Bankruptcy Basics - Chapter 13, Helping You Understand Bankruptcy

What Everybody Should Know About Chapter 13 Bankruptcy

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Chapter 13 Bankruptcy Has Unique Advantages Over Chapter 7

When you go to Joseph Wrobel, Ltd. to talk about your rights and options in the Bankruptcy Code you will learn about Chapter 13 bankruptcy and all how it solves the problem of limitations you may face with Chapter 7 bankruptcy. The main differences between Chapter 7 (discharge) and Chapter 13 (reorganization) are: 1) The total amount of debt discharged versus repaid; 2) Immediate discharge versus three to five years of debt repayment; 3) Chapter 13 is an option if you don’t qualify for Chapter 7; 4) You want to keep your home and certain assets, protecting them from sale.

The bankruptcy code is complex and applies specifically to everyone’s unique financial situation. Whether you qualify for Chapter 7 or 13 can be determined when you meet with a consumer bankruptcy attorney at Joseph Wrobel, Ltd., and your specific financial details are properly analyzed.

Chapter 13 Bankruptcy Stops Bill Collectors

When you file a petition for Chapter 13 bankruptcy, you immediately get protection with the automatic stay provision of the bankruptcy code. The automatic stay immediately prohibits most collectors from continuing activities to collect a debt. Therefore, during your reorganization bankruptcy you should not receive phone calls and mail from collectors.

The automatic stay is especially useful if you are facing eviction, foreclosure, losing basic utilities, losing unemployment benefits, being found in contempt for failure to pay child support or losing your job because of wage garnishments.

The consumer bankruptcy attorneys and staff at Joseph Wrobel, Ltd can explain how you can stop bill collectors in their tracks while you get back on track financially. Read more articles about Chapter 13 bankruptcy and the automatic stay provision on our website, ChicagoBankruptcy.com, tag archives: automatic stay.

Keep Your House and Get Caught Up on the Mortgage with Chapter 13 Bankruptcy

Chapter 7 and 13 are different as they address issues of asset ownership and debt repayment. Where in Chapter 7 you must qualify for a bankruptcy discharge of debts and obligations, there is no real mechanism to help you keep a house in which you have equity. Also, if you make too much money and do not qualify for Chapter 7, you can still file a Chapter 13 bankruptcy to pay back a portion of your debts over time.

With Chapter 13, you can stop the foreclosure process and keep your house while you catch up on your mortgage payments and get current. Some exceptions may apply where you have previously filed and dismissed bankruptcy cases, so it is important to talk to your experienced bankruptcy attorneys at Joseph Wrobel, Ltd., to find out your rights and options in the bankruptcy code to get you a fresh financial reboot.

Take Three to Five Years to Pay Back Portions of Your Debts with Chapter 13 Bankruptcy

Financial emergencies can strike anyone at any time. When you file for Chapter 13 bankruptcy you can agree to a debt repayment plan, for an agreed portion of your debts owed (depends on your specific income and finances) over three to five years. The longer term for repayment afforded by Chapter 13 allows people to catch up on missed mortgage and car loan payments, for example, while they focus on paying off priority non-dischargeable debts, the ones that do not go away with bankruptcy.

Call Joseph Wrobel, Ltd. and Learn How Chapter 13 Bankruptcy Can Solve Your Financial Problems

When you call Joseph Wrobel, Ltd. you can make an appointment to meet with an attorney in one of our multiple Chicagoland city and suburban office locations and learn where you stand. Joseph Wrobel wants you to take control of your finances, so you can decide if filing for a Chapter 7 or 13 bankruptcy makes sense is valuable to you. For more information about Chapter 13 bankruptcy call us at (312) 781-0996.

Consumer Finance, Uncategorized

Facebook Scams Seniors Should Avoid

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Senior citizens are frequently targeted and there are new Facebook scams seniors should avoid.

There are two Facebook scams seniors should avoid to protect them from becoming victimized by online scammers. There are assumptions scammers make about their victims such as believing they are less experienced with social media and computers. They assume things that might alert someone else, could appear normal to others who may be their mark.

A common trick is the virus scam, where a phony Facebook friend shares an enticing article link that causes a virus alert to appear with a phone number to call and remove the also phony virus.

