Tag Archives: Joseph Wrobel Limited

August 2017 Chicago Bankruptcy Question and Answer Podcast with Joseph Wrobel

Chicago bankruptcy and consumer credit attorney Joseph Wrobel shares news and updates in bankruptcy law as well as business and consumer financial matters. It has been documented that financial troubles can cause all sorts of ailments, the most common of which is sleeplessness. Joseph Wrobel helps clients alleviate their anxiety created by the inability to pay bills and the embarrassment of financial distress. Click/tap here to listen to this podcast interview anytime.

Sample questions answered in this 30-minute show:

  • When can a bankruptcy be removed from my credit report?
  • Will I lose my US citizenship or be deported if I file for bankruptcy?
  • If you file for bankruptcy, is every credit card you have included?
  • Can another party collect from me in small claims court if I am in bankruptcy?
  • If I file for bankruptcy, can I keep my home and my car if I was never late on those?

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.

Don’t forget to 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.

Credit repair tips: Secured credit cards, limited balances and OptOutPrescreen.com

There are many misconceptions out there about which path is the right one to financial freedom and success. One thing to always ask yourself is, “Who has something to gain by the decision I make?” If you are researching whether bankruptcy or a debt repayment plan is going to work, you will likely hear a variety of things from people with a wide range of opinions regarding the best route to a good credit score. If you have bad credit because you fell on hard times, it can be fixed. People who file bankruptcies typically qualify for conventional home loans with competitive rates within four years of filing bankruptcy. In a bankruptcy, you can discharge some or all debt you cannot repay. After the bankruptcy, when you are not suffering from all that debt, it is easy to get a secured credit card or two and follow a few credit building rules if you want to qualify for a good mortgage.

How does credit scoring work, generally?

Your credit scores all vary slightly among the three major credit reporting bureaus, TransUnion, Innovis, Equifax and Experian. While it may seem like a mystery calculation behind the magic curtain, there are a few basic rules that make logical sense. Your credit scores reflect the amount of risk a lender is taking by giving you a loan, mortgage or credit card. The better the score, the more likely you are to pay your bills and loan payments on time. If you owe less debt and don’t have a dozen minimum monthly credit card payments, you likely have the money to pay your bills – this is your DTI – debt to income ratio. You want your income to be enough that after you pay your bills you have extra spending money to save for a rainy day. If that is you, you are less likely to default on your bills and loans.

Regarding credit cards, there is a similar calculation of how much credit you have and how much you use. The information on your credit report indicates how high your balance may be and the amount of your credit limit you use. A significant portion of your credit score is an equation of how much credit you have available and how much you use. People looking to get into a new mortgage are often told to never use more than 20 percent of the available balance on a credit card. So, if you get a credit card with a $300 limit, don’t charge more than $60 a month. Always make the payment on time but do carry a small balance instead of paying it off in full – because if the credit card company is reporting zero balances it looks like you have credit cards you are not using and that can hurt your score.

You can always get a secured credit card even if you don’t qualify for a regular credit card yet.

Secured credit cards are easy to obtain. Most local banks offer them. You pay a $200 deposit, for example and your secured card will have a $200 limit. You can use it to pay a small monthly bill or two, like Netflix, every month, and you are now boosting your credit score. If you fail to pay the credit card bill, the company cancels the card and you forfeit the deposit. If there are more charges you can be on the hook for them as well and a collector will hurt your credit score and call and harass you until you pay up. If you are working on credit to apply for a mortgage, use the same rules that apply to conventional credit cards, and always keep your balance due somewhere between 10 and 20 percent of the available balance on the card. Again, avoid maxing out the card, even if you pay it off every month in full or always make the minimum payments on time. Just like the debt to income ratio, your available to used credit is important to monitor.

The easiest thing to boost your credit may take only five minutes on OptOutPrescreen.com.

