Filed Bankruptcy? Now To Rebuild Your Credit Score

So you’ve had some financial misfortunes that led you into bankruptcy? Not to worry! Bankruptcy offers an opportunity to rebuild your life, as you can learn from your mistakes and start over fresh with a new perspective and knowledgebase. While it’s true that bankruptcy can provide freedom from your financial woes, it does have an adverse effect on your credit score. Regardless of whether you chose Chapter 7 or Chapter 13 Bankruptcy, the next step you need to take is to start rebuilding your credit.

Rebuilding Your Credit Rating

One of the worst side effects of filing for bankruptcy is the hit your credit record takes; It can take several years and quite a bit of TLC to get your credit back on its feet. However, this doesn’t mean that you should give up on hopes of ever getting another car loan or mortgage in the future. If you are ready to make some life changes and develop a financial strategy, then you can steadily rebuild your credit rating after filing Chapter 7 or Chapter 13 bankruptcy in Chicago.

Additionally, some loans, credit cards, etc. will still be available to you. However your focus needs to remain on improving your credit score. This means you’ll need to pay your bills on time, every time. Missing even one payment may set you back even further. Not missing even a single payment is the number one key to rebuilding your credit.

If you are lucky enough to get a credit card or store card after your Chapter 13 or Chapter 7 bankruptcy in Chicago, you should use it as tactfully as possible. Make use of this credit card for a minimal amount every month. Make sure you pay off the credit card bill on time each and every month. This will show that you aren’t getting ahead of yourself with big purchases, and that you can consistently make your payments. Essentially, you need to show future creditors that you are no longer a risk for them to invest in.

A small charge of 10 to 20 dollars on your credit card is sufficient to show that you can use a credit card and repay it without issues. If you feel you are beginning to use the card more than necessary, it is advisable to take a debt management course that will give you pointers on how to avoid financial troubles. Your bankruptcy attorney in Chicago should be able to give you a reference for a financial counselor who will help you to organize your finances in the best way possible.

For more information on rebuilding your credit score or filing bankruptcy, contact Chang and Carlin, LLP today for a Free Bankruptcy Consultation.

Chapter 13 Or Chapter 7 Bankruptcy: Which Is The Right Choice?

In these days of unstable world economics, many businesses are finding it tough to profitably carry on as they had in the past. This in turn has lead to job loss and instability for many Illinois citizens. While things are currently looking up economically, many are still struggling and turning to bankruptcy to get back on their feet.

Bankruptcy should be a last resort for both firms and individuals who are facing financial troubles, but it can be very effective under the right circumstances. There are several types of bankruptcy, each of which are explained in the U.S. Bankruptcy code. The most commonly used are Chapter 7 and Chapter 13.

Chapter 7 Bankruptcy in Chicago

If you file for bankruptcy under Chapter 7 in Illinois, almost all your assets will be sold off to pay debtors. Then the remaining outstanding debt is then written off, with a few exceptions. The firm or individual is given a clean slate and is free to begin life anew. You’ll want to find an experienced Chapter 7 lawyer in Chicago to help you save as many assets as you can and still ensure you start off with a clean slate. However, you need to keep in mind that you’ll lose assets and your credit rating will certainly suffer.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy, on the other hand, avoids liquidation of your assets, and if you are a firm, you can carry on normal operations. The bankruptcy code will agree on a plan to repay your creditors over 3 to 5 years, depending on an agreement between you, the court, and creditors. You’ll then be protected from your creditors, and be able to concentrate on getting your financial affairs back on track.

Once you have filed for bankruptcy, your creditors cannot pester you for payment as long as the repayment plan is adhered to, regardless of the chapter you file under. Chapter 13 bankruptcy in Chicago does not affect your credit rating as badly as a Chapter 7. The former also allows firms to continue functioning instead of closing down, and individuals to regain control of their financial affairs without losing their personal assets.

Each type of bankruptcy has its own set of pros and cons, so it’s best to approach a qualified and experienced lawyer to explain the intricacies of each so you’ll understand which chapter of bankruptcy will work best in your situation.

If you are filing for bankruptcy in Illinois, get in touch with Chang and Carlin, LLP today for a Free Bankruptcy Consultation. We understand what you’re going through and can help you navigate the bankruptcy process with precision.

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.

