If you are considering filing chapter 7 bankruptcy to relieve yourself of the burden of debt you might currently be buried under, Credit Counceling Granite City IL is an integral portion of this process. Your bankruptcy attorney is always your first and best resource for any bankruptcy, but this article will explain a little bit about the process and how it can benefit you.
Chapter 7 bankruptcy is known as a total discharge of debts. This will eliminate all your allowable debt. Some debts, like child support that is past due and student loans, can’t be included in a bankruptcy. However, most of your credit card debt and other revolving debt can be included. According to the law, your property will be sold to pay for the debts. However, in most cases a chapter 7 debtor will not actually end up losing any of their current property.
You can usually keep your property because of the exemptions that each person is allowed. The state of Illinois allows you to keep your home, your primary vehicle, and your personal effects as long as they do not exceed the state mandated values. For example, in Illinois you and your spouse are allowed to stay in your home if you have $30,000 or less in equity in that home.
You can also keep one vehicle as long as your current equity in the car is not more than $2,400. Your lawyer can also help you to keep even more of your property by combining the federal bankruptcy property exemptions with the Illinois bankruptcy exemptions. These exemptions can only be combined in certain ways and up to certain maximums, so it is important that you follow your lawyer’s advice strictly.
Another requirement of Illinois bankruptcy is credit counseling. The bankruptcy courts want to make sure that you will not repeat your old mistakes with credit now that you are getting a fresh start. Thus, you will need to attend credit counseling classes that will help you learn budgeting, money management, and how to make better financial decisions.
