Chicago Bankruptcy Lawyer Blog

Banks are finally starting to see the light about the mortgage crisis. But is it too late?

Banks are starting to improve programs aimed at helping homeowners avoid foreclosure, according to Newsweek. Amid news that half the participants in President Obama's Making Home Affordable Program have dropped out because it wasn't working, banks' timing couldn't be better. The only problem is that, with up to 5 million people in danger of losing their homes - and millions more already foreclosed upon - the new effort might not be enough. Fortunately, there's an alternative.

Continue reading "Banks Finally Start Helping Chicago Borrowers with Mortgages" »

The latest foreclosure statistics are in, and things are looking up - sort of.

The good news is that slightly less homeowners are underwater, a term used to describe when your home is worth less than what you owe on your mortgage. The amount of U.S. homeowners with negative equity fell from 23 percent to 21 percent this spring, according to a report by Zillow.com. Though it looks like a small change, it means we could see fewer foreclosures in the future, say Chicago bankruptcy attorneys.

Still, any amount of foreclosures is too many - and with more than one of every 1,000 homes being seized in the month of June, many at risk homeowners need financial help.

Continue reading "Chapter 13 Bankruptcy Is an Effective Method for Chicago Homeowners Hoping to Stop Foreclosure" »

Those credit card rewards might pay off after all.

Earlier this year, experts speculated that banks would cut back on rewards programs in retaliation for the new consumer protection stipulations in the Credit Card Act, say Chicago bankruptcy attorneys. But while some companies are indeed making rewards harder to come by, most banks aren't willing to give up customers to save money.

That's good news for those of us with overwhelming debt - if we use rewards cards wisely.

Continue reading "Many Credit Cards Still Offer Rewards, Even After the Credit Card Act" »

If you can't beat 'em, join 'em - at least, that's what big banks are doing.

After their effort to stop the financial reform bill failed with the overhaul's passage Thursday, banks have no choice but to play along - but they're playing on their own terms, according to Chicago bankruptcy laywers. That's bad news for the many folks struggling with large debts.

For instance, new debit rules in the legislation decrease the interchange fee - the amount that retailers must pay to banks for debit card transactions. So while more retailers might start accepting debit - a benefit for consumers who want more payment options - banks plan to make us pay elsewhere.

Continue reading "Banks Are Back to Old Tricks and New Fees after Financial Reform Bill Passes" »

By now most of us are savvy to the most popular phishing scams - you know, those phony e-mails we get claiming to be from some rich person overseas who wants to wire money to our account.

But scams are always evolving. It's not enough simply to watch out for a name we don't recognize or a suspicious e-mail. In fact, we even need to be vigilant when dealing with e-mails that look legit, according to Chicago bankruptcy attorneys. Scammers are increasingly posing as familiar institutions - for instance, our bank, credit card company or online brokerage account. And many customers are falling for it - and losing money in the process.

Continue reading "New Scams Aim to Steal Money From Accounts of Chicago Bank Customers" »

As banks pile on the account fees and other inconveniences, customers are starting to shop around. But to get the best banking bang for your buck, you need to be able to weigh all the options - and that means including credit unions.

Consumers often overlook credit unions because they assume they won't qualify for membership, according to Chicago bankruptcy attorneys. But many unions have been opening their doors to the general public, meaning you might be eligible for their notoriously lower rate credit cards and car loans. Hey, when you're struggling to manage bills and debt, a more affordable interest rate goes a long way.

Continue reading "Compare Banks and Credit Unions to Make the Most of Your Money" »

"Sure, I'll start investing for the future - in a couple years, when I'm making more money." Sound familiar?

It's a common excuse. We've all got credit card bills, a rent or mortgage payment to manage and gas and groceries to buy, so it's easy to put off starting a savings plan until we get a little more financial breathing room. But here's the problem, say Chicago bankruptcy attorneys. When we finally do get that raise, we find new reasons to spend money - gas goes up, our credit card debt increases and somehow that breathing room never materializes.

So what's the solution? Instead of looking at saving as something you'll get to after the bills are paid, look at it as just another bill - a bill that pays off.

Continue reading "Chicago Residents Can Build Cash Cushion By Making Saving An Obligation" »

No news is good news - especially when it comes to the recent rate of foreclosures.

After a sharp rise in foreclosures during the recession, the number of folks facing home loss remains unchanged from last year. Furthermore, one-third fewer homeowners are receiving those dreaded foreclosure warnings, according to the Associated Press.

But don't breathe a sigh of relief just yet - especially if you're dealing with too much credit card debt or other financial strains that affect your ability to pay the mortgage.

Continue reading "Foreclosures Stop Increasing, But Some Chicago Homeowners Still At Risk" »

Don't be surprised if you see an unfamiliar site in your mailbox soon - credit card offers.

That's right, after many months of tightening up credit, banks are on a mission to lure back customers they hope will start spending again as the economy picks up. And that means more credit card pitches, according to Chicago bankruptcy attorneys.

It's a good sign for the economy. But it can be a bad sign for careless consumers. As always, using a credit card to spend more than you earn can quickly land you in debt - and with a host of new fees, these new cards can make it harder than ever to climb back out.

Continue reading "Chicago Consumers Might Notice An Increase in Credit Card Offers As Banks Loosen Up Credit" »

Cutting back on your credit cards is a good thing - cutting up credit cards, on the other hand, might be going too far.

With many folks becoming more cautious about taking on debt, it's become popular to forgo plastic for cash or debit - or to at least to cut back on the number of credit cards in use, according to Chicago bankruptcy attorneys. Some cardholders have even taken it to the extreme, cutting up credit cards or canceling accounts.

But sometimes not using a card can be almost as bad for your credit as using it.

Continue reading "Unused Credit Cards Can Cause Problems for Chicago Cardholders" »

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" »

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" »

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 " »