Chicago Bankruptcy Lawyer Blog

Less than 10 years ago lenders were handing out mortgages like there was no tomorrow. This spring, it's a different story, say Chicago bankruptcy attorneys.

Just one-third of borrowers who apply for a mortgage in coming months will qualify, according to Wallet Pop. After being burned by a record number of defaults and with a glut of foreclosed homes on their hands, banks are not surprisingly older, wiser and a whole lot stricter. So what does a home buyer need to do to fall into that magic 33.3 percent?

Continue reading "How Chicago Homebuyers Can Increase Chances of Getting a Mortgage" »

Consumer spending in February increased at the quickest rate in four months, the first time the economy has showed signs of life in some time. But as it turns out, most of the spending was on one thing - gas.

With gas prices hitting new highs of $4 a gallon in some cities, economic indicators might be a bit skewed, point out Chicago bankruptcy attorneys. And things were just starting to look up - last quarter saw the highest spending growth in years, at about 4 percent. Now economists say that thanks to rising fuel costs, that number could drop by half for the first few months of 2011. So what's a struggling consumer to do?

Continue reading "Chicago Consumer Spending Is On the Rise - Or Is It?" »

It's nerve-wracking enough to field calls from bill collectors over your own debt - but what if they're harassing you about a debt burden that belongs to someone else?

It's more common than you may think. Six years after moving into our house, I still receive the occasional call for someone named Brandi who was likely the former owner of our phone number - and obviously in some dire financial straits. But the calls came with a lot more frequency after we first moved in - sometimes more than once a day.

Continue reading "Are You Being Harassed Over Someone Else's Debt?" »

Remember last decade's adjustable-rate mortgages? You know, the subprime loans that led to millions of mortgage defaults across the country - and pretty much launched the whole recession? Well, they're back.

But this time around, lenders say they're different - and depending on your financial situation, they may be able to help you afford a home. In the past, ARMs came with risky gimmicks, like rates that adjusted every six months (seriously, how can you keep up with that?) and an option that allowed people to put off paying interest - leading to a huge bill later down the line.

Today's ARMs are far more conservative, explain Chicago bankruptcy attorneys.

Continue reading "Should Chicago Homebuyers Opt For New Adjustable Rate Mortgages?" »

As if it isn't bad enough that most folks are paying upwards of 20% in credit card interest, now Chicago consumers are paying a premium to use cash, too. But it doesn't have to be that way, say Chicago bankruptcy attorneys.

It's no news that withdrawing money from another bank's ATM will result in a fee - both from your bank and the competitor whose machine you're using. Usually those fees have ranged between $2.50 and $3. But Chase recently announced it's trying out $5 ATM fees for non-customers in Illinois. If you're taking out just 20 bucks, that's the equivalent of 25% interest - even more, when you factor in the penalty your own bank will levy.

If customers are willing to pay these outrageous rates, other banks will likely follow suit. Have Americans really become so reliant on convenience that we're willing to fork over a quarter of our income just for the ease of using the nearest ATM?

Continue reading "ATM Fees Add to Chicago Consumers' Debt Woes" »

It's that time of year again - and I'm not talking about doing your taxes.

Spring starts tomorrow, and it's the perfect excuse to get organized. If you've been neglecting your family budget, your growing debt, or your spending habits, it's time for a financial version of spring cleaning. Even if you've gotten organized in the past, it's good to give your finances an annual tune-up, explain Chicago bankruptcy attorneys. Here's how.

Continue reading "How Organizing Finances Can Help Chicago Consumers Save Money" »

When the bills pile up and the budget is stretched tight, cutting back on shopping sprees seems like the rational thing to do. But for emotional spenders, it's not so easy.

Debt causes emotional discomfort - no argument there. For many of us, that stress becomes a great motivator for finally getting our finances under control, whether it's by reworking our budget, making more than our minimum monthly payment, or seeking help from a Chicago bankruptcy attorney. But a portion of the population deals with financial stress a little differently - by doing more spending.

