Chicago Bankruptcy Lawyer Blog

There's hope for Chicago homeowners who owe more on their mortgage than their house is worth.

On Tuesday it was announced that home prices increased for the first time in nearly four years this February, according to The Standard & Poor's/Case-Shiller price index. Increasing values mean that homeowners can finally start rebuilding equity - that's the good news. The bad news is that housing prices aren't predictable, and they probably won't rise as rapidly as they once did. But who wants another bubble anyway, right?

Besides, whatever happens in the future, you're in luck just by being a homeowner - and here's why.

Continue reading "Increasing House Prices Mean Hope for Underwater Chicago Homeowners" »

A tax credit is a nice incentive if you've been thinking about buying a house. But a tax credit alone doesn't mean you're ready, caution Chicago bankruptcy attorneys.

Many first-time buyers have been rushing to take advantage of a credit of up to $8,000 (or $6,500 for existing homeowners who have lived in their current house for five or more years) since, in order to qualify, buyers must sign a contract by the end of April - this month.

But don't worry if you don't make the deadline - and don't rush if you're not ready. Unlike first-time homebuyers were mistakenly led to believe last decade, home buying isn't a walk in the park. Taking the time to have your financial ducks in a row first goes a long way towards ensuring a smooth buying process. In fact, in the long run it may save you more money - and heartache - than any homebuyer tax credit.

Continue reading "Chicago Homebuyers Should Get Finances In Order Before House Shopping" »

If you know what it feels like to be struggling with debt, chances are you don't want your loved ones to go through the same thing. So when someone close to you asks you to co-sign a loan, it makes sense to want to do your part.

But though it might seem to make sense for your friendship, it doesn't make sense for your finances, say Chicago bankruptcy attorneys. In the end, sharing that loan might mean the end of your relationship.

Continue reading "Co-signing a Loan Can Mean Debt Trouble for Chicago Residents" »

It's an age-old Catch-22. Some of us are so afraid that filing for bankruptcy will damage our credit that we avoid it at all costs - and in the process, we run their credit into the ground.

And the saddest part of the story? Bankruptcy might have saved - not ruined - our finances, say Chicago bankruptcy attorneys.

Think about it. When you're borrowing from family members just to pay the bills, are having your wages garnished at work and are at serious risk of foreclosure, you've got no credit to speak of. If you've got nothing to lose, why not give bankruptcy a try? Your credit score has nowhere to go but up.

Continue reading "Bankruptcy Can Help Rather Than Hurt Credit of Chicago Consumers" »

My mom taught us kids to put our spare change in the piggy bank and it worked. That money helped fund many a spending spree - and even helped pay for (a small part) of my college tuition.

Problem is, nowadays much of our spending is done on credit and debit cards. The downside of not having to make a trip to the ATM is that you don't have any change leftover. Somewhere along the way, using plastic instead of paper money became one of our many excuses not to save.

But there are ways to save even virtual change. And because many of the savings methods happen automatically, you might be more likely to stick to a savings plan than if you had to empty your wallet into the savings jar every week.

Continue reading "Virtual Saving Accounts Help Chicago Consumers Jumpstart Savings Plans" »

Think debt is just a drain on your finances? Think again. Carrying too much debt can actually be detrimental to your entire life, from your income to your health.

Let's say you're looking for a job, whether it's because you're unemployed, a new college graduate or interested in changing careers. You know you're qualified, you write up a great resume and you ace the interview - but you don't get the position. What gives? Maybe your credit.

Employers can often request a copy of your credit report. And if they see a load of debt and a record of late payments- fair or not - it's not going to reflect well on your character. But here's the good news. Not only can you fix the situation by fixing your credit, but the process of making an effort will often prove to potential employers that you have what it takes for that job.

Continue reading "Too Much Debt Can Keep Chicago Job Seekers Unemployed" »

The good news: almost a quarter of a million homes have received lower mortgage payments since the inception of Obama's foreclosure relief program last year.

The bad news: not all of the modifications will last.

A rising number of homeowners are defaulting despite receiving cheaper mortgages. Defaults almost doubled last month alone, according to the New York Times.

