Unemployment Tax Hikes Hurt The Employers

More than 30 states have had to borrow billions from a federal fund to cover unemployment benefits and higher state unemployment tax bills are forcing employers around the nation to shell out more than $1 billion in interest payments this month, CNN reported on September 29, 2011. Companies in 24 states may have to start paying between $21 and $63 more per employee in federal unemployment taxes in January. Doug Holmes, president of the business trade association UWC Strategic Services on Unemployment & Workers’ Compensation, told CNN that employers paid 27.8 percent more in state jobless taxes last year. “Unemployment taxes, which were a relatively low bottom-line cost in 2008, are now becoming a significant cost,” Holmes said. “It discourages companies from electing to hire new employees.”

This is the first time during this economic downturn that states have had to pay interest on their federal borrowing, which CNN said currently totals nearly $38 billion. The 2009 stimulus act waived interest payments for two years, giving both cash-strapped states and their employers some breathing room.

Has the job market caused you and your family stress? Are you seeking foreclosure help ? Our Chicago bankruptcy lawyers understand the toll that this economy has taken on everyone. If you have been struggling to find a job and pay your bills, then perhaps now is the best time for you to complete a bankruptcy means test . Either Chapter 7 or Chapter 13 bankruptcy will help reduce or eliminate your debt much quicker than opting to do nothing. Tell us how the job market has affected you or your family. Are you still struggling to find work or collecting unemployment?

State Sues Mortgage Rescue Companies For Not Rescuing

Illinois Attorney General Lisa Madigan filed lawsuits against four Chicago area companies and attorneys alleging that they illegally charged consumers for fraudulent mortgage rescue or loan modification services that were little if any help to those seeking foreclosure help , the Chicago Sun-Times reported on September 28, 2011. Companies named as defendants in the lawsuits filed in Cook County Circuit Court included ZeTrust Legal Services in Chicago, Legal Modification Network LLC in Woodridge, Loan Litigators International LLC, now out of business after being based in Lombard, and Exelpol Management & Consulting Inc., a dissolved corporation that operated out of Schaumburg.

The Sun-Times also reported that Cook County State’s Attorney Anita Alvarez’s office filed a similar lawsuit against an Arlington Heights-based loan modification and debt settlement company, Legal Housing and Debt Advisor LLC. “The new twist on this scam is that these predators are really using lawyers as a front so that they can conceivably get around the law and collect the upfront money,” Madigan said, according to WBEZ-FM. She noted that in reality the attorneys performed no legal services for the homeowners.

Our Chicago bankruptcy attorneys will make any bank trying to foreclose on your home prove that they have the right to do so. If we are unable to get the bank to accept a proposal for a loan modification program, our Chicago bankruptcy lawyers can always help you stay in your home by assisting in filing for Chapter 7 or Chapter 13 bankruptcy. Were you a victim of a mortgage rescue or loan modification scam? Are there other businesses or institutions you believe should be facing lawsuits?

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