Illinois residents have likely heard of the concept of filing for bankruptcy. They probably are aware that the process is meant to help people who cannot fully pay their debts, and that they may have to sell some of their assets in order to make partial payments. While this may be true in certain instances, it should be noted that Illinois, as is the case with most states, exempts certain property from being subject to sale in certain types of bankruptcies.
It is an unfortunate fact of modern economies that the costs of services tend to rise over time. This is especially true of necessary services such as medical care. Even though such costs have risen at a slower rate recently than prior to 2010, expenses remain high for certain types of care. And, while the number of people who are uninsured has dropped dramatically in recent years, there are still those without medical insurance, a population which may rise in the near future, given the uncertainty about federal law in this area.
When most Illinois residents hear the term 'bankruptcy,' they likely picture a liquidation, where all a person's major possessions are sold to pay off his or her debt. While a Chapter 7 filing might require some of that -- though there are exemptions for certain property -- there are other types of bankruptcy filing as well. One of these is a Chapter 13, or 'wage earner's plan.' This types of filing allows the debtor to submit a repayment plan that proposes to pay some part of the debt over a certain number of years, usually three or five. One advantage of this kind of filing is that, under certain circumstances, it can stop a foreclosure or other repossession action.
In the wake of the 2008 financial crisis, many people blamed the housing bubble. This was apparently a combination of over-construction of houses as well as systemic use of bad lending practices in the banking and mortgage industries. Whatever the reasons, many Americans, including Illinois residents found themselves facing losing their homes to foreclosure. Because of this, in 2009 the federal government introduced the Making Home Affordable Program. This initiative consisted of two parts, one of which was the Home Affordable Modification Program. HAMP expired at the end of 2016, but Fannie Mae and Freddie Mac, two government-sponsored corporations that deal in secondary mortgage markets, have announced replacements.
The reports on the national economy for the last several months have been mostly positive. However, there is always one big issue that could be a potential wrecking-ball: debt. Millions of Americans are dealing with debt of all kinds: student loan debt, mortgage debt and, perhaps most important of all, credit card debt. For those Illinois residents who are facing thousands of dollars in credit card debt, a recent article had a few tips on how to dig out from this hole.
Americans everywhere deal with debt issues on a daily basis. For some, primarily younger people, the primary concern is student loan debt. For others, the primary concerns are mortgage debt, credit card debt and auto loan debt. However, for older Americans, there is another type of debt that could be the primary point of concern: medical debt. So, for Illinois residents who are facing problems with medical debt, what options are available?
Millions of Americans are struggling with debt. For some, the problem is with a mortgage, and as a result, foreclosure may be on the horizon. For others, credit card debt has piled up for some reason, whether it is due to an unexpected loss of a job or an unforeseen medical issue. No matter how an Illinois resident has run into financial problems, it is important to realize that there may be legal options to help address these issues.
One of the most prominent reasons that an Illinois resident can run into financial trouble is through medical expenses. These can be due to an unexpected accident or incident, or an ongoing illness or condition. While the government has been seeking ways for people to have health coverage to avoid running into massive hospital bills, these methods are in flux, with confusion as to what will eventually happen. Often, those who are confronted with medical expenses so large that they have no hope of paying them will reference having no health insurance as a reason. There is hope for those who are dealing with this all-too-common issue: filing for bankruptcy.