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November 2013 Archives

Credit and gift giving

With the holidays in full swing, many people in Chicago and the rest of the country will be pulling the plastic out of their wallets to make purchases for friends and family. The downside to this is that it is easy to amass large amounts of credit card debt. However, there are things you can do so you avoid the pitfall of being one of the 25 percent of credit card holders who end up in massive debt due to holiday spending.

Aaron Carter files for bankruptcy

No one wants to have more debt than they can handle, but unfortunately for some, it is a reality. Some find a way to manage their debt and eventually pay it off, while others are forced to seek legal relief from their creditors through a Chapter 7 bankruptcy filing. Interestingly enough, it's not just the average Joe Schmo who could have problems making ends meet; many a celebrity has generated more debt than income. Our Chicago readers may be interested to know that a former pop star has recently sought legal assistance because he can no longer afford his debts.

Raising your credit score

If your fight to stay afloat has sunk your credit score, there are things you can do to attempt and raise the number on your own. A decent credit score can help you attain certain types of employment and afford housing, so it's important that you take care of your score as much as possible. If you are seeking debt relief from creditors, some of the techniques will be helpful in that regard as well.

When filing for bankruptcy, disclose everything

Filing for bankruptcy in Chicago or anywhere else means a person is required to fully disclose their entire financial picture, and this includes all assets and liabilities. Not doing so is considered a breach and can result in your bankruptcy case being dismissed. In the case of a Chapter 13 filing, anything that occurs financially while a person is in their payment plan period must be disclosed to the trustee in the event adjustments have to be made.

Why bankruptcy is better than doing nothing

When a person gets behind in their financial obligations, his or hers initial reaction might be to ignore the problem and hope it goes away. But as debt mounts and there is no solution in sight, a pride may keep someone from taking legal action and asking for debt relief. For many, declaring bankruptcy, especially Chapter 7, is admitting defeat, and they feel they will be scrutinized for filing. But in most cases, a bankruptcy is the more financially prudent step to take over doing nothing and being at the mercy of creditors.

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Chicago, Illinois 60642
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