Chicago Bankruptcy Lawyer Blog

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" »

You might think the easiest cure for a shopping addiction would be having less money to spend - but you'd be wrong.

That's like saying someone addicted to gambling will stop pressing their luck when they start losing - ain't gonna happen. Much like gambling, overeating or smoking, spending can be a compulsion. And sometimes the more things spiral out of control, the more an addict clings to her compulsive behavior. Because of that, some folks actually spend most carelessly during a recession.

If you're consistently living paycheck to paycheck, you may want to ask yourself the following questions.

Continue reading "Curing a Spending Addiction Can Relieve Debt for Chicago Shoppers " »

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" »

Think debt is just a drain on your finances? Think again. Carrying too much debt can actually be detrimental to your entire life, from your income to your health.

Let's say you're looking for a job, whether it's because you're unemployed, a new college graduate or interested in changing careers. You know you're qualified, you write up a great resume and you ace the interview - but you don't get the position. What gives? Maybe your credit.

Employers can often request a copy of your credit report. And if they see a load of debt and a record of late payments- fair or not - it's not going to reflect well on your character. But here's the good news. Not only can you fix the situation by fixing your credit, but the process of making an effort will often prove to potential employers that you have what it takes for that job.

Continue reading "Too Much Debt Can Keep Chicago Job Seekers Unemployed" »

What if one day money started disappearing from your bank account?

It's no scam - it's a legal action called wage garnishment, and it's happening to thousands of Chicago debtors. Fed up banks are suing customers who aren't paying their debt balance, according to the New York Times. And since many of us are too tapped out to defend ourselves (or in some cases, aren't even aware we're being sued) the banks can often get a court order to take the money straight from our paychecks.

It doesn't seem fair. We can't afford to pay our debts, so debt collectors take more money away from us - leaving us with overdrawn account fees and more need than ever to rely on our credit cards. But there's a little known way to keep your bank's hands out of your paycheck - bankruptcy.

Continue reading "Bankruptcy Can Stop Wage Garnishment for Debt Burdened Chicago Residents " »

Americans spent more - but earned less - in January, say Chicago bankruptcy attorneys.

Personal spending was up 0.5 percent in the first month of 2010, according to The Commerce Department. That would seem to bode well for economic recovery, except that incomes in January rose by just 0.1 percent, much less than what economists had predicted - and the worst rate in four months.

There's good and bad news. First, the bad. As a result of more spending and less money, the savings rate has dropped. Last year Americans saved 4.3 of our incomes - the highest rate in over 10 years - but in January we only saved 3.3 percent. We might be spending more now, but without raises (and in some cases, jobs) we could eventually run out of steam, stifling economic recovery. But here's the happy news. Our savings rate is still a huge improvement over the negative rate we had before the Great Recession. And hopefully we can keep it up by slowing our spending to match our incomes.

I know it's not easy, especially when the recession - and the threat of layoffs and foreclosure - drags on. But there are ways to make saving money a little easier.

Continue reading "Chicago Bankruptcy Attorneys Say Americans Spend More But Earn Less" »

As if it isn't annoying enough that credit card and bank account fees are getting higher, now health insurance premiums are poised to jump skyward, according to Chicago bankruptcy attorneys.

In at least six states, people who buy their own insurance could see rates rise by at least 50 percent, according to the Associated Press. And they're not alone - employees with insurance plans through work have been seeing 5 percent more on average amounts carved out of their paychecks.

Americans deserve affordable health insurance, whether it comes from a government option or not. But in the meantime, some insurance is better than none - and canceling your plan to save money might be a risk you can't afford. Unless you can accurately predict the future, gambling that you won't get sick is a bad bet. An unexpected illness or hospital stay can cost you thousands more dollars than you'll save by not paying your monthly premium - in extreme cases, it could cost you millions. Fortunately, there are ways to lessen the pain of paying for health insurance so you can afford to be protected.

Continue reading "Healthcare Costs Go Up While Incomes Go Down, Say Chicago Bankruptcy Attorneys." »

So you lost your job last year and picked up some unemployment benefits. Once you find employment, you're out of the woods, right?

Not necessarily, say Chicago bankruptcy attorneys. Unemployment benefits sure come in handy when you need to put food on the table. But they can also cost you. As it turns out, unemployment benefits are taxable after the first $2,400 - or $4,800 per married couple. After that amount, you'd better start treating those payments as income, because they'll be taxed that way. Not sure how much you received last year? You should receive a Form 1099-G in the mail, which you'll need to report on your 1040.

Fortunately, there are ways to offset some of the damage - and not just of unemployment benefits, but of any surprise tax.

Continue reading "Chicago Bankruptcy Attorneys Recommend Cash Cushion For Tax Season" »

Do you ever get the feeling that you're eating up your paycheck faster than you can spend it? You're not just imagining things, according to Chicago bankruptcy attorneys.

Prices of grocery items like bread, milk and meat are rising faster than most salaries. The average American family of four spends about $600 a month on groceries -- or about $7200 annually. If you make $40,000, it's like you're devouring one-fifth of your paycheck - probably closer to one-quarter if you count all those restaurant meals.

Food obviously isn't something you can cut out of your budget, but that doesn't mean you can't save money on groceries. The kind of food you buy, when you buy it and where you buy it can potentially save you thousands of dollars a year and even improve your health, which could in turn lower your medical bills.

Continue reading "Chicago Bankruptcy Attorneys Tips for Saving Money on Grocery Shopping" »

Bad news for married women (or good news for men): wives are no longer seeing the economic returns that they once did from marriage, Chicago bankruptcy attorneys say.

On the upside, women have come a lot way since 1970 and earlier, back when marriage meant a significant boost in income courtesy of their husband. We've surpassed our male counterparts in both education and salary over the past four decades. More men than ever are married to women who earn more than they do and, vice versa, more women are married to men who earn less. In fact, nearly one-quarter of women earn more than their husbands today, compared to a measly 4 percent in 1970, according to the Associated Press.

But there's still a major inequity. Though we've been increasing our earning power, women are still earning just 78 cents for every dollar a man takes home. And much of that hard-earned income is going to bills for debt.

Continue reading "Chicago Bankruptcy Attorneys Say Marriage No Longer Means Economic Benefits for Women" »