Bankruptcy Law In Bartlett, IL | Velazquez Consumer Law
Facing never-ending debt can be extremely overwhelming and stressful. The majority of people do not plan on incurring mounting debt, but the truth is that sometimes life has other plans. Whether you are facing increasing debt due to credit cards, medical bills, or personal loans, you are not alone. Thousands of Americans are currently facing the burden of growing debt. Luckily, there are options to help relieve financial trouble, and sometimes the best option to attain debt relief is through bankruptcy. If you are considering bankruptcy, it is highly recommended to consult with a bankruptcy attorney in Illinois.
For the thousands of Americans who have sought bankruptcy to relieve their debt, it has been shown that the positive outweighs the negative consequences. For the majority of people, bankruptcy has allowed them to start fresh. Starting fresh can significantly reduce stress and free up finances that can be put to better use. However, it is important to remember that bankruptcy can be a challenging process, and should be handled by a professional bankruptcy attorney in the Cook, DuPage, or Kane County area to ensure a favorable outcome.
Bankruptcies are governed by federal and state laws. Each state abides by its own laws, rules, exemptions, and stipulations in conjunction with federal law. If you are not familiar with bankruptcy law, the system can be difficult to navigate. When filing with the court, everything that is submitted must be in line and complete. If any documents or paperwork that gets filed with the court is incomplete or inaccurate, the court may dismiss your bankruptcy case. If the court dismisses your case, then you may have to wait a few months before you are able to file again. A delay in your bankruptcy case can signal your creditors to continue to come after you for payment.
However, if your bankruptcy case is successfully filed with the court, the court will issue an automatic stay. An automatic stay stops your creditors and all other collection agencies from collecting payment on your debts. In other words, creditors and collection agencies are not allowed to contact you while you are going through bankruptcy. As long as the automatic stay is in place, all calls and letters from creditors and collection agencies will cease. To ensure that your bankruptcy gets filed properly, it is essential to hire a bankruptcy attorney in Illinois.
Chapter 7 Bankruptcy Law In Bartlett, IL
Depending on your specific situation and the types of debt you have, your bankruptcy attorney in Bartlett, IL will advise you to file either a Chapter 7 or Chapter 13 bankruptcy. If you are eligible to file a Chapter 7, your unsecured debt, such as credit cards, personal loans, and medical bills, can get discharged. Some debts, however, are not dischargeable. For instance, alimony, child support, and some taxes are not dischargeable. Talk to your bankruptcy attorney in Bartlett, IL to determine the types of debts you are able to get discharged in your specific case.
If you are afraid of losing your home or car, it will be a relief to know that, depending on your circumstance, you may be able to keep your property. As previously mentioned, states have laws and exemptions that apply when debtors want to keep their home or car even if they are going through a Chapter 7 bankruptcy. If you are able to maintain monthly payments on your mortgage and car loans, the court may allow you to keep your home without the fear of repossession or foreclosure. However, in order to be able to do so, you must meet certain exemption requirements under state law. To verify whether you are able to keep your property under a Chapter 7, it is best to consult with a bankruptcy attorney in the DuPage, Cook, or Kane counties.
Chapter 13 Bankruptcy Law In Bartlett, IL
If you are not eligible to file a Chapter 7 bankruptcy, you are most likely eligible to file a Chapter 13 bankruptcy. Chapter 7 requires debtors to have debt that surpasses their monthly income and expenses. They also have to meet the state’s household median requirement or means test to qualify for a Chapter 7. For individuals who do not pass the means test, a Chapter 13 is a good option.
To qualify for a Chapter 13, debtors must have a reliable monthly income. The court will structure a monthly repayment plan that is affordable. The repayment plan significantly reduces the amount of debt that needs to be repaid to creditors. It also lasts between three to five years, depending on the debtor’s individual circumstance. Once the repayment plan is completed, any remaining amount of unsecured debt can be discharged. Also, during a Chapter 13, creditors and lenders cannot foreclose or repossess a debtor’s home or vehicles.
To determine whether a Chapter 7 or Chapter 13 bankruptcy is right for you, it is highly advised to counsel with a bankruptcy attorney in Bartlett, IL.
Call Now For A Case Evaluation