Overwhelming debt has become a stressful aspect for many American families. As the economy has suffered since 2008, people have found themselves losing their jobs. In addition, medical bills have formed a large percentage of the debt carried by individuals. Debt collectors are becoming more relentless with their tactics, and a major source of anxiety for people who are already at their wit’s end. Thankfully, the federal and state government offer financial relief in the form of Bankruptcy in Illinois.
If you have considered filing for bankruptcy in Illinois, the advice of an attorney is strongly recommended. While it is possible to complete you forms and petition for bankruptcy on your own, or with the help of a preparer, you need to completely understand the process. One mistake in the paperwork can cause it to be rejected. This will require you to fix the error, and to pay for the refilling of the petition. The additional cost and time can be saved by trusting an attorney with experience in bankruptcy cases, such as David P. Leibowitz from the practice of Lake Law.
An attorney can review your situation and recommend a type of bankruptcy that best fits your financial situation. There are three different types-;Chapter 7, Chapter 11, and Chapter 13. Each of these has advantages for different financial scenarios, but also has disadvantages. Before choosing which to file under, you need to understand the implications and benefits.
Most people are familiar with the concept of Chapter 7. This form liquidates the eligible assets for the debtor, and the revenue is distributed to their creditors. An attorney can explain to you which assets may be exempt, such as a primary residence. After the bankruptcy has been approved, the debts are discharged. You no longer owe this money to the creditors. The other types of bankruptcy are used in situations where one has filed for Chapter 7 in the past (Chapter 11).
Once you file for bankruptcy, the harassing call and letters from creditors must stop. Any wage garnishments are also suspended. Even so, bankruptcy should not be an easy choice to make. A lawyer will explain how a successful bankruptcy discharge will effect life after is has been done.