Helping Seniors Avoid Catfish on Facebook

People with different levels of experience with social media might be more susceptible to being targeted for scams. Consider a cousin or old friend you don’t hear from very often, there could be a fake Facebook account that looks just like them, but it is really someone else. The term “catfish” is commonly used to refer to someone on social media pretending to be another person.

Help teach seniors that Facebook scams seniors should avoid usually start with a friend request from someone they already friended on Facebook. Let them know that if something seems odd, ask someone they trust before accepting a suspicious friend request. Reassure them if it seems odd to get a friend request from someone they thought was already on their page, it could be a catfish up to no good.

Teaching Seniors About the Virus Scam

Seniors should learn to avoid catfish that scam seniors out of money. The phony Facebook account that looks like your friend or cousin will usually share a link in their feed as bait. When you click on what looks like a normal link from someone you know, the link either infects your computer with a virus, or it causes a loud flashing alert to appear on the screen.

The virus alert says that your computer files are in serious risk of damage and the whole computer system and anything connected to it will self-destruct, for example. When the targeted victim calls the phone number that appears on the screen, the person on the other end demands a large payment to get rid of the virus. It is a scam because there is NO ACTUAL VIRUS. All you need to do in most cases is restart the computer and everything is back to normal.

Ideally the victim of the scam will remember who shared the link they clicked on causing the scammer virus alert in the first place. It is also a good idea to teach seniors to click on the list of all their Facebook friends every now and then to see if there are two accounts for any one person, the signal of a catfish.

Joseph Wrobel, Ltd., is more than a bankruptcy firm. We are also a hub for positive consumer empowerment through sharing tips and information about financial success. If you or someone you know needs help, call us at (312) 781-0996 or Contact Us on our website. Joseph Wrobel wants everyone to be safe online and wants people to spread the word about Facebook scams seniors should avoid.

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Why mortgage applications get rejected?

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Why mortgage applications get rejected?

If you are looking to get approved for a mortgage, look for approval information instead of asking why mortgage applications get rejected. The stress and anxiety of cleaning up your credit score and having years of good income showing on your taxes are only two of many steps your mortgage lender may assign on your tasks to get approved for a mortgage. Remember that an experienced mortgage broker will have a good idea of your chances of approval based on your current financial situation and what your options may be. They know that when they do the hard pull on your credit score that you will be within a thirty-day window to shop your application to a few companies they work with and see who is interested in giving you a home loan on good terms.

It is important to listen to your mortgage broker’s advice, assuming you trust them, and not worry much about all what is there to read on the Internet. Remember that some articles are “click bait” and are intended to appeal to your emotions instead of logic.

But, because you may be curious why mortgage applications get rejected, here are some reasons listed in this short article summary of “5 Mortifying Reasons Mortgage Applications End Up in the ‘Reject’ Pile,” published on Realtor.com:

  1. You did not use your credit cards enough. Using your credit cards and paying them off regularly makes you a better credit risk and your credit card issuer will increase your available credit line, and that means, so long as you don’t max the card out and make minimum payments, rather by leaving a significant amount of available credit, your scores will continue rising.
  2. Your new credit card accounts are too new. When you open a new credit card account, such as a department store card, your credit score will take a short dip and then bounce back up and should be higher if you have more new credit available and not being used. Therefore, your mortgage broker will tell you to not get any new credit, buy anything big or take on any new loans when you are within months of submitting your mortgage application.
  3. Failure to pay certain medical bills. Talk to your mortgage broker about any outstanding medical debts that have not been paid. They might suggest you negotiate a small but reasonable payment plan with the hospital so that a positive report shows on your credit. Be cautious, however about making deals to compromise and wipe out the balance for a decreased settlement amount because that could have a negative credit impact.
  4. Too recent a job change. Length of employment is a reasonably acceptable factor that tends to indicate whether you will be a good credit risk. If you have lengthy employment, that is a positive factor and once you are at your new position for a while, your score will bounce back up. That said, if you know you are going to apply for a mortgage, hold off on the job change if possible.
  5. Lying on your mortgage application, aka mortgage fraud. Do not inflate your financial status on a mortgage application. There are multiple levels of financial professionals who comb through details of your application. On paper, you are being judged on your credibility and trustworthiness and any dishonesty on your mortgage application is like sending up a big red flag to the lenders to tell them to take a pass on you. You may be surprised that the income or credit score required to be approved may be more achievable than you realize. Once again, so you do not need to ask why your mortgage applications was rejected, consult with the best mortgage broker you can find and follow their instructions.

