Filing For Bankruptcy In Joliet, Illinois
Realizing that there might be no way to climb out from under a pile of debt isn’t easy for anyone. And unfortunately, many people wait far too long before considering the option of bankruptcy, whether it’s because they want to avoid the stigma attached to it, don’t understand how the process works, or just don’t even know where to begin. The good news is that the bankruptcy process in Joliet, Illinois isn’t nearly as daunting as it may initially seem, especially with the help of a compassionate and experienced bankruptcy attorney. Below are some of the most common questions asked by people who are curious about how bankruptcy might help them reset their financial affairs and get back to enjoying life in Joliet, Illinois.
What’s Better, Chapter 7 Bankruptcy Or Chapter 13 Bankruptcy?
For some people, Chapter 7 bankruptcy is better, and for others, Chapter 13 bankruptcy is better. Ultimately, the decision to pursue one over the other will depend on the circumstances unique to the specific case at hand, the debtor’s goals, and whether or not the debtor meets the requirements of one and not the other.
In most cases, a person who is concerned about losing property, such as a family home, should consider pursuing Chapter 13 bankruptcy. This is because Chapter 13 bankruptcy allows a debtor to pay off their debt over the course of several years, which means they won’t lose any of their property.
If a person does not own a home or car or otherwise has only a few assets that they aren’t particularly concerned with keeping, then Chapter 7 bankruptcy might be the better option for them. This type of bankruptcy would allow for the elimination of all of their unsecured debts, such as credit card debt and medical bills. After the completion of a Chapter 7 bankruptcy, the filer can start fresh and no longer be bogged down by the burden of financial hardship.
In order to determine which type of bankruptcy suits a particular set of circumstances, a consult with a qualified attorney in Illinois is recommended. The sooner the process is initiated, the sooner you can get back to your life in Joliet, Illinois.
If I File For Bankruptcy In Illinois, Will I Ever Qualify For A Loan Again?
Contrary to what many people believe, re-establishing good credit after a bankruptcy is not impossible. In fact, as soon as debts have been discharged in a Chapter 7 bankruptcy, the filer can begin to rebuild their credit score and prove to creditors that they will soon be worthy of additional loans. Within just two years of a Chapter 7 bankruptcy, many people obtain excellent credit scores of over 700.
While it might be difficult to immediately qualify for a credit card or mortgage after a Chapter 7 bankruptcy, it certainly won’t be impossible for a person to own a home and obtain credit cards. A good bankruptcy attorney in Illinois won’t just help someone file for bankruptcy, but advise them on how to rebuild their financial lives afterwards, setting them up in the best way possible for success.
After the completion of a Chapter 13 bankruptcy, creditors will be barred from reporting negatively to credit reporting agencies, which means a debtor won’t continue to be penalized for past debts. This is because Chapter 13 bankruptcy is more or less defined by a new agreement between the debtor and creditor, whereby as long as the debtor continues making the agreed-upon payments, the debtor will suffer no additional adverse consequences through creditor action.
Since a Chapter 13 bankruptcy takes considerably longer than a Chapter 7 bankruptcy, many people will even be allowed to obtain credit cards while the bankruptcy case is still in progress.
Will My Current Or Future Employers Find Out That I Filed For Bankruptcy?
Employers do not have the right to fire an employee simply because that employee has filed for bankruptcy. Furthermore, an employer cannot penalize an employee for having filed for bankruptcy, which means they cannot change or eliminate certain duties that employee has, reduce their pay, or demote them.
With that said, there are a couple of ways in which an employer may discover that an employee has filed for bankruptcy. For example, if an employee files for bankruptcy at a time when their wages are being garnished from their paychecks, then the employer will be sent a notice to stop the garnishment as a result of the bankruptcy. Another example of how an employer will be made aware of the fact that an employee has filed for bankruptcy is if that employer is a creditor of the employee.
For answers to your questions about the bankruptcy process in Illinois, contact attorney Orlando Velazquez today. Let him help you in the same way he’s helped countless others in Joliet, Will Country, and Kendall County, IL.
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