can arise close to closing day. Having an attorney involved helps manage these scenarios efficiently by negotiating terms, clarifying responsibilities, and preventing unnecessary hold-ups.

The Role of a Real Estate Attorney in Safeguarding Your Transaction

Beyond simply reviewing documents, a real estate attorney actively oversees the entire closing process. Their legal expertise helps:

Advise you on rights, obligations, and risks before signing any contracts.
Coordinate with real estate agents, lenders, inspectors, and title companies.
Address and resolve disputes or title issues promptly.
Prepare and review closing statements, deeds, and affidavits for accuracy.
Explain all legal documents to you clearly so you can make informed decisions.
Attend closing to ensure the process complies with Illinois real estate laws and is completed seamlessly.

This hands-on involvement lowers risk and increases confidence that your transaction will conclude without unexpected delays.

Step-by-Step Guide to Avoid Delays with a Real Estate Attorney

1. Early Contract Review
As soon as you get the purchase agreement, have your attorney examine it thoroughly. This helps identify ambiguous language or unfavorable terms before you are legally bound, reducing renegotiations down the line.

2. Title Search and Clearance
Have your real estate attorney order a title search early in the process. Detecting liens, judgments, or errors early gives time to clear problems well before closing.

3. Inspection Contingency Management
Collaborate with your attorney to develop a clear and fair approach for handling inspection findings. Agreeing upfront on timelines and responsibilities for repairs or credits prevents disagreements.

4. Document Preparation and Review
Have your attorney review all loan documents, disclosures, and closing statements to catch errors or omissions that could delay funding or recordation.

5. Effective Communication and Follow-Up
Maintain consistent communication with your attorney, realtor, lender, and title company. Your lawyer acts as a central point to coordinate responses, accelerate problem-solving, and keep everyone aligned.

6. Final Closing Preparation
Prior to closing, your attorney will review all final documents and be present at the closing to ensure everything is accurate, legal, and ready for recording.

Tips and Tricks to Smooth Your Real Estate Closing

Hire a real estate lawyer early, not last minute, to allow comprehensive review and preparation.
Be proactive with documentation and promptly provide requested information to your attorney and lender.
Avoid financial changes such as opening credit cards or large purchases during the process that can impact financing.
Use checklists supplied by your attorney to track important deadlines and responsibilities.
Trust your real estate lawyer to flag risks and negotiate solutions to setbacks quickly and effectively.

Take Action Today to Secure a Timely Closing in Elgin, Illinois

When you want peace of mind and fewer headaches during your real estate transaction, contacting a knowledgeable real estate lawyer in Elgin, Illinois, is essential. At Suburban Legal Group PC, our experienced attorneys specialize in everything from contract review to closing coordination.

We understand how to minimize closing risks so that you can move into your new home on time. Our team values clear communication, thorough preparation, and fast resolution of issues.

If you want to avoid closing delays and secure your real estate investment, reach out to Suburban Legal Group PC today. Call (847) 843-8600 or visit our contact page to schedule a consultation with a trusted real estate lawyer in Elgin, Illinois.

What You Should Know About Bankruptcy Lawyer in Elgin, IL

Mon, 09 Feb 2026 19:09:50 GMT

If you’re struggling with debt and considering your options, consulting a bankruptcy lawyer in Elgin, IL, is a crucial first step. Filing for bankruptcy can seem overwhelming, but with the right guidance, it can provide a fresh financial start. A skilled bankruptcy attorney in Elgin, IL, helps you understand the process, protect your assets, and navigate the legal system efficiently. Bankruptcy is not just about eliminating debt, it’s about creating a structured plan to regain financial stability. Your attorney can explain the differences between Chapter 7 and Chapter 13 bankruptcy, help you understand which debts can be discharged, and guide you on exemptions that may protect your home, car, or retirement savings. They can also clarify how bankruptcy affects your credit score and what steps you can take to rebuild your financial health after the process. By working with an experienced professional, you gain the knowledge and support needed to make informed decisions and avoid common pitfalls that could complicate your financial recovery.

How Bankruptcy Can Impact Your Home and Foreclosure Timeline

Understanding how bankruptcy affects your home is essential when facing financial difficulties. Consulting a bankruptcy lawyer in Elgin, IL, can provide clarity on your options and help you protect your most valuable assets. Filing for bankruptcy can temporarily halt foreclosure, giving you time to reorganize your finances or catch up on missed payments. During a consultation, a bankruptcy lawyer in Elgin, IL, will review your mortgage, debts, and exemptions to determine the best strategy for your situation.

Here’s what you need to know:

Temporary Halt on Foreclosure: Filing for bankruptcy triggers an automatic stay, pausing foreclosure proceedings and creditor collection efforts.
Protection of Assets: A bankruptcy lawyer in Elgin, IL, can advise on exemptions that may allow you to keep your home while discharging other debts.
Customized Consultation: During your initial meeting, your attorney will review your financial situation, explain bankruptcy options like Chapter 7 or Chapter 13, and outline the potential impact on your home.
Foreclosure Timeline Basics: Understanding the stages of foreclosure, notice of default, auction, and final sale helps you make informed decisions about filing for bankruptcy.
Next Steps: After consultation, your attorney can guide you through the filing process, ensuring all paperwork is accurate and deadlines are met.

By consulting a bankruptcy lawyer in Elgin, IL, you gain expert guidance on protecting your home, understanding the foreclosure timeline, and creating a plan to regain financial stability.

Step-By-Step Guide to Filing for Bankruptcy

Filing for bankruptcy can feel overwhelming, but a bankruptcy lawyer in Elgin, IL can make the process much more manageable. Understanding each step helps you prepare and ensures your case moves smoothly.

Here’s a clear step-by-step guide to what you can expect when working with a bankruptcy lawyer in Elgin, IL:

Initial Consultation: Meet with a bankruptcy lawyer to review your financial situation, debts, and assets, and determine the best type of bankruptcy for your needs.
Gathering Documents: Collect all necessary financial documents, including income statements, debts, property information, and monthly expenses.
Choosing Bankruptcy Type: Decide between Chapter 7 or Chapter 13 bankruptcy based on your financial goals and eligibility.
Filing the Petition: Your attorney prepares and submits the required forms to the bankruptcy court, ensuring accuracy and compliance with legal requirements.
Automatic Stay: Once filed, an automatic stay halts most creditor collection actions, providing temporary financial relief.
Creditors’ Meeting: Attend the 341 meeting, where your bankruptcy lawyer will represent you and answer questions from creditors or the trustee.
Debt Discharge or Repayment Plan: Depending on the type of bankruptcy, debts may be discharged, or a repayment plan is implemented to help you regain financial stability.

Frequently Asked Questions About Bankruptcy Elgin, IL

Many people have questions when considering bankruptcy, and consulting a bankruptcy lawyer in Elgin, IL can provide clarity and guidance.

Here are some of the most common questions clients ask:

If you’re ready to take control of your financial future, don’t wait any longer. Contact us today to schedule a consultation with a trusted bankruptcy lawyer in Elgin, IL, who can guide you through every step of the process. We’ll help you understand your options, protect your assets, and create a plan to regain financial stability.

Real Estate Disputes Lawyer: 4 Common Causes of Disputes

Mon, 09 Feb 2026 18:55:09 GMT

If you’re entering the property market, understanding the primary triggers for real estate conflicts can save you significant stress, time, and money. Whether you’re an investor, homeowner, or prospective buyer, knowing when to seek a real estate disputes lawyer in Elgin, IL, can be critical. At Suburban Legal Group PC, our team regularly assists parties in resolving property disagreements, and we’ve seen firsthand how common disputes can quickly escalate without proper documentation and legal insight.

Understanding Real Estate Disagreements

Disputes over property in Elgin, IL, often stem from misunderstandings or unmet expectations between buyers, sellers, landlords, and tenants. These conflicts can arise at any stage of a transaction or ownership. A real estate disputes lawyer brings vital knowledge of Illinois property law and local regulations, offering strategic pathways toward resolution.

1. Title Issues: Silent Threats to Close

Few things can derail a property purchase like a sudden title problem. Title disputes are widespread across Elgin, IL, often surfacing at the eleventh hour, after contracts are signed, deposits are paid, or closings are scheduled.

Common title issues include:

Unknown liens or unpaid back taxes.
Previously undisclosed heirs or legal claims.
Missing signatures on crucial past documents.