Joseph Wrobel and his associates and staff at Joseph Wrobel, Ltd., want you to take control over your finances. You would be surprised how soon you may be able to qualify for a mortgage after financial problems including bankruptcy. Remember, what is important is not what you did before a bankruptcy, what matters is what you do every day afterwards. To learn more and to schedule a consultation, call Joseph Wrobel, Ltd., at (312) 781-0996 or Contact Us on ChicagoBankruptcy.com.

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Tips for self-employed taxpayers

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Tips for self-employed taxpayers

Small business is the backbone of America many say. Whether you operate a small landscaping business or a professional services firm there are several common issues and concerns about accounting and taxes. Self employed individuals also have different options for investing for the future.

Every April self-employed taxpayers calculate income, expenses and deductions to keep as much of what they earned as they can. For people who follow the recommended quarterly estimated tax payment plan, the final tax preparation should be stress free because they paid into the system all year long and might get money back. For many other self-employed individuals, filing taxes every April means you have a large tax bill and owe thousands of dollars or more to the IRS.

While you can work with the IRS on payment plans and solutions to manage your IRS debt and payments, the experience of not having the money set aside to pay income tax may be something you want to prevent in the future.

Estimating, saving and paying income taxes

Based on your recent accounting and tax returns, you should be able to anticipate how much of your income needs to be sheltered and used to pay income taxes.

When you receive a paycheck and your taxes are withheld by your employer you do not really feel that money coming out of your check as you get used to the idea that the net amount is what you have left to spend. The challenge to self-employed business owners is to have the discipline to set estimate and set aside money to pay quarterly tax payments.

There are apps you can use to automatically set aside money for taxes. Your bank or credit union may also offer an income tax collection solution where a percentage or fixed amount of every deposit is automatically separated into another account the owner cannot access until it is time to use that money to pay taxes.

Saving self-employed income for the future

What are your options to save for retirement when you are self-employed, and nobody is offering you a 401(k) plan or pension? If you pay attention to advertisements in print and media, there are several advertisements for investing for the future when you are self-employed.

Consider a collection of information offered by CNN Money, the Ultimate guide to retirement for self employed individuals. Another key to saving for the future is budgeting to have money automatically withheld from your regular income that you don’t miss while that money works for you to either pay your taxes or invest in your future and retirement.

Chicago bankruptcy lawyer, Joseph Wrobel wants people to take control over their financial future. No matter what your financial past, you can always change direction and enjoy financial success. If getting rid of old debt that drags you down is making that much harder to get ahead and you need a fresh start call Joseph Wrobel, Ltd. to learn about your Chicago bankruptcy options by dialing (312) 781-0996 or Contact one of our locations through the website.

Consumer Finance, Uncategorized

Problem: Open trade jobs with no applicants

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Problem: Open trade jobs with no applicants

All the kids graduating from high school are going straight to college and the pool of skilled trade talent is running dry. Like sheep following a shepherd high school seniors graduate and march off to college in the fall because that is what everyone else does. Meanwhile, there are housing booms around the country and not enough skilled trade workers to get the jobs done. There are open trade jobs with no applicants, a considerable problem and missed opportunity for many.

When people can learn skilled trades and vocations in less time than it takes to earn a liberal arts degree, it can be easier to retrain people for the new lines of work needed in a variety of industries, not only construction.

A shortage of plumbers and air conditioning repair technicians is a real problem when the need exceeds the available skilled workers to solve homeowners’ emergencies.

College tuition is expensive, and the loans can be gigantic

When it costs $15,000 and more per year to attend a state school in Illinois the student loans can multiply quickly. Especially when many students borrow more than the money for tuition, books and fees and maximize their loans to also include rent and living expenses, the total cost of a four year degree can easily reach $100,000.

