Bad spending habits, losing your job, or even just not paying attention to your financial situation, can leave you in serious debt. As these debts accumulate, some people will try to get help from friends or get loans, to try and get out of this situation, while others will not be bothered. At some point, running away from creditors may get too tiresome, and you might decide to file for bankruptcy in Chicago. Before taking this step, it is important for you to understand what will happen.
When you start reading about this process, you notice that your income, and the kinds of debts you owe your creditors, will determine which category you fall in. If you happen to have a significant amount of debt and a small source of income, you are eligible for Chapter 7 bankruptcy, which will wipe out the cash balances. However, if you have a steady source of revenue, you should go for Chapter 13 bankruptcy. This way, you have a longer time frame to clear the balances.
Another thing you may discover is that this will not be way out for all your money problems. Some debts like child support and even school loans will not be forgiven, and you need to come up with a plan to pay them. Your creditors will also be allowed to contest your case, and if they win, you will have to pay them in full.
Once you go ahead and file this case, the documents will be part of the public record. This might make some people wary of you, and might also cost you a few friends once the word gets out. For individuals who have many non-exempt possessions, this might be reposed by the court, to settle the debts.
Credit ratings or reports are imperative if you want to take a loan or mortgage, at some point. Filing for bankruptcy, regardless of which section you file under, will affect your credit report, causing it to read negative for a long time. This might be reversible, but will require a lot of work and monitoring of your finances from that point on.
After looking at your financial state and reviewing the pros and cons, if you still want to go ahead with this process, then you should hire a good lawyer. There will be a lot of legal jargon to sort through and paperwork to fill, and if you try handling it alone, you might just be setting yourself up for failure.
Getting good legal counsel is not free, but it should not be that expensive either. Most lawyers do not charge over one thousand dollars, but this price will differ depending on the complexity of the case. Stay away for attorneys whose charges seem too small, as these could compromise the quality of the work they do for you.
While going through this process, you will be advised to see a financial expert in order to determine how you got into this mess. These sessions should also be used to educate you on better money management to ensure you do not find yourself needing to file for bankruptcy again.
When you start reading about this process, you notice that your income, and the kinds of debts you owe your creditors, will determine which category you fall in. If you happen to have a significant amount of debt and a small source of income, you are eligible for Chapter 7 bankruptcy, which will wipe out the cash balances. However, if you have a steady source of revenue, you should go for Chapter 13 bankruptcy. This way, you have a longer time frame to clear the balances.
Another thing you may discover is that this will not be way out for all your money problems. Some debts like child support and even school loans will not be forgiven, and you need to come up with a plan to pay them. Your creditors will also be allowed to contest your case, and if they win, you will have to pay them in full.
Once you go ahead and file this case, the documents will be part of the public record. This might make some people wary of you, and might also cost you a few friends once the word gets out. For individuals who have many non-exempt possessions, this might be reposed by the court, to settle the debts.
Credit ratings or reports are imperative if you want to take a loan or mortgage, at some point. Filing for bankruptcy, regardless of which section you file under, will affect your credit report, causing it to read negative for a long time. This might be reversible, but will require a lot of work and monitoring of your finances from that point on.
After looking at your financial state and reviewing the pros and cons, if you still want to go ahead with this process, then you should hire a good lawyer. There will be a lot of legal jargon to sort through and paperwork to fill, and if you try handling it alone, you might just be setting yourself up for failure.
Getting good legal counsel is not free, but it should not be that expensive either. Most lawyers do not charge over one thousand dollars, but this price will differ depending on the complexity of the case. Stay away for attorneys whose charges seem too small, as these could compromise the quality of the work they do for you.
While going through this process, you will be advised to see a financial expert in order to determine how you got into this mess. These sessions should also be used to educate you on better money management to ensure you do not find yourself needing to file for bankruptcy again.
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