A lot of people who struggle with debt are worried that personal bankruptcy will leave them in a worse position. They oftentimes believe that a Chapter 7 bankruptcy will strip them of all of their assets, making it nearly impossible for them to get back on their feet again. Fortunately, this simply isn't the case. There are a number of bankruptcy exemptions that allow you to keep some assets, and a limited amount of value in other assets, so that you have the financial stability you need to start your life post-bankruptcy.

What if I want to keep certain assets that aren't fully exempt?

Even in these instances you have options. Let's say that you have an expensive vehicle. When pursuing Chapter 7 bankruptcy you can either liquidate the asset and free yourself of any debt attached to it, or you can reaffirm the debt. Reaffirmation is simply the process where you agree to retain the asset post-bankruptcy along with the debt that is tied to it. This can allow you to have a little more flexibility so that you can keep the assets that are important to you.

Other benefits of a reaffirmation agreement

There are a lot of benefits to one of these agreements. To start, you might be able to renegotiate the terms of your loan so that it is easier to pay off. Next, reaffirming debt and paying it off timely can help rebuild your credit score. It also might not be as risky as you think given that you will have rid yourself of other overwhelming debts, thereby freeing up the resources you need to stay current on the reaffirmed debt.

Almost every Geneva area resident has at least one credit card. In fact, the average American has four credit cards. Credit cards are used for every day purchases as well as any emergency that may crop up such as medical expenses, car repairs, etc. Although most people understand the importance of paying their credit card bill each month, sometimes it is not that easy. A job loss, accident, divorce, or other major life event. There are serious things that can happen if a person does not pay their credit card bill.

When a Geneva area resident is unable to pay their credit card bill there are certain things that happen. The following is the basic process that credit card companies follow when their customer does not pay their credit card bill.

Late fee applied

Even if a person is only one day late, a credit card company will apply a late fee to their account. A credit card company may also increase the amount of interest it charges its customer. A credit score can also decrease because on time payments are one factor of a credit score.

When considering all that is entailed in planning your estate, one of the most important decisions you may make is whether or not to include a power of attorney for healthcare. Choosing a spouse, family member or close friend to be your advocate when it comes to your care, the choice of medications, or end-of-life decisions should you become incapacitated, is arguably one of the most important part of your estate planning.

It is important to note two different estate planning tools that involve healthcare. Where a living will is an advance directive that spells out your preferences for end-of-life treatments and the kind of care you do or do not agree to, a power of attorney entrusts a loved one with responsibilities to ensure that your wishes are honored.

Power of attorney under Illinois law

In Illinois, a statutory short form power of attorney for health care empowers the health care agent with decisions concerning health care of the principal. Should your physician determine that you are incapacitated, your health care agent will talk with your caregivers about your condition or treatment, will have access to your medical records and can grant permission to others to see them.

When someone trusts you to handle their estate, you may feel both completely honored to be chosen — but watch out. While the process of handling an estate from start to finish usually goes smoothly, the job can be somewhat overwhelming if you aren't prepared.

Here are the problems nobody realizes that an executor can face (unless they've been down that road before):

• Heirs with sticky fingers: Part of the executor's job is making sure that the deceased's assets are all collected and secured before they're disbursed. If you're too trusting, however, one or more of the heirs may decide to help themselves to mom's jewelry or dad's antique watches. If valuables go missing, you may be held to account for them.
• Heirs that are disagreeable: You're only doing whatever the deceased wished, so you might believe that the heirs will respond accordingly. Most will — but some may accuse you of playing favorites or something equally unpleasant. Others may demand that you fork over their inheritance right away, and get angry when you say that you can't.
• Personal liabilities: If you don't handle the estate properly, you can end up on the hook for things like unpaid taxes that are due or other out-of-pocket expenses that are hard to recoup.
• Stress and strain: Handling an estate can be very time-consuming. There are usually multiple organizations — everything from the Social Security Administration to credit card companies — that have to be contacted. Forms have to be completed. Court filings have to be made. All of that can be very stressful for the executor.

You don't have to handle the job on your own, however. Executors frequently turn to experienced attorneys for assistance with the probate process. If you're feeling the pressure due to someone's estate, it may be something to consider.

When you start having issues with credit card debt, they can start to feel like a scam. Say you can't afford to pay off the entire balance. The fees are large enough that just paying them off is all you can manage the next month. This process repeats itself over and over until you realize that you've been paying for months without actually making any headway.

Certainly, there are credit card scams. People may try to give you fraudulent cards, they may steal your identity, or they may sign up for cards in your name. These scams do exist and you need to know what to watch out for.

On the whole, though, the idea of credit cards is not a scam in and of itself. In the example above, you're just experiencing the strict penalties that go along with failing to pay the minimum balance. That's not a scam, as you were told how it worked at the beginning.