Oak Park Real Estate & Estate Planning Blog

Many residents of the Chicago area find themselves with medical debt, credit card debt, and other forms of consumer debt . According to a recent article from U.S. News & World Report , dealing with debt is a typical experience for most Americans. On average, according to NerdWallet.com, “the average American household has $15,310 in credit card debt and has $132,086 in overall debt.” While facing significant debt may be common, it does not necessarily make it any easier. For many debtors, personal bankruptcy can help to alleviate the stress associated with unmanageable debt. Whether you are considering filing for consumer bankruptcy or taking steps to get out of debt through other means, the U.S. News & World Report article cites frequent mistakes made by debtors as they try to get their finances in order. What mistakes should you avoid as you work to get out of debt? 1. Do Not Assume that There is a “Quick Fix.” There are many debt-relief programs bein...

For the millions of Americans with student loan debt , opportunities for student loan forgiveness can be particularly welcome. Given that it is extremely difficult to discharge student loans in consumer bankruptcy , other ways to ease the burden of student loan debt might seem too good to be true. One of those too-good-to-be-true programs is in fact a scam, according to a recent report from CNBC . What is the scam? The companies offering the fake loan forgiveness opportunity are referring to it as “Obama’s New Loan Forgiveness Program.” Read on to learn more about this fraudulent loan forgiveness program and ways to avoid scams like this one, especially if you are dealing with a substantial amount of personal debt. Online Advertisements Offer Fraudulent Student Loan Forgiveness Opportunity What is wrong with the advertised “Obama’s New Loan Forgiveness Program”? In short, this program simply does not exist. According to the CNBC report, “there’s no such thing.” T...

Have you received a phone call from someone claiming to be from the U.S. Securities and Exchange Commission (SEC) or the Internal Revenue Service (IRS) who says you owe an unpaid debt ? You are not alone. According to a recent article from the Federal Trade Commission’s blog, government imposter scams occur more often than you might think, and because the debt collectors claim to be calling from federal government offices, consumers tend to be more willing to pay up. What else should you know about government imposter scams, and how can you ensure that your rights under the Fair Debt Collection Practices Act (FDCPA) are not violated? Learning More About Government Imposter Scams According to the Federal Trade Commission (FTC), scam artists frequently make telephone calls to consumers and pretend that they are from government offices, such as the SEC, FTC, or IRS. Typically, these scammers will tell consumers that they will be arrested or will be sued if they do not...

When young people get behind on credit card payments and may be facing the possibility of consumer bankruptcy , are they more susceptible to scams that promise to help with debt burdens? According to a recent article from Consumer Reports , the Better Business Bureau recently conducted a study in which it ultimately identified Millennials—the current generation of younger people generally in their 20s—as being “most susceptible to scams.” For many Americans, the results of this study are surprising given that Millennials tend to be more educated and “consider themselves to be savvy consumers.” What else do you need to know about the study? How can Chicago-area residents help to avoid “optimism bias” when facing consumer scams and debt practices ? Learning More About “Optimism Bias” Among Millennial Consumers As the article reports, younger Americans likely are more susceptible to consumer scams because of something called “optimism bias.” What is optimism bias? The...

What happens to your family’s home if you decide to file for bankruptcy ? This is among the most commonly asked questions when Oak Park residents are considering personal bankruptcy . According to a recent article in The Washington Post , while some forms of consumer bankruptcy can result in the loss of property, including your home and your vehicle, some forms of bankruptcy protection might actually be able to help you save your home. What do you need to know about how bankruptcy will affect your home? Determining the Value of Your Home in Chapter 7 Bankruptcy If you decide to file for Chapter 7 bankruptcy—what the article describes as “the most common form of consumer bankruptcy—you are telling the court that you do not have enough money to pay your debts and that you are willing to liquidate your assets in order to have your debts discharged. Keep in mind that Chapter 7 bankruptcy does not readily permit the discharge of all debts. For instance, student loan debts ...