Are you considering filing for bankruptcy in Chicago, Illinois? If so, it is important to make sure that you are not only prepared for the process ahead, but that you fully understand what to expect. Bankruptcy is not for everyone and should only be utilized under the right circumstances—as doing so unnecessarily could leave you worse off than before. For this reason, it is vital that you take the time to complete a few simple steps before jumping into the process prematurely.
Although there are a variety of benefits that follow the bankruptcy process, bankruptcy does not come without certain consequences. It is important to consider a variety of factors that may affect your life, such as a diminished credit score for the first couple of years. This may mean that you are unable to obtain larger loans or other perks that come along with a good credit score. In many cases, however, the benefits do actually outweigh the negative ramifications.
If decide to file, our bankruptcy lawyer in Chicago can help you determine which chapter of the U.S. Bankruptcy Code to file under. At Joseph P. Doyle, we can help you prepare for your filing.
Many times, people who have just filed bankruptcy think that they can go out and spend money frivolously. Unfortunately, this should be avoided at all costs in the time leading up to initiating the bankruptcy process as it can negatively impact you. The U.S. Bankruptcy Code (11 U.S.C. §727(a)(2)) prohibits debtors filing for bankruptcy from hindering, delaying or defrauding creditors. The code also prohibits transferring, removing, destroying, mutilating or concealing any of their property within the year leading up to their bankruptcy filings.
For this reason, any attempt to hide property from creditors or to accumulate new debts in the time leading up to the bankruptcy process could lead to your petition being denied. In other situations, you may be able to file for bankruptcy, but the newly accrued debts may not be discharged—including any luxury goods or credit card cash advances. To avoid these serious pitfalls, it is highly recommended that you allow an experienced attorney to guide you.
At Joseph P. Doyle, we understand how overwhelming it can be to struggle with unmanageable debt. For this reason, we have made it our goal to assist you in any way that we can and to alleviate some of the stress of financial instability. By consulting with our bankruptcy lawyer, you can have the opportunity to review the circumstances of your case and get started on a path that it best for you.