The credit bureaus encourage consumers to be educated about credit offers and opportunities with good interest rates. As your credit score starts rising you will start receiving pre-approval letters in the mail. The credit reporting companies share your improving credit information with these companies. The Fair Credit Reporting Act (FCRA) is the federal law that imposes rules and restrictions on credit companies. The law gives you the right to “Opt Out” of receiving credit offers. Did you know that taking advantage of your opportunity to opt out can raise your credit score, by 25 points in many cases?

Why does Joseph Wrobel Ltd. care about your credit score?

Our Chicago bankruptcy law firm has been around for decades and we have a solid reputation. We don’t put people into bankruptcies simply to earn a fee and move clients through a big law factory like some of the big bankruptcy firms. Instead, we focus on teaching potential clients about the options they have and how they can best fix their finances. We know that the bankruptcy will show up on your credit score and it may take a little while to be approved. What matters is not the bankruptcy or what lead to it, what matters is what you do after the bankruptcy. Following simple credit use tips and maintaining control over your finances can help you get back to a very good credit score much quicker than you realize. While we are not a credit score repair business, we do know a few things and have credit repair professionals who can help.

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.

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

When it comes to bankruptcy, we might all take some advice from Donald Trump

Donald Trump and bankruptcy are popular topics that seem to run together lately. Trump has never filed for personal bankruptcy protection but four of his business enterprises have been in bankruptcy, and the news certainly covered it. In a recent editorial article, a journalist stated that Donald Trump is right about bankruptcy, “Namely, he’s right about the attitude, morals and balance of sympathies we should bring to questions of debt and bankruptcy.[i]” Donald Trump is likely a greater success in business because he knows when to cut his losses. There’s no good way to grow when carrying old debt around. Business deals can go wrong and economic disasters happen that would make it impractical to pay off bad debt getting in the way of new income.

People who look down on others who take advantage of bankruptcy are probably jealous.

The people who work hard and earn and protect a perfect credit score are not inherently better people than others, they simply have good finances and no financial trauma. But with the blink of an eye all of that can change. Many dual income earning households would slowly grind to a financial hault if something happened to the earning capacity of one of the spouses in any of our given neighbors. Are they bad people if they have to file for bankruptcy? Should they be shunned for their misfortune?

In the recent GOP presidential debate, Chris Wallace criticized Donald Trump for the four of his businesses that were in bankruptcy, asking, “With that record, why should we trust you to run the nation’s business?[ii]” Trump responded that those were four out of hundreds of deals he has done.

There are similarities between Trump’s business bankruptcies and your option to reorganize your finances in a Chapter 13.

Business bankruptcy, Chapter 11, is different from personal bankruptcy. The goal in a Chapter 11 is to eliminate parts of the business that are no longer working or profitable, for the purpose of otherwise saving the business so it can operate and profit again. In personal bankruptcy, Chapter 13 has a similar feel to it, eliminating some of the bad debt and getting the consumer on a reasonable monthly payment plan, which eventually terminates and the individual moves forward to make money and keep up with their debts, assuming no intervening financial emergency takes place.

There’s no room for guilt and bad feelings in money and personal finances, it’s just business.

Taking the moral and value attitude judgment out of bankruptcy helps people see the laws for what they are, laws designed to bail people out of financial crisis so they can get a fresh start and get back on their feet again. The lenders who lose in bankruptcy expect, as part of their business plan that some borrowers will file for bankruptcy. That is why they charge interest to make income on borrowed money in the first place. Trust that most lenders are making enough money on their other accounts, that your bankruptcy will not shut them down anytime soon.

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. To keep in touch and read about consumer finance news and stories you can “Like” the firm’s Facebook page and “Follow” Joseph Wrobel. Ltd. on Twitter. If you need immediate legal assistance, please call Joseph Wrobel, Ltd. by calling (312) 781-0996 to talk to an attorney today.

[i] The Week, What Donald Trump gets right about bankruptcy, by Jeff Spross, Aug. 10, 2015.

[ii] See HN1 above.