Bankruptcy Basics - Chapter 13, Consumer Finance

NHSC Substance Use Disorder Workforce Loan Repayment

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Substance Use Disorder Workforce Loan Repayment and Public Service Student Loan Forgiveness

Student loan debt, second only to mortgages, is the leading debt category for consumers. The rising cost of college tuition and living expenses causes many students to apply for student loans to cover more of the tuition and expenses students cannot afford. When graduating, many students have significant debt.

“The average student in the Class of 2016 has $37,172 in student loan debt. The average student in the Class of 2017 has almost $40,000 in student loan debt.”[i] The student loans for doctors and many healthcare professionals are significantly higher and have monthly payment amounts equal to the amount of monthly of mortgage payments.

For others who are not healthcare professionals, skip down to the section of this article about Public Student Loan Forgiveness for government and nonprofit employees.

Too many young healthcare graduates can’t pay student loans and maintain a standard of living.

The rising cost of living coupled with slow to rise wages and hourly pay, too many young graduates may have to chose among paying student loans or their basics daily needs. As a result, many must use limited forbearance time and or not pay their loans.

Unpaid student loans are a significant problem. Collection activity can be aggressive and lead many to file a bankruptcy case, stopping the collection with the Automatic Stay provision of the bankruptcy code in a Chapter 7 or 13 bankruptcy case. Call Joseph Wrobel, Ltd. for bankruptcy information (312) 781-0996.

Meanwhile there is another solution for healthcare professionals that also combats opioid addiction!

“Physicians, nurses, pharmacists, midwives, physician assistance, behavioral health professionals and substance abuse disorder counselors, among others”[ii] are eligible to apply for student loan repayment.

Eligible applicants who complete the program can qualify for up to $37,500 worth of loan forgiveness or for up to $75,000 worth of loan forgiveness depending on their participation in a part-time or full-time service in identified underserved communities.

Struggling neighborhoods and communities fight the opioid epidemic with whatever they have, and it is not enough. Young healthcare professional graduates excited about this loan repayment program have a unique opportunity to work off their student loans by serving in an approved substance use disorder site. The approved substance use disorder sites are in health professional shortage areas.

NHSC Substance Use Disorder Workforce Loan Repayment Programs Require 3 Year Commitments

Three years of full-time service, working in an under-served neighborhood substance use disorder site can earn the qualified healthcare professional up to $75,000 in loan repayment. For healthcare professionals who cannot work full-time but can make part-time commitments, they can receive up toe $37,500 for their service to members of communities who might otherwise become a daily statistic.

“Every day, according to the U.S. Department of Health and Human Services (HHS), more than 130 people die due to opioid-related drug overdoses.[iii]”

Public Service Loan Forgiveness Programs for City, State and Federal Employees                         

The Public Service Loan Forgiveness Program is for federal student loans for all types of employees work in public service. Employees who have jobs with a government or not-for-profit organizations can use the tools on the U.S. Department of Education Federal Student Aid website to learn more to see whether they might qualify.

Generally, qualified applicants work full-time a government agency or approved nonprofit, have Direct Loans on an income-driven repayment plan and make 120 qualifying payments.

What if I don’t have a healthcare job or work for a government or nonprofit employer?

People with student loans who do not qualify for the Substance Use Disorder Workforce Loan Repayment or the Public Service Loan Forgiveness Program can still take advantage of Federal Student Aid repayment plans to ease the financial burden on borrowers who are growing their careers and small businesses to be better able to pay off their student loans in the future.

When your federal student loan payment schedule is high compared to your income, an income-driven repayment plan can help you stay current with your student loans while your ability to pay is less than you would otherwise like.

There are four income-driven repayment plans on the Federal Student Aid site:                        

  • Revised Pay As You Earn Repayment Plan
  • Pay As You Earn Repayment Plan
  • Income-Based Repayment Plan
  • Income-Contingent Repayment Plan

Consult a Tax Expert with Questions About Student Loan Forgiveness Plans

When certain types of debts are forgiven there can be a tax liability. For example, when credit card companies agree to “write off” a percentage of the debt you owe, that “forgiven” amount can be taxable and be included as income on your tax return.

Always determine the details of any tax liability for any student loan repayment or forgiveness plan, whether a federal student loan or a private student loan.

If Chapter 13 Bankruptcy Helps You with Student Loans, Call us at Joseph Wrobel, Ltd.

