Debts can cause a great deal of stress and financial difficulty for a family, but bankruptcy can offer a way out of these situations. However, anyone who is considering bankruptcy may wonder how different types of debts will be handled and whether filing for bankruptcy could result in the loss of his or her property. The elimination of secured debts, such as a home mortgage or auto loan, will typically lead the lender to pursue foreclosure or repossess the collateral used to secure the debts. To avoid this, a debtor may need to determine how they will be able to become current on his or her payments while eliminating other debts.

For debtors with secured debts, Chapter 13 bankruptcy is often the preferred option. This type of bankruptcy will require a person to make ongoing payments toward a repayment plan for several years, and if he or she can continue making payments toward secured debts, he or she will be able to retain ownership of his or her property. Missed payments, late fees, and other amounts owed to a lender may be included in a repayment plan, which will allow a person to become current on these loans. Chapter 13 offers some other benefits as well that may reduce the amount of a person’s debts and help him or her maintain financial stability in the future.

While most parents getting divorced in Illinois include specific plans for the summer months in their parenting plan, scheduling conflicts are still common. Parenting is a difficult responsibility that requires flexibility and cooperation, but this is not always easy when you are working with an ex-spouse as a co-parent. Fortunately, with careful planning and communication, conflict during summer break can be minimized and even avoided altogether. 

Be Flexible But Set Reasonable Boundaries 

One of the best parts about summer vacation is that many children do not have school, allowing the entire family extra freedom. Even for parents who are not particularly spontaneous, opportunities for fun activities are likely to arise last minute, making flexibility important. However, constantly changing agreed-upon plans can also be a source of enormous stress, especially for parents who struggle to communicate. It is important to know when you have plans set in stone, when you can allow yourself and the children some wiggle room to make last-minute plans, and when to say no to an ex who wants to change plans.

Communicate Carefully 

Divorce experts recommend having a separate email address that co-parents can use when communicating about their children. Not only does this make it easy to keep track of plans, but it also keeps everybody on their best behavior by making conversations easy to monitor and record. Co-parents who experience conflict can benefit by removing opportunities for fights that can easily be triggered by text, phone, or in-person conversations about important topics. 

Debt is an issue that affects people throughout the United States, and there are many reasons that a person may struggle to repay the debts he or she owes. For example, a person may experience financial difficulties due to being laid off from his or her job, or a family member may suffer from a serious illness that leads to unexpected medical expenses. While most people will do everything they can to make ongoing payments toward their debts, this can sometimes become impossible. If a person misses payments or defaults on a loan, creditors may begin taking action to collect the amounts that are owed. 

People in these situations may be considering bankruptcy, which will allow them to eliminate certain types of debts and regain financial stability. In many cases, a person will pursue a Chapter 7 bankruptcy, since this will allow debts to be discharged fairly quickly. However, this type of bankruptcy may require a person to turn over certain assets that he or she owns. Those who are considering this option will need to understand what types of assets may be liquidated during bankruptcy and what exemptions may apply.

Marriages can break down for many reasons. In some situations, a spouse may wish to get a divorce because of issues such as infidelity or abuse. The spouse may believe that ending the marriage would be best for everyone involved. However, there are many cases where a couple may be experiencing relationship issues because of disagreements about how their children should be raised, arguments about financial matters, or simply because they feel that they are no longer compatible. If a couple is unsure about whether divorce is the best choice, or if they wish to remain married for other reasons, legal separation may be a better option. This may allow a couple to take steps on the road to divorce while they determine whether their relationship can be repaired, or it may work as a more permanent solution that provides benefits for both parties.

Reasons to Choose a Legal Separation

Divorce will legally terminate a couple’s marriage. Some couples who are experiencing relationship issues may not be sure about whether they are ready to take this final, irrevocable step. By pursuing a legal separation, a couple may begin the divorce process and make some decisions about how matters will be handled while they are separated, and they will have the option to reconcile in the future. Legal separation may also be an option for couples who do not wish to get divorced due to religious or cultural reasons. It may also allow spouses to maintain certain benefits of being legally married, such as ensuring that one spouse will receive health insurance or other benefits through the other spouse.

A legal separation is handled in a similar manner as a divorce, and a couple will need to address many of the same issues that they would need to resolve when dissolving their marriage. These may include decisions about how child custody will be handled while parents are living apart, including how they will make decisions about their children and the amount of time children will spend with each parent. 

Homeowners who have encountered financial difficulties may struggle to pay their ongoing expenses, including mortgage payments. Those who have defaulted on their mortgage after missing one or more payments may have been contacted by their bank, or they may have been notified that a foreclosure will occur if they do not make up the missed payments. In some cases, bankruptcy may be the best way to respond to a foreclosure notice. Bankruptcy may provide a homeowner with options to address outstanding debts and ensure that he or she will continue making mortgage payments. However, loan modifications may be another option that will allow a homeowner to make up missed payments and to continue making affordable payments in the future.

Mortgage Loan Modifications

The terms of a mortgage are not set in stone, and a bank or lender may agree to update these terms. In fact, it is often in a lender’s best interests to do so, since the foreclosure process is likely to result in financial losses, and lenders will often prefer to make arrangements that will allow them to continue receiving regular payments. 

Homeowners may have multiple options for modifying a mortgage loan in a way that will reduce their payments to an amount that they will be able to afford. These options include: