Evaluate Chapter 7 Bankruptcy or Chapter 13 Bankruptcy Before Filing

If your debts are overwhelming you and you do not see any way to clear them, bankruptcy may be your best option. A debtor declares bankruptcy to get relief from debt, which can be accomplished either through a discharge of the debt or through a restructuring of the debt.

Filing for bankruptcy is an official declaration that an organization or individual is unable to repay the debt to their creditors. Before you go ahead to file your case in court, there are a few basic things that you need to understand about two main forms of bankruptcy.

Chapter 7 vs. Chapter 13

There are several types of bankruptcy options available, but the following two are the most common for individuals: Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. Each bankruptcy option has its own set of pros and cons. It is important to understand how each will affect your financial future.

• Chapter 7 Bankruptcy: The most popular type of bankruptcy is Chapter 7, which is basic liquidation for individuals and businesses. It is also known as straight bankruptcy and is the simplest and quickest form of bankruptcy available. There are many lawyers adept in handling Chapter 7 bankruptcy in Chicago.
• Chapter 13 Bankruptcy enables individuals with a regular income to develop a plan to repay all or part of their debts. This chapter will allow you to retain your personal assets and is also known as the Wage Earner Bankruptcy.  It is typically filed by individuals who think that a little extra time to repay their debts can resolve their financial crises and who do not want to lose their assets due to their present condition. If you intend to file for Chapter 13 bankruptcy, you will have to show your proposed plan of action. Experienced bankruptcy lawyers in Chicago will help you decide which bankruptcy option is right for you, based on your financial situation.

Differences in Bankruptcy Law

The laws governing filing a bankruptcy in Illinois differ from the laws in other states. The biggest key difference between bankruptcy in the Chicago area, and other states, is the property that is exempt or protected from creditors. Some states allow use of a federal exemption, while bankruptcy filing law in Chicago and the rest of Illinois apply their own exemption statutes to all of the property in a bankruptcy case.

The process can be complex and exhausting. Therefore it is very important to choose a Chapter 7 lawyer in Chicago, or from whichever Illinois precinct or county you belong, who has the experience, compassion, and work ethic to see you through the whole process.

Contact Us For A Free Bankruptcy Consultation

Helping clients file for bankruptcy is Chang and Carlin, LLP’s area of focus. Their bankruptcy attorneys not only handle Chapter 7 and Chapter 13 Bankruptcy cases but also assist clients on how they can settle their debt effectively and in a reasonable amount of time.  Contact us online for a Free Bankruptcy Consultation.

What You Need To Know About Bankruptcies

Bankruptcy a good option for people and organizations that cannot repay debts owed to creditors. Filing for bankruptcy is a legal way to get relief when you are in serious financial trouble.

The Bankruptcy Process

Usually, when filing for bankruptcy, the debtor's assets and liabilities are assessed and a structure is provided within which the debtor is allowed to keep some, and in most cases, all property and is ordered to pay as many eligible debts as possible. These debts to be repaid are selected according to an order of priority which is established by law.

·    There was a time when bankruptcy was considered an embarrassing situation, but now that perception has been replaced by the view that it is a fresh start after a time of financial trouble.

·      Most people who are faced with this situation in life have experienced unexpected and severe financial shock, often caused by events like loss of job, failure in business, death, divorce or illness.

While it does not carry the same stigma, filing bankruptcy still requires courage. It is a step that you need to take to save yourself from further financial troubles, and get freedom from your debts. If you are currently thinking about bankruptcy, keep in mind that it is not a simple matter and requires professional assistance. You will need to retain the services of a qualified and licensed Chicago bankruptcy lawyer to guide you through the process.

Fining a Chicago Bankruptcy Attorney

If you find yourself in a tough financial situation, you need to start exploring your options among bankruptcy attorneys. Here are a couple tips to help you find a good Bankruptcy attorney:

·         Search the internet: Most lawyers have websites that provide a good deal of information about them. You can research the types of clients each bankruptcy lawyer deals with and pick a Joliet bankruptcy attorney who has a good track record and represents claims that are similar to yours.

·         Get Recommendations: An easy way to find a lawyer you can trust is to ask friends and family to recommend one. Make sure the lawyer you select has successfully handled cases similar to yours.

·         Be quick in your research, but do not compromise on the quality: If you are clear about what you want from your lawyer, it should not take you too long to zero in on the right fit.

·     Don’t hold back information: When you make your choice in a bankruptcy lawyer who has experience in debt consolidation and bankruptcy cases, give them all the information you can about your situation and let them handle your financial and legal issues for you.

Chicago attorneys will assist you in understanding your choices and what differences these choices will make. For a Free Bankruptcy Consultation with an experienced bankruptcy lawyer who will review your situation and give you a detailed analysis of your case, contact Chang and Carlin, LLP today!