Chicago Bankruptcy Lawyer Blog

A recent Fortune Magazine article looked at how underemployment has turned into an advantageous thing for many jobless Americans.

While finding any work right now is a good thing, consumers who are jobless and struggling with debt may consider filing for bankruptcy in Chicago while taking on a part-time job.

If you are struggling to find work and the bills are piling up, you're behind on payments, interest rates are rising and credit card fees are keeping you down, consulting with an experienced Chicago bankruptcy lawyer may be a good option for you.

Under bankruptcy laws, people who have no income or only slight income can qualify under Chapter 7 bankruptcy, where they are able to clear out all of their debt by going through the bankruptcy process.

In most cases under Chapter 7 bankruptcy in Chicago, a consumer doesn't have to lose any assets in order to qualify and reap the benefits of this bankruptcy law. This is the most commonly filed form of bankruptcy because it is a way for consumers to discharge all their debts without paying anything back.

Chapter 13 bankruptcy, however, is considered the wage earners' form of bankruptcy. This is for people who make enough money to be just out of the reach of Chapter 7 bankruptcy.

They may have large assets, such as a house and vehicles, that they want to keep and not be forced to give up in a bankruptcy proceeding to pay off creditors. They can still get rid of most of their debt through this form of bankruptcy.

Instead of having the debt discharged outright, they must set up a payment plan over 3 to 5 years. After those payments are made -- assuming no late payments -- the remaining debt is discharged.

This is where the article about underemployment comes in. Underemployment is defined as when a person who is overqualified to do a job does it anyway just to make some money, or if they work part-time jobs in order to work their way up to a full-time job.

The Fortune Magazine article suggests that because unemployment is high and jobs are scarce that people consider underemployment as a way to get back on their feet financially.

A recent query by a columnist found that using temporary work can be a stepping stone to a permanent job. This could be the first step in learning a new skill set and work your way into a new career field. Some people have considered taking college classes to learn a new skill.

The worst thing a person can do is simply give up, the report points out. Rather than stopping their search for a well-paying job, they may take a detour and still get to where they want to be.

Bankruptcy is a strong option for certain people in this poor economy. If you are in a position where you were previously making good money but had to take a lower-paying job because of layoffs, this may be a good time to consider bankruptcy in Chicago. With a lower annual salary, you may qualify for Chapter 7 bankruptcy and be able to discharge your debts and keep your assets.

Continue reading "Being Underemployed, Coupled With Chicago Bankruptcy, May Make For a Brighter Future" »

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" »

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" »

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 looks like taxpayers might already have a use for that extra money from President Obama's payroll tax cut - filling up the gas tank.

Legislators hoped that the tax cut - which gives many Americans the equivalent of a 2 percent raise by shaving the amount of paycheck withholdings for Social Security from 6.2 to 4.2 percent - would boost the economy. But with today's gas prices almost 40 cents higher per gallon than they were a year ago, it looks like the savings will be boosting the bottom line of oil companies instead, say Chicago bankruptcy attorneys.

Continue reading "Rising Gas Prices Put Financial Burden on Struggling Consumers" »

If you're like most folks, you like to dream of all the things you could afford if you finally got that pay raise. But what if I told you that you've already gotten your raise - and you're blowing it?

Thanks to a tax bill signed by President Obama in December, the majority of Americans will pony up just 4.2 percent of our paychecks for Social Security instead of the typical 6.2 percent. In other words, most of us will get a paycheck boost of $1,000 on average this year. But since that amount is spread over a year's worth of paychecks, it will likely go unnoticed by many wage earners - and therefore won't be used as efficiently as it could be, say Chicago bankruptcy attorneys.

Continue reading "How Maximizing Tax Cut Can Help Taxpayers Lower Debt" »

It looks like American workers could be getting a raise next year, albeit a small one.

If the tax agreement between President Obama and legislators passes, one of the provisions will reduce the Social Security payroll tax rate from 6.2 percent to 4.2 percent. For someone making $60,000 a year, that's an extra $1,200 in annual take home pay - or the equivalent of another $25 a week. It might not seem like much, but if you're looking for ways to make ends meet, any little bit can help, say Chicago bankruptcy attorneys.

Continue reading "How Bush Tax Cut Extension Could Affect Chicago Workers With Debts" »

Once upon a time, having a million dollars when you retired meant you were rich. Nowadays, it merely means you're financially secure - if you manage your money responsibly.

