Skokie Bankruptcy Attorney
Life is full of unexpected issues. Whether job loss, an illness, or divorce has you struggling to pay the bills, you may sense that you financial future is deeply in danger. Fortunately, filing for bankruptcy may help your current situation. Bankruptcy can give you some much needed breathing room to assess your next steps. Furthermore, with the right Skokie bankruptcy attorney by your side, it can even help you reduce or discharge your debt.
Here’s How Bankruptcy Can Help You
During the legal process of bankruptcy, individuals can reorganize or discharge the debt that they could not otherwise afford. In addition, using bankruptcy as an effective tool can help you with the following:
- Stopping any actions of foreclosure
- Preventing all harassment from creditors
- Halting the garnishing of your wages
- Dischargement of debt through Chapter 7
- Reorganization of debt through Chapter 13
Feel like bankruptcy can help your given situation? Then, let us decided which type of bankruptcy you should file under.
Filing for Chapter 7 Bankruptcy
By far the quickest and most common form of bankruptcy, filing under Chapter 7 allows individuals a chance to eliminate debt by selling off their non-exempt assets and property. Any proceeds from those sales are handed off to creditors. On average, bankruptcy under Chapter 7 usually only lasts between four to six months.
Before you apply for bankruptcy under Chapter 7, you should determine if you meet the filing requirements. Those requirements include taking the Means Test, which is designed to compare your income to debt ratio to determine if you make enough disposable income to repay your debts. If you do not make enough income, then you will probably qualify for Chapter 7. However, if your disposable income is enough to repay your debts, then you may want to consider filing under Chapter 13 instead.
Filing for Chapter 13 Bankruptcy
Do you not qualify for Chapter 7 bankruptcy? Fear not, those who do not qualify for Chapter 7 usually still qualify for Chapter 13. You also may want to file for Chapter 13 if you possess any non-exempt property that you want to keep.
Though not nearly as fast as Chapter 7, the filing requirements for Chapter 13 are much easier to obtain. With Chapter 13 bankruptcy, individuals can reorganize any outstanding debt into an affordable repayment plan that usually lasts between three to five years. After your plan schedule ends, any remaining debt that you still owe is discharged.
Qualifying for Chapter 13 simply requires earning enough steady income to keep up with your plan’s regular payments. If, at any time, you fail to stay current on your payments, then the court will require that you come back and figure out a different debt relief solution.
Will Bankruptcy Help My Situation?
Though there are benefits to bankruptcy, there are also some negatives that need addressing.
Bankruptcy Will Not Eliminate Every Type of Debt
Unfortunately, bankruptcy can only eliminate dischargeable debt, such as credit card debt, medical debt, and personal loans. So, if you have a lot of nondischargeable debt, such as child support, alimony, student bills, and taxes, then bankruptcy may not help your situation.
Bankruptcy Will Negatively Affect Your Credit Rating
Yes, filing for bankruptcy will negatively affect your credit score. So, if you plan on buying a house or borrowing money in the near future, then you may want to stay away from bankruptcy. In addition, bankruptcy under Chapter 7 will remain on your credit report for at least ten years, and bankruptcy under Chapter 13 will remain for seven.
Can Filing for Bankruptcy Halt Foreclosure?
Yes. The minute that you file for bankruptcy, the court issues what is known as an automatic stay. This legal stay will prevent your creditors from continuing with their debt collection methods, such as foreclosure. While a stay can halt foreclosure, it will not permanently make it stop. In order to fully protect your home from foreclosure, you will need to either complete the bankruptcy process or eliminate your debt in another way. If you fail to do that, then as soon as your bankruptcy is complete, your home will once again be in danger of foreclosure.
An Experienced Skokie Bankruptcy Attorney
As your debt mounts higher and higher, your financial future slips farther away. This is especially true if your family home is in danger of foreclosure. While you may not see a way out, you do still have some options. Filing for bankruptcy can give you a much needed fresh financial start. Speak to a skilled Skokie bankruptcy attorney by contacting our seasoned legal team at Lorraine M. Greenberg & Associates today.