Bankruptcy Law In Elmhurst, IL | Velazquez Consumer Law
Filing for bankruptcy does not have to be an arduous and stressful process. Unfortunately, we cannot plan for life events that could lead us into financial trouble. However, once you have passed the threshold of not being able to keep up with increasing medical bills, loans, and credit card debt, it may be time to consider bankruptcy.
Bankruptcy may not be the easiest decision. In fact, many people sit on making an expedient decision when it comes to bankruptcy due to the fear of harsh consequences. However, the truth is that the majority of people feel tremendous relief once they have received the help they need during a time of financial struggle. Bankruptcy may have some negative consequences, but the positives outweigh the negatives.
For instance, sometimes, you cannot put a price on financial debt relief. Once a debt has been discharged, creditors can no longer go after you to pay back those debts. In addition, once a bankruptcy gets filed with the court, creditors, lenders, and collection agencies cannot continue to call or send notices asking for payment. In other words, an automatic stay applies. The automatic stay prohibits creditors from collecting on what you owe them. Moreover, they cannot garnish any wages or clear your bank accounts as long as the automatic stay is in place. For more information on automatic stays and how it applies to your specific circumstance, contact a bankruptcy attorney in Illinois.
Bankruptcy can be a challenging process, and should not be tackled without the professional legal assistance of a bankruptcy attorney in Elmhurst, IL. Bankruptcies require a lot of documentation and paperwork, and if it is not filed correctly, the court can dismiss your case. If the court dismisses your case, you’ll have to wait a certain amount of time before being able to file again. The waiting period can take months. Therefore, it is vital that you submit a correct and complete bankruptcy in order to avoid getting your case dismissed. The best way to avoid getting your bankruptcy case dismissed is to enlist a qualified bankruptcy attorney in DuPage or Cook county.
A bankruptcy attorney in Illinois will ensure that all necessary documents and paperwork get filed accurately and on time. Once everything that is required gets submitted to the court, a discharge or favorable decision on your case can be typically attained within four months.
Chapter 7 Bankruptcy Law In Elmhurst, IL
For individuals seeking debt relief, there are two options that can help lessen a strenuous financial burden. The most common option is a Chapter 7 bankruptcy. A Chapter 7 bankruptcy is known as a fresh start bankruptcy. It can relieve unsecured debt, such as credit cards, personal loans, and medical bills. In some circumstances, student loans can get discharged, but it is uncommon. If you are unable to keep up with mortgage or car payments, the court may discharge those as well. But, keep in mind that if your mortgage and car payments get discharged, a lender can still foreclose or repossess your property.
However, individuals who wish to keep their home and cars may be able to still do so under a Chapter 7 bankruptcy. Each state has laws that establish exemptions. If you fall within the rules of the exemption laws, you may be able to keep your property as long as you continue to make monthly payments to your creditors. In order to assess your individual case, it is highly advised that you speak with a bankruptcy attorney in DuPage or Cook County.
To be eligible for Chapter 7, you must be able to meet certain income and debt requirements. Your bankruptcy attorney in Elmhurst, IL can determine whether or not you fall within the requirements to be eligible for a Chapter 7 bankruptcy. Normally, if your debt substantially exceeds your monthly income, you may qualify for a Chapter 7.
Chapter 13 Bankruptcy Law In Elmhurst, IL
For individuals who do not meet the eligibility standards for a Chapter 7 bankruptcy, they are most likely qualify for a Chapter 13 bankruptcy. A Chapter 13 bankruptcy is structured to help debtors repay their debt. However, unsecured debt that is placed under a Chapter 13 bankruptcy is significantly reduced and eventually discharged. The repayment plan in a Chapter 13 usually lasts between three to five years. As mentioned, once the three to five-year repayment plan concludes, any remaining unsecured debt can be discharged or eliminated.
To qualify for a Chapter 13, you must be able to have a steady monthly income stream and meet certain requirements. With a Chapter 13, you are able to keep your home, cars, and other property. Filing a Chapter 13 allows you to keep your property without the fear of foreclosure or repossession as long as payment is remitted to the creditors.
Filing for bankruptcy may not be an easy decision. However, it can unburden you from mounting debt. If you have any questions or concerns in regard to bankruptcy, contact a bankruptcy attorney in Elmhurst, IL for a consultation.
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