A Chapter 13 “reorganization bankruptcy” allows you to enter a repayment plan to pay back portions of your debts over a three to five-year period. You can include your student loans in your monthly repayment plan.

Despite all our best efforts and hard work, bad things can happen to all good people and everyone deserves a fresh start and to take advantage of the bankruptcy laws that were passed in order to help us in a time of financial need. Contact us through our website or call us at Joseph Wrobel, Ltd. in Chicago at (312) 781-0996 to set an appointment to talk about your financial questions and to help you determine if a bankruptcy would make sense to you and would help give you relief from your financial woes.

[i] Forbes: This New Program Will Pay $75,000 Of Your Student Loans. By Zach Friedman, Feb. 7, 2019.

[ii] See Forbes article in HNi

[iii][iii] See Forbes article in HNi

Bankruptcy And Your Home, Bankruptcy Basics - Chapter 13, Bankruptcy Basics - Chapter 7, Bankruptcy Beyond The Basics, Bankruptcy Odds and Ends

Bankruptcy for Unpaid Workers

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Bankruptcy for Unpaid Workers in Chicago Who Run Out of Money

The current government shutdown causes people to ask themselves what would happen if they did not receive their paycheck for several weeks or longer. For families living on budgets, not receiving pay means the bills are not going to be paid. Unpaid workers without savings to temporary replace regular income can lose their homes, cars and credit cards if payments are delinquent.

Even though currently unpaid government workers are promised to receive their back pay after the shutdown, they may not be paying their mortgage, rent, car payment, student loans, utilities and other financial obligations. How long would you be able to continue without pay and the immediate need to get another source of income.

In many cases the unpaid workers with specialized work skills and experience cannot find another job very easily, and not at the same pay grade.

Read an article by CNBC focused on 800,000 workers without pay and the impact of the shutdown: “Workers going unpaid during the shutdown owe $438 million in rent and mortgage payments this month.”

Examples of Situations Causing Unpaid Workers Who Consider Bankruptcy

Workers are unpaid for a variety of reasons. Layoffs happen in manufacturing due to slow business or problems. Companies with a cash flow problem may not be able to pay their workers on time. Sometimes a struggling company does not have enough money in the bank for all the payroll checks to clear. In other cases, the employers accounts could be seized or frozen. For people working as contractors for others, one party may refuse to pay because they have an issue with the work not being performed correctly. In each of these scenarios, the unpaid employee still needs to pay their bills.

Unless workers have several months of bill paying money set aside for cash flow emergencies, they may be considering their bankruptcy options. Chapter 7 and Chapter 13 bankruptcies have features and options that will help people and their families.

The Automatic Stay Provision of the Bankruptcy Code Stops Creditors from Contacting You

Creditors and bill collectors are aggressive and persistent. Economic conditions like a government shutdown mean that many workers will not get their paychecks. After the bills come due and are not paid, collectors have options. Some waive late fees and extend due dates. Temporary relief runs out at some point. Aggressive bill collectors want you to pay them before you pay someone else. They will call you and send extra past due notices in the mail. When friends or relatives listed as references on loans getting phone calls about you not paying your bill it can be embarrassing and aggravating.

The “Automatic Stay” stops bill collectors in their tracks. When either a Chapter 7 or Chapter 13 bankruptcy case is filed, including a list of all the creditors the filer may owe, those creditors receive notice that they may not continue any collection activity so long as the bankruptcy case is ongoing.

Save your home from foreclosure and sale by filing for bankruptcy, taking advantage of the automatic stay. The bankruptcy postpones foreclosures and sales.

Our Bankruptcy Blogger article explains the automatic stay in further detail: The Automatic Stay: It Stops Bill Collectors in Their Tracks. Call Joseph Wrobel, Ltd. today to get more information (312) 781-0996.

Chapter 7 Bankruptcy for Unpaid Workers

For some unpaid workers a Chapter 7 bankruptcy case might have already been on their mind. When people have debt, they cannot afford to pay, when they are making less income than before, and when the outlook for paying off all the debt is bleak, a fresh start with a Chapter 7 bankruptcy can make a major difference for a family struggling with money and bills.

The point someone who already has financial troubles doesn’t receive their paycheck, a Chapter 7 bankruptcy will help. Eliminate the credit card debt, the payments for a car worth less than owed. Eliminate the mortgage on the house that is too big and expensive.

