Useful Facts About Illinois Bankruptcy Laws

Bankruptcy is a legal process that provides relief to individuals and firms in a financial crisis; it also protects their creditors to the maximum extent possible. In this process, the debtor's assets and liabilities are assessed. This provides a structure within which the debtor is allowed to keep some property and sell off others to pay off the debt. Bankruptcy can offer a fresh beginning after a troubled time in life, but it should be considered the last resort for those individuals or firms who are facing a financial crisis.

Filling Chapter 7 or Chapter 13 Bankruptcy is a courageous step forward taken to save oneself from further financial challenges, and a qualified Bankruptcy lawyers in Chicago can generally handle these issues very well. Additionally, they’ll have answers to the many questions running through your mind if you’re stuck in a financial crisis.

Know The Facts About Illinois Bankruptcy Laws

Knowing the facts about bankruptcy in Illinois will help calm your anxiety somewhat and help you understand what to expect in a given bankruptcy case. Here are a few basics about bankruptcy, which your Chicago bankruptcy attorney can explain more in detail:

There are four types of bankruptcy in Illinois under the Bankruptcy Code:

·         Chapter 7: This is also known as straight bankruptcy; it is the simplest and quickest form of bankruptcy available. In Chapter 7, all eligible assets are liquidated to settle as many debts as possible while the remaining ones are discharged.

·         Chapter 11: This is known as corporate bankruptcy; it typically allows corporations to carry on operations while they attempt repaying their debts.

·         Chapter 12: This is aimed solely at the rehabilitation for family farmers and fishermen.

·         Chapter 13: This is a loan repayment plan for individuals with a regular source of income.

Your attorney can help you determine which Chapter would best fit your situation.

The following are the benefits that you may experience when filing for bankruptcy with help from your bankruptcy attorney in Chicago:

·            You may get a ‘discharge of debts’, which means that you are exempted from paying any or all of your debtors.

·            Your assets may be exempted from foreclosure and you may be given a chance to catch up on the arrears of the payments.

·            If any of your assets have been repossessed, the court might pass an order for them to be returned to you.

·            It will get you relief from creditor harassment.

Armed with this information, you can better evaluate your situation. Being aware is like being armed. You are better prepared now to face the tough times and achieve financial freedom.

Chang and Carlin, LLP focuses primarily on helping people file Bankruptcy in Illinois. They’re very knowledgeable in the practice of Bankruptcy Law and have helped thousands of clients over eliminate debt. Contact us today at 1-866-790-8601 and discuss your situation in a FREE Bankruptcy Consultation.