Chicago Bankruptcy Lawyer Blog

Here's a riddle for you - what do homeowners and a certain large African bird have in common? Answer: They're both known to bury their head in the sand when scared. Unfortunately, instinctive behavior isn't always logical - and the bulk of an in-denial homeowner's problems, like the bulk of an ostrich's body, will still be glaringly visible.

So what homeowner problems am I speaking of? Mortgages. Since 2008 and continuing through next year, adjustable rate mortgages have been resetting from the lower "teaser" rates to much higher rates - meaning you might suddenly be required to pony up 30-50 percent more money a month. Not that it should come as a surprise when it happens. When you signed your mortgage agreement, you should have been made aware of when the higher rates would kick in (though lenders aren't always the clearest bunch - but that's another story).

Yet even though most homeowners know what's coming, many do nothing to prevent it.

Continue reading "Illinois Bankruptcy Lawyers Remind Homeowners to Get Help Before Mortgage Payments Get Too Expensive" »

You probably already know that if you save your aluminum cans and glass bottles you can earn something like 5 cents per container - but, unless you've taken to collecting cans from friends, neighbors and city streets (not necessarily a bad idea) it's really more of a rebate than a way to make money. But recycling really can pay - you just have to find the right recyclables. Try looking in your attic, closet, desk - even your wallet.

Gift cards
If you have gift cards, use them sooner rather than later - some stores will actually deduct a maintenance fee after a year of non-use. But sometimes the problem is that you don't care much for the store. I once had an REI card ride around in my wallet from one Christmas to the next. I just don't go camping that often - and I'm not really into the suburban hiker look. I wish I had known about CardAvenue.com, a site that allows you to exchange a card for one that better suits your tastes. Would you rather have cash than more plastic? No problem. You can sell your card on eBay, where it could go for 80 to 90 percent of its face value. As for those airline miles or credit card points you never use, consider redeeming them at Points.com.

Continue reading "Chicago Bankruptcy Attorneys Recommend Recycling for Extra Cash" »

Become a mystery shopper and earn $7,000 a month! Work from home doing data entry for $10,000 a month! If you believed everything you read in the classifieds, you'd think that our economy has more jobs that it can fill. Not only that, but we'd all be stinkin' rich because everything pays so well.

Unfortunately, what sounds too good to be true usually is. Most work-from-home advertisements are actually scams set to take advantage of a workforce already reeling from furloughs and layoffs, lost retirement funds, rising prices and decreasing home values. These tricksters know you're looking for ways to make ends meet and they're betting that your desperation will outweigh your good judgment.

So how can you tell the legit offers from the fishy ones? Watch out for any job that requires money or personal information upfront.

Continue reading "Illinois Bankruptcy Lawyers Caution Against Work From Home Scams" »

Some people have coin collections. Others collect baseball cards. Some folks, like my boyfriend, collect guitars.

I happen to have a credit card collection. Fortunately, I haven't opened any new accounts lately - I know better. But once upon a time, I was clueless. If a store offered a 15 percent discount or members rewards to apply for a card, I signed right up. You probably know what happened next - I spent beyond my means, had too many bills to keep track of and wound up damaging my credit and getting into some serious debt. It's a pretty common tale.

So why do I still have them - cards for Nordstrom, Target, Best Buy and the Gap - when friends in my same situation have since cut up their cards and closed their accounts? Because I've learned that, for me, out of sight is out of mind.

Continue reading "Keep Your Credit Cards Out of Sight to Save Money, Suggest Chicago Bankruptcy Lawyers" »

The recent economic news seems to be straight out of a movie - the good, the bad and the ugly.

This morning, for instance, I read about soaring stocks, falling jobless claims and the Fed's prediction that the economy could start to recover by the end of the year. Ah, things must be getting better, I thought. Finally!

Minutes later, I noticed headlines about growing unemployment - Illinois, for instance, just hit 10.3 percent in June, more than 3 percent higher than June 2008 and larger than the current national average of 9.5 percent. OK, I thought, so maybe things aren't looking up quite yet. Because of this unemployment (which, according to another article, is actually higher than reported because it doesn't take into account furloughs, people who have given up looking for work and lack of raises) the housing market - and thus the economy - seems unlikely to make a comeback anytime soon.

Who do you believe?

Continue reading "Chicago Bankruptcy Attorneys Recommend Taking Action to Stop Debt" »

Uncle Sam is in a bind - and he might require your help.

To aid the federal government in covering its $1 trillion dollar deficit, the IRS has ramped up its focus on individual workers, small business owners and the self-employed in the form of "soft letters" and tax audits.

If you haven't reported all your taxes, made a mistake or otherwise raise a red flag at the IRS, you might get a "soft letter" - a polite but serious notice encouraging you to refigure your taxes. Your best bet is to quickly comply because, if the IRS doesn't get its funds, their next step is to mail a correspondence audit - a letter demanding payment for a certain item (sometimes more than you really owe) - or, even more scary, send out an agent for an actual audit.

Continue reading "Chicago Bankruptcy Lawyers Warn of IRS Tax Audit Increase to Cover Debt" »

I guess the banking industry hasn't heard of karma.

After sending our economy into a downward spiral with irresponsible lending practices - and putting millions of Americans out of homes, jobs and dreams in the process - they were bailed out by the same taxpayers they nearly destroyed.

So when the industry caught wind of the proposed Consumer Financial Protection Agency, a group that's only purpose would be to protect consumers against the same sort of events in the future, you'd think they'd be on board. They owe it to us, right?

Apparently not, because the lending industry has the nerve to fight tooth and nail against the agency. As op-ed columnist Bob Herbert put it in the New York Times: "We're reaching a whole new level of chutzpah here."