How To Choose A Bankruptcy Lawyer

Bankruptcy is a federal court process that helps individuals and firms get rid of their debts. For anybody who is in a financial crisis, the obvious solution is to look for a good bankruptcy lawyer. While there are many bankruptcy lawyers in Chicago, it can be difficult to find a good one.

Your choice of bankruptcy attorney will have considerable impact on the outcome of your case, including what debts you are able to release, what property is safeguarded from insolvency and how you are able to rebuild your finances and credit history after the bankruptcy. This makes it a very delicate decision. However you only need to pay attention to a few important pointers and you’ll likely find the right bankruptcy lawyer in Chicago.

Choosing a Chicago Bankruptcy Attorney: 7 Steps

1. Bankruptcy proceedings may be complicated and will have an impact on your future. It is well worth your time and money to ensure that the attorney you are choosing is experienced with a solid track record of success.
2. While selecting a bankruptcy lawyer, it is important to ensure that the bankruptcy lawyer works for a medium sized law firm. This is to avoid the pitfalls that might arise from hiring a one-man law firm. In such a firm, the lawyer may be over-burdened with cases and short on resources. On the other end of the spectrum, a large law firm may treat you a number, and not treat your case with the care and sensitivity you deserve due to high volumes of work.
3. Your level of comfort with the bankruptcy attorney in Chicago is an important factor. You should be able to trust your attorney and be able to communicate and interact with them effectively.
4. You are going through troubled times. An experienced lawyer will know well how to put you at ease and guide you through this time with compassion. On the other hand, you should be able to respect this person’s knowledge and experience. This is the person who will help you attain financial freedom.
5. Make sure that the lawyer offers you a Free Consultation in the law office during which you can evaluate their disposition towards you and your situation, while assessing whether their fees will fit into your already weakened finances.
6. A good Chicago bankruptcy attorney should explain the pros and cons of each step that you take in accordance with the plan of action that you both formulate.
7. The easiest and most sure-fire way of having a good experience with filing your bankruptcy is to go with a lawyer recommended by your friends or families who have used their services in the past with satisfactory results. Checking out online reviews is another good way of gauging the quality of a given attorney.

If you keep these pointers in your mind while looking for an experienced bankruptcy attorney, you can feel good about your decision. If you are looking for reputed bankruptcy lawyers in Chicago, try Chang and Carlin, LLP.

How A Bankruptcy Can Change Your Life

So you have filed bankruptcy. This financial setback can be an emotionally trying time, and you might have a good deal of anxiety about how you will be able to get back on your feet. It can certainly take time and consistent effort to regain the goodwill you had with the lenders and vendors you deal with. It is not going to be easy to recover all that you lost, but it is not impossible. You can rebuild your finances and your life, if you develop a plan of attack and decide not to let history repeat itself.

If you feel unsure about where to begin with the reconstruction of your life, you can approach your bankruptcy lawyers in Chicago for guidance. Many reputed law firms make sure they counsel those who have filed for bankruptcy to ensure they do not repeat their mistakes. Apart from that, there are a few things you need to keep tabs on:

1. Avoid applying for credit cards or loans for as long as you can. Stop using your current credit card too, or at least avoid them as much as possible. If you are using a credit card, make sure your payments are up to date.
2. Pay all your bills on time. This is the best way to show your creditors that you are credit worthy. This is crucial to reviving your credit rating.
3. There is no harm in asking for financial planning assistance from a professional financial planner, or the Chicago bankruptcy lawyer who may have already helped you with filing your bankruptcy
4. Plan your expenditures. Record your expenses and income on a daily basis to track your finances. The records will help you to easily spot areas where you can curtail your expenses.
5. Try to find an additional source of income so that you can make your repayments sooner and also begin saving, rather than borrowing.

Filing for bankruptcy can be one of the most challenging experiences in one’s life. It is not just the mental stress and financial problems that have to be dealt with, but there you may also feel a certain social stigma. Although bankruptcy will be removed from your credit rating in 7 years, banks will continue to look at your loan request doubtfully for a much longer time. Make sure you do not give them additional reasons to be skeptical.

If you’re on the lookout for financial advice in Chicago, Illinois, take action and get in touch with the offices of Chang and Carlin, LLP, and follow their strategy to get your life back on track! Contact us today for a FREE Legal Consultation.