With a $100,000 student loan an average interest rate of 5.7% a student will pay $1,095 a month on a 10-year repayment plan and make combined total payments in the amount of $131,424. The interest alone would be enough to buy a dependable vehicle or a down payment on a home.

The earlier you start working, the earlier you build net worth and gain assets

A couple years out of high school, an iron worker in Seattle is earning more than $50,000 a year with no college degree required. His name is Morgan and he makes $28.36 an hour working on a jobsite with Pacific Northwest Ironworkers shop. He is already earning great benefits and a pension. Meanwhile all his high school friends went off to college and someday they will make as much as he does at age 20.

Because Morgan doesn’t have large student debt burdens he is able to save for a house and his retirement much earlier than his peers who went to college and want to continue to graduate school. Surely many of them will do well, but it will take them many more years to get into the red where they are getting out of debt and accumulating assets.

Joseph Wrobel wants you to make smart financial decisions and get a head!

About us: Joseph Wrobel, Ltd., works with clients to find out if they qualify for Chapter 7 or 13 bankruptcy, and their options and rights under the law. The firm will also advise and assist clients with questions and concerns about the collectors and their rights to pursue you.

Joseph Wrobel, Ltd. helps people get control of their finances and a fresh start at financial freedom. The firm’s website contains informative videos about financial issues as well as bankruptcy protection for families who want a fresh start. (312) 781-0996.

Don’t forget to keep up with us on Facebook, Twitter, LinkedIn and Avvo, where you can read

Consumer Finance

New IRS “verify call” scam

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New IRS “verify call” scam

The IRS recently published a warning on their website about a new scam where criminals use technology to manipulate the phone number on your caller id. When calling, the “verify call” scammer will tell you they are with the IRS and calling from your local Taxpayer Assistance Center (TAC) office and are calling making a demand for a payment for taxes. If you were to question whether the call was legitimate, they would tell you to make a note of their phone number on your caller id and then look it up on IRS.gov to verify it was a legitimate call.

What you might not have known was that criminals can use technology to change the appearance of their phone number on your caller id. They used technology to make it look like they were really calling from the local TAC office.

The IRS does not usually call people, they send letters first.

If the IRS wants some information from you, they use written correspondence and send you several letters they call “notices” in the mail. The IRS will never call you on the telephone and demand payment by a credit or debit card, that is not how the IRS does business.

The IRS does not take any of these actions:

  • Demand a specific type of payment such as a credit card, prepaid debit card or wire;
  • Require you pay taxes without the opportunity to appeal or get more information about the amount you are said to owe;
  • Threaten you with law or immigration enforcement;
  • Threaten to take your drivers or business license.

When the IRS wants payment, they provide instructions for making and sending payments to the United States Treasury as you prefer.

What should you do if you are contacted in a similar scam?

First, the IRS warns to be aware and alert about tax scams not only during tax season and before the annual filing deadline, but year-round. Second, if you receive a phone scam or any IRS impersonation scam, contact the Treasury Inspector General for Tax Administration at the IRS Impression Scam Reporting website or email phishing@irs.gov with “IRS Phone Scam.” In the subject line. Third, share this blog article with others on social media to warn them about the phone scam.

New IRS “verify call” scam
Helping people get out of debt with dignity and respect for over 40 years.

About us: Joseph Wrobel, Ltd., works with clients to find out if they qualify for Chapter 7 or 13 bankruptcy, and their options and rights under the law. The firm will also advise and assist clients with questions and concerns about the collectors and their rights to pursue you.

Joseph Wrobel, Ltd. helps people get control of their finances and a fresh start at financial freedom. The firm’s website contains informative videos about financial issues as well as bankruptcy protection for families who want a fresh start. (312) 781-0996.

Don’t forget to keep up with us on Facebook, Twitter, LinkedIn and Avvo, where you can read client and peer reviews!

Bankruptcy Basics - Chapter 13

Why people chose Chapter 13 bankruptcy

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Why people chose Chapter 13 bankruptcy

Chicago bankruptcy attorney Joseph Wrobel is often asked why people chose Chapter 13 bankruptcy. His frequent answer is, “It depends.” After the initial meeting with your bankruptcy attorney you should be advised whether you qualify for a Chapter 7 or a Chapter 13 bankruptcy. Your bankruptcy attorney asks for certain documents and your financial statements, so they can analyze your financial status using the bankruptcy means test. The means test is a rather complicated mathematical process your bankruptcy attorney uses to determine whether your income and finances allow you to qualify for Chapter 7 or Chapter 13 bankruptcy.