When these challenges arise, a real estate disputes lawyer in Elgin, IL, can review historical documents, file the necessary paperwork, and negotiate with all parties. To protect yourself, always retain copies of all signed contracts, property tax receipts, and any communications or agreements about ownership.

Learn more about real estate disputes .

2. Boundary and Survey Conflicts

Disputes often arise when property lines aren’t clearly marked or long-standing fences encroach on a neighbor’s lot. Small discrepancies on surveys can create big arguments, especially as Elgin, IL’s neighborhoods grow and property owners update or sell their homes.

Common examples include:

Unclear lot lines following a new survey.
Shared driveways or access roads.
Encroachments or unauthorized use of land.

Before making improvements or selling, use a professional surveyor and keep all drawings, letters, and permission agreements on file. If disagreements escalate, a skilled real estate disputes lawyer can help negotiate a mutually agreeable solution or represent your interests in court if necessary.

3. Breach of Contract: A Source of Delays

Illinois real estate transactions are governed primarily through sales or lease agreements. Whenever a party fails to deliver on a written contract, be it the seller refusing to fix agreed-upon inspection issues or a buyer backing out without cause, a breach has occurred. This is one of the most frequent reasons clients contact Suburban Legal Group PC.

The key to protecting your rights is timely documentation. Maintain a detailed record of all correspondence, signed addenda, inspection reports, and communications. Should a breach occur, presenting this documentation to your real estate disputes lawyer in Elgin, IL, will help streamline the process, ultimately supporting a quicker resolution.

4. Landlord-Tenant Disagreement Hotspots

Rental properties present unique challenges in Elgin, IL. Disputes between landlords and tenants can stem from repair delays, improper security deposit handling, or misunderstandings regarding notice periods and eviction procedures.

For instance:

A landlord failing to fix a recurring plumbing issue.
A tenant contesting deductions from a security deposit.
Uncertainty over how lease terms apply during emergencies.

If you find yourself unable to resolve these issues directly, document every request, repair log, and lease modification. Involving a real estate disputes lawyer at the earliest sign of escalation helps prevent further legal complications and may speed up negotiations or settlements.

What Should You Document in a Real Estate Dispute?

Proper documentation is the backbone of any successful dispute resolution, whether you’re facing a boundary issue, contract breach, or landlord-tenant standoff.

Here’s what you should always keep:

Signed Contracts: The foundation for any legal claim.
Correspondence: Save emails, texts, and letters; even informal conversations clarify intent and expectations.
Photos or Videos: Images can support your case in encroachment, damage, or repair disputes.
Payment Proof: Receipts and bank statements demonstrate fulfillment of your obligations.
Official Notices: Maintain copies of demand letters, notices to vacate, or other legal documents.

Bringing this documentation to your real estate disputes lawyer will improve your case’s clarity and strength, often encouraging faster, more favorable outcomes.

Visit our real estate law page for more resources on navigating property matters in Illinois.

When Is It Time to Call a Real Estate Dispute Attorney?

Knowing when to seek professional help is crucial. If direct communication breaks down, emotions escalate, or you receive a formal legal notice, involving a real estate dispute attorney becomes necessary. Likewise, time-sensitive situations, such as preventing an improper sale or stopping an illegal eviction, demand prompt action.

Early legal involvement not only helps protect your rights but can also save you substantial money by preventing drawn-out litigation. A real estate disputes lawyer will analyze your case, explain your options, and either negotiate solutions or pursue courtroom remedies if needed.

Preventative Steps to Minimize Future Disputes

While sometimes unavoidable, many real estate disputes can be prevented with proactive measures:

Hire licensed professionals for surveys and inspections.
Use clear, detailed contracts, and avoid verbal agreements.
Communicate regularly and in writing with all stakeholders.
Consult with a real estate disputes lawyer in Elgin, IL, before signing major agreements.

A little caution at the outset is far easier than managing a costly dispute after it begins.

Contact Our Real Estate Dispute Attorney Today

Whether you’re facing a boundary disagreement or a contentious property transaction, challenges can arise unexpectedly. For anyone navigating such situations in the area, preserving clear documentation and seeking legal advice promptly is essential. If you require trusted guidance, Suburban Legal Group PC offers comprehensive support from a dedicated real estate disputes lawyer in Elgin, IL. Take control of your property concerns by reaching out today at (847) 843-8600 . Your peace of mind is only a call away.

Recent Court Cases, CFPB Changes, and the FDCPA

Sun, 30 May 2021 08:31:05 GMT

The Fair Debt Collection Practices Act (FDCPA) was passed in 1978, but a recent court case may impact how the law treats some mortgage servicers and other financial entities. The U.S. Court of Appeals for the Eleventh Circuit upheld a lower court’s decision on the communications made by debt collectors to third-party print vendors.

According to legal publication J.D. Supra , some loan services may need to modify their operations because of the court decision.

“They affirmed that a debt collector’s communication of a consumer’s personal information to a third-party print vendor violated the Fair Debt Collection Practices Act’s prohibition on third-party communications in connection with debt collection under 15 U.S.C. § 1692c(b).”

So, for example, a loan servicer who is also classified as a debt collector would need to modify operations as far as their use of third-party vendors for actions like printing debt collection notices and other paper ephemera.

In the recent court case, the plaintiff alleged that a collection agency called Preferred Collection sent his personal information to a print vendor so that the third-party printer could print a dunning letter. A dunning letter is an initial communication from a debt collector that a debt is allegedly owed.

The lawsuit suggested that the collection agency transmitted personal details that included his name, how much he owed on the debt, and the reason for the debt (medical treatment for his son), and his son’s name.

Information from J.D. Supra on the court case explains further:

“The court concluded that in the context of § 1692c(b), the phrase “in connection with the collection of any debt” has a “discernible ordinary meaning that obviates the need for resort to extratextual ‘factors.'” The court rejected Preferred Collection’s reliance on the multifactor test.”

Changes from the Consumer Financial Protection Bureau

In late 2020, the Consumer Financial Protection Bureau (CFPB) , which is the government entity that guides the implementation of the FDCPA, published a “final rule” to clarify some parts of the FDCPA. The final rule concerns harassment and abuse, unfair practices, and misleading or false representations made by debt collectors.

The government received more than 14,000 comments from the public during the process of creating the rule, and the agency took more than seven years to finalize the details.

“…for example, the rule establishes a presumption on the number of calls debt collectors may place to reach consumers on a weekly basis. A debt collector is presumed to violate federal law if the debt collector places telephone calls to a particular person in connection with the collection of a particular debt more than seven times within seven consecutive days or within seven consecutive days of having had a telephone conversation about the debt.”

According to the CFPB, the final rule was necessary because of the significant changes in communications that have occurred since the FDCPA was passed in the late 1970s. The entirety of the CFPB’s publication is available for viewing as a PDF on the government’s Consumer Finance website .

Are Debt Collectors Harassing You?

Would you like assistance from an experienced legal professional with experience in debt collection law and the FDCPA? Contact Suburban Legal Group for help. A consultation is the first step.

DISCLAIMER: All information on this website is provided for informational purposes only and is not intended to be construed as legal advice. Suburban Legal Group P.C. shall not be liable for any errors or inaccuracies contained herein or any actions taken in reliance thereon.

Recent Bankruptcy Law Changes in 2021

Fri, 30 Apr 2021 08:36:05 GMT

The worldwide coronavirus pandemic of 2020 changed many facets of everyday life, and it even influenced some recent bankruptcy law changes for 2021.

If you own a business or you’re an individual who is thinking about filing for bankruptcy, it’s important to understand how these bankruptcy law changes might impact your ability to file. Here’s what you need to know about recent changes to the federal bankruptcy code.

The Small Business Reorganization Act

Enacted in early 2020, the SBRA increased the debt limit for small businesses to $7,500,000 from an original limit of $2,725,625. The passage of the CARES Act in 2020 was supposed to be a temporary increase that would last until March 27, 2021. An additional law known as the COVID-19 Bankruptcy Relief Act of 2021 pushed the timeline to March 27, 2022, for the date of expiration.

For individual bankruptcy filings not part of a business, the CARES Act and the SBRA also extended some changes. Some of those changes included excluding any payments made for coronavirus-related issues from income for filers of chapter 7 and chapter 13 bankruptcies. In addition, the acts allowed certain chapter 13 filers the opportunity to modify their payment plans if they were experiencing financial hardships related to the coronavirus.

