Thinking of Filing Bankruptcy? (13 Things To Consider)

Thinking of Filing Bankruptcy? (13 Things To Consider)

‘How to file bankruptcy’ is a major concern among residents and business owners in Chicago. Filing for bankruptcy can be complex and confusing for some people. However, by understanding the aspects of bankruptcy properly, you will be more prepared to take the next step to a life free from debt.

Some usual reasons for filing for bankruptcy are unemployment, marital problem, large medical expenses, seriously overextended credit, etc. Bankruptcy is a well choice for some people, but it is not for everyone. Chapter 7 bankruptcy is a legalized process that can relieve certain debts and give you another chance for a fresh start but it does not get rid of all the debts. You will still have to pay your mortgage, child support, alimony, unpaid taxes and federally insured student loans. 

Chapter 13 Bankruptcy can help you in setting up a payment plan to pay off your debts.  If you are thinking about bankruptcy, you should contact us lawyer to learn about your options. Our lawyers work exclusively in these areas that will meet your needs. Our aim is to provide our clients with the competence, legal certainty and imagination, they will need to conduct their business and enable it to succeed.

Our Services

We have trusted bankruptcy lawyers who are trusted and experienced. They assist our clients in solving their relevant issues with satisfactory results. We provide scheduled execution, fast speed and satisfactory performance of professionals to clients. We have a team of Expert Associates, which includes Chartered Accountants, Company Secretaries, Cost Accountants, Advocates, Registered Value, Engineers, etc. We provide all legal and consultancy services related to Bankruptcy. Our team will play a key role in providing appropriate and effective support in various areas of business. Our team has a great deal of experience in dealing with bankruptcy issues effectively and efficiently.

With our good lawyer and their right information, filing bankruptcy could give you the financial footing you need to get a fresh start. So, if you’re considering bankruptcy, here are 13 key factors to consider:

1. Types of personal bankruptcy.

There are two types of bankruptcy namely, chapter 7 and chapter 13. Chapter 7 option is used by those persons whose debts are high as compared to their income and also after their basic expenses they do not have the money for a payment plan. Chapter 13 let the filer to draft a plan to repay all or part of the debts over some years.

2. You may be able to keep some property

When you file for bankruptcy, you can keep a certain amount of exempt property such as pensions, vehicles, household goods and furnishings.

3. You get to keep assets

Filing bankruptcy does not mean giving up all your rights. You can keep your personal property, such as electronics, electronics, household furnishings and other exempt assets. You can also retain larger assets, such as cars and the family home sometimes

4. You have to qualify for a Chapter 7

Consumers must show through income or through both income and that they can’t repay their debts. But the bankruptcy is usually the last option, filers who need Chapter 7 are having no problems qualifying.

5. Bankruptcy is not inexpensive.

Costs may vary which depends on your attorney and location. With a Chapter 13, you can include bankruptcy costs in your plan and pay them over years. With Chapter 7, that is not an option.

6. You may be able to get free or low-cost legal help.

The bar association might have a list of firms that do low-cost or pro bono work and your local legal office might be able to help.

7. Bankruptcy goes on your credit history.

A bankruptcy will stay on your credit history for many years. But in case, the older that bankruptcy is the less power it has to frighten lenders and affect your credit score.

8. It may not make your credit any worse.

If you have had financial problems, it might not have much of an effect. You can actually see your credit improve a year after bankruptcy.

9. A bankruptcy doesn’t protect joint account holders.

A bankruptcy dissolves your obligation to a creditor. But if anyone else is also included for one of your debts, such as a joint account holder, your bankruptcy makes that bill theirs alone. This situation commonly arises after a divorce.

11. It is public.

Most of the people thought that bankruptcy involves personal financial information so it involves privacy. But it is public information. The other people, if they are interested, can see everything about your financial situation in the last few years.

12. You will have to go to counseling class.

You will be required to take a 90-minute credit counseling class before filling your bankruptcy officially.

13. It can pay to be proactive.

If you are considering bankruptcy, it pays to get advice early. Having the enough information in advance can really help you to make strategic decisions. It can help you better handle your situation.

In Conclusion:

If debt becomes a long-term problem, then bankruptcy may be the appropriate solution to help you eliminate your debts and get a fresh start. Hire a bankruptcy lawyer from us to assist you with the parts of your case you need help with and then you can handle parts on your own to save money. Get a free consultation from us and get the required guidance and support to determine whether bankruptcy is an appropriate solution for your individual circumstances.