Filing For Bankruptcy In Bolingbrook, Illinois
Coming to the conclusion that filing for bankruptcy may be the only answer to your financial struggles might not be easy, but with the right attorney, it can likely be made a lot easier than you imagine. Far too many people are guided by misconceptions about the bankruptcy process in Illinois, and as a result, they put it off or go deeper into debt before finally exploring their options. For decades now, attorney Orlando Velazquez has been helping people throughout Will County, DuPage County, and Bolingbrook, Illinois regain control over their finances. He understands how complex, daunting, and stressful the bankruptcy process can be, and he prides himself on providing people with the support and knowledge they need through these difficult times. Below are some of the frequently asked questions by people who are new to the idea of bankruptcy.
Is Chapter 7 Bankruptcy Better Than Chapter 13 Bankruptcy?
It’s impossible to say whether one type of bankruptcy is necessarily “better” than another, since each confers its own advantages and disadvantages. Ultimately, the “best” decision will be one that is made after a careful review of an individual’s financial situation, income, assets, family dynamics, and goals. For some people, Chapter 7 bankruptcy simply won’t be an option because they will not qualify, and the same can be said for many other people with regard to Chapter 13 bankruptcy.
The main difference between Chapter 7 and Chapter 13 bankruptcy is that the former completely eliminates a person’s dischargeable debts, while a Chapter 13 bankruptcy allows a debtor to pay back their creditors over a period of three to five years. Without any additional information, many people might wonder why anyone would choose Chapter 13 bankruptcy over Chapter 7 bankruptcy—after all, why pay back debts that could just be forgiven? However, it’s not that simple. In exchange for having all of one’s dischargeable debts eliminated through Chapter 7 bankruptcy, an individual may have to sacrifice certain assets, such as a car loan that they can’t afford to pay.
In general, a person who has assets that they cannot part with should consider Chapter 13 bankruptcy. In fact, one of the main motivators for filing for Chapter 13 bankruptcy as opposed to Chapter 7 bankruptcy is to avoid or stop the foreclosure process. As long as a debtor enters an agreement with their mortgage lender through Chapter 13 bankruptcy and makes their monthly payments on time, they will be able to prevent their home from being lost to the bank.
There are certain income restrictions that will affect whether or not a person is eligible for Chapter 7 and/or Chapter 13 bankruptcy. To learn more about these types of bankruptcies and gain a better idea of which one best suits your circumstances, speak with an experienced bankruptcy attorney in Bolingbrook, Illinois.
What Is An Automatic Stay?
In addition to having debts discharged or being given a chance to make feasible payments toward debts over a period of several years, obtaining an automatic stay is a huge motivating factor for someone to file for bankruptcy. Anyone who has experienced the relentless phone calls, emails, and notices from creditors who demand money that simply doesn’t exist knows what a relief it would be for it all to cease. In essence, that is what happens after a person files for bankruptcy. If creditors are aware of an automatic stay and choose to harass a debtor anyway, they will have chosen to break the law, and the debtor will have legal recourse. In fact, a debtor may even be awarded damages for the stress caused by creditors who’ve violated this law, as well as compensation for attorney fees.
Will Filing For Bankruptcy Preclude Me From Obtaining Credit In The Future?
There is a common misunderstanding about life post-bankruptcy that adds to the stigma of bankruptcy in general, which is that a person who has filed for bankruptcy will be forever labeled as someone who is irresponsible with their money, and therefore unable to be trusted with loans. To quite the contrary, many people who fall into debt and find themselves facing bankruptcy never handled their money irresponsibly in the first place; at any time, unexpected events in life can lead to insurmountable debt.
As soon as someone’s bankruptcy case has ended, they can begin to rebuild their credit score. Within just a couple of years, many people are able to achieve a very good credit score, making themselves appealing to lenders. Just because a person has bankruptcy in their financial history does not mean that they will never be a homeowner, or be able to buy a new car, or even take out a few credit cards. With guidance from an experienced bankruptcy attorney and wise decision-making post-bankruptcy, all of this is very attainable.
Find answers to specific questions about bankruptcy in Bolingbrook, Illinois by contacting attorney Orlando Velazquez today.
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