Bankruptcy Lawyer Kane County – MDR Law Office – Call 630-402-0850
Filing for bankruptcy is a major decision. Under the right circumstances, the services of a Bankruptcy Lawyer Kane County can help you protection your financial standing and even eliminate some debts. For many people it offers a way to get a fresh financial start. However, there are some disadvantages to a bankruptcy filing too. For example, a bankruptcy filing may remain on your credit report for as long as ten years.
So, if you’re falling behind on bills, how do you determine if bankruptcy will be the right decision? A good starting point is to review a few important facts about bankruptcy. Another smart move is to call our law office and speak with a Bankruptcy Lawyer Kane County. We help people in situations similar to yours every day. If bankruptcy is an option for you, a Bankruptcy Lawyer Kane County can guide you through the process to achieve the best results.
The Different Versions of Bankruptcy
There are different types of bankruptcy chapters that resolve different types of financial problems. Your Bankruptcy Lawyer Kane County can recommend which one will be right for you.
-Chapter 7 bankruptcy. With Chapter 7, the filer is able to wipe away the majority of credit card debts. In addition, it can clear debts like medical expenses, utility bills and personal loans while retaining property too. For instance, businesses might choose to file this type of bankruptcy while closing down.
-Chapter 11 bankruptcy. This form of bankruptcy permits businesses or individuals with significant debt to work with their creditors. With a Bankruptcy Lawyer Kane County negotiating on your behalf, the debtors can work out a plan to repay what they’re able to afford. This is the chapter that most businesses typically choose if they want to stay open.
MDR Law Office – Bankruptcy Lawyer Kane County – Call 630-402-0850
-Chapter 13 bankruptcy. This enables individuals to pay their creditors a part or even all of what their debt via a payment plan. Usually, the repayment schedule is spans three to five years. A notable aspect of Chapter 13 is that it enables filers to get caught up on mortgage or vehicle payments.
Bankruptcy and Your Financial Documents
Bankruptcy involves disclosing your complete financial condition. Naturally, that’s how you’ll get a clear view of your debts and income. Also, financial records will help your Bankruptcy Lawyer Kane County determine if bankruptcy is an option for you. Or, your lawyer may advise an alternative to bankruptcy.
Some of the financial documents to collect include:
-Proof of your income. Collect paycheck stubs, unemployment insurance stubs and earning statements. For the self-employed, collect your profit/loss statements.
-Taxes. Collect your last three or four years of federal income tax statements. Additionally, collect your bank, investment and retirement account statements.
-Bills. Gather recent bills from creditor, such as those that display the existing balance on your car loans and mortgage.
-List of properties. Prepare a thorough list of assets you own. For example, real estate, furniture, vehicles, household appliances and other property. Include each item’s value along with the equity you hold in the items.
Exempt properties. Talk with your Bankruptcy Lawyer Kane County about using exemptions to protect your property.
Eliminating Debts and Saving Property
Bankruptcy filing can help wipe away a significant amount of debt. However, there are some debts it cannot eliminate. To prepare for meeting with your bankruptcy lawyer, organize a list of all your current debts. Include each creditor and the amount you owe to that creditor.
Get Help Today – Talk to a Bankruptcy Lawyer Kane County at 630-402-0850
Your lawyer can advise you on which debts bankruptcy will discharge. The type of debts that bankruptcy cannot eliminate include student loans, overdue child support and alimony payments. Time is a factor if you are struggling with debts. The sooner you seek legal help, the sooner you can start to get back on your feet financially!
Debts That Bankruptcy Can and Cannot Eliminate
The type of debt that you may be able to wipe out depends on which type of bankruptcy you file. Although bankruptcy can efficiently wipe out many varieties of debt, it doesn’t wipe out all debt obligations. Some examples of dischargeable debts include:
-Overdue utility bills.
-Credit card debts.
-Payday loans.
-Medical bills.
-Fitness club memberships.
-Lease contracts for equipment or vehicles.
-Mortgage or automobile car loans if the debtor returns the assets to the bank. Also, some debts the borrower owes to the government like overpayment of unemployment benefits. There are some types of debt that bankruptcy doesn’t typically wipe out. Some examples of these non-dischargeable debts in a Chapter 7 include:
-A mortgage or auto payment if the debtor wants to keep the home or vehicle.
-Obligations like child support or spousal support.
-Overdue taxes or student loan debts.
There are some situations in which a bankruptcy filer might still get relief from these types of debts.
For example, if income tax debts are many years old they may be dischargeable. Filers who demonstrate that it’s not likely they will be capable of paying off student loan debts can possible receive discharge. Additionally, different types of bankruptcy chapters eliminate particular debts more often than others.
Talk with your Bankruptcy Lawyer Kane County for more information on dischargeable debts.
Paying Bills Until You Qualify for Bankruptcy
Anyone planning to file for bankruptcy should continue paying their daily expenses like rent, utilities or school loans. Also, keep making payments on any property you want to retain during bankruptcy like a home or car. In general, it’s best to stay current with those payments until confirming that you are eligible for bankruptcy and proceed with filing for it. If you cease paying your debts but then learn that filing is not right for you, it can be hard to catch up again.
A few of the most common signs that filing for bankruptcy might be a beneficial move for you include:
-A recent job loss, divorce or other significant life event. Unemployment or steep divorce bills are common occurrences that can tip people over the financial cliff toward bankruptcy. Also, medical expenses that insurance does not cover can push people into debt. There’s typically a reason why people fall behind on their expenses and struggle to recover. Contrary to what many might believe, it’s not necessarily purchasing luxury products or other frivolous spending.
-Credit card use rising. When people start using their credit cards for gas and food, it can result in financial trouble. If you’re relying on your credit card to make ends meet rather than cash, bankruptcy may help you get protection. Talk with a Bankruptcy Lawyer Kane County if your credit card debt is overwhelming. We can advise if bankruptcy is your best option and recommend how to proceed.
-You have already gone through your savings account. Draining your nest egg on utility bills and groceries is another warning sign of impending bankruptcy.
-Paying off debts with loans from other sources. Are you borrowing funds from friends and family just to pay rent, bills or your mortgage? While family may offer emergency relief, this is a dangerous financial position to be in. Owing money to relatives can put strain on relationships and is often a source of problems.
It’s always better to take action sooner rather than later if you’re experiencing any of this difficult financial situations. Call MDR Law Office to consult with a Bankruptcy Lawyer Kane County at 630-402-0850.