Chicago Bankruptcy Lawyer Blog

You probably already know that if you save your aluminum cans and glass bottles you can earn something like 5 cents per container - but, unless you've taken to collecting cans from friends, neighbors and city streets (not necessarily a bad idea) it's really more of a rebate than a way to make money. But recycling really can pay - you just have to find the right recyclables. Try looking in your attic, closet, desk - even your wallet.

Gift cards
If you have gift cards, use them sooner rather than later - some stores will actually deduct a maintenance fee after a year of non-use. But sometimes the problem is that you don't care much for the store. I once had an REI card ride around in my wallet from one Christmas to the next. I just don't go camping that often - and I'm not really into the suburban hiker look. I wish I had known about CardAvenue.com, a site that allows you to exchange a card for one that better suits your tastes. Would you rather have cash than more plastic? No problem. You can sell your card on eBay, where it could go for 80 to 90 percent of its face value. As for those airline miles or credit card points you never use, consider redeeming them at Points.com.

Continue reading "Chicago Bankruptcy Attorneys Recommend Recycling for Extra Cash" »

With U.S. foreclosures up 32 percent in the last month, there's good news and bad news for Illinois homeowners. First, the good - foreclosures here decreased 11 percent from March to April, making the state more stable than the rest of the country. Now the bad - that's still 54 percent higher than a year ago, according to data just released by RealtyTrac.

Now, people seem to handle news like this in two very distinct ways - by either underreacting and overreacting. Underreactors brush off the data and think, "It's not like it will happen to me," even as they pile up debt and miss payments. Overreactors tend to panic and imagine the worst, sometimes to the point that they enter a state of denial and thus don't actually do anything to protect themselves. What do they have in common? Neither behavior does anything to stop foreclosure.

Continue reading "Chapter 13 Bankruptcy Can Prevent Illinois Foreclosures " »

In our last post, we debunked a common myth about bankruptcy: some folks misguidedly believe filing will cause them to lose their belongings, including their house. But bankruptcy can not only eliminate your debt, it can actually help you save your home, car and other possessions. Want to see for your own eyes? Take a look at your state's exemptions. In addition to federal exemptions, each state has its own list of items that are protected from repossession.

In Illinois, for instance, you can exempt up to $7,500 of your home's equity or up to $1,200 of the equity in your vehicle. In Georgia, it's $5,000 for the house, $1,000 for the car. If you're married, you're in luck - those amounts double.

Continue reading "Illinois and Georgia Bankruptcy Exemptions Part 2" »

One of the biggest misconceptions people have about bankruptcy is that they'll have to give up all of their stuff when they file. A woman in my neighborhood was so terrified that her house would be taken away if she went bankrupt that she (unfortunately) didn't even consider filing as an option. She just let the bills pile up, hoping for a miracle, until - lo and behold - the bank foreclosed on her family's home. Had she tried bankruptcy - the option she feared the most - she'd probably still be living down the block.

Despite sometimes misguided public opinion, of the most appealing features of bankruptcy is its ability to protect assets from creditors, thanks to a long list of exemptions. It's why at DebtStoppers we often tout Chapter 13 as the surest way to stop foreclosure.

Continue reading "Illinois Bankruptcy Exemptions Can Protect Your Assets" »

Whoever said that patience is a virtue might have been talking about payday loans.

You've probably noticed payday loan centers in your neighborhood - maybe you've even used them yourself. An online search for payday loans in Chicago nets nearly 300 results. And with so many folks living paycheck to paycheck, it's no wonder. But, as with tax refund loans, while there's no faster way to get your earnings, there's also no faster way to lose them.

It's why my first payday loan was also my last. My coworker at the time wanted to go out to a club one night, but I said I had to wait until we got paid. No worries, she said, we'd just go get a payday advance. She took me to a center, where the cashier counted out three crisp $100 bills - for a $50 fee. Ouch! I decided then and there I'd rather wait for a few days and hold onto my entire paycheck.

My coworker wasn't so patient.

Continue reading "Payday loans a bad deal, advise Chicago bankruptcy attorneys" »

Credit card companies are scrambling to make up for the millions of Americans who have defaulted on their credit card bills thanks to the recession. But the way they're going about it is a little sneaky.

Last week, my bank called twice to offer me a new low-APR platinum credit card. Yeah, like I'm going to open another account when I'm struggling to pay off the few I already have? I could barely conceal my laughter from the sales rep. Because while it's true companies are offering lower rates on some cards, like the one they tried to sell me, they're also hiking the rates of current customers--particularly anyone with large debts. Since laws next year will limit the tricks creditors can pull--such as sending out bills really close to the due date, suddenly lowering credit limits and sneaking in fees here and there--they want to pull those antics now, while they still can.

So what can you do about it? Be more vigilant than ever about reading the fine print on your credit card statements.

Continue reading "Choose Chapter 13 over new credit cards to escape credit debt" »

Debt and pessimism seem to go hand in hand. I spent much of my life as a shameless whiner, but only when I took control of my credit card debt did I began to realize how much of a toll the complaining took on my life.

As a kid, I'd blame my parents when I got a bad grade (they were too busy to help me with my homework--it wasn't fair!). When I was older, I'd blame them for my carefree spending habits (they lived paycheck to paycheck--why would I do otherwise?). In college, I whined that my professors were too hard. At my first job, I complained I was underpaid. When I caught a cold, I resented the person who I suspected gave it to me.

I used to think whining actually made me feel better ("It's venting!" I told my boyfriend). Until one day he asked me a simple question that changed my life: "Does it make you happy?" I had never thought about it that way. And the truth was, it didn't.

Continue reading "Eliminate credit card debt by bankruptcy, not bellyaching" »