Rapid growth of a business can potentially ruin the business by taxing its resources and decreasing the quality of the product. Chicago bankruptcy lawyers have seen too many businesses fail because they overextended themselves and took on too much new business.

According to an article in AOL Jobs, this is true for a cupcake bakery in the UK that offered an aggressive Groupon. The Groupon let customers order from her online cupcake business for 75% off. The bakery owner knew that the deal would cost her $3.80 for each Groupon that was sold but she believed the loss was worth it for the increased exposure for her business.

On a small scale this might have been true however in this instance 8,500 of the bakery Groupon's sold. Because the bakery owner had to hire 25 additional staff members to complete all of these orders the loss totaled over $50,000.

The bakery owner nearly escaped filing chapter 11 bankruptcy and called the Groupon situation a total disaster in the AOL Jobs article.

Any business owner will tell you that some edeavors lose money while others make money. It's a learning process but when a business suffers a loss this great it can push the owner into chapter 11 bankruptcy.

Chapter 11 bankruptcy for a business is often similar to chapter 13 bankruptcy in Chicago. It gives a business an opportunity to restructure to ensure that they can make payments towards their debts and get out of debt. In order to file chapter 11 you have to prove that your business will be profitable again after getting through this current financial situation. For other businesses chapter 11 may be more like chapter 7 bankruptcy in Chicago where all assets are liquidated and the business is dissolved after the bankruptcy filing is complete.

According to the article in AOL Jobs the bakery owner had the option to control their sale with communication with Groupon. A Groupon representative explained that the bakery owner initially wanted to do a Groupon nationally in the UK but the company convinced her to focus on a smaller reach of 15 markets. Groupon also explained that businesses have the option to stop a sale during the day if it's selling too quickly or to put a cap on what they can afford to sell.

When used wisely a marketing tactic like Groupon can be great for a business, but it imperative that you understand the big picture before publishing your offer.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

Your FICO (credit) score is your key to getting a loan.  When your FICO score is pulled for a home or car loan the score determines if you are qualified to borrow the requested amount and then what interest rate you will pay on your loan. The FICO score alone could disqualify you from the loan or increase the interest rate you will pay for your purchase. If you have filed for chapter 7 Chicago or foreclosed on your home, your credit score is going to need some work before you can get a loan.

We are all familiar with what a credit score is but very few know what goes in to the number.

35% of the score comes from how much debt you have compared to how much credit you have. This is called your debt-to-credit ratio.

10% of your score comes from what kind of loans you have. For example, credit card debt is also known as unsecured debt and is a less stable form of a loan. When you have a mortgage or loan out on a car or house it's considered a secure loan. That is because there is an actual item backing the debt. Secure debt is better received in your credit score.

10% of the score depends on the number of credit applications you have recently filled out. Every time you apply for a credit card (including store cards), car loan, mortgage etc. your credit report is pulled. To differentiate, if you are asked for your social security number on an application, they are going to pull your credit.

35% of your score is dependent on your track record for making on-time payments. This is an easy habit to get into that will improve your FICO score.

15% of your FICO score is based on how long you have been building up your credit history. Blemishes on your credit record stay for as long as 7 years and will continue effect your credit score.

Your Chicago bankruptcy lawyers will tell you that the better you understand your FICO score the easier it will be to increase it. If you have filed for bankruptcy in Chicago or if you are trying to get back on your feet financially for another reason rebuilding your credit is the first place to start.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

Recording artist R. Kelly is reportedly about to lose his Chicago property to foreclosure. The huge 11,000+ square foot home boasts 13 bathrooms and a four car garage.

According to the Chicago Sun Times the value of the home has decreased $1.2 million from is estimated worth of $5 million in 2009. Kelly owes over $2.9 million on the home.

The news of Kelly's potential comes shortly after recording artist Prince narrowly escaped foreclosure on his home. Prince saved his home by making a large lump sum payment to satisfy creditors. Prince's property was not the current home of his residence but a property that he had torn down the main house to build a new one. The project is not complete.

In other financial news Giordano's recently filed for chapter 11 Chicago and the Los Angeles Dodgers have also filed chapter 11. Chapter 11 bankruptcy does for businesses what chapter 13 bankruptcy does for individuals. It is often referred to as "restructuring" because the business or individual assets are not liquidated.

It is surprising to hear that well known businesses and celebrities are suffering financially and may go bankrupt or foreclose on their homes. This just proves how difficult of an economic time it is right now and how important it is to make good financial decisions.

If you are struggling with debts or mortgage payments seek out a credit counselor and if that doesn't work find Illinois bankruptcy lawyers or a foreclosure attorney in Chicago that offers a free legal consultation. Use this meeting to get the answers you need about bankruptcy and foreclosure. You may find a solution that suits your situation and you will be free of the stress of debt.

If nothing else you can rest easy knowing that you are in very good company as far as other people and businesses that are struggling financially.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

The country is still feeling the after shocks of the recent economic downturn. Jobs were lost all over the country making it hard for citizens to pay their bills and get back on their feet.