Similar to the way someone on a diet might go on an eating binge after falling off the wagon, some consumers deal with money problems by splurging on clothing, shoes, makeup, electronic gadgets, you name it, without so much as glancing at the price tag. Sometimes binge shoppers end up returning most or all of their loot - but there are still consequences.

Continue reading "When Financial Stress Causes Chicago Shoppers To Overspend" »

There's a new plan to help restructure the mortgages of underwater borrowers. The only catch? It won't work for everyone, say Chicago bankruptcy attorneys.

So far, more than 20 lenders have jumped on board the FHA-backed Short Refi program, which aims to help homeowners by getting lenders to write off 10 percent or more of their principal balance. Borrowers are considered eligible if they are regularly making mortgage payments and do not yet hold an FHA loan. Sounds good, right? Here's where it gets sticky. See, Fannie Mae and Freddie Mac loans don't qualify.

Continue reading "How Bankruptcy Can Pick Up Where New Loan Modification Program Leaves Off" »

You might have fought hard to afford your mortgage payments - but most homeowners assume the battle is over when the foreclosure notice comes in the mail.

Not true, say Chicago bankruptcy attorneys. Sure, being this close to losing your house is not a good position to be in. But you do have one more shot to fix your financial situation and keep your home. Bankruptcy has the power to stop foreclosure while you and the court work out a payment plan with lenders. Many folks aren't aware that bankruptcy is an option - or they mistakenly worry it will wreck their credit. In reality, it can do just the opposite, according to MSNBC.com.

Continue reading "Chicago Homeowners Can Stop Foreclosure With Bankruptcy" »

This year's average tax refund is more than $3,000 - but there may be a way to stretch it even farther.

With gas and grocery prices going up, it would be easy to allow that money to simply disappear, say Chicago bankruptcy attorneys. A couple bills here, a little shopping splurge there, some unexpected car repairs, and - poof - your bank account is back to where it was before. But there's a way to keep your refund alive long after you deposit it. How? By putting it to work for your future.

Continue reading "Chicago Taxpayers Find Secret to Getting Bigger Refund" »

If your grocery receipts have you doing double-takes lately, you're not alone - those higher prices aren't just in your head.

Food prices - along with gas and many other necessities - are going up, much like they did back in 2008. While we can cut back on fuel costs by driving less and adjusting the thermostat, we can't exactly stop eating. But when you can't buy less, you can still buy smarter, say Chicago bankruptcy attorneys. If you want to win in the supermarket battle, you need a good offensive and defensive shopping strategy.

Continue reading "Ways Chicago Consumers Are Fighting Rising Food Prices" »

More than two months after Americans got a small paycheck boost courtesy of Uncle Sam, the verdict is in: it's not working.

The goal of rolling back Social Security payroll taxes by 2 percent was to encourage consumers to spend more, thus stimulating the economy. But with the cost of living rising faster than expected and people preparing to pay income taxes, folks are actually spending less, say Chicago bankruptcy attorneys.

Continue reading "Rising Costs of Food and Gas Affecting Payroll Tax Cut" »

Most credit cards are designed to keep you in debt. But what if they could help you lower debt instead?

That's what TD Bank says it's doing with a new credit card that offers a reward for paying more than the monthly minimum. It makes sense - at least in theory. Typical rewards cards give discounts for airline miles or shopping, encouraging consumers to spend more money, say Chicago bankruptcy attorneys. But if you're drowning in debt, you should be spending less, not more.

Continue reading "Could New Credit Card Help Chicago Consumers Keep Spending In Check?" »

Thinking about getting a little help from Uncle Sam for that mortgage or refinance? It might cost more than you think, say Chicago bankruptcy attorneys.

This month the Federal Housing Administration announced it will raise premiums for its popular government loans by a quarter of a percentage point. It's a tiny increase, for sure, but for folks toeing the line between being able or unable to afford a loan, it could have big consequences.

Continue reading "Chicago Borrowers To Pay Higher Premiums For FHA Loans" »