Illinois Bankruptcy Facts
Want to know how you can fight your debt the quick and easy way? It starts with filing for bankruptcy protection and we are here to help.
No one wants to struggle with large amounts of debt, but sometimes, bills just pile up. Whether the financial issues have stemmed from job loss, medical costs, unpaid credit card bills, or any other circumstance, we are here to help you file for bankruptcy in Illinois so you can eliminate your debt once and for all.
Below are some important facts about Illinois bankruptcy law that will help you determine which petition is right for you so you can be rid of you debt as quickly as possible.
Bankruptcy – What’s That?
You may have heard the term “bankruptcy” throughout your life, but the process is much more complicated than it seems. Bankruptcy is a federal declaration by a debtor (consumer or business) that they cannot repay creditors what they owe. It was once a tool used by creditors to get debtors to pay up, but now, it can be filed voluntarily and can save many from life of hardship due to financial barriers.
The process of filing for bankruptcy protection begins with evaluating your income, debts and assets and determining where you stand in comparison to the average Illinois resident with your same family household. If your income falls under that average, then you may qualify for bankruptcy protection. However, there are six different chapters that you can file for, all leading to different outcomes, so it’s important you understand what each of them is and which is best suited for your individual financial situation and goals.
Two chapters are more commonly filed in Illinois than the others: Chapter 7 and Chapter 13. Chances are, you will probably be filing for one of these petitions, so read on to find out what makes each of these petitions so popular and what they can do to get rid of your debt.
Chapter 7 vs. Chapter 13
Chapter 7 is the most popular chapter filed in Illinois. Both individuals and businesses may qualify and can find themselves completely out of debt in as little as 3 months. Known as the “clean slate” bankruptcy petition, Chapter 7 can wipe out all existing unsecured debt in exchange for the liquidation of your assets. But while the idea of creditors seizing your valuables may sound frightening, there are several items that can be exempted in Illinois, including your home, personal effects like clothes, and retirement accounts.
Chapter 13 is the other popular option for residents in Illinois who seek debt relief. However, this petition may only be filed by individuals. It differs from Chapter 7 bankruptcy in the fact that debts are not completely wiped out, nor are assets seized. Instead, debtors are placed on a payment plan to repay what is owed to creditors over a period of three to five years. This is the more sought out choice among debtors who are facing foreclosure because it prevents creditors from coming after you for mortgage payments and buys you some time to lower your debts so you can save your home from repossession.
Why You Should Hire an Illinois Bankruptcy Lawyer
Figuring out which bankruptcy chapter to file can be extremely difficult, and just one wrong move can lead you to incur more debt that you started out with. Luckily, no debtor ever has to go through the process of petitioning a bankruptcy court alone; bankruptcy lawyers are available right now to take on your case and ensure it resolves as quickly and smoothly as possible.
On our site, you will find links to some of the best bankruptcy attorneys in the state who will put your needs first and work with creditors to get as much of you debt wiped out as possible. Contact one of our local bankruptcy lawyers in Illinois today to discuss your best options for debt relief.