Chicago Bankruptcy Lawyer Blog

The most common myth about bankruptcy is that folks who file will never see a good credit score - but the truth is, they might actually see a better one.

According to an expert from Bankrate.com, it's possible to not only rebuild credit after bankruptcy but to improve to a score of 750 or more. Yes, your score will drop initially after filing, but look at that point as your clean slate. Once your debts are discharged, your credit score can begin its gradual climb back up to - and past - where it was before. But there are a few steps you can take to make your progress even smoother, point out Chicago bankruptcy attorneys.

Continue reading "The Truth About Bankruptcy's Effect on Chicago Credit Scores" »

You might think making more phone calls would cost you more money - at least on your phone bill. But placing a few selective calls can actually help your finances, say Chicago bankruptcy attorneys.

Though they might not mention it, many common service providers are willing to negotiate a price - especially in today's economy. According to Yahoo Finance, consumers can save on everything from utilities to Internet service to that telephone bill by simply picking up the phone. Here's how it works.

Continue reading "Chicago Consumers Save Money With Phone Negotiations" »

We've all heard the classic financial advice a million times: pay down debt first, buy rather than rent, and invest as much as possible in your work's 401k.

But even the most trustworthy and time-tested tips can be wrong in the right situation - especially when it comes to debt, according to TheStreet. So how do you know what works best for you? Chicago bankruptcy attorneys have the tools to help you find out.

Continue reading "Debt Myths That Can Hurt Your Finances" »

It looks like taxpayers might already have a use for that extra money from President Obama's payroll tax cut - filling up the gas tank.

Legislators hoped that the tax cut - which gives many Americans the equivalent of a 2 percent raise by shaving the amount of paycheck withholdings for Social Security from 6.2 to 4.2 percent - would boost the economy. But with today's gas prices almost 40 cents higher per gallon than they were a year ago, it looks like the savings will be boosting the bottom line of oil companies instead, say Chicago bankruptcy attorneys.

Continue reading "Rising Gas Prices Put Financial Burden on Struggling Consumers" »

I always thought of Grandma as the penny-pinching, coupon-clipping type. So I was more than a little surprised when, after she passed away, we learned that she'd left Grandpa with thousands of dollars in debt.

Sadly, it's becoming an even more common scenario in today's economy. Rising healthcare costs and medication prices coupled with dwindling retirement portfolios are leaving seniors with little choice but to put their everyday necessities on a credit card, ringing up debt that they may not live to pay off. And that's bad news for all of us, say Chicago bankruptcy lawyers.

Continue reading "Why More Elderly Americans Are Passing Debt On To Their Families" »

You can combat rising gas prices by carpooling, and you can counteract an expensive mortgage payment by downsizing to a smaller place. But you can't exactly fight rising food prices by not eating.

No, when the price of milk, produce, and coffee goes up due to weather and high fuel prices, we have to suck it up and pay more at the grocery store. A bigger price tag is never fun, but for the many Americans already on a tight budget because of growing debt, it can feel like the last straw. But there's good news - we still have some say over our supermarket bill, say Chicago bankruptcy attorneys.

Continue reading "How Chicago Consumers Can Fight Rising Food Prices" »

As if it isn't hard enough to afford your federal income taxes come April, now Chicago residents have to worry about a state income tax hike as well.

Illinois - like California and a handful of other states - is facing a major budget shortfall. To cover it, lawmakers agreed to raise the personal income tax from 3 percent to 5 percent, at least temporarily. On the one hand, it's probably long overdue - the state of Illinois has not raised income taxes since 1989. On the other hand, it's not the best timing for thousands of Chicago residents currently struggling with unmanageable debts.

Continue reading "How Illinois Income Tax Hike Will Affect Chicago Residents" »

If you're like most folks, you like to dream of all the things you could afford if you finally got that pay raise. But what if I told you that you've already gotten your raise - and you're blowing it?

Thanks to a tax bill signed by President Obama in December, the majority of Americans will pony up just 4.2 percent of our paychecks for Social Security instead of the typical 6.2 percent. In other words, most of us will get a paycheck boost of $1,000 on average this year. But since that amount is spread over a year's worth of paychecks, it will likely go unnoticed by many wage earners - and therefore won't be used as efficiently as it could be, say Chicago bankruptcy attorneys.

Continue reading "How Maximizing Tax Cut Can Help Taxpayers Lower Debt" »

Two foreclosures in Massachusetts could have a big impact on banks - and homeowners - nationwide, say Chicago bankruptcy attorneys.

Last week a Massachusetts court voided the foreclosure of two homes, citing the fact that Wells Fargo and U.S. Bancorp could not prove they held the mortgages at the time they seized the residences. Last year, two other banking giants, Bank of America and JP Morgan Chase & Co., briefly stopped foreclosures because of similar documentation problems. If lawmakers get their way, banks are going to have to be a lot more careful about foreclosing on properties - and consumers may get better protection.

But homeowners facing foreclosure shouldn't breathe a sigh of relief just yet.

Continue reading "How Foreclosure Ruling Could Affect Chicago Homeowners" »

If you've checked your mailbox lately, you probably already know that credit card companies are pulling out all the stops to lure new customers in 2011. But are the latest credit card offers worth it?

Following a period of tighter credit, credit card offers nearly doubled in 2010, according to a recent market study. On the one hand, banks are sweetening those offers with a wider variety of rewards cards and low-fee balance transfers with 0% introductory rates. And of course, consumers stand to benefit from recent legislation that did away with things like surprise interest rate hikes and unfairly high fees.

On the other hand, a credit card is just that - a credit card. And opening a new account could ultimately result in the same old trials and tribulations, caution Chicago bankruptcy attorneys.

Continue reading "Chicago Consumers Should Weigh Rewards, Risks of New Credit Card Offers" »

Looking to lower your mortgage payment? You might have more choices than you think, say Chicago bankruptcy attorneys.

Traditionally most homeowners have lowered their house payments by refinancing, which can result in a new, lower interest rate and therefore a lower payment. Problem is, the refinancing process takes time and costs money - if you even qualify in the first place, that is. Thanks to ever-tightening credit requirements, many homeowners don't meet the criteria for a refinance. Fortunately, there are other ways to save money on your mortgage.

Continue reading "Ways Chicago Homeowners Can Cut Their Mortgage Payment Without A Refinance" »

Sometimes to move forward, you've got to let go. And for many folks hoping to conquer debt in 2011, that means letting go of long-held - but often unfounded - fears about bankruptcy.

While bankruptcy filings are increasing each year, many of us are still holding back, according to a recent article in the Chicago Tribune. We worry about what our friends and families will think, about whether we'll have to give up our assets and about how we will cope with the fact that bankruptcy could stay on our credit report for the next decade. But by avoiding one of the most effective ways to lower debt, we may actually be making our financial situation worse.

Continue reading "Chicago Tribune Clears Up Myths About Bankruptcy" »

So you're fed up with your finances and you've made a New Year's resolution to get out of debt. Making that commitment is the first step towards financial freedom, say Chicago bankruptcy attorneys. Unfortunately, it's not the only step.

Millions of Americans vow to change their lives for the better every Jan. 1, yet many of us don't follow through. So what sets the successful apart from the failures? Simple - a solid plan. If you want to make your dream of a debt-free future a reality, it helps to craft a plan that follows the "three Rs," according to CreditCards.com.

Continue reading "New Year, New Finances Part II: Keeping Your Financial New Year's Resolution" »