An increase in delinquent mortgages leads to more foreclosures and inevitably more bankruptcies. Chicago bankruptcy lawyers can tell you that the sooner you act the better your chances are of saving your home.

But a big problem today is that homeowners aren't so sure their home is worth saving. The Chicago Tribune reported today that home prices in the Chicago area are down 5% from the 4th quarter 2010 and 14% from a year ago.

This is alarming for homeowners because many of them are faced with negative equity. This means that they owe more money on their home then it is worth in today's market. This can be a depressing realization and make mortgage payments seem pointless.

As soon as you become delinquent on your mortgage payments it is best to reach out to a Chicago bankruptcy lawyer. Once you are 90 days late your mortgage company will begin the foreclosure process. Your Chicago bankruptcy lawyers will review your financials with you and determine the best course of action.

If it appears to them that you are financially capable of making your mortgage with a little decrease in monthly payment they can help you petition for loan modification. However if it is clear that you are in no position to continue payments of any kind they can help you find the solution that works best for you. It may be bankruptcy, short sale or deed in lieu of foreclosure. Whatever the best solution is having a Chicago bankruptcy lawyer in your corner will make the process easier on you.

Negative equity is not a reason to stop paying your mortgage. Meet with a Chicago bankruptcy lawyer to find a solution that will work for you.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

When an individual is suffering from mounting debt that they cannot afford they may consider filing for chapter 13 bankruptcy. Chapter 13 bankruptcy is best suited for an individual who has a consistent job but still cannot afford to pay their bills in full.

Chapter 11 bankruptcy is very similar except that it is for businesses. Both chapter 11 and chapter 13 bankruptcy are a great option for reorganizing and starting over.

Creditors actually make more money when their debtor files chapter 11 or chapter 13 bankruptcy in Chicago. This is because they require a period of payments made by the debtors and distributed to the creditors. After the payment period is over the debtor is discharged of the remaining debts. Because chapter 7 bankruptcy is liquidation the creditors do not come away with as much from the bankruptcy.

In recent chapter 11 news the famed Chicago pizza chain Giordano's has filed for chapter 11 bankruptcy. By filing chapter 11 the business is asking for relief from their debts and hoping to continue operating their business during the bankruptcy proceedings and after they have been discharged of their remaining debts. According to the Lake County News-Sun the Giordano's debts include: $426,700 to Saputo Cheese USA, $214,000 to Greco & Sons as well as $132,000 to Heinz North America.

If the chapter 11 case is a success they will make payments toward these debts for a few years after filing but the payments will be manageable for the business. After completing their payment schedule whatever debts remain to these companies will be discharged.

If creditors lose money during a chapter 11 or chapter 13 filing in Chicago they may have a basic insurance policy to protect their losses.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

Every Chicago Bankruptcy Lawyer offers services a little differently but there is definitely an outline of services that you should receive for your cost.

1. Free case evaluation to meet with the Chicago bankruptcy attorney.
2. First client meeting and financial evaluation
3. Administration of a 'means' test to determine if you are a candidate for bankruptcy.
4. Recommendation of chapter 7 or chapter 13 bankruptcy depending on your financial situation.
5. Attendance of creditors meetings and all other necessary meetings during the bankruptcy case.
6. Availability to answer questions and provide guidance as necessary throughout the case.

Ultimately it may not be imperative for your attorney to attend the creditors meeting but it is a service you may want included. If you get a great rate on lawyer fees but the attendance of the creditors meeting isn't included you may have to pay extra if you want them to join you. It is important to find out what is included in your Chicago bankruptcy lawyer's fee upfront and request any additional services you want that are not provided.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

In 2005 the Bankruptcy Abuse Prevention and Consumer Protection Act change the way bankruptcies happen. This act set in place a requirement that anyone who plans to file for bankruptcy must complete a credit counseling course at least 180 days before they file for bankruptcy.

The counseling can be done by telephone, on the internet or in person. It is required that the counseling be done by an approved educator. You can find a list of approved courses at the U.S. Trustee Program. Your Chicago bankruptcy lawyers will also be able to recommend credit counselors.

The course is likely to cost $50 to complete.

The goal of this credit counseling is that you'll have the opportunity to look at your financial situation with the help of a financial counselor. You'll better understand why you're in the financial position you're in and potentially find ways to get back on your feet. There is a hope that some people will be able to avoid bankruptcy after they've taken the credit counseling class. It has made bankruptcy less of a "quick fix".

You have to wait approximately 6 months after the credit counseling course to file for chapter 7 bankruptcy in Chicago and then another few months after that before you'll receive discharge. This act makes it important not to delay making the decision to file for bankruptcy. You'll only slow down the time frame for you to receive discharge.

Another component to the Bankruptcy Abuse Prevention and Consumer Protection Act is that there is now a debtor education class required after you file for bankruptcy but before you will be discharged of your debts. Understanding all of the steps required for chapter 7 bankruptcy in Chicago is important to managing your expectations.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.