Changes to Tenant and Landlord Laws

One of the most notable changes to laws in the wake of the pandemic has been the changes made to tenant and landlord laws. With many of the nation’s courts closed to in-person sessions because of the virus, the government has attempted to improve the likelihood of tenant/landlord disputes being settled outside of the court.

One of the changes to the law as it relates to bankruptcies and debtors has been to the “preferences” aspect of a bankruptcy case. Traditionally, debtors could be penalized during bankruptcy if their payment patterns changed substantially right before they filed for bankruptcy.

For example, if a debtor paid off a car in lieu of making payments to credit card companies, those card companies could ask the court for money that they would have received if the debtor has kept his or her payments intact. The law change as far as it impacts tenants and landlords was designed to remove an element of uncertainty in the bankruptcy process and lead to smoother cases.

It’s possible that the pandemic will influence other bankruptcy law changes and extensions in the future, so it’s important to remain aware of those possible changes in the future. Speaking with a bankruptcy lawyer is a good way to make sure you benefit from any bankruptcy changes that have been designed to make the process easier and more equitable for all involved.

Are You Thinking About Bankruptcy?

Would you like assistance from an experienced legal professional with experience in bankruptcy law? Contact Suburban Legal Group for assistance with all matters relating to debt collection law, the FDCPA, and bankruptcy. A consultation is the first step.

DISCLAIMER: All information on this website is provided for informational purposes only and is not intended to be construed as legal advice. Suburban Legal Group PC shall not be liable for any errors or inaccuracies contained herein or any actions taken in reliance thereon.

What is a Tax Lien?

Tue, 30 Mar 2021 08:40:28 GMT

A tax lien occurs when the government places a claim against the assets owned by a business or an individual when there are outstanding taxes owed. If the business or individual fails to satisfy the tax debt, the government may move to seize the asset or assets and sell them to pay for the debt.

Not only can the federal government place a tax lien on the property when someone is behind on their income taxes, but local governments can also place tax liens on property when local income taxes or property taxes haven’t been paid. The government will send you a letter if they decide that you owe money, but they won’t place a tax lien on your property until you fail to pay the debt or ignore the notice.

In many cases, a tax lien is placed on physical property like a house or land, but the government may also place a tax lien on assets like vehicles or securities. The government may place additional liens on property acquired by the debtor after the initial lien has already been filed.

Can You Get Rid of a Lien?

The act of placing a lien on your property doesn’t mean that you will lose your house, car, or other asset. The official Internal Revenue Service website indicates that there are three ways to get rid of a lien. Those ways include “discharge of property,” “subordination,” or “withdrawal.”

A discharge of property means that the government removes the lien from a piece of property. As a taxpayer, you can apply for a “Certificate of Discharge from Federal Tax Lien.”

The second option, “subordination,” means that the government will allow other creditors to collect on debts before the IRS lays claim to an asset. Normally, the government has priority for seizing assets when there are taxes owed.

The third option, which is known as “withdrawal,” occurs when the Notice of Federal Tax Lien is removed even if the taxpayer still owes the government money. In order to secure a withdrawal, you may need to meet certain guidelines published by the government.

The IRS indicates that it is possible to avoid tax liens:

“You can avoid a federal tax lien by simply filing and paying all your taxes in full and on time. If you can’t file or pay on time, don’t ignore the letters or correspondence you get from the IRS. If you can’t pay the full amount you owe, payment options are available to help you settle your tax debt over time.”

If you are unable to pay all of the taxes you owe, the government won’t automatically seize your property the first chance it gets. The government will work with you as long as you remain in contact and don’t ignore their messages about paying your tax debt.

A Tax Lien is Different from a Tax Levy

A tax levy is a more serious issue than a tax lien because it is the actual seizure of a piece of property by the government to satisfy a tax debt. A refusal to pay your taxes or the act of ignoring the requests by the IRS to pay a tax debt may result in the issuance of a levy by the government and the sale of the property to satisfy the tax debt.

Are You Dealing with IRS Problems or a Tax Lien?

Would you like assistance from an experienced legal professional with experience in tax and IRS issues? Contact Suburban Legal Group for assistance with all matters relating to Tax and IRS problems. A consultation is the first step.

Will Student Loan Forgiveness Happen?

Sun, 28 Feb 2021 08:43:42 GMT

One of the most talked-about topics in politics at the start of the Biden presidency has been the prospect of student loan forgiveness. Millions of college students take out many thousands of dollars in loans to attend college, and millions more have paid on their loans for decades without seeing any dent in the overall amount owed.

An article from CNBC suggests that the amount of money owed by students and former students has increased by more than 100 percent in the last decade. The Federal Reserve revealed that the overall amount owed was greater than $1.7 trillion. The number increased by four percent during the 2020 pandemic.

“The decades-long increase in student debt is even more noticeable when compared to decades prior. In quarter three of 2010, Americans owed roughly $845 billion in student loans, which means that U.S. student debt has increased by approximately 102% in the past decade.”

It seems like articles are published each year that indicate that the overall number is growing by a hundred million dollars every year. Unfortunately, much of the debt is increasing due to the interest rates owed by students on their loans.

An article from Nerd Wallet suggests that the average interest rates on student loans vary greatly and may go from 1.99 percent up to 14.50 percent and depend on the type of loans received. Fixed-rate private student loans can reach 14.50 percent, but fixed-rate federal student loans for undergraduates have been around 3 percent in recent years.

“The average student loan interest rate is 5.8% among all households with student debt, according to a 2017 report by New America, a nonprofit, nonpartisan think tank. That includes both federal and private student loans — about 90% of all student debt is federal.”

Student Loan Forgiveness May Come in the Future

Some senators and representatives in the U.S. Congress have talked about sending a bill to the floor that would forgive a substantial portion of the average student loan balance, but efforts to include student loan forgiveness in legislation have been somewhat futile. An article from Forbes explains:

“[T]he Biden administration has maintained that the White House will push Congress to pass additional legislation in the coming months providing for student relief, including some level of student loan forgiveness for borrowers. Biden has supported $10,000 in student loan forgiveness but recently came out against $50,000 in student loan forgiveness proposed by Democratic lawmakers and student loan borrower activists.”

The only immediate relief that student loan borrowers will likely see in the coming months is the continuation of the pause on student loan payments, interest, and collection activity. The Biden administration extended a Trump-era pause until September 30, 2021, on student loan payments.

So far, President Biden has expressed doubt that he had the legal authority to cancel student debt, but he’s asked the government to investigate the possibility of canceling the debt and figuring out whether he could pass the legislation. Although some student loan forgiveness advocates have asked for the cancellation of $50,000 in debt, Biden has only suggested an elimination of $10,000 in debt.

Are You Worried About Student Loan Default or Bankruptcy?

Would you like assistance from an experienced legal professional with experience in bankruptcy law? Contact Suburban Legal Group for assistance with all matters relating to bankruptcy. A consultation is the first step.

Are Unemployment Benefits from COVID Relief Taxable?

Fri, 29 Jan 2021 08:49:06 GMT

Nationwide, each state treats unemployment benefits differently, with some states requiring that income tax be paid on all unemployment benefits and other states leaving those benefits untaxed.

The federal government does require that taxpayers pay federal income tax on their unemployment benefits, but 2020 has some taxpayers wondering whether those benefits received due to COVID-19 will be taxed, too.

Here’s what you need to know about unemployment benefits in Illinois and how the state and federal government may tax you if you received benefits at some point in 2020 during the worldwide coronavirus pandemic.

Unemployment Compensation in the State of Illinois

According to the Illinois Department of Revenue, there are two circumstances where unemployment compensation is taxable. Those circumstances include when the taxpayer resided in Illinois as a resident or when the taxpayer was a non-resident but received their unemployment compensation from the Illinois Department of Employment Security.

Not all states around the country tax their unemployment benefits, but Illinois does. In addition to paying taxes on unemployment benefits to the state, Illinois residents may also need to pay additional taxes on their unemployment benefits to the federal government as part of their income tax filing.

One important facet of taxes in Illinois is that some residents are eligible for an income tax credit if they pay taxes on income to another state. The Illinois Department of Revenue reveals in its question and answer series:

“However, if you are filing as a resident or a part-year resident, you may be allowed to take a credit against Illinois Income Tax for income tax you paid to another state. See the instructions for Form IL-1040, Line 15, and Schedule CR, Credit for Tax Paid to Other States.”

