Chicago Bankruptcy Lawyer Blog

The Chicago Sun-Times is reporting that foreclosure filings took a huge leap from July to August, another bad sign for homeowners but an opportunity for those struggling with foreclosure to consider bankruptcy in Chicago.

An experienced Bankruptcy Lawyer in Chicago can help, as filing for bankruptcy stops foreclosure in its tracks. While the $75 billion available to encourage lenders to modify homeowners' loans was a fine idea, it hasn't worked. Banks have been unwilling to help homeowners and would rather foreclose on a person's home than help them stay in it.

Therefore, option #2 -- bankruptcy -- is a better fit for many people. If you are behind on mortgage payments, or have received word that your house will be sold at auction soon, filing for bankruptcy will stop the process. Bankruptcy also allows the homeowner to discharge debt or set up an affordable payment plan.

According to the numbers cited by the Sun-Times, foreclosure filings rose 19.5 percent from July in the Chicago metro area. Some experts believe lenders are now finally working through the documentation issues that plagued them in 2009 and 2010 before most institutions severely halted their foreclosure process last fall.

While there was a large increase in filings from July to August, yearly totals are down 28.2 percent from August 2010 to August 2011, which shows just how many foreclosure notices are waiting in the wings as banks start the process over again.

In the Chicago area, 11,226 homes received a foreclosure notice, amounting to 1 in every 337 houses. Statewide, filings rose 17.6 percent from July, yet were down 25.7 percent from August 2010. Statewide, about 12,500 homes received such a notice. National filings rose 7.2 percent from July to August.

The increase in filings likely shows that lenders are getting back on track in attempting to take away people's homes through the foreclosure process. This is bad news and just another reminder of how bad our economy is right now.

Homeowners usually don't go into foreclosure because they simply don't want their house any more. There are usually more deeply rooted problems. In some situations, it could be that they have been diagnosed with an illness that has required days or weeks in a hospital, resulting in overwhelming medical bills. In this economy, with a nationwide 9 percent unemployment rate, it's certainly possible people have lost their jobs and are using credit cards to survive while using whatever money they have to make a mortgage payment.

Whatever the reason, the person is likely in bad financial shape if it comes to foreclosure. But that doesn't mean they should lie down and allow the bank to steal away their home. Filing for bankruptcy in Chicago stops banks from taking homes away from their owners and allows them to stay in it while the process is ongoing. It may be a viable option for you, but we can't help you unless you contact us. Call today.

Continue reading "Opportunity to Consider Bankruptcy as Chicago-Area Foreclosures Increase" »

With many colleges and universities back in session after the summer months, students have a lot to deal with -- which classes to take, with whom to make friends and where to live.

But, as the New York Daily News reports, they must also consider which credit card to get. Many college students get overwhelmed by debt, especially if they're unable to find work. While a credit card can come in handy in tight spots, many students get through years of higher education not only with big student loan bills, but also mounds of credit card debt.

And this credit card debt can lead to a Chicago bankruptcy filing if students aren't careful to avoid the pitfalls of credit cards, such as their short-term low interest rates that balloon over time as well as hidden fees that can make a purchase much more expensive that the sticker price.

Bankruptcy in Chicago can help students who get out of school drowning in debt. After spending four years barely getting by financially, finally earning a degree is quite an accomplishment. But then having creditors hounding for payments and making life miserable all while trying to build a career can negatively impact quality of life. Consulting with an experienced Chicago Bankruptcy Lawyer and considering how bankruptcy will allow you to eliminate most of your debt may be a smart decision in order to free up time to focus on a new career and new life.

The New York Daily News article looks at at several credit cards that are geared toward students and how they may be beneficial to those seeking their first line of credit. Despite the recommendations, it's always buyer beware with credit cards. They are a company looking to make money and they do it by charging their cardholders excessive fees and interest levels in order to maximize profits.

The article's suggested cards:

CapitalOne Journey Credit Card: The article states the card has no annual fee and is designed to help students learn how to build credit. Cardholders get text and email alerts to keep payments on track and the card offers a bonus for paying on time. But for those who carry a monthly balance, be prepared to pay a 19.8 percent APR.

Citi mtvU Platinum Select Credit Card: The card has no annual fee and allows students to earn points for every dollar spent. The points can be redeemed at restaurants, movie theaters, bookstores and music stores. Maintaining a good GPA also allows for bonus points. The initial APR is 0 percent, but it climbs to as high as 22 percent.

Discover Student More Card: This card also has a rewards system and no annual fee. The rewards program allows for 0.25 percent cash back, but based on quarterly rotations, the "bonus" categories can earn 5 percent cash back. Interest rates can climb to 21 percent after a nine-month 0 percent APR period.

Continue reading "College Credit Card Debt in Chicago Can Get Out of Control Without the Right Plan" »

Nine neighborhoods struggling with foreclosed homes throughout Chicago will get an infusion of money under a $20 million loan pool proposed by Mayor Rahm Emanuel.

This new program may help some homeowners who have fallen behind on monthly mortgage payments, but it won't stop foreclosures altogether. Filing for bankruptcy in Chicago, will, however. An experienced Chicago Bankruptcy Lawyer will tell you that once you file for bankruptcy, all debtors you owe are banned from collecting or contacting you. Even if your home is scheduled to be auction, the process stops while bankruptcy starts.

This set of laws is designed with the consumer in mind and allows for a fresh start if debts are piling up. After passing a means test for Chapter 7 bankruptcy and showing the debt vs. any income or assets a person may have, most people can have their debts completely discharged. It allows for people to enjoy a freedom they may have forgotten after battling creditors for years and dealing with wage garnishments and high interest rates.

Under the mayor's plan, according to the Chicago Sun-Times, the money will be used to attack "small sub-sections" of nine neighborhoods that have been most affected by the economic downturn:

• Humboldt Park


• Chatham


• Chicago Lawn


• West Woodlawn


• Auburn-Gresham


• West Pullman


• Belmont-Cragin


• Englewood


• Grand Boulevard

The goal of the program is to turn 2,500 houses that are sitting in foreclosure and unoccupied into owned homes over the next several years with the help of $20 million in loans through the John T. and Catherine D. MacArthur Foundation.

By using that money, the mayor expects to leverage private money -- mostly from area banks -- to up the total amount to around $50 million. The money will be used either to help underwater homeowners -- those who owe more on their mortgage than their house is worth -- provide incentive packages for potential buyers and renovate existing foreclosed homes that have become worn down.

The newspaper reports that in 2010, 10,500 homes went through the process of foreclosure in Chicago, an increase of 20 percent from 2009. About 95 percent of those houses are now vacant.

Because of the Great Recession, which killed jobs, tightened credit and affected every American, foreclosure has become rampant in many parts of the country.

Home values have been slashed -- sometimes by 2/3 of what the owner paid -- and people have had to walk away from houses because they are jobless and can no longer afford to make monthly payments.

But filing for bankruptcy stops foreclosure in its tracks. Whether one payment has been missed or a dozen, bankruptcy stops the process and allows people to stay in their homes while it is going on. A Chicago Bankruptcy Lawyer and bankruptcy officials work to determine if the person qualifies and then your attorney works to help you get rid of the years of debt that has been making life difficult.

Continue reading "Chicago Foreclosures Get Cash Boost Under Mayor's Plan" »