Chicago Bankruptcy Lawyer Blog

As if it isn't hard enough on our finances to be headed for a possible double-dip recession, now we have to watch out for new recession-related scams, too.

The longer our economy is stalled, the more likely we are to face financial difficulties - from unemployment to foreclosure to inability to pay the bills. Unfortunately, scammers are acutely aware of this, say Chicago bankruptcy attorneys. And they're increasingly preying on our desperation for a quick fix to our money woes.

But there's good news. It's possible to identify nearly any scam , once you realize what most frauds have in common.

Continue reading "How Chicago Consumers Can Watch Out for Recession Related Scams " »

With everybody and their Grandma using social networking, posting personal information to sites like Facebook seems harmless. But that's just what criminals want us to think.

It's easy to be lulled into believing Facebook is just a place where we hang out with our friends - virtually, anyway. But in reality, we're hanging out with the 500 million other people who use the social networking tool, say Chicago bankruptcy attorneys. And thanks to laxer settings, a new program and a recent bug, those people have more access than ever to our personal information - jeopardizing our finances and even our safety.

Continue reading "Being Cautious on Social Networking Sites Can Help Chicago Residents Protect Finances" »

There are some places where debit cards are a better choice than credit. Those places aren't gas stations.

Thieves are increasingly stealing personal data with skimmer devices that they attach to gas pumps, according to Chicago bankruptcy lawyers. Since debit cards are linked to your bank account, criminals can record your PIN and then deduct money directly from your checking and savings accounts - adding insult to injury if you're one of millions of consumers already struggling to pay the bills and manage debt. And gas stations aren't the only places at risk - some scammers are starting to siphon personal information straight from ATMs.

So is there any safe way to use a debit card these days?

Continue reading "How Chicago Debit Card Users Can Avoid Scams at the Pump" »

There's a big difference between debt relief and debt relief. And no, that's not a typo.

You've probably heard the advertisements on the radio and read them on the Internet - so-called debt relief companies claim they can negotiate with your creditors in order to get your debt paid off. They promise you'll have a low monthly payment and freedom from debt in just a few years, or even a few months. How can you go wrong, right?

But just because a company has "debt relief" in its name or slogan, that doesn't mean they can get the job done.

Continue reading "Bankruptcy Can Sometimes Lower Debt When Chicago Debt Relief Companies Can't" »

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" »

You know you need to keep an eye on how much money you're spending, but it's also important to check up on what you've spent. Why? Because those numbers might not add up.

Recently the Federal Trade Commission disrupted a massive credit card scam that allowed a ring of criminals to steal millions of dollars from right under the noses of millions of unsuspecting consumers for four years. The thievery might have ended sooner, except for the fact that most victims didn't even realize they were losing money. That's because the scammers were stealing it pennies at a time.

25 cents here and 50 cents there might not seem like much, but when too much debt has you struggling to make ends meet and living paycheck to paycheck, you shouldn't have to give up a cent of your hard-earned dollars.

Continue reading "Why Chicago Credit Card Users Should Keep Close Tabs on Credit Statements" »

If you've got too many debts to keep track of, consolidating them into one big bill makes sense, right?

In theory, yes. Reality, however, is another story.

If you're like most folks, you've probably heard debt consolidation companies claim they can lend you money to pay off your debts at a lower interest rate. But what you're hearing is only half the story. That's because a debt relief company that wants your business isn't going to tell you the truth - that signing up for their services can actually leave you in more debt than before.

Continue reading "Debt Consolidation Scams Can Actually Keep Chicago Consumers in Debt" »

Wouldn't it be great if the government paid you to go to school? Maybe that's why a growing number of Americans are falling for college scholarship scams.

Chances are you've noticed the online advertisements claiming the government is giving grants to folks who earn less than a certain amount every year, to stay-at-home moms, to job seekers- by the looks of it, to just about everyone. Or maybe you've received a phone call or e-mail from someone claiming to work for the Department of Education - and who's willing to replace your existing student loans with government grants. If so, be wary.

Sure, the idea of free money might sound tempting, but are you willing to risk your financial solvency for it? Upwards of 350,000 people fall for scholarship scams every year, costing Americans $5 million, according to Investopedia.com. You're not going to save money by forking it over to scam artists. However, you can save money by using common sense.

Continue reading "College Grant Scam Ads Put Chicago Students in Debt" »

Would you give up your paycheck to get paid earlier? Doesn't make sense, does it?

But millions of Americans do just that by taking out payday loans.

When you're strapped for cash and payday is days away, a short-term loan can look like a quick solution. Get the money now, pay for it later. But the problem is short-term loans mean high-interest, and interest rates don't get much higher than at payday loan centers, where paying $100 for borrowing $300 is not uncommon - and annual interest rates can exceed 500%. Makes your credit card APR look cheap, huh?

