Benefits of Bankruptcy in Chicago, Illinois
What should I expect when filing for bankruptcy?
The specific benefits of filing for bankruptcy are varied, as it depends on whether you file under Chapter 7 or Chapter 13, as well as the specific circumstances of your financial situation and your case. Perhaps the most important benefit at the start of the Chicago
bankruptcy process is that all
debt collection efforts must cease once you file your bankruptcy petition. This means that
creditor harassment, wage garnishment, foreclosure, debt collection lawsuits, repossession and all related activity must be placed on hold. Filing for bankruptcy can give you much-needed breathing room as you figure out what to do to save your home from foreclosure or what debts you wish to reaffirm so you can keep certain property.
It is a common misconception that filing for bankruptcy will mean that you will lose your home, your car and all of your possessions, as well as that you will not be able to rebuild your credit in the future. It is important to understand that this is simply untrue. When filing for bankruptcy in Chicago, IL,
ensure that certain assets are protected, particularly when you file under Chapter 13 and undergo a reorganization of your debt, rather than a liquidation of your assets to pay off creditors. When you consult with a
Chicago bankruptcy lawyer from the Law Office of Joseph P. Doyle, you can learn more about the specific benefits that apply to your case. The initial consultation is free, so do not hesitate to get in touch with the firm today.
Stopping Foreclosure Through Chapter 13 Bankruptcy
If you have recently been faced with the prospect of losing your home, you may be wondering what steps you should take next. Nothing is more overwhelming than the idea of losing the property that you have worked so hard to obtain, but it is important to understand that there may still be time to stop an impending foreclosure. By filing for bankruptcy in a timely manner, you may be able to
delay or even
stop foreclosure in its tracks. Since the court will order an automatic stay as soon as your bankruptcy petition has been approved, all creditors will be prohibited from continuing their collection efforts until the process has been concluded—which encompasses foreclosure, wage garnishment and repossession efforts.
If you are filing under Chapter 7, this may only give you a few months to develop a plan. If you are filing under Chapter 13, however, you may have a better chance of successfully combatting the loss of your home. This form of bankruptcy would allow you to reorganize your debt and come up with a more manageable payment plan that could be implemented over a 3 to 5 year period of time, so—assuming that you have enough income to make payments on your home while concurrently paying off your debt—you may stand a much better chance of keeping your house once the process is over. To determine which course of action is right for you, however, it is advised that you seek the advice of an attorney.
Obtain a Fresh Start with the Help of a Chicago Bankruptcy Lawyer
When a Chapter 7 bankruptcy or Chapter 13 bankruptcy has been successfully completed, it means that all eligible debt will be discharged. You will be free and clear of all eligible debt and will have no further obligation to those creditors. This is the final goal of any
bankruptcy case and the reason that it can benefit a debtor so greatly. Bankruptcy law truly offers debtors a second chance and a fresh start, so our firm would be proud to help you through this process.
Contact our Chicago bankruptcy lawyer for more information about how you can take the appropriate steps towards bankruptcy and how you can improve your life through the process.
You can reach us both online and by phone, as you can either call the firm at (312) 957-8077 or submit a bankruptcy evaluation form to take advantage of a free consultation.