Are you burdened with excessive debt from medical bills, credit cards, or other creditors? Many people in this situation have never considered bankruptcy but see no way of ever having enough resources to satisfy their financial obligations. Filing for bankruptcy is never an easy decision to make. However, millions of people have filed for personal bankruptcy to regain control of their lives and financial situation.
Individuals and businesses facing lawsuits, liens, a wage garnishment, or a steady stream of harassing creditors should think about whether hiring a bankruptcy lawyer in Chicago would help. Bankruptcy allows a person with excessive financial obligations to a fresh start by eliminating the debt or extending the time required to pay it back.
There are a variety of bankruptcy types, each one detailed in the United States Bankruptcy code as a chapter. For example, a debtor may file Chapter 7, Chapter 11 or Chapter 13 bankruptcy. In chapter 7, most debts are forgiven without repayment at the risk of liquidation, whereas in a Chapter 11 or Chapter 13, the debts are restructured allowing the debtor to make monthly payments without incurring the penalties otherwise imposed by the creditors.
New Bankruptcy Law may affect Consumer Filing
The Bankruptcy Code was amended in 2005, making it more complicated for debtors to file. Known as the Bankruptcy Abuse Prevention & Consumer Protection Act, it requires most consumer debtors to qualify for Chapter 7 based on the “means test.” In other words, not every debtor is eligible to file under the chapter of his or her choosing. For some individuals, a Chapter 7 filing—liquidation—is not an option; they will be required to repay their debts through a Chapter 13 plan.
An individual or business considering bankruptcy should consult with a bankruptcy lawyer in Chicago to learn what their options are and to maximize the benefits of the Bankruptcy Code.
A bankruptcy lawyer in Chicago can explain the differences between the various bankruptcy chapters and ensure that the process goes as smoothly as the system allows. If you’re considering bankruptcy and seeking help, we can help. Our experienced bankruptcy lawyers are available when your schedule allows. We are conveniently located in the Chicago Loop, with offices in Waukegan and Skokie as well. Give us a call, we would be happy to review your situation and advise you on the best possible Bankruptcy option.
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