The Legal BLOG

Common Post-Bankruptcy Mistakes that Debtors Should Avoid

May 4th, 2012

On Monday, our blog briefly discussed how debtors emerging from bankruptcy are given a fresh start and are able to rebuild credit over time. The number one problem debtors coming out of bankruptcy have is falling back on old habits. When debtors go back to their original over-spending or over-use of credit, they will likely find themselves in dire financial straits once again. Here are some common mistakes people make that mess up their “fresh start” post-bankruptcy: Running up the credit cards or credit lines. Always stay within a frugal budget after bankruptcy, and save any extra income rather than spend it. Taking on a loan from the sub-prime market. There are many lenders out there that are willing to offer credit to people post-bankruptcy, but most are in the sub-prime market with high interest rates and large fees for late payments. Not all sub-prime lenders are bad, but some…
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Tags: bankruptcy, chapter 13 bankruptcy, naperville bankruptcy attorneys
Posted in Bankruptcy | 1 Comment »

Would Brangelina Benefit from a Premarital Agreement?

May 2nd, 2012

Recently, Brad Pitt and Angelina Jolie announced their impending marriage after seven years together. The couple already has seven children, three biological and four adopted, to consider along with their vast financial assets and earning abilities. (Jolie is reportedly worth $130 million and Pitt approximately $150 million.) Many speculate as to whether the couple is going to have a premarital agreement. What sort of clauses in a premarital agreement might help the famous couple in the event of a divorce? Reclassification of property. California is a community property state where each spouse is automatically entitled to one-half of all earnings during the marriage. (This is different from Illinois, a separate property state.) To avoid this, the couple might wish to “opt-out” of the community property rules via premarital agreement and each spouse would only be entitled to his and her own property and earnings in the event of divorce. Spousal…
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Tags: child custody, divorce, maintenance, premarital agreement, skokie divorce attorneys, spousal support
Posted in Family Law | 1 Comment »

Advice for Post-Bankruptcy Improvements to Credit

April 30th, 2012

One of the most common hesitations that people have regarding whether to file bankruptcy is anxiety about their credit after the bankruptcy is over. Firstly, if you are already facing a dire financial situation and are defaulting on loans , your credit score is likely pretty bad already. Filing for bankruptcy would give you an opportunity to start fresh and rebuild your credit over time. The most important way to successfully rebuild your credit is to continue the budgeting and living within your means that you learned throughout the bankruptcy case. If you completed a Chapter 13 bankruptcy, you had to follow a court-ordered payment plan for three to five years. After this is over, continue with your own budget and stick to it. The longer you are able to keep up with your bills and pay them on time, the better your credit score will become. If you are…
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Tags: bankruptcy, chapter 13 bankruptcy, credit score, naperville bankruptcy lawyers
Posted in Bankruptcy | No Comments »