Continue reading "Chicago Bankruptcy Laywers Suggest Chapter 13 for Consumer Financial Protection" »

I don't usually do well with change. I've had pretty much the same hairstyle since high school, I've been driving the same car since I got my license and I have a mini-meltdown every time Facebook changes its layout. So naturally, I've been banking with the same company - a large national bank that shall remain nameless - since I first started earning a paycheck. Until recently, that is, when I finally had enough.

Over the years, charges started showing up on my account. First it was $2 for paper statements, which were formerly free. I canceled them and chose e-mail only. Then it was $1 for every transfer I made between accounts. I had to start limiting transfers.

Then, since I didn't have direct deposit (a disadvantage of being self-employed), I became liable for a $10 "monthly maintenance" fee. I switched to another account that waived the fee if you kept a $1,000 minimum. It wasn't ideal, but I figured the minimum would be good to keep in an emergency, and most importantly I would avoid that annoying $10. Apparently not. Just months after I opened the new account, my bank upped the balance minimum to $1,500 without any notification. Another $10 down the drain.

Continue reading "Illinois Bankruptcy Lawyers Warn of Hidden Bank Fees" »

Hoping that your boss might recognize your hard work with a little more money this year? Waiting for your paycheck to catch up with the cost of living? Well, you might be out of luck.

Many employers are forgoing raises for the second year in a row thanks to economic concerns, according to an Associated Press story circulating the Internet. So most workers are getting hit hard by the recession on two fronts - not only are they struggling to pay upside-down mortgages and outrageous credit card bills, but the price of most consumer goods - gas, milk, fresh produce, clothing, even pet food - are still rising as steadily as ever.

But I'm going to let you in on a little secret. You don't have to wait for you boss to give you a raise - you can give yourself one. It just takes a little effort and creativity.

Continue reading "Chicago Bankruptcy Attorneys Recommend Giving Yourself a Raise" »

It's said that everything is best in moderation, even good things. That's why I'm here to make the case for saving LESS.

Don't get me wrong, saving is still the underlying theme of most posts on this blog. Unless you're about to get a massive raise at work - or, you know, have a money tree growing in your backyard - stashing cash is the only way to make more money. It's a way to give yourself a raise, no boss needed. A realistic budget can be a great tool for allocating the things you might like, but don't really need, to the things you do need - like enough money to pay the utilities bill and your rent or mortgage.

But I've seen folks go overboard and actually endanger their well-being because they're so intent on maximizing savings. It's easy to identify a luxury good when looking for places to cut back - cable TV, a gym membership, restaurant meals and your 30th pair of shoes, for instance. It gets more complicated when figuring out how to scrimp on the necessities.

Continue reading "Chicago Bankruptcy Lawyers Say Even Saving is Best in Moderation" »

An air of fear has permeated workplaces across the country in recent months as rumors of downsizing and layoffs put workers on edge. It's hard not to question your job stability when you see the jobs of family, friends and maybe even co-workers falling like dominoes all around you.

But if you're worried about losing your job, this isn't the time to cower in your cubicle. Layoffs might be likely, but they are not inevitable. While you should still be prepared for the worst-case scenario, don't give up and expect it. If you want your job, be prepared to fight for it.

Get noticed...in a good way
Some of us - maybe women especially - are masters at flying under the radar. We do our job - and we do it well - but we don't shine. I'm guilty as anyone. Left to my natural instincts, I'll share credit with my co-workers, stay quiet in meetings and let my self-consciousness get in the way of asking for a raise. It's something that I've worked hard to overcome my entire career. I think awareness is key. Remind yourself that your boss manages more than just you. If you want her to realize you're an asset, you might have to hit her over the head (figuratively speaking, of course).

Continue reading "Illinois Bankruptcy Lawyers Offer Tips for Keeping Your Job in a Recession" »

Six years ago, I was in debt. Today, I'm not. And the difference means the world to me. That's why, on Independence Day, I celebrate not just my country's freedom but my own personal freedom.

Of course, when I had the debt, it seemed normal. It was normal for me to use a credit card for everything from gas stations and restaurants to cell phones and computers. I didn't know any other way. It was normal to never make much more than the minimum payment. It was normal to live paycheck to paycheck. And it was normal for me to live in a state of panic because I never knew when the credit card company would lower my limit or raise my rates. Ultimately, it was normal for me to be miserable.

So how did I make it out of that mess? Slowly but surely.

Continue reading "Celebrate Independence Day by Freeing Yourself from Debt, Suggest Illinois Bankruptcy Lawyers" »

What's more powerful than peer pressure, a way to relax or a desire to fit in? Money! I could tell you that at 15 years old, when I quit smoking. To be fair, I had only been a smoker for about a month. As an honor student, I had been desperate for a not-too-scary way to shed my goody-two-shoes image and cigarettes seemed like an easy answer. Sure, I worried that my mom would smell the smoke on my clothes or that, oh yeah, I might get lung cancer. But what finally clinched my reformation was the cost - at $3 a pack, my bad habit was eating into my allowance (what can I say? I'm cheap).

Since then, I've relied on my budget to keep my penchant for alcohol and fast-food in check (unfortunately, it doesn't do much for my fingernail biting, but that's another story). Of course, I believe personal responsibility also plays a role. I don't refrain from drinking myself into a stupor on Friday night because I can't afford the wine - I refrain because I respect myself and my liver. But being on a limited income is a big factor.

Just look at the numbers. Today, some cigarette packs are more than $4.50. If you're a smoker, you're tossing out more than $1,600 a year! And that's not including the medical costs and insurance premiums you'll pay in the long run.

Continue reading "Chicago Bankruptcy Lawyers See Economy as a Good Excuse to Kick Bad Habits" »