Velazquez Consumer Law

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Velazquez Consumer Law

Each year, thousands of people find the financial relief they need through bankruptcy. However, the rules and procedures for bankruptcy aren’t always clear-cut or easy to understand, and the type of bankruptcy you’ll need to file will depend on the details unique to your situation. This is where a bankruptcy attorney in Aurora, Illinois can offer indispensable help and guidance. Read on to learn some of the basics about bankruptcy in Aurora, Illinois.

Should I Apply For Chapter 7 Bankruptcy Or Chapter 13 Bankruptcy?

In general, Chapter 13 bankruptcy is better for people who have assets that they do not want to lose, such as a home. In Chapter 13 bankruptcy, the filer’s debt is reorganized in a way that makes it more manageable, and they agree to make monthly payments to eliminate their debt over the course of several years. Since the debt will eventually be paid off through Chapter 13 bankruptcy, the filer does not have to worry about losing their assets.

Chapter 7 bankruptcy allows for a person’s unsecured debt to be wiped out entirely, which means they won’t be required to make monthly payments. In exchange, however, they may lose some of their assets. Not everyone will qualify for Chapter 7 bankruptcy, nor should everyone pursue this route for dealing with their debt. When in doubt, the best option is to speak with a qualified attorney who is well-versed in Illinois bankruptcy law.

What Is The Difference Between Unsecured Debt And Secured Debt?

Unsecured debt is not attached to any form of collateral, whereas secured debt is. For example, the collateral attached to a mortgage is the house or property for which the mortgage was lent, and the collateral attached to a car loan is the car itself. Thus, mortgages and car loans are forms of secured debt. If a secured debt is not paid, the creditor may exercise their right to take back the collateral, such as through foreclosure on a home or repossession of a vehicle.

Examples of unsecured debt include credit card debt, medical bills, and lawsuit judgments. If an unsecured debt is not paid, the unsecured creditor cannot seize property from the debtor in an attempt to satisfy the debt they owe. Instead, they must sue the debtor.

What kind of debt can I get rid of in a Chapter 7 bankruptcy?

Most unsecured debts are dischargeable (i.e. able to be eliminated) through Chapter 7 bankruptcy in Illinois. While it is best to consult with an attorney to confirm, the following types of debt are generally not dischargeable:

  • Unpaid court-ordered spousal or child support
  • Debts associated with accidents/injuries that were the result of intoxicated driving on behalf of the debtor
  • Student loans
  • Tax debts
  • Debts associated with criminal convictions or violations of the law, such as parking or traffic violations

In addition to these types of debt, there are several other sources of debt which a creditor can challenge should a debtor try to have them discharged. For more details on what these are, contact a bankruptcy attorney in Aurora, IL.

Do I Really Need To Hire A Bankruptcy Attorney To Handle My Case In Aurora, Illinois?

A bankruptcy attorney in Aurora, Illinois can review which types of debts can be discharged through bankruptcy, explain the pros and cons of Chapter 7 and Chapter 13 bankruptcy, help an individual determine whether they qualify for Chapter 7 bankruptcy (and if so, whether choosing that route would help them meet their goals), and ensure that all of the necessary paperwork is properly completed and filed in order to avoid delays. An attorney can help eliminate much of the stress involved in the bankruptcy process and provide a sense of peace in knowing that everything is being handled in the best way possible.

How Much Does A Bankruptcy In Illinois Cost?

The filing fee for a Chapter 7 bankruptcy in Illinois is $306, and the filing fee for a Chapter 13 bankruptcy in Illinois is $281. The attorney fee for these cases depends on a number of factors, including the type of attorney hired, the complexity of the case, the number and amount of assets involved in the case, and whether the attorney handles all matters themselves, or outsources some of the work. It is ideal to hire an attorney who will handle all aspects of a case locally and only utilize the assistance of other qualified bankruptcy attorneys. It is better to pay a little more upfront for the guarantee of an expedited and properly executed case, than to pay a little less in the beginning only to wind up having to re-file, lose important assets that otherwise could have been kept, or pay for debts that should have been discharged.

Contact attorney Orlando Velazquez today for the answers to any and all of your bankruptcy-related questions. In addition to serving the residents of Aurora, Illinois, he helps hundreds of people throughout DuPage, Kane, Kendall, and Will counties.

Orlando Velazquez

Call Now For A Case Evaluation
(630) 576-9030

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