If you have complex taxes that include income from another state, you might need to use the services of an accountant to help you file.

Stimulus Checks Aren’t Taxable

Many Americans around the country received a direct payment from the federal government to help with costs related to the pandemic. The payment would become known as the “stimulus” payment. A second payment was also sent to millions of Americans as part of another aid package passed by Congress.

Fortunately, the federal government has indicated that the Internal Revenue Service won’t look for taxes to be paid on these “Economic Impact Payments,” but there are circumstances when those payments will be taken by the government. There are also circumstances when you might get the payment in the form of a tax credit.

An article published by AARP explains:

“If, for some reason, you didn’t get any stimulus payment last year, but you’re owed one, you can get it this year when you file your 2020 tax return. If you don’t get the full amount that you were entitled to in 2020 or 2021 — you could also get that from your 2020 tax return.”

For example, anyone who has to claim a tax credit because they didn’t receive the initial payment might see their credit reduced if they owe the IRS money or are behind on child support payments.

The overall economic impact of the pandemic won’t be known for several years, but it’s possible that some families will be pushed into bankruptcy as a result of the nation’s economic collapse in 2020. In such circumstances, it’s best to speak to a bankruptcy lawyer to discuss bankruptcy options.

Are You Thinking About Bankruptcy?

What is the Consumer Bankruptcy Reform Act?

Wed, 30 Dec 2020 08:53:18 GMT

The federal government makes changes to its bankruptcy laws every so often and states also pass measures of their own when they feel their laws require an update. In December of 2020, Senators Warren and Nadler introduced a new bill called the Consumer Bankruptcy Reform Act of 2020, which would make some changes to the nation’s current bankruptcy laws.

According to Senator Warren’s official government website , the act would…

According to the senators, the current system doesn’t offer the right amount of support to individuals and families who have to file for bankruptcy. Families who file for bankruptcy spend too long recovering after filing for bankruptcy, and it’s hard for them to get back on their feet.

Here are some of the ways the senators hope the bill would help struggling families.

Reduce the cost of the bankruptcy process. The act would reduce the cost of filing fees, so people who were struggling could file without going even further into debt.

Combine chapter 7 and chapter 13 bankruptcies. The act would combine consumer bankruptcy types into one type that would streamline the filing process.

Add local government fines to bankruptcy options. People with local government fines could eliminate them through bankruptcy, which isn’t the case with the current laws.

Close loopholes for wealthy filers. There are some loopholes that wealthy individuals use to “game’ the bankruptcy system, and the new act would eliminate those loopholes.

Increase protections for consumers. Creditors would no longer be able to force consumers into arbitration if the consumer would prefer to take their case to court.

Bankruptcy is designed to be the last resort for individuals and families who are greatly indebted. Those sponsoring the Consumer Bankruptcy Reform Act hope that their legislation would aid families in recovering financially after bankruptcy.

Is It Too Hard to File for Bankruptcy?

There are thousands of people around the country that file for bankruptcy every year, and the process is definitely one where a lot of paperwork and time are involved. For the average citizen, filing for bankruptcy is a process that should be accomplished with the help of a lawyer.

However, it is possible to learn some valuable information about bankruptcy before heading to a lawyer to file. Here are some of the important facets of bankruptcy you’ll want to know – whether this new bankruptcy act is passed or whether the nation’s bankruptcy laws remain the same.

Everyone who files for bankruptcy must undergo counseling before filing.
A great lawyer makes a big difference in the ease of filing your case.
You’ll either have your assets liquidated or be required to undergo a payment plan.
Not all types of debts are dischargeable in bankruptcy.

Speaking with a lawyer can help tremendously in helping you decide whether to file for bankruptcy.

Are You Thinking About Bankruptcy?

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Protecting Yourself from Ruthless Debt Collectors

Mon, 30 Nov 2020 08:57:48 GMT

The pandemic has brought financial misfortune to millions of Americans, and when the dust settles, and life slowly gets back to normal, it’s a good bet that debt collectors will ramp up their efforts to collect. The financial instability of 2020 has pushed the budgets of many Americans to the breaking point, and it’s only a matter of time until home foreclosures, unpaid loans, and overdue credit card debts start to become a problem.

While it may take months or years for some Americans to get back on their feet after the financial hurt caused by the pandemic, it’s likely that the nation’s debt collectors will begin their endless calls and letters to those who may – or may not – owe them money. The one bright spot in the world of debt collection is that Americans are protected by laws like the Fair Debt Collection Practices Act (FDCPA), and they also have options like bankruptcy when debts become insurmountable.

If you’re worried about unpaid debts, or you were recently informed by a debt collector or debt buyer about a debt, here are some protections you should know about so you aren’t taken advantage of by those collectors.

What Debts are Covered by the FDCPA?

There are several types of debts that are covered by the protections of the FDCPA. Those debts include mortgages, medical debts, credit cards, and various personal or family debts. The FDCPA doesn’t cover business debts, and it’s also not enforced when an original creditor is involved.

The FDCPA, which is a federal rule, as well as various state rules, prevent entities like debt buyers and collection agencies from harassing citizens over unpaid debts. If you have an unpaid loan or an overdue credit card, your original creditor (a company like Capital One or Discover) might sell your account to a debt buyer, who will try to collect the debt from you.

This debt collector is bound by the rules of the FDCPA regarding the behavior the collection agency can engage in while trying to collect money. Understanding the major facets of the FDCPA and similar rules can help you understand when to contact a lawyer and when to ask a legal professional about whether your rights have been violated.

The major restrictions placed on debt collectors include:

Time restrictions. A debt collector cannot contact you when it’s inconvenient. In fact, they can’t call you before 8 AM or after 9 PM. They also can’t call you at work if you inform them that you cannot accept calls at your place of work.

Attorney restrictions. If you hire a lawyer to protect you or represent you, a debt collector cannot contact you directly and must contact your legal representative. The debt collector must contact your attorney once you inform them that you have one.

General harassment. Debt collectors aren’t allowed to engage in harassing behaviors, whether that’s through angry phone calls or letters with strong language. They can’t harass anyone else you’re related to, work with, or know to collect a debt, either.

Researching Your State Debt Collection Laws

Some states around the country have laws that protect their citizens from debt collectors. These laws are usually known as Deceptive Acts and Practices laws. All states don’t have these laws, but those that do can offer even more protection for debtors who are struggling with unpaid debts.

If you live in Illinois and believe that a debt collector has violated the law, the Illinois Attorney General indicates that you have one year from the date of the alleged law violation to file a lawsuit. A year isn’t a long time, so it’s important to speak with a lawyer early if you believe your rights have been violated. It’s better to be safe than sorry when it comes to filing a lawsuit.

Are You Dealing with Debt Collectors and a Possible Bankruptcy?

Are There Any Alternatives to Bankruptcy?

Fri, 30 Oct 2020 10:29:17 GMT

Most Americans carry some type of debt, whether it’s school loans, credit cards, a mortgage, or other loans. Sometimes, these debts take over, and it becomes impossible to figure out a way to pay everything owed every month.

In dire circumstances, the only option might be filing for bankruptcy, where the court takes over and either sells all of your assets or creates a payment plan for reducing and eliminating your debts.

Is bankruptcy the only answer? Since bankruptcy can cause you financial distress for many years since it destroys your credit rating, it’s a worthwhile investment of time to determine whether there are any other options to bankruptcy.

Here are some to consider.

Contact Your Creditors About Payment Plans

Some lenders have no sympathy and won’t negotiate any sort of payment plan. They won’t reduce your balance, and they’ll put a black mark on your credit report as soon as you miss a payment. Fortunately, not all lenders are the same when it comes to payment difficulties.

From credit card companies to car loan lenders to student loan vendors, many debtors will work with you to make repayment possible. You may actually be able to arrange to pay less money over time, halt your payments for a few months, or negotiate a lower payout if you agree to pay the entire amount owed in one payment.

In some cases, you can actually share your worries about bankruptcy to your lenders, and they may agree to help you avoid filing if it means they’ll receive some payment from you rather than having most of, or the entire debt eliminated through bankruptcy.

An article on bankruptcy alternatives from The Balance reveals:

“Your creditors would rather get some money from you than no money at all. Let your creditors know you are having financial difficulty and want to avoid bankruptcy. Express your willingness to pay the debt and ask if they can help ease the burden by lowering your monthly payment or decreasing your interest rate (or both). Many credit card companies and banks have hardship programs intended for this type of situation.”

