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.
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