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Eliminating Your Tax Debts Through Bankruptcy

You know that bankruptcy is a tool used to reduce overwhelming levels of debt. If you are struggling with significant debt, you have probably considered filing for bankruptcy as a way to reduce your debt. You might also know that only certain types of debt can be eliminated through bankruptcy. What are those types of debt? Which types of debt can be released, and which will stay with you after you work to repay your debts through either a repayment plan or a liquidation of your nonexempt assets?

Child support and spousal support, also known as alimony, debts cannot be eliminated. This is because the recipients of these kinds of support rely on them to cover their daily living costs. Student loan debt can also be difficult to discharge. Tax debt is another type of debt that, depending on the circumstances specific to the individual's debt, might or might not be able to be eliminated through bankruptcy.

Your Bankruptcy Chapter Matters

KaloBios Pharmaceuticals, Inc. Files for Bankruptcy Following Shkreli's Dismissal

2015 brought us a lot of new celebrity faces. Some were inspiring, some were funny, and others collectively made us sad or even angry. For many Americans, Martin Shkreli, former CEO of KaloBios Pharmaceuticals, Inc., fit into this last category. He is perhaps best known for dramatically raising the per-tablet price of Daraprim, an anti-malarial and antiparasitic, from $13.50 to $750 after his other company, Turing Pharmaceuticals, acquired its patent.

In December 2015, Shkreli was arrested on a securities charge fraud. Following his arrest, he was let go from KaloBios Pharmaceuticals, which then filed for Chapter 11 bankruptcy at the end of that month. Any time an individual or corporate entity has more debt than it can realistically repay, bankruptcy is an option. But it is an option that must be considered and used carefully because it comes with significant obligations for the filing party.

What Happened to KaloBios?


Working as a Freelancer? Bankruptcy Issues to Consider

Working as a freelancer has a lot of perks. For an increasing number of Americans, perks like making your own hours, working from the comfort of your own home, and not having to comply with company rules and procedures make freelancing an attractive career choice. But the freelance life is not all Skype meetings and romantic notions of working from a busy coffee shop. It can be fraught with issues like economic uncertainty and a lack of the financial safety net of unemployment insurance, which can lead to a dependence on credit cards.

In many cases, a dependence on credit cards is the first step toward filing for bankruptcy. If you need to file for bankruptcy, do not feel ashamed to do so – it can be a life-saving tool. It is much easier to avoid having to file for bankruptcy by avoiding insurmountable debt.

When a Business Declares Bankruptcy, What Happens to its Customers with Unused Credit?

In early 2015, long-suffering retailer RadioShack filed for Chapter 11 bankruptcy. As part of the bankruptcy protection deal, it agreed to sell a significant portion of its stores to Standard General, a major shareholder that plans to continue to operate them as RadioShack-branded stores with Sprint shops within them. The remaining stores will be sold. This is coming after 11 consecutive quarters of posting losses. Along with the auction and purchase of the company by Standard General and closure of thousands of RadioShack stores, many consumers who have unused gift cards found themselves shortchanged.

These customers will be taken care of. Individuals who have unused RadioShack gift cards can redeem them for money at www.oldradioshackgiftcard.com. Customers who have unused credit at the store were given first priority in the company's bankruptcy proceedings, as ordered by the bankruptcy court. If you have an unused RadioShack gift card or other questions or concerns about unused credit with this or another bankrupt retailer, speak with an experienced bankruptcy attorney to have your questions answered.

What Will Happen to RadioShack?

Which Debts Can Not Be Discharged by Filing for Bankruptcy?

When an individual is facing insurmountable levels of personal debt, bankruptcy is often the only way to escape from this debt and regain his or her financial independence. Individuals can file for Chapter 7 or Chapter 13 bankruptcy, depending on the level of debt and their disposable income. Through bankruptcy, debts are reduced or even completely eliminated. Although filing for bankruptcy and discharging one's debts can be an attractive option, it is important that an individual considering bankruptcy understand that not every type of debt can be discharged.

Talk to your attorney about which types of debt can be discharged with each type of bankruptcy. Whether you file for Chapter 7 or Chapter 13 can determine which debts you can have discharged and which you are required to pay off.

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