One in Four Chicago Homeowners Owe More than Their Houses are Worth

Even though experts say that the great recession ended a year ago there are thousands of families and homeowners who are still experiencing its biting touch. As the national unemployment rate hovers around ten percent and people are working several jobs at lower wages, many are still unable to make their home payments.

The Chicago Tribune printed some scary news last week, that one in four homeowners owes more on their mortgage than their home is actually worth now. People are struggling to make ends meet at a time when there just isn't enough money or jobs to go around. Those who would not have even contemplated bankruptcy are now the first ones examining their options, even if bankruptcy often carries negative connotations with it.

Although bankruptcy allows you to eliminate some or all of your debts, that is just one part of what occurs. However, it can be a welcome relief to those who have been hounded by debt collectors; once you file for bankruptcy they must stop calling you to collect what is owed. Many will choose not to file bankruptcy because they worry about the long-term ramifications of what it could mean for them financially.

Thinking about filing for bankruptcy because you can no longer manage your debt?  If so, contact our legal team to discuss your finances with a Chicago bankruptcy lawyer.