A bankruptcy is a legal mechanism which allows a consumer who is no longer able to maintain paying their debts to seek relief from the courts. Any debts the courts approve to be wiped clean are called ‘discharged.’ Not all all debts can be discharged. Debts such as child support and recent taxes and some loans backed by the U.S. Government are cannot be bankrupted. If you are considering filing bankruptcy, it is advisable to talk first to a bankruptcy lawyer in Carbondale Il to review your financial situation. Not everyone can file for bankruptcy and talking to a bankruptcy lawyer is the best what to determine your eligibility. Bankruptcies are classified by different ‘chapters’.
A Chapter 7 bankruptcy is what most people looking for financial relief file. It is fairly quick and straightforward. Also known as a liquidation, the form of a bankruptcy liquidates most of a person’s debts. You can reaffirm a debt in a Chapter 7 bankruptcy if you don’t want to lose it such as a vehicle or home.
A Chapter 13 bankruptcy is a reorganization of your debts. This usually occurs if your income is too high for you to discharge your debts. In this scenario, you will propose a repayment plan to the trustee based upon your income and the types of debts you owe– both secured and unsecured– and how long it will take you to pay. Usually, three to five years is the time period you have in which to pay back. Hiring a bankruptcy lawyer in Carbondale Il will be able to help you determine how much your monthly payment will be and the likelihood of the bankruptcy court approving it.
When you file for bankruptcy, any money you have in checking accounts and saving accounts are taken by the court to be used to pay towards your debts. Filing for bankruptcy will halt any foreclosure or repossession activity temporarily. If your mortgage company wants to continue the foreclosure process, they will have to file a motion with the court asking the relief of stay to be lifted. Your bankruptcy lawyer in Carbondale Il will advise you of your next steps should this occur.
When you fill out your bankruptcy paperwork, make sure you are completely honest in listing all of your assets and money. Don’t be fooled into thinking you can go on a spending spree before you file and run up credit card debt thinking the bankruptcy will wipe it out. It won’t. Debts incurred within six months of filing are not bankruptable.
Law Office of Bradley P. Olson provides help and advice on bankruptcies including chapter 7 & chapter 13 bankruptcy with the help of experienced lawyers in Carbondale IL.
