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    A Look at Credit Card Debt in Young Adults

    Last updated 12 days ago

    According to a study by Ohio State University, young adults born between the years 1980 and 1984 have accumulated credit card debt $5,000 higher than the previous two generations. In addition, young adults don’t pay back their debt as quickly as older generations. These findings have serious societal implications, as young adults may carry this debt into their 70s.

    This news report highlights the findings among young adults and credit card debt from Ohio State’s study. It also illustrates how credit cards being readily available can be difficult for young adults to resist. At the same time, young adults explain why they don’t pay off their debt quickly and only make the minimum payment.

    If you’re faced with credit card debt issues, Cutler & Associates Ltd. can help. Call (224) 836-4956 to speak with an Aurora or Schaumburg bankruptcy attorney today. 

    Do You Need Help With Your Spending?

    Last updated 1 month ago

    It’s common for a person to go through bankruptcy through no fault of their own. This may be because of a divorce or because of a psychological problem, such as compulsive spending. If you think you could have a compulsive shopping problem, it’s important to get help sooner, rather than later. Some of the signs of out-of-control spending include hiding or otherwise ignoring bills, lying to others about your spending habits, and using shopping as a form of therapy.

     

    You can learn more about compulsive shopping and how to get help for it by watching this video. This psychologist, who specializes in this area, explains the importance of identifying the underlying emotional problems that may be leading a person to go on shopping sprees.

    If you’re buried in debt, bankruptcy might be a good option for you. Consult the bankruptcy attorneys at Cutler & Associates, Ltd. by calling (847) 505-0380. Our offices are conveniently located for those in Schaumburg and Aurora.

    A Look at Your Financial Life After Bankruptcy

    Last updated 1 month ago

    For many families struggling with overwhelming debt, a bankruptcy filing offers the opportunity to get a new start and achieve financial stability. However, bankruptcy is not a “one and done” solution. It’s important to consult a bankruptcy attorney regarding exactly what you can expect from the process and how your life will change thereafter. After bankruptcy, you can indeed regain financial stability, but it will take some time to get there.
     

    Adhere to a Budget
     
    Many people prefer to request a Chapter 13 reorganization. If the court approves it, you’ll adhere to a repayment plan for the next three to five years. At the end of that time, your remaining dischargeable debts are eliminated. However, during this time, the court will decide how much money you need to pay your basic expenses. This means that you’ll have to avoid impulse buys or frivolous purchases and stick to a very strict budget. Even if you chose a Chapter 7 bankruptcy, you’ll need to adhere to a strict budget while you rebuild your finances.
     
     
    Build an Emergency Fund
     
    As soon as it is possible for you to do so, it’s critically important to establish an emergency fund. Your emergency fund will grant you peace of mind and you can rely on it for unexpected expenses, such as car repairs and medical expenses. Even if you can only contribute $20 per week toward your emergency fund, do so. Over time, you’ll be able to make more significant contributions.
     
    Re-Establish Credit
     
    It will take a while to improve your credit score after filing for bankruptcy. Within six months to a year of your bankruptcy discharge, consider applying for a secured credit card. Remember to pay all of your bills on time every month to rebuild your credit history.
     
    Cutler & Associates, Ltd., a bankruptcy law firm, has been helping Chicago-area families break free from debt since 1990. With more than 30 years of combined experience, our bankruptcy lawyers can help you finally eliminate your debt and regain control of your life. For more information about filing for bankruptcy, call our offices in Aurora or Schaumburg at (847) 505-0380.

    Retirement Funds and Bankruptcy

    Last updated 1 month ago

    Bankruptcy is often a viable option for people who are buried in debt and need a fresh financial start. However, some may hesitate to consult a bankruptcy lawyer because they’re concerned about losing their hard-earned retirement savings. Fortunately, in most cases, those who file for bankruptcy can keep their retirement accounts.

     

    Thanks to bankruptcy law reforms passed in 2005, almost all pension plan funds and retirement accounts are exempt. This means that they cannot be used to pay back creditors if you file for a Chapter 7 bankruptcy. And if you file for a Chapter 13 bankruptcy, having these assets will not affect the amount you must repay your creditors because they are exempt assets. As an added bonus, the entire amount of any exempt retirement accounts are out of reach of creditors. However, there are a few exceptions, including Roth IRAs and traditional IRAs.

     

    The bankruptcy lawyers of Cutler & Associates, Ltd. look forward to meeting you and answering your questions regarding exempt assets and other aspects of filing for bankruptcy. You can schedule an appointment at our offices in Aurora or Schaumburg by calling (847) 505-0380.

    Breaking Down Myths About Bankruptcy

    Last updated 1 month ago

    On average, more than a million people file for bankruptcy each year. It’s a legal method of discharging debts when you lack the ability to repay them. Despite the commonplace nature of bankruptcy, there are still plenty of misconceptions about the process. Before dismissing the idea of bankruptcy as a solution for your financial woes, consider talking to a bankruptcy attorney to learn the truth behind common myths.

    Myth: I’ll Lose All My Assets
     
    The process of bankruptcy involves scrutinizing your finances, including your assets and liabilities. It’s true that bankruptcy trustees can sell certain assets and use the proceeds to pay creditors. However, in most cases, bankruptcy petitioners can expect to keep most if not all of their assets. In all likelihood, you’ll keep your home, vehicle, retirement accounts, clothing, household goods, and other assets.
     
    Myth: Everyone Will Know I’m Going Through Bankruptcy
     
    A bankruptcy proceeding is indeed a matter of public record. However, unless you’re a celebrity or an otherwise prominent figure, it’s unlikely that your family members, friends, co-workers, or other associates will find out about it unless you tell them. The only people and organizations that will definitely know about the bankruptcy filing are your creditors and your bankruptcy lawyer.
     
    Myth: Both Spouses Must File for Bankruptcy
     
    In most cases, it makes sense for both spouses to file for bankruptcy since couples often hold liabilities in common. However, if you have a significant amount of debt that is in your name only, it may make more sense for you to file for bankruptcy without your spouse. The bankruptcy attorneys at Cutler & Associates, Ltd. can help you learn more about bankruptcy and determine whether it might be right for you. We provide expert guidance and actionable solutions to help our clients build a stronger financial future. Residents in the Aurora and Schaumburg areas are invited to call our team at (847) 505-0380 to schedule a free evaluation.

Call Now for a FREE Bankruptcy Evaluation! (847) 868-2265 - CHICAGOLAND AREA



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