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Most people file a Chapter 13 bankruptcy case to avoid foreclosure; however, circumstances may arise during the three to five year bankruptcy plan that may cause the debtor to consider giving up the home rather than continuing to pay the mortgage payments. In those cases, it is possible for the debtor to surrender his home and allow the mortgage company to foreclose even though the debtor remains in his Chapter 13 case.  However, there are several things to consider before making this decision … [Read more...]

Some debtors confuse the terms bankruptcy dismissal and bankruptcy discharge; however, those terms have very different meanings and consequences for a debtor.  Dismissal means that the bankruptcy case has been closed without a discharge - - creditors can begin collection actions against the debtor as if the bankruptcy case had never occurred.  On the other hand, a bankruptcy discharge means that the debtor has been relieved of most, if not all, of his debts and creditors are barred from … [Read more...]

American consumers owe more than $3 trillion in debt.  Most of this debt is due to common “traps” that many Americans fall into every day.  For example, few consumers have an emergency fund to cover expenses in the event of job loss or a temporary decrease in income.  Another serious problem is the loss of a partner.  Without sufficient savings and/or life insurance, the surviving spouse is left with the burden of paying for all expenses plus carrying the debt. For ways you can avoid these … [Read more...]

In an uncharacteristically private ceremony, Illinois Gov. Pat Quinn signed a new law last week intended to overhaul the state’s underfunded pension system.  The law, designed to save the state about $160 billion over the next three decades is expected to be challenged by labor unions.  The law will cut benefits for employees and retirees when it takes effect on June 1.  Even though Gov. Quinn claims this law as a victory, many see it as doing more harm than good. For more details and the … [Read more...]

If you have ever wondered why some people choose to put up a “For Sale by Owner” sign, you are not alone.  Most choose to do this to save money by avoiding costly realtor commissions.  However, this does come at a cost.  Owners acting as their own agent must spend more of their personal time dealing with issues regarding the sale of their home because they are performing the work that would normally be done by the realtor.  Furthermore, while you may not need a realtor to sell your home, it is … [Read more...]

It seems that all we have heard about in the news is how bad Obamacare is for our economy and our healthcare system.  However, a new story reports that the Affordable Healthcare Act may result in a boost in available jobs.  This boost will vary by region but according to CareerCast.com, interest in healthcare jobs will increase as more people become insured and demand for services increase. To read the full story and see a list of the fastest growing healthcare jobs in the country read, “12 … [Read more...]

With the never-ending coverage of the Affordable Healthcare Act, you may assume you have heard every angle on this story; however, you are wrong.  A new survey shows that more than 1 in 4 would move, even out of state, if they could find cheaper healthcare coverage.  Obamacare is calling attention to the differences in healthcare premiums from one state to another - - even from one county to another county within the same state.  This has some people considering relocation as a way to lessen … [Read more...]

Your Christmas gift list might be foremost in your thoughts today as we edge closer to Christmas Day; however, you should also be crossing off the items on your year-end tax “to-do” list before times runs out.  If you wait until after the end of the year, you will miss tax deductions for cleaning out your closet and donating to items to charity.  You may also lose the chance to lower your tax bill by adding to your IRA or paying college tuition early. To find more ways to save on your 2013 … [Read more...]

Now that a bankruptcy judge has ruled that Detroit may proceed under Chapter 9 of the U.S. Bankruptcy Code, the decision whether to sell the city’s art collection, or specific items from the collection is now a hotly debated issue.  In bankruptcy, if the debtor owns assets that may be liquidated to pay creditors those assets are subject to attack.  Parties on both sides of the debate are scrambling to provide justification for their position regarding the fate of Detroit’s art collection - - one … [Read more...]

In a devastating decision for pension holders, Bankruptcy Judge Steven W. Rhodes ruled this week that Detroit could officially claim bankruptcy relief under Chapter 9 of the Bankruptcy Code.  This was not completely unexpected; however, the judge went on to state that the city’s obligations with regard to pensions is not untouchable.  Judge Rhodes made it very clear that public employee pensions were not protected by the federal provisions in Chapter 9.  This could mean that those entitled to … [Read more...]