When people start over after a Chapter 7 bankruptcy, they can control their budgets and not get behind in debt. And when people no longer owe money to so many creditors, they become a better credit risk. Rebuilding credit after a bankruptcy takes some time but is easier than people think.

Learn more about rebuilding credit. Read our article, Good Credit After Bankruptcy on the Bankruptcy Blogger section of the Joseph Wrobel, Ltd website. See also results for searching our site for the word “credit.”

Chapter 13 Bankruptcy for Unpaid Workers

Chapter 13 bankruptcy may be attractive to unpaid workers who expect to receive their back pay but who need temporary protection from collections and foreclosures. When you file for a Chapter 13 bankruptcy you can “cure” your mortgage default by making up past payments over months.

A Chapter 13 “reorganization” bankruptcy can last three to five years, giving the unpaid employee time to catch up on debts when the paychecks stopped coming for whatever reason.

One misconception about Chapter 13 is that every dollar owed must be repaid. In fact, depending on a person’s financial calculations, they may only have to repay a percentage of the amount owed.

To save your home, car and other assets you don’t want liquidated, call Joseph Wrobel, Ltd. and learn where you stand and for which type of bankruptcy you qualify. Call day or night (312) 781-0996.

Read Homeowners Keep Their Home Using Chapter 7 or Chapter 13 Bankruptcy Laws.

Joseph Wrobel Can Help if Bankruptcy Makes Sense and Will Help Unpaid Workers Get a Fresh Start

When you call Chicago bankruptcy lawyer Joseph Wrobel and make an appointment at one of the conveniently located offices around the Chicago area you are taking the next step in finding out if bankruptcy is the right thing to save you from money problems.

At your meeting with Joseph Wrobel when your financial information is processed, he will tell you about your options under the bankruptcy law. If you or a friend is an unpaid employee because of a shutdown, lack of business, layoff or any reason, contact online or call Joseph Wrobel, Ltd. today and get the information about bankruptcy for unpaid workers, to turn off the bill collectors and turn on your fresh financial start. The main Chicago office telephone number is (312) 781-0996.

Bankruptcy And Your Home, Bankruptcy Basics - Chapter 13, Bankruptcy Basics - Chapter 7, Bankruptcy Beyond The Basics

Chicago Bankruptcy Podcast with Joseph Wrobel: December 2018

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Chicago Bankruptcy Podcast with Joseph Wrobel: December 2018

Chicago bankruptcy and consumer credit attorney Joseph Wrobel answers real people’s questions about their financial situations and what options they might have to fix their financial problems.

Click here to listen to the Bankruptcy Podcast on our Blog Talk Radio channel

Real questions answered in this 30-minute show:

If I took out a $4,000 loan today to help my son, can I file bankruptcy in three months?

Can I discharge my SSA over-payment with Chapter 7 bankruptcy? I have been told by an SSA representative that I can, but I was not sure.

Can a person withdraw from a bankruptcy, whether a Chapter 7 or Chapter 13?

My cell phone is disconnected, will a Chapter 7 or Chapter 13 bankruptcy help reinstate my account?

I am in a Chapter 13 bankruptcy; can I refinance my mortgage?

I live overseas and want to file Chapter 7 bankruptcy in Massachusetts.

I have already filed bankruptcy, it was discharged this June. Can I get a house on a land contract?

Can a person apply for a credit card now after 8-9 years after bankruptcy has passed?

If I sell my house will defaulted student loans take the money at closing?

If you are already working with a debt relief company are you able to decide to do bankruptcy instead?

Can I stop foreclosure on my mother’s home if it is in bankruptcy?

Joseph Wrobel has been a practicing attorney since 1973 and has experience in a wide variety of law relating to legal matters for individuals and families. Wrobel helps clients get out of debt and get a fresh start. He is an active member in several bar associations and the Bankruptcy Panel of Pro Bono Program of the Chicago Volunteer Legal Services. After serving the U.S. Army Reserve 363rd Civil Affairs Unit, Wrobel earned a B.A. in Psychology from Northwestern University and in 1973, he earned a JD from DePaul University Law School.

About Joseph Wrobel, Ltd:

Keep up with us on Facebook, Twitter, LinkedIn and Avvo, where you can read client and peer reviews!  Visit our Chicago Bankruptcy website online for more about the firm or call for more information at (312) 781-0996 or e-mail at JosephWrobel@ChicagoBankruptcy.com.

