Recent Blog Posts
Are Loan Modifications an Alternative to Bankruptcy?
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.
How Are Retirement Benefits Addressed During an Illinois Divorce?
If you have chosen to get a divorce, you will need to address multiple types of financial issues, as well as the legal matters involved in dissolving your marriage. The process of property division can often become complicated, especially if you and your spouse own multiple and different types of property and assets. Retirement benefits are an issue that sometimes can complicate this process, and determining how to divide these assets correctly can ensure that you will have the financial resources you need later in life.
Retirement Accounts, Pensions, and QDROs
Generally, any retirement benefits you or your spouse earned or contributed to during your marriage are part of the marital estate. They will need to be divided alongside your other marital property. These benefits may include retirement accounts provided by an employer, such as a 401(k), or an individual retirement account (IRA), as well as pension benefits earned while you were married.
What Are Some Clues that a Spouse is Hiding Assets During an Illinois Divorce?
If you are getting divorced in Illinois, you and your soon-to-be spouse will be asked to file a financial affidavit with the court. You will be expected to list information about your income, expenses, debts, and assets. Unfortunately, some spouses lie on their affidavits in an attempt to gain a financial advantage during a divorce. Lying about finances during divorce not only is unethical, but also, it is also unlawful. Divorce issues such as property division and child support should be based on accurate, up-to-date financial data. If you are getting divorced, make sure to watch out for signs of hidden assets and other forms of financial fraud.
Keeping Financial Information a Secret
Per Illinois law, you have a right to an equitable portion of the marital estate. This means that you have a right to a fair share of any assets that were accumulated during the marriage. This may include bank accounts, retirement funds, business revenue, profits from investments, and more. One clue that your spouse may attempt to cheat you out of your fair share of the marital estate is a sudden increase in secretive behavior. Rerouting mail to a P.O. box, hiding tax returns and other financial documents, changing online banking passwords, and refusing to discuss finances with you, may all be signs of deception.
Am I Eligible for a Loan Modification in Illinois?
You may take out loans to purchase various items throughout your lifetime, such as a car, a house, or to pay for your child’s college tuition. A loan modification involves modifying the terms of an existing loan, typically to make it more affordable for you as a borrower who might be in danger of defaulting, sometimes due to a scheduled rate increase or a job loss. For instance, you might want to pursue this route to avoid foreclosure on your house. It is important to note that a loan modification is not the same as refinancing a mortgage. In certain situations, you may also be allowed to file for bankruptcy. By combining these efforts, or by simply electing one of these options, you may be able to keep your home by lowering mortgage payments, avoiding default, and obtaining a way out of debilitating debt. A skilled lawyer can help ensure you take the correct legal steps to secure a promising financial future.
How Can I Obtain a Legal Separation in Illinois?
The decision to divorce is not an easy one to make for many people, especially if a couple has been married for a long time. In certain situations, spouses may opt to try a legal separation before officially divorcing. Following an order of legal separation, estranged spouses will agree to live independently of each other, separating both their physical residences and their finances. The couple will remain legally married, and neither spouse can remarry unless they get a divorce.
As the old adage says, “Absence makes the heart grow fonder.” For some partners, living apart allows them time to work on their marital problems. However, they may also find that they are thriving on their own and enjoy living separate lives. If you are considering which option is best for your situation, it is important to know the legal requirements for legally separating in Illinois. In the state of Illinois, some of the same issues that are addressed in a divorce will need to be resolved in a separation.
COVID-19 Update
Below is a brief summary of the various COVID-19 programs available to individuals and businesses during this difficult time. This is simply to assist you in determining which program might apply to you. All of the information was gathered from other second-hand sources, so I did the best that I could to make it easier to wade through the vast amount of information out there. I hope this is some help to you.
Sincerely,
Colleen G. Thomas
U.S. Small Business Administration Economic Injury Disaster Loan
- Up to $2 million loan amount
- Only when determined by SBA that cannot qualify for a private loan
- Up to 4% annual interest rate (3.75% small businesses)
- Up to 30-year loan term
CARES Act Paycheck Protection Program
- Loan forgiveness for retaining employees by temporarily expanding the traditional SBA 7(a) loan program
- Keep on the payroll for 8 weeks
How Long Can Spousal Maintenance Last After an Illinois Divorce?
When two people decide to legally end their marriage, it can dramatically change their lifestyle. If one spouse earned a high salary and the other partner stayed home to raise their children, for example, this can impact the divorce settlement. In Illinois, maintenance or spousal support, which was previously called alimony, refers to payments made by one spouse to the other after a divorce to allow both spouses to live at a standard similar to what they enjoyed while married. Typically, spousal support is awarded in cases where there is a significant difference between the spouses’ incomes. If a couple cannot come to an agreement on their own regarding spousal maintenance, the court may intervene. A judge will look at several factors when determining if this type of financial support is appropriate.
What Is a Parallel Parenting Plan in an Illinois Divorce?
Although couples typically do not enter into marriage thinking they are going to get divorced down the road, it can and does happen. Whether two people have been married a few years or a few decades, life circumstances can change, impacting their relationship. Sometimes, partners simply grow apart, or one spouse may have an extramarital affair. In many contentious divorce cases, a couple may want nothing to do with each other once the ink dries on their divorce decree. However, if a couple has children, they may struggle to share child custody if they are unable to communicate with each other in a civil manner. In these cases, parents may choose an alternative parenting plan. Parallel parenting is a type of arrangement where divorced co-parents have limited contact with each other. Depending on the situation, it may work better than the typical co-parenting option.
How Has COVID-19 Affected Illinois Divorce Orders?
COVID-19 caused a global health crisis in addition to an economic downturn. In Illinois, non-essential businesses closed to stop the spread of the contagious virus. As a result, many people found themselves out of work or facing reduced hours and income. Depending on the industry, some companies have permitted their employees to work remotely from home. Similarly, many schools have switched to e-learning, with teachers and students participating online through video conferencing apps such as Zoom or Google Meets. With everyone adjusting to this new normal, divorced parents may be wondering if they can modify their current divorce orders for child support and child custody and visitation (now referred to as the allocation of parenting time and decision-making). Under Illinois law, it is possible to request changes to these types of orders in certain situations.
Understanding if Bankruptcy Is Right for Your Situation
The word bankruptcy may bring about feelings of financial ruin or destitution. However, more people file for bankruptcy than you might expect, especially during these uncertain times. A lot of people have lost their jobs as a result of the COVID-19 pandemic since many non-essential businesses are closed. There are remedies when it comes to resolving financial problems. Bankruptcy has many advantages, such as reducing or eliminating your debts. It can also protect your home from being foreclosed on and keep bill collectors from constantly contacting you. However, there can be long-term consequences to your credit score, which may hinder your ability to take out loans in the future. It is important to understand the bankruptcy process to determine if it is a viable option for you.
Chapter 7 & Chapter 13 Bankruptcy
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