For many, all it takes is a job loss, an illness, or a large unplanned emergency expense to set them into a financial downward spiral with no viable way out. Before long, the bill collectors are calling non-stop and the mailbox is full of past due notices. It can be an overwhelming feeling, especially when there seems to be no way out. Fortunately, there is a way to get rid of the insurmountable debt, and get a fresh start.
Speaking to a bankruptcy lawyer in Cicero, IL can help. A bankruptcy lawyer will advise if bankruptcy protection is an option and, if so, which type will work best for the current condition the individual is facing. For individuals, usually filing for chapter 7 or chapter 13 bankruptcy protection will give them the relief they are in need of to get back on their feet again.
A chapter 7 bankruptcy is usually suggested for individuals that have no assets, a little money in the bank, no real items of value, and no reliable income to pay back the debt. For individuals that qualify for this bankruptcy, after the documents are filed and a court hearing is completed, the debts are fully discharged and the individual can begin with a fresh start and zero debt. A chapter 13 bankruptcy is sometimes called a repayment plan bankruptcy. This bankruptcy is for those that don’t qualify for a chapter 7, and those that have some assets and a viable way to pay a portion of their debt. For these debtors, at the court hearing, a repayment plan is approved, allowing the debtor to pay a monthly payment to a court-appointed trustee each month. These payments usually last from three to five years. When the payments are complete, any remaining debt is discharged and the debtor is considered debt free.
Depending on the debtor’s circumstances, either of these bankruptcy plans will help to give them the relief they seek and a way to get a fresh start instead of drowning in a sea of debt. When facing overwhelming debt, it’s usually recommended to contact Schottler & Associates, or a bankruptcy lawyer in Cicero, IL for advice. They will help determine whether the next best step is bankruptcy protection.