Even if you’re not able to make arrangements with every creditor, you might be able to lessen your financial burden enough that you are able to recover from your financial trouble without the aid of bankruptcy.

Try to Settle with Creditors and Collectors Without the Court

One of the ways the court helps a debtor during bankruptcy is through payment plans (Chapter 13 bankruptcy) and asset liquidations (Chapter 7 bankruptcy). Your creditors will negotiate settlements during bankruptcy in the same way that they might if they were dealing with you directly.

Debt settlements are a popular way that consumer credit counseling companies help their clients reduce their debts. However, you might be able to secure these settlements on your own without the help of a credit counseling company or bankruptcy. All it takes is a phone call to your creditor to start the negotiations process.

Try to Downsize or Liquidate on Your Own

If you’re facing foreclosure on your house, bankruptcy might actually be the best option you have for saving your home and keeping your family in place. However, if you’re facing bankruptcy and you don’t own a house, you might benefit from making the hard decision to downsize and sell your possessions on your own.

When combined with debt consolidation efforts, debt settlements, and payment arrangements, the sale of your possessions might actually make it possible to avoid bankruptcy. However, it’s important that you truly decide whether bankruptcy is the best step – or not – for your personal circumstances.

One of the facets of your life that the court will examine when deciding whether to grant your bankruptcy request is whether you’ve made any significant financial decisions immediately before filing. It’s important that your efforts to avoid bankruptcy aren’t interpreted by the court as an attempt to subvert the bankruptcy process.

You may wish to speak with a lawyer about whether bankruptcy would offer the best solution or whether another route might help you more, particularly before you begin making any major financial decisions.

Do You Need Help Filing for Bankruptcy?

Have you recently decided that you might need to file for bankruptcy? Would you like to know more about the bankruptcy process? Contact Suburban Legal Group for assistance with all matters relating to bankruptcy.

Can You Buy a Foreclosed Home?

Fri, 30 Oct 2020 09:05:31 GMT

A home foreclosure occurs when a lender decides to sell a house because the homeowner has been unable to make payments on the house. With a home mortgage, the house is the collateral the bank or lender will sell if the homeowner doesn’t make payments.

Alth ough the prospect of facing foreclosure is something no one wants to experience, the foreclosure of a home does offer prospective homeowners the chance to own a home. Here’s what you need to know about whether you should buy a foreclosed home.

Buying a Pre-Foreclosure Home

The bank or lender won’t sell a home immediately when a homeowner doesn’t make a payment. The bank will usually give the homeowner some time to satisfy the debt or to sell the property for cash to pay off the mortgage.

The pre-foreclosure stage is where a potential cash buyer may want to make an offer on the house. Selling a home that hasn’t yet fully foreclosed offers the homeowner the chance to get out from under a mortgage and to sell the property without the final foreclosure staining his or her credit for years.

A home in pre-foreclosure might actually experience a bidding war if the home is situated in an area with high demand, but purchasing a home that hasn’t yet reached full foreclosure is often a little easier than waiting for the bank auction to occur. The caveat is that you must have cash on hand to buy the house.

Another issue is that pre-foreclosure homes don’t always reach the open market, so sometimes it’s tough to even know if a home is for sale or whether the owner is in the process of trying to cover the outstanding debt he or she owes on the mortgage.

Attend an Auction to Learn About Buying a Foreclosure Home

In most cases, a home that has been foreclosed on will see itself placed at auction by the bank or lender. Some auctions are small with just a single auctioneer or a bankruptcy trustee in attendance and a few buyers. Other auctions are handled by large firms that sell many properties at the same time.

Real estate listings website Zillow recommends that prospective buyers attend a few auctions before they really try to purchase a house. They also offer this advice:

“When you’ve found a property you want to bid on, contact the auctioneer or trustee to determine how much money you need to bring to the auction; the amount varies from state to state. Many auctions require bidders to bring a certified check for $5,000 made out to the auction company to show legitimate intent. In some cases, a percentage of the winning bid is required on the day of the sale. Make sure you research auction requirements in your state before bidding on a foreclosure.”

It can be very tough to come up with the amount of cash that is necessary for auction day, and many of the buyers of foreclosed homes at auction are corporations that make a business of buying and selling foreclosed homes. Attending a few auctions before you actually intend on bidding can help you understand how much to bid on a particular type of property.

Condition Versus Price When You Buy a Foreclosed Home

One of the biggest issues that can occur when you buy a foreclosed home is that the condition of the home may be somewhat terrible and the fact that you can’t always tour the home before you buy it. Sometimes, you have to purchase the home after seeing nothing more than the exterior of the house.

If you’re not prepared for the prospect of making some major repairs on the house, you might find it difficult to actually go through with purchasing a foreclosed home. If, on the other hand, you’d like to find a fixer-upper, a foreclosed home could be the answer, as long as you’re able to outbid professional home “flippers” and get the cash necessary to purchase the home.

Are You Dealing with Foreclosure or Other Real Estate Issues?

Would you like assistance from an experienced legal professional with experience in real estate? Contact Suburban Legal Group for assistance with all matters relating to real estate law and property. A consultation is the first step.

What Happens When You Pay Taxes Late?

Wed, 30 Sep 2020 09:17:27 GMT

If you pay your taxes late, you may have some penalties to pay, but it’s unlikely your life – or business – will be turned completely upside-down as the Internal Revenue Service (IRS) seeks to take everything you own.

Mistakes happen, and sometimes financial problems exist that make it impossible to pay the IRS what is owed. Fortunately, there are a few things you can do that will reduce the number of hassles you may experience in filing your taxes late.

Here are a few important tips to follow to make sure your penalties and fees are as low as possible.

Don’t File Your Taxes Late Because You Can’t Pay

The most important part of filing taxes is filing them on time. It’s not necessarily paying them on time. The IRS charges a larger penalty when you fail to file your taxes than when you file your taxes and don’t pay what is owed.

The IRS shares on its official website:

“The failure-to-file penalty is generally more than the failure-to-pay penalty. You should file your tax return on time each year, even if you’re not able to pay all the taxes you owe by the due date.”

According to further information from the IRS, you’ll pay 5 percent of the unpaid taxes each month that the tax return is late. On the other hand, the penalty for failing to pay is 0.5 percent of the amount you owe the IRS

Getting Penalties Waived When You Pay or File Late

As long as you’re not a habitual offender when it comes to filing your taxes late or paying late, you might be able to get your penalty waived.

The Internal Revenue Service shares further:

“You may qualify for administrative relief from penalties for failing to file a tax return, pay on time, and/or to deposit taxes when due under the Service’s First Time Penalty Abatement policy.”

In order to qualify for the administrative waiver, you must have filed your returns on time and have incurred no penalties in each of the last three tax years. You must also have filed all of your required tax returns, as well as paid or entered payment arrangements for all taxes currently due.

The IRS charges interest on its penalties and fees, but if you are able to qualify for a waiver on your fee, you might be able to have the interest reduced or removed when the penalty is forgiven. However, if any balance remains for what you owe the IRS, you’ll accrue interest until the entire amount owed is paid.

Are You Dealing With Tax Problems and the IRS?

Would you like assistance from an experienced legal professional with experience in tax & IRS issues? Contact Suburban Legal Group for assistance with all matters relating to the IRS and your taxes. A consultation is the first step.

DISCLAIMER : All information on this website is provided for informational purposes only and is not intended to be construed as legal advice. Suburban Legal Group PC shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

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Can Debt Collectors Collect During the Coronavirus Pandemic?

Mon, 31 Aug 2020 09:35:42 GMT

Debt collectors often act in ruthless ways that can create immense stress in your life, and some debt collectors even run afoul of the law and break the rules of the Fair Debt Collection Practices Act (FDCPA) in their zeal to obtain money from debtors (whether or not the money is actually owed).

The coronavirus pandemic has fueled additional collection activity in many states around the country because of the record number of people who have lost their jobs, shuttered their businesses, and seen their work opportunities evaporate in the face of social distancing restrictions.

Unfortunately, a report recently published by the Pew Charitable Trust and reported on by the New York Times suggests that debt collection lawsuits have become a tool for the collection industry with thousands of suits filed in states across the nation .

“Americans wrestled with debt-collection lawsuits long before the coronavirus hit, a new report finds. Now, a surge of the suits may swamp consumers who lost their jobs in the pandemic and can’t afford to pay their bills.”

