Bankruptcy is a legal status someone takes when they are not able to repay their debts to creditors. The bankruptcy system helps individuals get a fresh start from their debt. In addition to helping to remove the burden of excessive debt from a person’s life, it also helps to maintain the flow of credit in our economy.
There are many people who find themselves buried in debt, and if you are one of these people, you should take the time to learn more about bankruptcy. Bankruptcy is an appropriate tool that is utilized by all different people and many types of businesses when things have gone wrong and there is not another way out.
More Americans than ever are finding themselves overwhelmed by debt. The weight that we feel from carrying debt around is devastating and can have a huge impact on our lives. You may find yourself feeling like there is nothing you can do to fix your debt, but that is not the case. Filing for bankruptcy may be a great solution for you. Two options that we can offer you are a Chapter 7 or Chapter 13 bankruptcy plan that can eliminate your debt and help you get back on your feet financially.
Different Types of Bankruptcy
Although there are many different forms of bankruptcy, the 2 most utilized for individual consumers are Chapter 7 and Chapter 13 Bankruptcy.
This is also known as liquidation bankruptcy. Chapter 7 lets you eliminate all of your debts that are eligible at once. Chapter 7 is commonly used when you need to get rid of debts relating to your medical bills, credit cards, car payments, etc.
This is also known as “wage earners” bankruptcy. Chapter 13 has you make a payment plan in which you would be paying back a portion or all of your debt. Chapter 13 is frequently used to deter foreclosures and repossessions. This helps to give you protection from the federal court while you are repaying any payments that are past due.
Free Consultation with a Chicago Bankruptcy Law Firm
If you are interested in speaking to one of our Chicago Bankruptcy attorneys regarding your financial situation, please call us for a FREE, confidential consultation at (312) 360-0500.