Filing For Bankruptcy In Elgin, Illinois
Every year in Illinois, thousands hit the reset button on their finances and start over by taking advantage of everything the bankruptcy process has to offer. While many people are guided by misinformation and fear about what they think bankruptcy would look like for them, many others simply take action toward building a better life and moving on from the debt that has been nothing but a barrier. The best way to start is by contacting an experienced bankruptcy attorney who has a reputation of not just getting the job done, but showing compassion and patience in the process. Attorney Orlando Velazquez provides every client with the time and attention they deserve and never casts judgment, regardless of what a client may be facing. Read on for information about the basics of bankruptcy law in Elgin, Illinois.
Can I Prevent Foreclosure By Filing For Bankruptcy?
As soon as someone files for bankruptcy, all creditors are required to cease collection efforts, which means no more harassing and stressful phone calls, emails, or notices in the mail. In some cases, it can also mean that foreclosure proceedings will stop. This is one of the primary reasons for choosing Chapter 13 bankruptcy over Chapter 7 bankruptcy: if an individual qualifies, they will be allowed to reach an agreement with their creditors, make monthly payments toward their debt over the course of several years, and save their home from being foreclosed on by the mortgage lender. However, it is important to know that if Chapter 13 bankruptcy payments are made late, then the creditor reserves the right to restart foreclosure proceedings. To learn more about the process of saving a home from foreclosure through Chapter 13 bankruptcy in Elgin, Illinois, reach out to a bankruptcy attorney today.
I Might Receive An Eviction Notice From My Landlord; Can Bankruptcy Help Me Avoid This?
If filed before a five-day notice or other eviction notice, then a Chapter 13 bankruptcy could stop eviction proceedings. Through Chapter 13 bankruptcy, the tenant would reach an agreement with their landlord regarding the payment of back rent, and as long as they were to make every payment to which they agreed, then they would not be evicted.
Medical Bills Are The Main Source Of My Debt; Which Type Of Bankruptcy Is Best For Me?
Medical bills are an example of unsecured debt, which means there is no collateral attached to them. In other words, failing to make payments toward a medical bill won’t result in a home being foreclosed on, or a car being repossessed. Instead, unsecured loans such as medical bills will generally have to be pursued by creditors through a lawsuit against the debtor.
If an individual’s debt is primarily coming from unpaid medical bills and they are not at risk of losing a home or vehicle with which they cannot part, then Chapter 7 bankruptcy might be the best option. Through Chapter 7 bankruptcy, all of the individual’s unsecured debts would be wiped out, which means no more outstanding medical bills and a fresh start. Through the same process, credit card debt would also be discharged.
Can Student Loans Be Discharged Through Bankruptcy?
Unfortunately, student loans are considered non-dischargeable, which means they will not be eliminated through the bankruptcy process.
What If Creditors Continue To Harass Me After I Have Filed For Bankruptcy In Elgin, Illinois?
Obtaining relief from the constant calls and requests for payment by creditors is one of the main benefits of Chapter 7 and Chapter 13 bankruptcy. However, sometimes creditors continue to harass individuals who are in the process of a bankruptcy or who have already had their debts discharged through bankruptcy. When this occurs, creditors are actually breaking the law, which means there is legal recourse available to the debtor. For example, if a creditor were to repossess a vehicle during bankruptcy, then the debtor would have the right to ask the bankruptcy court to demand that the creditor return that vehicle to them. In addition, if it can be shown that the creditor was aware of the bankruptcy and knew that they were legally barred from trying to collect debts, then the debtor may be entitled to damages for stay violations. These damages might include attorney fees, compensation for the stress caused, and in more extreme cases, punitive damages.
How Can A Bankruptcy Attorney Help Me In Elgin, Illinois?
In addition to ensuring that an individual chooses the right type of bankruptcy for their situation, a good bankruptcy attorney should make sure that the individual maximizes the amount of dischargeable debt, and loses as little as possible. The attorney should also help counsel the individual with regard to building a good credit score and proving credit-worthiness post-bankruptcy. In the event that a debtor experiences harassing calls from creditors during or after a bankruptcy, or faces creditors who challenge an otherwise dischargeable debt, the attorney should be willing and eager to fight for their client’s best interests.
In addition to serving the residents of Elgin, Illinois, bankruptcy attorney Orlando Velazquez has helped many others throughout Cook County and Kane County, Illinois. Don’t hesitate to contact him today.
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