Chicago Bankruptcy Lawyer Blog

Getting a college degree is supposed to help you earn money - but lately, some students have been losing money thanks to a growing number of financial aid scams.

For many folks out of work or looking for a way to boost their current income, going back to school seems like a logical solution. Problem is, it can be an expensive one. Average college tuition in the U.S. is over $12,000 - not including room and board, books and other fees. As a result, most college students need some kind of financial help. And their desperation can make them extra susceptible to criminals, say Chicago bankruptcy attorneys.

Continue reading "Financial Aid Scams Take Advantage Of Chicago College Students" »

Everyone wants to know if bankruptcy will leave a black mark on their credit score. Yet few seem to consider the credit consequences of foreclosure.

This month we talked about bankruptcy's impact on credit - initially, filing can drop your score by a one or two hundred points. Of course, as your debt disappears, you have can begin improving your score - often to a whole new high. As Chicago bankruptcy attorneys point out, many clients qualify for credit cards or loans right after filing.

Foreclosure, on the other hand, is a whole other ball game. Let's take a look at what happens when you fail to make those mortgage payments.

Continue reading "How Foreclosure Affects Chicago Homeowners' Credit Scores" »

Some things are easier said than done - and it looks like that might be the case when it comes to retaining the smart saving and spending behavior so many Americans adopted in response to the recession.

Last year, 63% of consumers said they had modified their money habits because of the economy, according to a poll by Citigroup. Just one year later, that number has dropped to 52%. Incomes are on the rise once again, and apparently so is consumer debt - one of the problems that led to our economic troubles in the first place. Could budgeting and avoiding debt end up like the majority of New Year's resolutions - out of sight, out of mind? That depends, say Chicago bankruptcy attorneys.

Continue reading "Will Americans Keep Frugal Habits or Fall Back in Debt When Economy Rebounds?" »

It used to be that kids wanted a cash allowance - today, they want a credit card of their own.

Credit card companies like Visa and MasterCard are increasingly marketing prepaid debit cards to teens and preteens. And they're convincing parents to buy the cards for their kids by pitching them as an easy way to teach children about finance. But these junior credit cards may be doing more harm than good, say Chicago bankruptcy attorneys.

Because prepaid debt cards can be loaded with a set amount of money, they show kids how to control their spending - at least, that's what credit card companies are trying to convince parents. In reality, the cards come with all kinds of fees - activation fees, maintenance fees, reloading fees, etc - that can leave kids with early debt and Mom and Dad footing the bill.

Continue reading "Credit Card Companies Targeting Kids With Prepaid Debit Cards" »

Uncle Sam is extending your tax deadline - but you might prefer to say no thank-you, say Chicago bankruptcy lawyers.

Because of a Washington D.C. holiday on April 15, the government is giving taxpayers until the following Monday - April 18 - to mail in our tax returns. But there's no reason to wait until the 15th or the 18th. The IRS officially began accepting returns this week - even for folks who plan to itemize deductions (officials previously told itemizers to hold off until new tax laws went into effect). And the sooner you file your taxes, the sooner you may be able to get that tax refund - and reap the benefits.

Continue reading "Chicago Taxpayers See Benefits of Filing Tax Return Early" »

Your Valentine might have given you a box of chocolates yesterday, but will he leave you with debt tomorrow?

Earlier this month we talked about the consequences of hiding debt from your significant other. But what about the reverse - how does your spouse's debt affect you? It's not the most romantic topic, but with Valentine's Day come and gone maybe it's time to give it some thought. Understanding how your relationship affects your finances - both if you stay together and if you divorce - is essential, explain Chicago bankruptcy attorneys.

Continue reading "Is Your Partner's Debt Wreaking Havoc On Your Relationship?" »

The math is simple. Spend more than you earn, and you'll end up with debt. Earn more than you spend, and you'll gain control of your finances. So why is implementing a family budget anything but simple?

For many of us, the problem starts at a young age. Maybe our parents were never very good at balancing a checkbook, so we followed suit. Maybe we got suckered into signing up for a credit card in college, and didn't have the guidance we needed to use it responsibly. Maybe we got caught trying to keep up with the Joneses, along with everyone else before the recession.

The point is that most adults today never learned how to make and stick to a budget. So what should be easy is actually overwhelmingly complex - until now.

Continue reading "Budget Challenge Encourages Chicago Consumers to Take Back Control of Finances " »

Would you be OK with paying a 60% premium on your purchases? If you're like most Americans, the answer might be yes.

Consumers are signing up in droves for high-interest credit cards like First Premier's 59.9% APR card. In fact, the same card had plenty of takers when it debuted with a whopping 79.9% APR (the company only lowered the rate this year because so many borrowers were defaulting). So why are so many folks clamoring for a chance to be charged outrageous interest? Simple, say Chicago bankruptcy attorneys. They think it's the only card they can qualify for.

Continue reading "Chicago Consumers Sign Up For Credit Cards With Outrageous Rates" »

Could the idea of a perfect credit score actually be a damaging myth?

It seems that everyone from debt relief companies to singing pirates has been promoting the importance of a high credit score, but it turns out it may be an elaborate scam, say Chicago bankruptcy lawyers. Not that there's anything wrong with having a good credit score, mind you. It's just that most Americans are so terrified of doing anything to hurt their score that they fail to take actions to improve their finances, from saving money to filing for bankruptcy.

Continue reading "Credit Score Myths That Can Lead To More Debt For Chicago Consumers" »

It looks like troubled homeowners may soon have a better option for modifying home loans, according to Chicago bankruptcy attorneys.

A new bill backed by Sen. Sheldon Whitehouse suggests that the federal government consider allowing bankruptcy to be used to modify the mortgages of the millions of Americans at risk for foreclosure. Currently, the best aid Uncle Sam has mustered is the failing Home Affordable Modification Plan, which has barely assisted 500,000 of the four million homes it set out to save. Clearly, homeowners need a better solution.

Continue reading "Could Bankruptcy Help Struggling Homeowners Avoid Foreclosure?" »

Kmart's latest blue light special might not be on clothing or toys, but on financial services.

With millions of Americans looking for checking account alternatives to avoid rising bank fees, retailers like Kmart, Wal-Mart and Best Buy are jumping on the banking bandwagon, according to The Washington Post. Kmart, for instance, is testing out prepaid cards, cash transfers and even cash checking services in its Illinois stores in hopes of luring customers who are either fed up with big banks or who never had a bank account in the first place. But as with any product, consumers are finding there are pros and cons.

Continue reading "Chicago Shoppers Turning To Big Box Stores For Financial Services" »

Valentine's Day is fast approaching, but the majority of Americans are doing something decidedly unromantic, say Chicago bankruptcy attorneys.

At least 30 percent of married people cop to cheating - of the financial kind, that is. In other words, they admit to hiding a major purchase or other financial indiscretion from their partner, according to the Minneapolis Star Tribune. A whopping 90 percent confess they avoid talking about money with their significant other. And thanks to the economy, these financial secrets are increasingly revolving around too much debt.

Continue reading "Are Your Financial Secrets Hurting Your Relationship?" »