Bankruptcy Chapters

As any parent of a new driver knows, having a novice teen-aged driver means adding up to 44% to your car insurance costs.There are, however, fairly simple ways to keep those increases to a minimum; after all, it’s better to keep that money in your own pocket than in the pocket of Allstate .

Judy Hevrdejs, writing for the Chicago Tribune, sheds some light on managing the cost of adding a new, teen driver to the family auto insurance.•    Encourage your teen to study and get good grades, even before he or she is old enough for a driver’s license. Maintaining at least a B average can result in significantly lower rates.•    Be a good role model to your teen driver by never texting, chatting, eating or tailgating while driving. Your teen will, undoubtedly, mimic your driving habits.•    Enroll your teen in an accredited drivers’ education program.•    Find out if you qualify for lower insurance rates if your teen-ager goes away to college without a car.•    Raise your deductible on the car your teen will be driving; you may be able save ten to twenty percent.•    Compare prices and discuss multivehicle discounts with your insurance agent for real savings.•    Be sure that your driver has a good, safe, basic car; sports cars and turbo-charged SUVs may encourage risky driving, driving up already sky-high insurance costs.•    Expect that your new driver will have at least one minor accident. Pay for it out-of-pocket if at all possible a

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Tags: Costs, Insurance Costs

The American Bankruptcy Institute and the National Bankruptcy Research Center recently reported the number of consumer bankruptcies filed in 2011 declined by nearly 14.8% to 114,803 in May from a month earlier. From the same month a year ago, filings fell almost 15.7%.

In 2011, filings are down 8.4% compared to the first five months of 2010, which likely signals an end to the record number of bankruptcies which have been filed since the recession began. More than 1.5 million Americans filed for personal bankruptcy last year, a record number since 2005 when the bankruptcy process was overhauled to make it more difficult for Americans to file for bankruptcy protection.

These statistics may indicate that many consumers are struggling less with their debt, but many Americans still are fighting a debt crisis and face the real possibility of having to file for bankruptcy protection. If you have to file for bankruptcy protection, how do you know what bankruptcy is best for you?

Individuals can file Chapter 7 or Chapter 13 Bankruptcy. Chapter 7 Bankruptcy, commonly called liquidation of your assets, is normally the simplest and quickest form of bankruptcy.

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Tags: Bankruptcy, Bankruptcy Stats

Half of the 1,000 potential borrowers surveyed recently by the National Foundation for Credit Counseling responded that they were not able to afford the 20% down payment proposed under new Federal guidelines for residential mortgages, according to www.HousingWire.com.

Just three months ago, Federal regulators proposed a ruling that would require lenders to maintain 5% of the risk on mortgages pooled into securities, reports the American Bankruptcy Institute’s Bankruptcy Brief. Exempt from the rule would be loans that meet various standards, including that 20% down payment. The NFCC, a not-for-profit credit counseling organization, is against the decision, saying that the high down payment rate would exclude too many borrowers. Gail Cunningham, a spokesperson for the NFCC, opined that the number of borrowers who would ultimately be able to afford a QRM could be even lower than the survey suggests. She states, “’Since prices for homes are at historic lows, the necessary down payment represents a lower dollar amount than would typically be necessary. Non

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Tags: Borrowers

The results of a study conducted through the University of Illinois found that those who filed for bankruptcy protection have largely seized their chance at financial redemption and are changing their financial lives for the better, according to an article on Mother Nature Network.

Our bankruptcy lawyers in Joliet, Chicago and elsewhere in Illinois see the change in our clients, from their first office call or visit to the resolution of their case. Debt can create an enormous amount of stress in a household, particularly those under the relentless barrage of collection agencies.

Chapter 13 or Chapter 7 bankruptcy protection in Chicago affords families the opportunity to regain their financial freedom and independence and to begin enjoying life again. The study found mandatory counseling required by bankruptcy reform in 2005 is having a positive impact.

Reforms in 2005 require pre and post bankruptcy counseling. As we have reported, the measures were largely a handout to banks, which were complaining about the consequences of their own irresponsible lending practices. An income-to-debt test meant to require some to enter repayment plans was the other big change.

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Tags: Illinois, Illinois Bankruptcies

Remember the story about Chicken Little? It was a fable written about Henny Penny, a chicken who experienced an acorn falling from a tree that hit her in the head. Not seeing what hit her, the chicken mistakenly thought the sky was falling and the world was coming to an end. She ran around hollering “the sky is falling, the sky is falling.” The moral you can draw from the fable depends on which version you read. Where there is a happy ending, the moral is not to be a chicken but to have courage. In other versions, the fable is interpreted as a warning not to believe everything you are told.

I was reading from a bankruptcy forum this morning where one of the bloggers posted a recent news article published on June 14, 2011 on the Fox News website entitled, Americas Ticking Time Bomb. The article was written by Peter Ferrara, a conservative American policy analyst and columnist. Ferrara was the one who championed privatizing Social Security under the George W. Bush administration. The article he wrote for Fox News, in a nutshell, talks about the national debt, its causes, and about how the United States is heading for complete bankruptcy. His

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Tags: Falling