Blog

Apr
18
Managing Credit Cards to Avoid Bankruptcy

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We have seen our fair share of cases involving chapter 7 bankruptcy brought about by improper use of credit cards. We do everything we can to ensure the best interests of our clients in such cases, as our fiduciary responsibility dictates, but bankruptcy still brings with it negative consequences. It is far better to manage credit cards in order to prevent bankruptcy altogether.

Consumers with excessive credit card debt are often challenged by the revolving nature of this form of credit. Because consumers can continue charging right up to their limits, it doesn’t take much to max out a credit card and then never be able to pay it off because the consumer can only afford minimum monthly payments.

In the interest of helping our read...


Jan
11
Bankruptcy and Credit Cards: 3 Things You Need to Know

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A major cause of chapter 7 bankruptcy is excessive credit card debt. Credit cards, because they are unsecured and open-ended, make it easy for people to spend beyond their means. Chapter 7 bankruptcy is looked at as a way to get relief from overwhelming credit card debt and get one’s life back in order.

Understanding credit card debt in relation to bankruptcy proceedings is an important part of understanding whether or not a chapter 7 bankruptcy is right for you. There are three things you need to know in this regard to make the right decision:

  • The liquidation principle of chapter 7 bankruptcy
  • How nondischargeable credit card debt is dealt with
  • The rights of credit card companies to challenge dischargeable debt.

Chapter 7 Liquidation

Chapter 7 bankruptcy is a liquidation proceeding. It assumes that the consumer does not have sufficient assets to make a restructuring possible, and that there is n...


Oct
23
5 Tips for Repairing Your Credit after Bankruptcy

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You have successfully filed for bankruptcy and had your plan approved by a court. Now you are looking forward to the day when your bankruptcy is fully discharged. However, what will you do then? After all, you have been told that a bankruptcy will remain on your credit history for up to seven years. Even worse, you have heard that your ability to borrow will be very limited for the foreseeable future. You are anticipating your finances could be tight.

It is true that bankruptcy is never a good situation to find yourself in. Nevertheless, filing for bankruptcy does not mean your life is over. You can get your finances in order and rebuild your credit over time if you are willing to employ a bit of discipline and patience. Below are fiv...


Jul
20
I Have a Large Medical Bill but Good Credit, Should I File Bankruptcy?

Whether you should file bankruptcy over one large medical bill that you are having trouble paying depends on several factors, including whether you can handle the debt outside of bankruptcy, or not.

If you have good credit, the bankruptcy will definitely cause it to dip. However, if you can’t pay the hospital or medical bill, you’ll start to get late-payment notices and the medical provider may even sue you and get a judgment — neither of which is good for your credit. And you may eventually face wage garnishment or other collection actions.

If you cannot settle the debt and it looks as if the creditor may pursue you for payment, then your good credit is going to take a hit anyway because a collection action will show up on your credit report. And if the provider sues you and gets a judgment, it can garnish your wages or take other collection action.

Mar
11
What Is Going to Happen if I Owe Back Property Taxes?

Local governments charge property taxes against real estate that’s owned in their jurisdictions. The government uses property taxes to pay for services in your neighborhood, such as schools and emergency personnel. If you don’t pay your property taxes on time, the tax collector can use various collection tools to get the money owed, and you potentially could lose your property.


Feb
18
How to Rebuild Your Credit after Bankruptcy- Fast!

It’s about as popular as a root canal or a blown tire on the freeway. Yet like both of those dreaded occurrences, filing for bankruptcy is commonplace in modern America. In 2013 1,107,699 individuals and businesses in the U.S. had to file for bankruptcy according to government data. While it’s pretty safe to say that not many of the folks who filed for Chapter 7 or Chapter 13 bankruptcy were eager to do it, it’s worth remembering that bankruptcy is by no means a financial death sentence. After all, bankruptcy protection is designed to provide people and companies with a way to discharge at least some of their debts and start over. And one of the very first steps to reboot your financial life involves rebuilding your cre...


Jan
30
How Does a Foreclosure or a Short Sale Affect Your Credit Score?

There are several ways a foreclosure or short sale affects your credit score. If done correctly, a short sale can have less of an affect on your credit score than a foreclosure.

Here are several ways a foreclosure affects your credit score:

  • The late payments that precede a foreclosure have a big impact on your credit score.
  • FICO, the agency which calculates credit scores, guards their scoring system carefully, but it is estimated that a foreclosure can drop your score anywhere from 175 – 300 points.
  • The foreclosure will remain on your credit report for ten years.

If possible, consider alternatives to a foreclosure, such as a short sale or deed-in-lieu of foreclosure.

Read more…


Jan
16
7 Ways the New Congress is Seeking to Water Down Financial Rules

The House attempted to pass a bill Wednesday to roll back or ease nearly a dozen requirements from the 2010 Dodd-Frank financial law and the 2012 Jumpstart Our Business Startups law, that aimed to make it easier for smaller companies to raise cash. The measure failed by a vote of 276-145, six votes short of the two-thirds needed to pass under a special procedure known as “suspension” in which non-controversial legislation can advance with limited debate. House Republicans are almost certain to try again to pass some or all of the bill’s measures. Here’s what some of the key provisions would have changed. 1. Give banks until 2019 to comply with provisions of the so-called Volcker rule that they divest from their C...


Dec
04
How to Refinance Your Mortgage While in a Chapter 13 Bankruptcy

Refinancing a mortgage loan is possible during a Chapter 13 bankruptcy plan. In fact, a homeowner may become eligible to refinance his mortgage loan after a year of timely payments on his bankruptcy plan. According to the Nolo website, “A Chapter 13 bankruptcy plan allows a debtor to keep personal property, while repaying creditors over a period of 3 to 5 years.” Refinancing your mortgage may help pay off your bankruptcy plan sooner.

How to Refinance During Chapter 13 Bankruptcy

Information provided by SF Gate


Feb
07
Drowning in Debt - How Tapping Retirement Accounts Can Sink You

Caught in a Deluge

During the Great Recession many people in Chicago faced unemployment and owned houses that weren’t worth their mortgage balances. To keep their heads above water, these families frequently relied on credit cards to take care of their daily necessities. For those fortunate enough to find work, they quickly found themselves swimming against a new tide: struggling to repay their high interest credit card debt. When paying the minimum balance became too difficult, the families began to reach for their nest eggs.

Chicagoans aren’t alone. The Employee Benefit Research Institute compiles data on how employees use their work benefits, which includes employer-sponsored retirement accounts like 401(k)s. The Institute found that in 200...


Convenient Locations

In order to provide convenience for clients throughout Chicago and Northern Illinois, we have offices in the following locations: 

Chicago • Schaumburg  • Oakbrook • St. Charles • Naperville • And More

Locations

We have office locations throughout the Chicago Area:

Chicago (Downtown)

Schaumburg

Oak Brook

Naperville


All calls are routed through our Downtown office for your convenience.

Phone: 312-967-3159

Locations

We have office locations throughout the Chicago Area:

Chicago (Downtown)

Schaumburg

Oak Brook

Naperville


All calls are routed through our Downtown office for your convenience.

Phone: 312-967-3159

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