Will County, IL Bankruptcy Lawyers
Chapter 7 and 13 Bankruptcy Attorneys Serving Bolingbrook, Plainfield and Lockport
In today’s economy, many Americans are experiencing financial struggles. Some residents are over their heads in debt, unable to pay their bills, and unsure of how to fix the situation. One solution to overwhelming debt is bankruptcy.
According to statistics reported by the United States Bankruptcy Courts, over 1.2 million people and businesses filed for bankruptcy in 2012 alone. Though many people believe that bankruptcy is a sign of failure and giving up, bankruptcy actually allows you to have a fresh start and improve the future outlook for you and your family. Deciding whether bankruptcy is right for you may be a stressful decision, and the bankruptcy process itself may be complicated and confusing. Further complicating matters, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) made bankruptcy filing requirements more stringent. For these reasons, you should consult with an experienced Joliet bankruptcy attorney to help you make educated decisions and to guide you through every step of the bankruptcy process.
Bankruptcy Options in Will County, Illinois
Individuals considering bankruptcy have two main options: filing under Chapter 7 or Chapter 13 of the United States Code. An attorney from the Mevorah Law Offices LLC can help you assess your situation and determine which type of bankruptcy is right for you.
Under both kinds of bankruptcy, filing will put into effect an automatic stay, which will prohibit creditors from collection efforts (like harassing phone calls) and will halt pending foreclosures or repossessions. However, the two types of bankruptcy do have some differences.
Chapter 7: In this type of bankruptcy, a trustee will discharge, or wipe out, much of your debt without requiring a monthly payment or wage garnishment. Not all types of debt are dischargeable, however, such as student loans or recent tax liability. Additionally, a trustee can take your personal property and assets to liquidate them and partially repay your creditors. The law provides some important exemptions for certain property, however, such as your home, car, and other personal property.
Chapter 13: This type of bankruptcy serves to reorganize your debt and to make payments more realistic. Instead of discharging debt, you consolidate your debt, get an approved repayment plan based on your income, and make a monthly payment to a trustee over the next three to five years. Though the payment may come directly out of your paycheck, your property will not be subject to liquidation like Chapter 7 bankruptcy.
Both types of bankruptcy have pros and cons, and you may only qualify for one type. It is very important to consult with a Will County bankruptcy lawyer to ensure you file for the bankruptcy that is right for you.