Daily, many Americans file for Bankruptcy. Bankruptcy is a term which has a lot of negative connotations; however, it can be the best choice in many financial situations. This action can lead to financial freedom and a chance to start over. No matter the reason of your current poor financial circumstances, Bankruptcy Attorneys In Chicago can help you get out from under your debt, which will allow you to begin living a normal life again.
The most common types of bankruptcy are Chapter 13 and Chapter 7. Depending on your situation, it can be determined which type is best for you. A chapter 7 bankruptcy is the best choice for those with a lower income and a high amount of debt. This type of bankruptcy offers a “clean slate” to the debtor. To qualify for this type of bankruptcy, the debtor must pass the means test. In this test, a formula determines the ability of a debtor to pay the creditors. It compares the debtor’s income to one of a similar-sized family. If it is found that the debtor is unable to pay under the circumstances, then a Chapter 7 is recommended.
If it is determined that the debtor is able to pay his or her creditors, then a Chapter 13 filing would be considered. In a Chapter 13 filing, the debtor, who brings in a regular paycheck, but is still in financial distress, will have the opportunity to reorganize the debt, rather than having it liquidated. The debtor will be able to have a fresh start without losing valuable property. The Chapter 13 action can stop the foreclosure on a home or repossession of a vehicle. A payment plan will be proposed by the court which will allow sufficient breathing room for the debtor. The payment plan set up by the bankruptcy court is created to help creditors get some of the money back and not disrupt the debtor’s budget. In other words, the debtor pays much less to the creditors than is actually owed. This plan lasts about three to five years.
In short, if you are struggling to make your payments or are missing them altogether, then a bankruptcy attorney can help. He or she can determine which type is for you and walk you through the procedures that will help you get out from under your creditors once and for all. For more information or to schedule your free debt solution consultation, you may visit the Chicago Debt Solutions. You can like them on Facebook.
