Bankruptcy Law

Dealing With Your Debt Constructively and Effectively

If you are even considering filing for bankruptcy, you are probably overwhelmed with fear and unsure of your best option going forward. Consulting the right bankruptcy attorney, though, can help significantly with the financial obstacle of debt. Thousands of Americans suffer from increasing debt, which can include high mortgage payments, car payments, credit cards, personal and student loans, medical bills, and utilities.

Debt can become a personal financial prison. It may seem that there is no way out, but relief is available. Consulting an experienced Aurora, IL bankruptcy attorney is a crucial step toward debt relief. An expert bankruptcy attorney can explain and guide you through the various bankruptcy chapters available for relief.

Your Aurora, IL bankruptcy attorney will explain in detail the difference between Chapter 7 and Chapter 13 bankruptcies, which one will benefit you the most, and for which chapter you qualify. You do not have to spend countless hours on the internet trying to figure out your own way out of debt. You do not have to go through the bankruptcy process alone. People who start on their own usually end up hiring a bankruptcy attorney after finding a lot of issues that arise with their paperwork and fees. They often realize that they would have been better off hiring a knowledgeable attorney from the start.

Starting the Process

Once you’ve signed on with a bankruptcy attorney, your case can be filed immediately. If you are filing a Chapter 7 bankruptcy, a discharge usually occurs four months after the claim was filed. If Chapter 13 is filed, the discharge takes place between three to five years after all the payments under the debt reorganization plan have been made. Your attorney will evaluate the best chapter to file depending on your specific situation.

Once you and your attorney file your case with the court, calls from creditors and debt collection agencies should desist. This is due to the automatic stay. An automatic stay is an injunction that prohibits creditors from calling you or taking any action on collecting debt. The stay applies while your case is in the bankruptcy process. Collection agencies and collectors are not allowed to call, send letters, text, or email you. Agencies and companies are also not allowed to foreclose on your house, repossess your car, place a lien on a property, or file (or continue) a lawsuit.

An individual going through bankruptcy has rights and protection by law, and any entity or individual should not violate these rights and protections. You should notice a substantial decrease in calls and letters from collection agencies, but sometimes it takes time for other organizations to cease communication. Notify your bankruptcy attorney if an organization is still contacting you. They may not have received a notification that you filed bankruptcy and may need to be sent a notice. If they proceed to communicate after being advised of your bankruptcy, they may be sanctioned by the court.

When your bankruptcy case gets discharged, you have a fresh financial start. Creditors should no longer contact you for payments. However, in the rare occurrence that a creditor is contacting you for payments after your case has been discharged, you need to notify your Aurora, IL bankruptcy attorney right away. Your attorney can help determine the best solution and verify that all debt was successfully discharged.

To find out whether your best option is filing for bankruptcy, an initial consultation with Velazquez Consumer Law, LLC is your next best step. Get one scheduled by calling 630-576-9030 today.