Joseph Wrobel Limited is a small law firm of attorneys and staff experienced in consumer bankruptcy. They are not a bankruptcy law factory and you will not get lost in their office. You will be treated as a human being with courtesy, dignity, and respect.  The mission of Joseph Wrobel Limited is to have you take control over your finances through the proper use of the bankruptcy laws.

Joseph Wrobel, Ltd. has offices located in the Chicago-Loop, Chicago-Rosemont, and in the suburbs of Burr Ridge, Deerfield, Gurnee, Naperville, Orland Park, Schaumburg, Skokie, St. Charles and Westchester. They can represent Illinois clients in Cook County, Will County, DuPage County, Kane County, LaSalle County, Kendall County and Lake County.

Bankruptcy And Your Home, Bankruptcy Basics - Chapter 13, Bankruptcy Basics - Chapter 7, Bankruptcy Beyond The Basics, Bankruptcy Odds and Ends

Filing for Bankruptcy After Divorce?

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Whether to File Bankruptcy After Divorce: Consider These Scenarios

Divorce is difficult enough without also worrying about finances after the divorce and whether filing for bankruptcy after divorce makes sense and will help you out. In some situations, the spouse ordered to pay the other doesn’t hold up their end of the bargain in the settlement or divorce decree. You can go back to court and try to order the deadbeat spouse to pay what they were ordered but that doesn’t stop the creditors who want their money. When you cannot pay them, you may wonder if a Chapter 7 or Chapter 13 bankruptcy will save you.

The creditor knows one thing, it wants to be paid. The creditor could care less whether you have a court order that says your spouse is ordered to pay the credit card, when you are liable for the debt and it remains unpaid you risk damage to your credit, collection efforts, lawsuits and wage garnishments.

Few people will criticize you for filing bankruptcy after a messy divorce where you and the former love of your life are left to fight over debt. In some cases, the former spouse just wants to punish you by not coughing up the money they owe you to pay off debts.

Read our blog article: 7 Bankruptcy Repercussions Are Myths Not to Worry About.

A Personal Bankruptcy Only Affects Your Credit, Not Your Spouse

Bankruptcy laws are there to protect you when you cannot afford to pay debts. Chapter 7 is the typical full discharge we think of and Chapter 13 is a reorganization bankruptcy where you repay a portion of your debts over a three to five-year period. While you and your spouse may be jointly liable on a debt, you both have independent personal credit ratings and those scores are totally separate.

When you are looking for bankruptcy answers and call Joseph Wrobel’s Chicago Bankruptcy Firm, he will find out whether you and your former spouse are both liable on certain debts. Mr. Wrobel can tell you what happens when one spouse files bankruptcy and the other has not and is still liable for the debt.

Is the debt discharged if two people are listed? Or, simply, is the obligation for one party to pay the debt discharged and the other is on the hook? What happens if the debtor comes after the other party to pay the debt when it was ordered to be paid by the other by the divorce court? Call Joseph Wrobel, Ltd. in Chicago if this is your problem. (312) 781-0996.

Read another article: Don’t Believe the Hype: Get the Real Truth About Bankruptcy, Ignore the Rumors.

You and Your Former Spouse Accumulated Debt During Marriage

When you were married, you and your spouse worked hard and spent money keeping up with your friends and neighbors. As you approached your divorce your divorce lawyer asked you to complete paperwork listing all your assets and debts. Shocked, you realize how much your debts outweighed assets. Yes, your marital home was beautiful, but everything was financed.

Most couples approaching divorce are dividing debt at the end of the marriage. Houses are mortgaged with second mortgages and lines of credit. Credit cards are carrying transferred balances from other high interest cards. Vehicles are financed or leased. In many divorces, the only assets available are vested funds in retirement accounts.

The High-Income Earner Paying for Two Residences and Child Support

Divorce is very expensive, especially for the spouse making more money. The higher income earner may be ordered to pay alimony. When there are minor children, there is also an obligation to pay child support. Even a professional earning significant income feels the immediate reduction in their income needed to pay bills and live from day to day.

Many people simply run out of monthly income when paying alimony, child support and other debts ordered to be paid by the court. Is it a surprise some people simply stop paying? No.

