Bankruptcy is a legal process that gives debtors protection from creditors. Many people can become overwhelmed by debt and find it impossible to pay all of their bills every month. This leads to late payments and eventually not having enough income to cover all debts. Bankruptcy is an option when in debt trouble. If you are not familiar with the legal process, then you can get help from a Bankruptcy Attorney in Chicago.
The two common types of bankruptcy filed by debtors are Chapter 13 and Chapter 7. Chapter 7 consists of liquidating property to pay towards debts. Chapter 13 allows the debtor to keep all property, but they have to come up with a payment plan to pay creditors.
The courts require that debtors present a clear and accurate account of their financial situation. It helps to gather all financial documents. Example documents may consist of tax returns, pay stubs and a list of creditors that you owe.
Credit counseling can help with learning how to set a budget and becoming smarter about managing your finances. Some courts usually suggest that debtors go through counseling to prevent from getting back in financial trouble. It is a good idea to go through credit counseling about six months before filing the petition. Going to the class shows the court that you are serious about changing your financial situation.
Filing fees are another concern something you should save up for in advance. It can cost a few hundred dollars to file bankruptcy. Debtors should find out the filing fees in their local court system before filing a petition.
A 341 meeting is a scheduled time for the debtor to meet with the creditors. This meeting is a requirement for getting a bankruptcy discharged. It is usually scheduled about 20 to 40 days after filing the petition. There is also the possibility of having to answer questions from the bankruptcy trustee.
Bankruptcy can be a long and complicated process. It helps to find an affordable bankruptcy attorney to help with your case. A Bankruptcy Attorney in Chicago has experience with handling these types of cases and knows what it takes for a successful outcome. For more information, please contact Chicago Debt Solutions. You can like them on Facebook.