What is the difference between Chapter 7 and 13?

When most people think about bankruptcy they are thinking about Chapter 7, the full discharge and wipeout of all the bills and debts allowed to be discharged in bankruptcy. You must qualify for Chapter 7 as set forth in the means test your attorney will calculate. If you make too much money, you might not qualify for Chapter 7 discharge and you can use the option of Chapter 13 instead. While a Chapter 7 bankruptcy is a relatively quick discharge of the qualified debts you can eliminate, a Chapter 13 bankruptcy is more like a repayment bankruptcy, where you pay back a portion of your debts by making a fixed payment to the bankruptcy trustee once a month for up to five years.

If you have too much equity in your home, have assets of special value like an inherited collector automobile, or simply make too much money to qualify for Chapter 7, you can file a Chapter 13 bankruptcy.

Getting immediate relief from creditors and bill collectors

As soon as either a Chapter 7 or 13 bankruptcy petition is filed, you are protected under the Automatic Stay provision of the U.S. Bankruptcy Code. The Automatic Stay is the law that prohibits any of your creditors or collection agencies from making any efforts to contact you during your bankruptcy. If you have a Chapter 13 bankruptcy, your creditors cannot call you for the entire term of the bankruptcy, even if it is the entire five-year period while you make monthly payments to the trustee who pays the creditors.

Garnishments are also stopped by the Automatic Stay when you file a Chapter 7 or 13 bankruptcy. The threat of garnishment alone is enough for many people to decide to file for bankruptcy.

For more about “Automatic Stay,” read our article, “Examples of the automatic stay and how it operates in bankruptcy law.”

Taking up to five years to repay your debts under a Chapter 13 plan

When people desire time to get caught up on their bills, a five-year Chapter 13 repayment plan can mean financial freedom and peace and quiet when the collectors stop calling. Depending on your finances and the results of your means test, your bankruptcy attorney may be able to get you on a plan where you only repay a portion of your debts.

Keep your home and your car with a Chapter 13 bankruptcy

Do you have a great interest rate or mortgage deal you don’t want to lose? Chapter 13 allows you to keep your home and your equity while you repay the debts and bills you were otherwise unable to pay. This also applies to your car. If you have car payments, they can be included in the monthly payments to the Chapter 13 bankruptcy trustee over your five-year plan. Of course, if you want a shorter plan, that may be an option for you.

When people find out about the benefits of a Chapter 13 bankruptcy plan, they often wish they had known so long ago. To find out more about Chapter 13, call Joseph Wrobel, Limited.  

Why people chose Chapter 13 bankruptcy
Helping people get out of debt with dignity and respect for over 40 years.

About us: Joseph Wrobel, Ltd., works with clients to find out if they qualify for Chapter 7 or 13 bankruptcy, and their options and rights under the law. The firm will also advise and assist clients with questions and concerns about the collectors and their rights to pursue you.

Joseph Wrobel, Ltd. helps people get control of their finances and a fresh start at financial freedom. The firm’s website contains informative videos about financial issues as well as bankruptcy protection for families who want a fresh start. (312) 781-0996.

Don’t forget to keep up with us on Facebook, Twitter, LinkedIn and Avvo, where you can read client and peer reviews!

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Good credit after bankruptcy

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Good credit after bankruptcy

At the point you are in a bankruptcy it no longer matters what happens that led to filing Chapter 7 or 13. For purposes of good credit, what matters is what happens after the bankruptcy discharge. Many people are surprised in how quickly they can qualify for a student, car or home loan after bankruptcy. Starting with a secured credit card, people can rebuild their credit score, especially since they are no longer under the burden of debts they couldn’t pay.

Start with a secured credit card

People are shocked how easy it is to get a secured credit card. All you need to do is deposit the amount of your credit limit with the issuing bank or credit card company. Very simply, if you don’t pay your credit card bill, you forfeit the deposit. Since the bill is guaranteed, it makes sense to give people secured credit cards to fix their credit.