You Are the Higher Wage Earner and Want to File Bankruptcy After Divorce

With a few options on the table you owe lots of money and have some decisions to make. In most cases any child support obligation will be automatically withheld from your paycheck. With what is left you simply cannot make it. Maybe you want to file bankruptcy to eliminate the credit card debt you were ordered to pay. Maybe you realize you can no longer afford the mortgage on the expensive house or financed luxury vehicle. It is time to downsize.

Before you take advantage of the bankruptcy laws consider your obligations to your former spouse and children and ask Joseph Wrobel about your obligations in the family court. He can talk to your divorce lawyer and help you make the best financial decision that gives you a break without hurting your former spouse and your children.

You Are the Dependent Lower or No Wage Earner and Need to File Bankruptcy After Divorce

If your former spouse and co-parent identified in the paragraph above did not heed our advice not to hurt you or the children by leaving you high and dry, you can get the help you need with the bankruptcy laws. Depending on your settlement agreement and divorce decree you might need to consider whether to include certain debts to be discharged in your bankruptcy. Like your former spouse would, you too should ask Joseph Wrobel to help figure out what to do with post-decree divorce financial obligations.

When you do file for a Chapter 7 or Chapter 13 bankruptcy, your phone should stop ringing as debt collectors are prevented from collecting or contacting you during bankruptcy. The “Automatic Stay” provision also stops a Wage Garnishment. Helping you keep money in your pocket during the bankruptcy is what we do for you at Joseph Wrobel, Ltd.

Have you seen this one from a few years back? Credit Scores, Cards and Reports: What You Might Not Know.

Your Spouse Files Bankruptcy After Divorce, How Does Joint Debt Impact You?

Joint debt means joint responsibility. If you and your former spouse are both named on a financial account, then you both are jointly responsible, regardless of what it says in the divorce decree. If your ex-spouse is ordered to pay and they stop paying, the obligation becomes yours, 100 percent.

With so much uncertainty about Filing for Bankruptcy After Divorce, talking to both your divorce lawyer and a bankruptcy lawyer such as Joseph Wrobel is necessary, so you don’t worsen your financial position and future if things do not go as planned after the divorce.

Call Joseph Wrobel, Ltd. in Chicago today at (312) 781-0996 and learn your rights and options under the law if you are considering filing for bankruptcy after divorce.

 

 

 

 

Bankruptcy Basics - Chapter 13, Bankruptcy Basics - Chapter 7, Bankruptcy Beyond The Basics

Bankruptcy and Financial Freedom Podcast for October 2018

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Are you tired of being harassed by collectors and worrying about your financial future? Joseph Wrobel is someone you should listen to when he talks about bankruptcy and financial freedom. (312) 781-0996.

This is the October 2018 Chicago Bankruptcy and Financial Freedom Podcast! Joseph Wrobel is the principal attorney at Joseph Wrobel, Ltd., with office locations all over the Chicagoland area.

On this bankruptcy and financial freedom podcast, Mr. Wrobel answers real questions that real people just like you are wondering about bankruptcy and what happens in certain situations where people are concerned about keeping their home, car and stopping collection activities and wage garnishments.

Want to stop the collectors dead in their tracks with the Automatic Stay provision while you pay back a portion of your debts over three to five years with Chapter 13? Listen and learn.

Some of the questions covered in this month’s bankruptcy and financial freedom podcast include: (1) If I file for bankruptcy, will the funds levied in my bank account be released? (2) Will my roommates’ items be liquidated if I file for bankruptcy? (3) How can I retrieve my forfeited house, after a property tax foreclosure? (4) How long does a bank have to pick up a vehicle if I stop making payments? (5) Can a bank short sell a house after the owner declares bankruptcy? (6) Can a bank refuse to sign a release of lien, demanding payment in full? and (7) Can I eliminate income tax debt in a Chapter 7 bankruptcy?

Joseph Wrobel is an experienced consumer bankruptcy attorney with over 40 years’ experience. When you call his office, he will help analyze your financial information and let you know whether you qualify for Chapter 7 or Chapter 13 bankruptcy relief, so you can get a fresh start.

Remember, what is most important is what you do after a bankruptcy filing. Most people have great credit and can easily buy homes and cars sooner than they realize after getting rid of their bad debt.

Thank you for listening to the Bankruptcy and Financial Freedom Podcast for October 2018.

Call Joseph Wrobel, Ltd. today and learn more about your options. (312) 781-0996.

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.

Uncategorized

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.

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