There are some laws concerning filing bankruptcy that have changed in recent years, and it’s important to understand how those changes could effect your filing status. Now that there are clear chapter 7 bankruptcy rules it can be a bit more difficult to qualify for chapter 7 bankruptcy. Most importantly veterans who are disabled that accrued debt while on active duty, and people who have accrued debt due to operating a business are given a “fast pass” to chapter 7 filing, meaning that they don’t have to qualify through “The Means Test”. Individuals who have enough disposable income to repay debts are automatically disqualified from filing chapter 7, and will need to file chapter 13 bankruptcy. If you filed chapter 7 in the last eight years, or chapter 13 in the last 6 years, or had a bankruptcy dismissed in the last one hundred eighty days you are disqualified from filing.
There are many more details that should be assessed by your attorney before you begin filing either chapter 7 or Chapter 13 Bankruptcy in Schaumburg. Once you have found which filing status you qualify for, make sure to begin the process as soon as possible. If you are found to be guilty of attempting to hide assets or commit any kind of fraud, no matter what filing status you choose, your case could be dismissed. Make sure to be straight forward with your attorney and the judge presiding over your case, or you could find yourself in hot water. Make sure you follow all the advice your attorney gives you, or you could end up unable to finish your filing process, which could lead to considerable loss if your creditors choose to take action against you.
Once your filing process is complete you will be able to enjoy a small amount of peace. A stay will be granted against any further legal action, and all creditors can be referred to your attorney if they attempt to contact you. Even though creditors will not be able to take action against you, it doesn’t mean that you are completely free and clear of your debt. If you filed Chapter 13 Bankruptcy in Schaumburg you will need to formulate a plan to pay back creditors, and any filing status is reported on your credit for ten years. For more information, please contact Chicago Debt Solutions. To see their business reviews visit BBB page.