As you use the secured card like a regular credit card your balance and payments will be reported to the credit bureaus and your scores should rise with responsible use of the secured credit card. After a year or more of using the card, the deposit may be returned to you and the card converts to a traditional credit card.

After a few months of credit rebuilding with your secured credit card you may start seeing traditional credit offers in your mailbox and when you apply to one every three or four months or so you may be accepted more often than rejected for new credit opportunities.

Pay down your balance before the due date

Credit repair professionals helping consumers qualify for home loans after bankruptcy say to use no more than a modest amount of your total credit and pay your credit card bill every month before it is due. When paying your bill, they say your credit score can benefit from leaving a few dollars balance instead of paying the bill down to zero.

The idea in not using too much credit and paying it down every month is to ensure that at any given moment during the month the credit bureaus can take a snapshot of your credit usage. It is better not to max out your cards and at any given moment have plenty of money to spend and to pay the bill after you spend.

Good credit after bankruptcy
Helping people get out of debt with dignity and respect for over 40 years.

For more ideas, see Nerdwallet: How to Rebuilt Credit After Bankruptcy

About us: Joseph Wrobel, Ltd., works with clients to find out if they qualify for Chapter 7 or 13 bankruptcy, and their options and rights under the law. The firm will also advise and assist clients with questions and concerns about the collectors and their rights to pursue you.

Joseph Wrobel, Ltd. helps people get control of their finances and a fresh start at financial freedom. The firm’s website contains informative videos about financial issues as well as bankruptcy protection for families who want a fresh start. (312) 781-0996.

Don’t forget to keep up with us on Facebook, Twitter, LinkedIn and Avvo, where you can read client and peer reviews!

 

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Should I buy or rent my home?

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Should I buy or rent my home?

Whether you are a first-time home buyer or someone who has previously owned a home, there comes a time you might wonder if it is better to rent or buy your home. Interest rates are scheduled to rise this year and realtors suggest this is a good time to buy. What if you are not ready to buy and cannot decided if you should buy or rent?

If you are rebuilding your credit score and hear about increasing interest rates, consider that taking an extra year or more to increase your credit score and buying power should cause you to have a lower interest rate, compared to getting into a mortgage where your credit just barely qualified for the loan. More money down can also be a benefit worth waiting to buy and renting a little longer.

The cost of home ownership in the Chicago area

While you are building equity when you own a home, there are all kinds of extra costs and expenses that can outweigh building equity. For example, if you buy an older home you may be spending money on replacing the roof, furnace, water heater, or air conditioner. If you had been renting you would have simply made a call to your landlord for those repairs.

Taxes are also an expensive part of your monthly mortgage payment, when taxes and home insurance are included in your monthly payment. That said, you can also claim a tax deduction for property taxes paid up to the new $10,000 limit.

Alternative ways to invest for retirement

Say you can afford to buy a new home but not where you want to live. Have you considered keeping your rental home in Chicago and buying a new home in Will County to lease to a renter? A new home with few needed repairs can be an excellent investment, especially in the collar counties where there is new growth and anticipated increases in future property values.

By the time you are ready for retirement you may want to go live in that home in Will County or sell it and take your equity to wherever you plan to retire.

If you have questions about making the right financial moves, regardless of whether you have had or will ever a have a bankruptcy, a consumer finance attorney at Joseph Wrobel, Ltd. is happy to help steer you in the direction of financial success.

Should I buy or rent my home?
Helping people get out of debt with dignity and respect for over 40 years.

About us: Joseph Wrobel, Ltd., works with clients to find out if they qualify for Chapter 7 or 13 bankruptcy, and their options and rights under the law. The firm will also advise and assist clients with questions and concerns about the collectors and their rights to pursue you.

Joseph Wrobel, Ltd. helps people get control of their finances and a fresh start at financial freedom. The firm’s website contains informative videos about financial issues as well as bankruptcy protection for families who want a fresh start. (312) 781-0996.

Don’t forget to keep up with us on Facebook, Twitter, LinkedIn and Avvo, where you can read client and peer reviews!