The NYT article explains further that more than 25 percent of Americans who have a credit report actually have active debt collection activity on their report by a third-party debt collector. Lawsuits often follow failed collection attempts by creditors and debt collectors .

Talk to a Creditor Before Debt Collection Begins

The Consumer Financial Protection Bureau (CFPB) of the federal government actually recommends calling your creditors before you fall behind on payments. There are some programs that lenders offer that allow you to skip payments, receive a temporary interest rate reduction, or adjust the amount due for a few months.

The CFPB suggests:

“When contacting your lenders, be prepared to discuss your financial and employment situation, as well as how much you can afford to pay considering your income, expenses, and assets.”

It’s important to remember that your lenders don’t have to let you pay less just because you’re experiencing financial difficulties, but they’re often much more willing to work with you on your financial issues if you call them ahead of time.

You’ve probably heard the saying that “it’s easier to ask for forgiveness than to ask for permission,” but that isn’t the case with creditors or debt collectors. If you have any inkling that you’ll miss a payment on one of your credit cards, it’s essential to get in touch with your creditors as soon as possible to avoid late payments and anything that could trigger collection activity .

Stay Abreast of Legislative Changes and Coronavirus Updates

It’s worth staying in-the-know about the steps the government has taken to help citizens with overcoming financial problems during the pandemic. A blog published by the Federal Trade Commission (FTC) reveals that federally-owned student loans in default were put on pause for several months and that many states have placed restrictions on foreclosures and evictions.

“If the collection calls get to be too much, you can stop them. Just send the collector a letter telling them to stop contacting you. Keep a copy for your records. Stopping the calls won’t cancel the debt. You still might be sued or have debt reported to a credit bureau. But, stopping the calls may give you time to regroup, then start working your way toward financial recovery.”

Even though watching the news and all the information about the pandemic may feel exhausting at times, it may be extremely beneficial to your financial future to remain aware of what’s going on with future financial assistance and payment moratoriums created by the government in the coming months.

Are You Dealing With Ruthless Debt Collectors?

Would you like assistance from an experienced legal bankruptcy professional? Contact Suburban Legal Group for assistance with all matters relating to bankruptcy. A consultation is the first step in figuring out whether bankruptcy is right for you and your family.

Bankruptcy Timeline

Thu, 30 Jul 2020 09:41:38 GMT

Filing for and completing the bankruptcy process is a long and complicated journey, and the bankruptcy timeline may take more than six months to complete. If you decide to file for bankruptcy, you will likely need to speak with a lawyer to start the process because there are so many steps involved.

Not only must you navigate the court system during your bankruptcy proceedings, but you may also need to communicate with several companies that own debts that you owe. If you have a lot of debts from many creditors, the bankruptcy process may become overwhelming, and you may not even reach a point wh ere your bankruptcy is considered complete.

Before You File

One of the most important parts of the bankruptcy timeline is what happens before you ever file any bankruptcy paperwork. It’s important that you don’t try to pay any personal debts to friends or family during the year before you file for bankruptcy because the court may actually take back that payment and apply it to one of your official creditors.

For filers in Illinois, the court requires that you are a resident of the state for at least 90 days before you file. The court will also frown upon any new credit accounts or luxury purchases made in the months before your bankruptcy filing.

When You File for Bankruptcy

When you file your bankruptcy petition with the court, a “stay” will be put in place to prevent creditors from taking additional actions regarding the collection of debts. The court will create a bankruptcy estate, as well as appoint a trustee to the case. A bankruptcy estate is a list of all non-exempt property owned.

A few weeks after you file for bankruptcy, you’ll need to provide several pieces of information to the court that include a list of your assets with documentation, a list of your liabilities, your regular expenses, and your income. Your creditors will also all receive a Notice of Commencement of Case that will let them know about the meeting of creditors.

The Meeting of Creditors and the Statement of Intention

One of the important events in a bankruptcy case is the meeting of creditors, which is usually held around a month after the case is filed. The meeting is usually an informal event, but it’s mandatory that you attend the meeting even if all your creditors aren’t in attendance.

A few months after the meeting of creditors, they will have the chance to object to discharging any debts listed in the bankruptcy petition. Some of the reasons a creditor might object include fraud, stealing, or divorce proceedings.

In addition to the meeting of creditors, you must also create a Statement of Intention, which will clarify to the bankruptcy trustee whether you want to keep any of your property or whether you will give the property to the creditors. A few weeks after the case is filed, you must also create a statement for the court that explains your expected income over the next year.

How Long Does Bankruptcy Take?

Your overall bankruptcy timeline should take anywhere from four to six months, but you may encounter a longer bankruptcy timeline if there are any problems with your case or if there are any objections from your creditors. Your timeline may also last longer if you have property that the trustee must sell or if the trustee asks you to provide additional information or documents.

Do You Want to File for Bankruptcy?

Is Debt Consolidation Better Than Bankruptcy?

Tue, 30 Jun 2020 09:45:17 GMT

Debt consolidation is a popular option for anyone who has a lot of credit card debt and wants to pay off their debts without filing for bankruptcy, but it’s not an option for everyone. Some people will fare better when they file for bankruptcy, and others will have the best experience if they consolidate their debt.

How do you choose between debt consolidation and bankruptcy? The choice might come down to the type of debts you have and what you want to accomplish in the future as you rebuild your financial health.

The Positive Aspects of Debt Consolidation

If you can obtain a debt consolidation loan where the interest rate is better than what you currently have on any of your credit cards, you might fare best with the loan. Some of the helpful aspects of debt consolidation include:

One monthly payment for all debts
Swifter payoff for current debts
Lower interest rates and money saved
Cessation of collection calls on overdue debts

One of the best parts of debt consolidation loans is that they can reduce the number of late fees and added charges that you might experience if you try to pay everything off on your own. Even if you think you can chip away at your debt over time, you might pay a significantly higher overall amount on your debts because of high interest rates and various fees.

The Cons of Debt Consolidation

One of the biggest problems consumers have with debt consolidation loans is that they tend to require a solid credit score. If you’re looking at debt collectors harassing you and late fees piling up on your credit cards, you probably don’t have a terrific credit score. It can be tough to qualify for a loan with a low interest rate for your debt consolidation if you can’t maintain a good credit score.

If you’re facing an overwhelming amount of debt that you don’t feel like you’ll be able to pay off, your best bet might be to speak with a lawyer about bankruptcy. You have a few options with bankruptcy, but it is considered one of the toughest options when you’re facing mounting debt. Bankruptcy isn’t easy, but it can act as a lifesaver for some families, particularly if they own a home.

The Positive Features of Bankruptcy

If you have a certain type of debt, bankruptcy might be the best option for you. Saving a home from foreclosure is one of the best reasons to file for bankruptcy, and it’s also the best way to get a fresh start with debt repayments (with Chapter 13 bankruptcy) or liquidation (with Chapter 7 bankruptcy).

As long as the debts you’re unable to pay aren’t student loan debts, bankruptcy might be one of the best options for eliminating your debts. Your assets and your current employment status will usually impact whether your judge recommends you file for Chapter 7 bankruptcy or recommends you file for Chapter 13 bankruptcy.

Although your credit score will take a severe beating when you file for bankruptcy, it’s actually one of the best ways to recover a good score over time. If you have unpaid debts, overdue bills, and mounting late fees, you might never be able to rebuild your credit score. Bankruptcy can eliminate the overdue bills and stop the late fees, so you can settle your debts and enjoy a better credit rating in the future.

Are You Trying to Decide Between Bankruptcy and Debt Consolidation?

Can I Still Buy a Home During the COVID-19 Pandemic?

Fri, 29 May 2020 09:49:25 GMT

In just a few short months, the coronavirus pandemic of 2020 has thrown the world’s economies into chaos, tens of millions of people have filed for unemployment assistance, and entire industries have experienced collapse with stay-at-home orders.

For anyone who was – or is – thinking about purchasing a home, it’s common to wonder if the virus might impact whether it might be possible to get a home loan, refinance a mortgage, or even file for bankruptcy to avoid foreclosure and the loss of a family home.

Mortgage Applications Have Grown Scarce

According to an article from The Los Angeles Times , the number of home sales has plummeted during the COVID-19 pandemic, but it hasn’t gone away completely. Unfortunately, some banks have tightened their lending rules, which has made it more difficult for prospective home buyers to qualify for a mortgage loan.

