If you are like a lot of people in Illinois, you might not know that there are multiple types of consumer bankruptcy plans. When most consumers think about bankruptcy, they automatically think about losing assets. This can happen with a Chapter 7 bankruptcy, called a liquidation bankruptcy as assets may be seized in order to repay creditors. However, this does not happen with a Chapter 13 bankruptcy plan.
During a Chapter 7 bankruptcy, you can discharge most debt and emerge from the pile of overwhelming expenses with a clean financial slate. After listing all your credit card debt, medical expenses and loans, you can essentially wipe them free of your account and begin again. Yet, while filing for a Chapter 7 bankruptcy, you may decide to keep paying on a loan, even after the case is discharged.
If you are one of the many Americans who are overwhelmed with debt, you may receive a host of calls from creditors and collection agencies who are trying to collect past due amounts on your financial obligations. These calls can become quite harassing, as collectors may start calling at all hours of the day and night in an attempt to get you to make a payment. Once you file your bankruptcy papers with the court, an automatic stay is placed on your name and creditors are no longer able to contact you regarding your debt. In fact, when the automatic stay is in place, collection agencies and creditors must stop any wage garnishments, and cannot pursue any lawsuits that may have been initiated on your case. This includes all actions and methods that are used to collect a debt.
Credit cards can be a little daunting if you have recently filed for bankruptcy. The chances are high that overwhelming credit card expenses may have contributed to your filing for bankruptcy in the first place. Credit cards can, however, help to rebuild your credit following a bankruptcy, but only if they are used in the right way. There are credit card companies that prey on people with poor credit, so it is essential that you are able to identify companies that are trying to help you rebuild your credit as opposed to those who are trying to destroy it.
When you were considering filing for bankruptcy, you may have had a few people tell you it would be the end of the world, at least in the financial sense, if you went through with it. “You’ll never be able to get a credit card or a loan again,” they may have cautioned you. While it’s true that a Chapter 7 or Chapter 13 bankruptcy can affect your credit report and result in a few setbacks for a while, there is no real reason to fear that you and other Illinois residents won’t be able to get a credit card or car loan or do the other things that people who have never been through a bankruptcy can do.
At the Law Office of Paul R. Idlas in Illinois, we help people like you file bankruptcy so as to get out from under overwhelming debt. But once your bankruptcy period ends, you may think the first thing you should do is reestablish your credit.
At the Law Office of Paul R. Idlas in Illinois, we have noticed that more and more of the people who come to us for help in filing bankruptcy are senior citizens. Even the New York Times has reported on this new “gray bankruptcy” phenomenon, reporting that seniors like you now represent 12.2 percent of all bankruptcy filers whereas you represented only 2.1 percent in 1991.
In you are like many Illinois homeowners, your debts have gotten so out of hand that you cannot pay them and you fear losing your home to foreclosure. But what if you could strip the lien from your home that your second mortgage represents? As Home Guides explains, that may be exactly what you can do by means of a Chapter 13 bankruptcy.
If you are considering bankruptcy as a way to regain hold of your finances, you are not alone. More than 796,000 people across the nation decided to file for divorce from June 2016 to June 2017. Of these filers, approximately 489,011 chose to file for Chapter 7 bankruptcy, or liquidation bankruptcy. As the most common type of bankruptcy, Chapter 7 has definite advantages and disadvantages when compared to other types of financial debt relief. Chapter 7 is designed to wipe out most of your debt, including medical expenses, credit card debt and other bills, and help you start fresh with a clean financial slate. Student loans, delinquent child support payments and money owed to the government cannot be eliminated in a chapter 7 bankruptcy.
After months of dealing with financial difficulties and overwhelming debt, you are seriously considering filing for bankruptcy. However, there is one thing holding you back – you are worried about the stigma and embarrassment associated with having a personal bankruptcy on your record. These are not uncommon fears for residents of Illinois, as well as across the country. Despite bankruptcy being more common and accepted these days, many people still attach negative emotions to it.