File For Bankruptcy BEFORE It’s Too late

Okay, you may have seen that headline and raised an eyebrow a bit. There’s no “deadline” for filing for bankruptcy, right? Technically, no. There are no deadlines for filing for bankruptcy as a whole (there are deadlines embedded in the process, however). Still, if you’re considering filing for bankruptcy there are reasons you shouldn’t wait any longer.

At Velazquez Consumer Law, LLC we’ve been working to make people feel more comfortable with bankruptcy. There are many stigmas surrounding the process and what it means for people who file. These are misleading and dismiss the real value Americans can find in Chapter 7 or Chapter 13 bankruptcy filings. Bankruptcy is a chance to wipe your financial slate clean (or nearly clean) and start anew without the heavy burden of insurmountable debt.

Chapter 7 bankruptcy requires a means test that will determine your capability of paying some or all of your debts. As you work to improve your personal financial situation, you will, ideally, be able to secure a higher-paying job or another source of income that allows you to pay off these debts. If you hold off on filing then you may get that new job and no longer be eligible for Chapter 7 bankruptcy which leaves only Chapter 13 as a potential option.

Chapter 13 bankruptcy also requires a means test to determine the minimum amount  of your debt that you will pay.  The more you make, the more you will pay, so you may be responsible for a large portion of the debt you owe but will just be expected to do so in a more reasonable and systematized manner. If you make more money then there will be more money for the bankruptcy court to claim from you.

So, it becomes obvious fairly quickly that the hard work you’re putting into your personal life can actually cost you the ability to have debts forgiven. We’re certainly not advocating for you to slow down on the job search or to not seek out other forms of income. No, our goal is to let you know that there’s no shame in filing for bankruptcy and that the sooner you do it the better off you will likely be.

For most people in major debt, Chapter 7 bankruptcy is an ideal outcome. This allows you to completely forgive many forms of debt and move on with your life. As you progress financially, Chapter 7 can become completely unavailable to you. If you go through Chapter 13 bankruptcy, you will still make a significant dent in your debt but still be held responsible for a payment plan over the course of several years.

The team with Velazquez Consumer Law, LLC works with the people of Illinois to make the most out of their financial circumstances every day. We know the ins and outs of bankruptcy and understand how your financial situation plays a major role in the process. Your best chance to get back on your feet is to contact our offices today instead of waiting things out and hoping you’ll find a winning lottery ticket to wipe your slate clean.

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Velazquez Consumer Law

Central to our firm is the empathetic and compassionate service we give each client that allows us to fully understand your situation and goals. Above all, our responsive and hands-on approach to your legal issues yields actual results.

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