However, the pandemic’s impact on home loans hasn’t reached the level of the 2008 financial crisis.

“[C]redit still isn’t as tight as it was in the wake of the 2008 financial crisis. Back then, home prices had plunged, but many families were prevented from buying, losing out to investors who gobbled up cheap housing stock.”

It’s likely that the ability of the average American to qualify for a mortgage loan will depend on whether the economy rebounds in a timely manner or whether the financial problems that have impacted so many millions of Americans will continue into 2021.

Mortgage Lending Might Change for the Foreseeable Future

An opinion piece on Market Watch suggests that there might be a new normal when it comes to mortgage applications and approvals. The article suggests that mortgage lenders might be increasingly likely to digitize their mortgage lending process. Some facets of the mortgage lending system might become increasingly automated, and fewer people might be involved in the overall approval process.

“While the pandemic didn’t create the need for digitization and automation, clearer forbearance policies, and better customer service, it certainly has made mortgage executives prioritize these things — and the housing sector can emerge stronger and more customer-focused as a result.”

According to the article, more than 3.6 million requests have been made to lenders for mortgage forbearances. It’s possible that the number of forbearances experienced by the lending industry will result in a gradual tightening of lending rules. It may become more difficult for people who are just on the cusp of approval or denial to qualify for a mortgage. It may also make it more difficult for applicants to qualify for the lowest possible mortgage rates.

Mortgage Relief and the CARES Act

If you already have a mortgage, but you’re looking at a financial shortfall or an event (like unemployment) that might make it impossible for you to pay your mortgage, you might be able to obtain some relief through the Coronavirus Aid, relief, and Economic Security (CARES) Act, which was passed by the U.S. Congress soon after the pandemic began to impact the country.

According to the Consumer Financial Protection Bureau , one of the features of the CARES act is that a lender or loan servicer can’t foreclose for the 60 days following March 18. There are some indications that this date might change with the passage of further relief acts by Congress. The other important part of the CARES act for homeowners is that people who experience financial hardship due to the coronavirus can request a forbearance that may last up to 180 days.

Are You Thinking About Bankruptcy During the 2020 Coronavirus Pandemic?

Would you like assistance from an experienced legal bankruptcy professional? Contact Suburban Legal Group for assistance with all matters relating to bankruptcy.

Will the Coronavirus Pandemic Affect My Bankruptcy?

Thu, 30 Apr 2020 09:52:52 GMT

The coronavirus pandemic of 2020 has turned into a financial nightmare for millions of Americans. Tens of millions of households have had a family member apply for unemployment benefits, and the number of defaults on mortgages and other financial obligations has skyrocketed.

So far, local and state governments, as well as Congress in Washington, D.C., have passed some financial relief options designed to support families during the crisis. For example, some states have allowed self-employed individuals to apply for unemployment benefits for the first time, and the federal government has issued $1,200 checks to millions of families to help cover a few bills.

Further, some credit card companies and banks have offered to postpone due dates for payments and eliminate late fees associated with missed payments to help families avoid falling into severe debt. However, these measures won’t help everyone, and there will be households that have no choice but to file for bankruptcy. With the country in virtual chaos, will the courts be able to handle bankruptcy cases?

An article from Market Watch suggests that it’s only a matter of time until bankruptcy numbers begin to surge.

“Bankruptcy experts agree, looking at a new spike in unemployment and remembering how the Great Recession caused a wave of bankruptcy cases from consumers seeking a reset after getting too far behind on debt.”

If you’re thinking about bankruptcy because of extended unemployment, it might be worth speaking with an attorney as to the feasibility of qualifying for chapter 7 (liquidation of assets) or chapter 13 (reorganization of debts).

Some Courts are Closed & Lawyers Are Restricting Clients

The biggest problem that you may encounter while trying to file for bankruptcy during the coronavirus pandemic is the closure of your local court. Your court might not have hours dedicated to civil cases, or you might have to undergo significant hassles related to filing your case.

For example, some court locations have resorted to electronic submissions, or they’ve temporarily suspended the ability of the public to enter the courthouse. If you’re a pro-se debtor (that’s someone who is representing him or herself in court), you might only be able to submit your forms via a drop-box with the court.

Bankruptcy is Always the Last Resort

Bankruptcy should always be the last thing you consider when your finances become untenable, and you can no longer pay your debts. While the coronavirus pandemic may throw you some severe curveballs with layoffs, reduced hours, and forced quarantines, you may still be able to emerge from the pandemic with your financial health intact.

It’s important to explore all avenues for delaying your payments or changing when bills are due. You may want to explore canceling subscriptions (for the gym and television) while the pandemic forces you to stay home. You may also want to call your bank to see how they might be able to help you.

Are You Thinking About Bankruptcy During the Covid-19 Pandemic?

Would you like assistance from an experienced legal bankruptcy professional? Contact Suburban Legal Group for assistance with all matters relating to bankruptcy.

Covid-19 Tax Changes

Tue, 31 Mar 2020 09:57:58 GMT

The coronavirus pandemic has forced people around the world to make dramatic changes to their everyday lives, and Americans should be aware of some Covid-19 tax changes that will likely impact how and when they file their taxes for the 2019 tax year.

In late March of 2020, Congress and the president passed a massive stimulus bill designed to help the economy during a time when the majority of the nation’s population was told to stay home, and millions of people found their jobs on pause.

The federal government made immediate changes to the tax code, too, in light of the Covid-19 pandemic. One of the most dramatic changes was that the Internal Revenue Service (IRS) changed its filing deadline from the traditional April 15 to July 15.

Forbes reveals that on March 19:

“Senator John Thune introduced a two-page bill “Tax Filing Relief for America Act” “To extend the due date for the return and payment of Federal income taxes to July 15, 2020, for taxable year 2019.”

In addition to the filing change at the federal level, states have also changed their filing dates. For Illinois residents, USA Today shares:

“Illinois Gov. J.B. Pritzker announced he’s delaying the tax filing deadline to July 15.”

It’s important for every taxpayer to check the official IRS website for updates to 2019 tax return requirements, as well as to check the state pages for additional information. Some taxpayers may also need to check with their local government if they’re required to submit tax payments to their cities each year.

The Economic Impact Payment

Another change was the economic impact payment planned for most Americans. On the payment, the IRS shares:

“Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.

Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child.”

The IRS plans on sending taxpayers their stimulus checks by direct deposit, so taxpayers who haven’t set up direct deposit with the IRS may need to take an additional step to secure their check.

Tax and Economic Relief Around the World

The United States isn’t the only place where governments have made the decision to postpone taxes, change them, or offer stimulus checks to its inhabitants. According to The Tax Foundation, Greece has postponed some tax payments for businesses, Indonesia has extended one of its tax deadlines, and Israel has extended its deadline for online income tax filings.

Further, Latvia has created a tax relief program for businesses impacted by reduced revenues due to the Covid-19 pandemic New Zealand has eliminated some fines and penalties, and Romania has delayed many of its tax deadlines for a month.

Are You Dealing With Tax Problems or Unpaid IRS Fees and Penalties?

Would you like assistance from an experienced legal professional? Contact Suburban Legal Group for assistance with all matters relating to tax and IRS issues.

Avoiding Debt Collection & IRS Scams

Fri, 28 Feb 2020 10:01:04 GMT

The proliferation of IRS scams and debt collection scams has increased exponentially with the increased availability of smartphones, texting, and the internet.

Some scams feature an old fashioned letter sent through the mail that indicates a victim should send money to another party to avoid getting sued. Other scams are delivered by text and ask the victim to click on a link and make a payment. Clicking on the link usually results in the victim losing money or having his or her information stolen.

A few years ago, the Internal Revenue Service (IRS) published an article indicating a huge increase in fraudulent behavior related to taxes:

“Taxpayers saw many more phishing scams in 2018 as the IRS recorded a 60 percent increase in bogus email schemes that seek to steal money or tax data. These schemes can endanger a taxpayer’s financial and tax data, allowing identity thieves a chance to try stealing a tax refund.”

According to the IRS, many people hand over their tax information willingly and don’t even ask questions when someone on the phone requests their personal details. The victim might think a caller is from a legitimate organization and readily offers details like credit card numbers, Social Security numbers, and addresses without thinking twice.

Here are a few ways to identify suspect communications that may actually be a “phishing” attack designed to steal money, information, and a victim’s identity.