If you're not already in debt, relying on payday loans is a sure way to get there. Here's why.

Continue reading "Payday Loan Scams Are Putting Chicago Workers in Debt" »

The IRS might not be the only group taking your money this tax season.

A growing number of scam artists are preying on the desperation of stressed-out taxpayers to make a quick buck, according to Chicago bankruptcy lawyers. Sometimes it's by promising you an easy way to lower your tax bill. Other times it's by impersonating IRS websites. Either way, scammers are on a mission to get your personal information - and your money.

With credit card debt, a mortgage or rent payment and a maybe even an impending tax bill, you've got enough to worry about. Fortunately, it's a cinch to avoid tax scams - you just have to know what to look out for.

Continue reading "Common Sense Can Help Chicago Taxpayers Fend Off Scams This Tax Season" »

There's a reason you might want to fill out your 2010 Census carefully and soon. And it's not just because doing so can help your community get more federal funding, according to Chicago bankruptcy lawyers.

Dragging your feet increases the chances that a census worker will call to check up on you. That in itself isn't the problem - scam artists are. See, in the past people have posed as census workers to gather sensitive personal information, like social security, bank account and credit card numbers. By putting off the census - or by being careless about who you interact with - you could be increasing your identity theft risk.

Fortunately, it's easy to tell official census workers and materials from the frauds.

Continue reading "Chicago Residents Find Ways to Avoid Identity Theft during the 2010 Census" »

Most folks would never leave the house without locking their front door. But many of us are essentially doing the same thing with our computer, say Chicago bankruptcy attorneys.

A recent study found that the most common password is still - surprise - 123456. Other passwords are often too short and use common terms like "qwerty." Even worse, the most common security questions (What is your mother's maiden name? Where did you graduate high school? ) are easily available on social networking sites like Facebook.

Considering hackers today can break into hundreds of accounts in just a few minutes, most of us aren't doing enough to protect our banking and credit card information online. Changing your password is a hassle, but it's an even bigger hassle to try to recover thousands of dollars - and rebuild your life - after identity theft. Here are some tips to make protecting your finances easier.

Continue reading "Good Passwords Can Protect Chicago Computer Users From Identity Theft" »

Pumpkin pies might be in the oven and football on the TVs, but there's something else on the minds of most Americans today - shopping strategies for the infamous Black Friday.

I know, it's old news that Black Friday is the biggest shopping day of the year. But there's a new twist on the tradition - almost half of sales this year might actually take place online.

With most of us living paycheck to paycheck already, we don't have a lot of wiggle room when it comes to our holiday budgets. And the Internet offers unlimited access to sales and clearances and a great way to compare prices, helping us save time as well as money. Unlike store shopping, online shopping allows you to look specifically for what you want without getting sidetracked by fancy displays or pushy sales clerks. And maybe best of all, you don't have to freeze your butt off standing in lines at the crack of dawn.

But as always, there's a catch. This time, it's online shopping scams.

Continue reading "Watch Out for Holiday Shopping Scams" »

What do you think of when you hear ads for FreeCreditReport.com? Call me crazy, but I always assumed they were publicizing a way to, you know, get a free credit report.

I guess I'm more gullible than I thought. Turns out that the company gives you a credit report, alright - but for a pretty penny. Once you sign up for their services online, you're enrolled in their credit monitoring program, meaning you'll pay $14.95 per month for them to notify you of any changes to your credit. Some quick math reveals that's $180 a year - no small change, considering most Americans are living paycheck to paycheck and struggling with debt.

Not surprisingly, this isn't sitting well with the Federal Trade Commission, which believes the company is intentionally luring people away from a government website that offers truly free credit reports - AnnualCreditReport.com. Uncle Sam requires that the three major credit bureaus - Experian, Equifax and TransUnion - hand over a free report to consumers every year.

Continue reading "Despite Advertisements, Credit Reports Aren't Always Free" »

One of the biggest myths about bankruptcy is that it's an easy way out.

Getting out of debt is not a piece of cake, no matter which way you slice it. What sets bankruptcy apart from other debt relief methods is that it truly works. In order to do so, however, it requires dedication, a solid plan and time.

But that's not what some debt relief companies out there will tell you. They'll tell you what they think you want to hear - that they can eliminate your debts virtually overnight, that they'll negotiate with creditors for you, that they can work some kind of miracle. That's because they want to take advantage of your desperation to take your money. Whereas most of us view the recession as a tragedy, scam artists see a golden opportunity - and they seem to populate as times get tougher. In a study by New York's attorney general, four-fifths of online bankruptcy companies turned out to be scams.

It's alarming, but it shouldn't discourage you from getting the help you need to finally achieve financial independence.

Continue reading "Be Wary of Scams When Considering Bankruptcy" »