Filing For Bankruptcy In Naperville, Illinois
No one plans to file for bankruptcy, and the idea of starting the process is overwhelming for most. A number of questions are bound to arise before, during, and even after bankruptcy in Illinois. For example, how will filing for bankruptcy affect your business, your family, or your ability to buy a house in the future? Will you lose everything you have, or will bankruptcy actually clear the slate for you to start anew? When feeling overwhelmed by questions such as these, the best thing a person can do is schedule a consultation with an experienced bankruptcy attorney in their area. Orlando Velazquez specializes in bankruptcy law and has helped hundreds through the process of getting their financial life back on track in Naperville, Illinois. Read on for answers to some of the most commonly asked questions by people who’ve been where you are.
What Are The Different Kinds Of Bankruptcy In Illinois?
The two most common types of bankruptcy filed in Illinois are Chapter 7 and Chapter 13, each of which provide their own set of advantages and disadvantages. Depending on the facts relevant to a particular filer’s situation, they might only qualify for one or the other.
One of the main reasons a person might choose Chapter 13 bankruptcy over Chapter 7 bankruptcy is to save their home from foreclosure. Rather than wipe out all existing debt, individuals who qualify for Chapter 13 bankruptcy agree to make a predetermined payment each month, generally over the course of three to five years. In this way, Chapter 13 bankruptcy allows for a debtor to address the repayment of their debt in an organized and manageable way.
Since the debtor pays off their debt through Chapter 13 bankruptcy, they do not run the risk of losing assets that are important to them, like a house or vehicle. In order to qualify for Chapter 13 bankruptcy, an individual will have to demonstrate the financial means to make the required payments each month.
Chapter 7 bankruptcy is commonly used by people who don’t own a home or other major assets that they do not want to lose. This type of bankruptcy gives people the advantage of having all of their debt (with certain exclusions) eliminated. In exchange, however, individuals must be willing and prepared to lose some of their assets.
In addition to Chapter 7 and Chapter 13 bankruptcy, there is also a Chapter 11 bankruptcy and a Chapter 12 bankruptcy. A Chapter 11 bankruptcy is primarily used by businesses or individuals who have a very significant amount of debt that they want to reorganize. A Chapter 12 bankruptcy is used specifically by family farmers.
To learn more about each type of bankruptcy and determine which will best suit your needs, contact an experienced bankruptcy attorney in Naperville, Illinois today.
What Types Of Debt Will Not Be Erased In Chapter 7 Bankruptcy?
Most unsecured debts will be discharged through Chapter 7 bankruptcy, including credit card debt and medical bills. However, there are several forms of debt that will not be eliminated, such as the following:
- Alimony and child support arrears
- Debts that were incurred as the result of DUI-related injury
- Student loans
- Tax-related debt
- Debts incurred as the result of criminal convictions or civil penalties, such as parking or traffic fines
It is important to note that even if a debt is not explicitly listed as non-dischargeable, a creditor reserves the right to argue that a particular debt should not be discharged through Chapter 7 bankruptcy. Under such circumstances, it will be imperative to have a knowledgeable bankruptcy attorney in Naperville, Illinois who can guide you in responding wisely and argue on your behalf.
Will I Ever Be Able To Get A Credit Card Or Buy A House After Filing For Bankruptcy?
One of the main misconceptions about bankruptcy in Illinois is that it will preclude a person from ever again becoming credit-worthy. They fear that they will never own a home like they’ve always wanted, and that they won’t even be able to secure a credit card in case there is a medical emergency within their family. These are legitimate concerns, so it’s no wonder so many people procrastinate or altogether avoid learning more about what bankruptcy will actually mean for them.
The truth is that a person can immediately begin building their credit after a bankruptcy, and if they do it properly, they could have a superb credit score within just two years. This means that obtaining credit cards, a mortgage on a dream home, or a car loan will definitely be within the realm of possibility after a few years have passed since filing for bankruptcy.
Furthermore, many people can obtain credit during the process of Chapter 13 bankruptcy, which is helpful since the process of Chapter 13 bankruptcy can last several years.
With the right bankruptcy attorney, an individual will not only be well-informed on all aspects of the bankruptcy process in Naperville, Illinois, but will also be confident moving forward with life after bankruptcy, and will have a plan of action for rebuilding their credit and establishing control over their finances.
Call Now For A Case Evaluation