Sure, everyone can benefit from a lower house payment. But often times a lower payment alone is not enough to solve our financial problems. What we need is a plan that addresses the root of our inability to pay the bills - for many of us that means eliminating credit card debt.

Continue reading "Bankruptcy Might Offer a Better Way for Chicago Homeowners to Stop Foreclosure" »

Maybe the newest slogan of credit card companies should be, "Use it or lose it."

Creditors are offering up all kinds of new credit rewards programs to distract Chicago customers from the annual fees and other costly changes they're making as of late. So what's the problem? Those rewards points aren't guaranteed, according to Chicago bankruptcy attorneys.

But before you give up on those long-awaited cash rebates or a dream trip to Hawaii, take heart - you might be able to salvage a free ride. You just have to read the fine print in your credit card agreement.

Continue reading "Credit Card Companies Try to Lure Chicago Customers with Rewards Points " »

Wondering what to do with the tax refund you're getting this year? Maybe it's time to take a cue from the majority of Americans and pay down debt.

This year it's not about splurging on a flat-screen TV or a weekend getaway. More than 40 percent of consumers are going to use their checks from Uncle Sam to lower debt, according to an annual survey by the National Retail Federation. Some plan to sock away the refund in a savings account; other will use it to help pay the bills. Only 10 percent will take that dream vacation.

Now, you might be thinking using your refund responsibly sounds like all work and no play. But that's not true. Putting your windfall towards your debt can mean more play money in the future.

Continue reading "Paying Down Debt with Bankruptcy Can Stretch the Tax Refunds of Chicago Taxpayers" »

Maybe you can't lower your mortgage - but what about your property taxes?

As much as 60 percent of homeowners are paying thousands more in property taxes than they need to, according to Msnbc.com. Why? Their property taxes are being assessed based on the value of their home before the housing bubble burst.

Property taxes are typically reassessed every 3-5 years. If 2007 was the peak of the market, that means you might still have a couple years to go - and counties are dragging their feet on the reassessment process because, let's face it, they could use the extra money.

But you don't have to wait for the county. You might be able to lower your taxes - and thus increase your income - with an appeal.

Continue reading "Chicago Homeowners Might Be Able to Lower Property Taxes with Assessment Appeal " »

Getting a free credit report is about to get a whole lot easier - and cheaper - for Chicago credit users.

Until last Friday, many companies heavily advertised credit report services - services that usually came at a price. The problem is that those same services are available for free at the government-sanctioned site AnnualCreditReport.com. And thanks to a new rule by the Federal Trade Commission, ads selling credit reports now have to point consumers to the free site as well.

Right off the bat, this could save you $15 a month - the amount a typical for-profit credit report service charges. But your future savings can be even greater. Just like getting a checkup at the doctor's office is a good indicator of your current health, checking your credit report will give you a view of your financial health - and how to make it even better.

Continue reading "New Rule Makes It Easier for Chicago Consumers to Get Free Credit Reports " »

What if one day money started disappearing from your bank account?

It's no scam - it's a legal action called wage garnishment, and it's happening to thousands of Chicago debtors. Fed up banks are suing customers who aren't paying their debt balance, according to the New York Times. And since many of us are too tapped out to defend ourselves (or in some cases, aren't even aware we're being sued) the banks can often get a court order to take the money straight from our paychecks.

It doesn't seem fair. We can't afford to pay our debts, so debt collectors take more money away from us - leaving us with overdrawn account fees and more need than ever to rely on our credit cards. But there's a little known way to keep your bank's hands out of your paycheck - bankruptcy.

Continue reading "Bankruptcy Can Stop Wage Garnishment for Debt Burdened Chicago Residents " »

The IRS might not be the only group taking your money this tax season.

A growing number of scam artists are preying on the desperation of stressed-out taxpayers to make a quick buck, according to Chicago bankruptcy lawyers. Sometimes it's by promising you an easy way to lower your tax bill. Other times it's by impersonating IRS websites. Either way, scammers are on a mission to get your personal information - and your money.

With credit card debt, a mortgage or rent payment and a maybe even an impending tax bill, you've got enough to worry about. Fortunately, it's a cinch to avoid tax scams - you just have to know what to look out for.

Continue reading "Common Sense Can Help Chicago Taxpayers Fend Off Scams This Tax Season" »