But while a million bucks doesn't stretch quite as far - or buy as much luxury - as it did in our parents' day, the good news is that reaching the million-dollar milestone is more within our grasp than ever before, according to Chicago bankruptcy attorneys. That is, if we stop losing money due to growing debt and start earning it through growing our savings.

Continue reading "How Chicago Savers Can End Up With One Million Dollars in Retirement Savings" »

If you're going to go through an economic downturn, it looks like you're better off doing it as a woman.

For years, women have earned less than men for doing the same work - the infamous wage gap. Now it appears that young, single females are actually pulling in bigger paychecks than their male counterparts. On average, women between the ages of 22 and 30 are earning 8 percent more than men, according to data by Reach Advisors. And with many women looking for extra money to pay down debt, the timing couldn't be better, say Chicago bankruptcy attorneys.

Continue reading "Young Chicago Women Earning More at Work Than Men" »

Most of us consider the recession a bad thing, and for many good reasons. But for Chicago workers lucky enough to still be employed, today's economy might actually have some benefits, too.

According to the New York Times, wages are on the rise, inflation is on the decline and the rate of layoffs is stabilizing. So what does it all mean? If you can manage your money and keep your job, you just might make it out of the recession in better shape than you entered it.

Continue reading "How the Great Recession May Have Benefits for Chicago Workers" »

How often do you think, "If I just had a little more money, I would be so much happier?" If you're like most folks, you do it quite frequently.

But there's a new theory floating around these days, say Chicago bankruptcy attorneys. Money can help you pay the bills and it can help you put more in your shopping cart. But apparently, the old adage is true - money can't buy happiness

Continue reading "How Less Money Can Equal Greater Happiness for Chicago Consumers" »

Living in fear is no way to spend your life, but living in denial can be just as bad. Yet that's what millions of Americans are doing in today's unstable job market.

Despite the fact that one out of every 10 workers is unemployed and 55 percent of Americans fear they could soon lose their job, we're doing almost nothing to prepare for a possible layoff, according to MSNBC.com. Almost half of workers say they don't have enough money to pay the bills for just one month without a paycheck.

No one likes to think about the worst case scenario. But facing your fears and preparing for the worst today can ease your pain - and pad your wallet - just in case your luck runs out tomorrow.

Continue reading "Saving Money Today Can Help Chicago Workers Deal With Unemployment Tomorrow" »

When you're out of work and without a paycheck, finding a new job can feel like it's taking forever - especially when you're also struggling to pay your credit card bills and the mortgage. But all that legwork can pay off in more ways than one.

Of course, the best case scenario is that you find a well-paying job quickly. But even if you don't, you can get a financial break in the meantime by deducting money you spent on your job search, say Chicago bankruptcy attorneys.

Despite the debate over if or when the economy will recover, millions of Americans remain jobless. Those who have been out of work for six months or more were recently cut off from jobless benefits for seven weeks during a congressional standoff that ended last week. But what didn't get cut off is a series of tax deductions for job searches.

Continue reading "Tax Breaks Help Unemployed Chicago Workers Pay for Job Search" »

You know the thrill you get when you discover a $5 bill hiding in your pants pocket? Imagine how you'd feel if you found $500 in there.

OK, so you're not likely to stumble on half a grand in your jeans. But believe it or not, it's not uncommon for folks to forget about similar sized chunks of money hidden in old bank accounts, safe-deposit boxes or insurance policies, say Chicago bankruptcy attorneys. And there's a new way to help you turn up buried treasure - money you might be able to use to pay the bills.

Continue reading "Finding Missing Money Is One Way Chicago Residents Can Help Pay Off Debt" »

When you see a penny on the ground, do you pick it up? Most folks don't bother.

One percent of a dollar might seem like small change, but when it comes to saving money for retirement - or for getting out of debt - one percent can be huge.

It can take a lot of motivation to start a savings plan when times are already financially tough. That's why starting in small increments can make the process more manageable. Worried that saving several more dollars from every paycheck won't be enough to make a difference? Just take a look at this nifty calculator tool from the New York Times. A little bit here and there really does add up in the long run.

Continue reading "Saving Just a Little More Can Make a Big Difference for Chicago Residents With Debt" »