Scams Commonly Use Hyperlinks

The IRS may demand that you pay them because of a mistake you made on your taxes, fraudulent activity on your tax return, or unpaid back taxes. However, the agency will never demand that you make an immediate payment or risk jail or a lawsuit without giving you some time to comply with their request.

According to a Fact Sheet published by the IRS:

“IRS collection employees may call or come to a home or business unannounced to collect a tax debt. They will not demand that you make an immediate payment to a source other than the U.S. Treasury.”

One of the most common ways that citizens get scammed is that the scammer will threaten to sue or arrest the victim unless he or she makes an immediate payment to a bank account. Payments for IRS debts will always go to the U.S. Treasury and the IRS will never give you the numbers to a bank account with a demand for an immediate wire transfer.

Are You Dealing With IRS Demands or Debts?

Would you like assistance from an experienced legal professional? Contact Suburban Legal Group for assistance with all matters relating to tax and IRS issues.

Do You Need a Credit Repair Service?

Fri, 31 Jan 2020 10:06:16 GMT

One of the effects of undergoing bankruptcy is the general destruction of your credit report, and it usually takes years to climb out from under the weight of a poor credit score. One of the options some people take after they go through bankruptcy, or after they experience financial difficulties that destroy their credit report, is working with a credit repair company.

The main drawback to using a credit repair company is that the service costs money, and you might not be particularly flush with cash when your credit report is at its lowest point, and you need credit repair. One of the most important questions to ask yourself is:

Can I repair my credit without the help of a professional?

Here’s how credit advice company Credit Karma describes credit repair services:

“These companies typically offer to review your credit reports and address any negative items that they can with the credit bureaus on your behalf.

A credit repair company is an organization that offers to improve your credit in exchange for a fee.”

Unfortunately, the Federal Trade Commission has indicated that the credit repair industry is rife with scams. One of the biggest indications that you’re working with a less-than-reputable credit repair company is when they ask for payment in full before they begin their work.

Credit Repair is Different from Credit Counseling

There are credit counseling companies offer advice and education for people who have bad credit or who are inexperienced with financial matters relating to their credit reports. These companies are often run as non-profit entities and don’t charge anything for their services.

If you simply want some advice on repairing your credit, or you want more information on why your credit report has a low score, you may want to contact a credit counseling organization as your first step.

Receiving free information about the state of your credit report may offer you all the information you need to make an informed decision about repairing your report and increasing your score.

Choosing a Credit Repair Company

If you feel you might benefit from a credit repair company’s services, there are some ways you can figure out if the company you’ve chosen is legitimate. Consider the following:

The company has a good score with the Better Business Bureau
Independent websites feature positive reviews about the company
There are no complaints filed with the Financial Protection Bureau

You can also grade a credit repair company’s likely effectiveness by making sure they aren’t making any promises that they would never be able to keep. For example, a credit repair company shouldn’t promise that they can eliminate negative information from your credit report if that information is accurate.

Over time, you’ll see a natural reduction in the severity and harm of a negative item on your credit report. There’s nothing a credit repair company can do about the late payments on your credit report. You just have to wait until those late payments are no longer reported or aren’t considered “fresh” by the credit reporting companies.

Educating yourself on the way your credit report works might be all you need to figure out when your score will naturally increase over time. Further, adopting a habit of always paying your credit cards and loans on time can have a dramatic impact on your credit rating.

Are You Thinking About Bankruptcy?

Are you thinking about filing for bankruptcy but have no idea how to start the process? Would you like assistance from an experienced legal professional? Contact Suburban Legal Group for assistance with all matters relating to bankruptcy.

What is an IRS Audit?

Mon, 30 Dec 2019 10:11:43 GMT

The prospect of an IRS audit is something that can cause intense worry in the average citizen, particularly since the process has such a bad reputation for causing stress and difficulties for individuals, families, and businesses. However, the best defense against a stressful audit is to understand the process, so there are no surprises.

The most important thing to remember about an IRS audit is that being selected for an audit isn’t necessarily a sign that something is wrong.

The official government website for the Internal Revenue Service (IRS) actually says that audit selections are often randomized and done with a computer:

“…sometimes returns are selected based solely on a statistical formula. We compare your tax return against “norms” for similar returns. We develop these “norms” from audits of a statistically valid random sample of returns, as part of the National Research Program the IRS conducts. The IRS uses this program to update return selection information.”

You may also receive notice that you’re going to be audited because a business partner or investor with whom you have a business relationship was selected. The IRS also reveals that getting a refund after filing income taxes isn’t something that will trigger an audit.

Why Does the IRS Conduct Audits?

As a government agency, the IRS operates with the goal of receiving no more and no less than it requires under the law. In fact, the agency prefers that citizens and businesses minimize their amount owed or their amount refunded at the end of the tax year by making sure the right amount of money is withheld throughout the year.

Unfortunately, mistakes happen, and sometimes there are errors in a tax return, and those errors become a problem when the IRS conducts an audit. Here are some of the problems that the IRS finds when it conducts audits:

Mathematical errors
Failure to report income
False charitable donations
Excessive Schedule C losses
Too many business expenses
Home office deductions
Imprecise mathematical calculations

Anyone can make these errors – and they may be the result of inadvertent mistakes or intentional subterfuge.

Who is Most Likely to Get Audited?

Technically, any taxpayer can get audited, but Nerd Wallet suggests that there are certain groups who tend to get audited with greater frequency:

“According to IRS statistics, people in higher tax brackets and people who report no income at all get the most attention.”

Those with adjusted gross income between $25,000 and half-a-million dollars aren’t that likely to be audited and have a chance of less than one percent that an audit will occur. However, people with incomes of more than $499,999 are slightly more likely to receive a request for an audit.

In fact, taxpayers with incomes above $10 million have a greater than 14 percent chance of getting audited, but people with incomes from $50,000 to $74,999 only have a 0.48 percent chance of getting audited. Overall, the IRS only audits 0.62 percent of all returns submitted, according to numbers shared by Nerd Wallet.

Have You Received a Notice of an Audit from the IRS?

Has the IRS informed you that you will need to undergo an audit? Would you like assistance from an experienced legal professional? Contact Suburban Legal Group for assistance with all matters relating to tax and IRS issues.

What are the Steps in a Short Sale?

Fri, 29 Nov 2019 10:16:24 GMT

What is a short sale? It’s when a house is sold at fair market value even if the amount owed on the mortgage for the property is a higher amount. When a borrower agrees to sell a house as a short sale, he or she will often be relieved of having to pay the leftover amount.

Unfortunately, short sales aren’t a sure thing, and they often fail because of issues like liens against the property or problems with the title on the property. However, not all short sales fall through, and understanding the basic process can help you decide whether this avenue is something you should pursue.

Step One: Assessing the Value of the Property

A short sale can only happen if the homeowner is upside-down on the mortgage loan, which means more is owed on the loan than what is considered the home’s fair market value. Getting a valuation analysis before any other work is done to proceed with a short sale will reduce the likelihood of the process failing because the house is worth too much.

Step Two: Obtaining a Hardship Letter

A homeowner will have to prove that a short sale is the only avenue available. Usually, a short sale is an option a homeowner pursues so that he or she can avoid bankruptcy or foreclosure. A hardship letter must convince the lender that there is no other option but a short sale.

Step Three: Initiate the Process with an Application

The borrower who wants to short sale the house must fill out an application with the lender. Buyers and investors can’t pursue a short sale with a buyer until the buyer initiates the process with the bank or lender.

Step Four: Write a Sales Contract

Like any other real estate transaction that involves the transfer of property, the sale cannot be completed without a purchase agreement, which is the standard contract between a seller and the buyer. An arm’s length affidavit may need to accompany the sales contract. The affidavit states that there are no conflicts between the seller and buyer that the house is truly being sold for its true market value.

Step Five: Review of the Short Sale Documents

The lender will employ a loss mitigator who will evaluate the contract and agreement to ensure that the best option for everyone involved is a short sale. The process may take some time to complete.

Step Six: Negotiations and Closing

After the loss mitigation review is complete, the process can continue if the lender approves the offer. Sometimes, the offer is rejected outright, but sometimes rejections may be reversed if certain conditions are met.

Do You Need Assistance With a Short Sale?

Are you thinking about a short sale? Would you like to know more about the short sale process? Contact Suburban Legal Group for assistance with all matters relating to real estate law and short sales.