Bad spending habits, losing your job, or even just not paying attention to your financial situation, can leave you in serious debt. As these debts accumulate, some people will try to get help from friends or get loans, to try and get out of this situation, while others will not be bothered. At some point, running away from creditors may get too tiresome, and you might decide to file for bankruptcy in Chicago. Before taking this step, it is important for you to understand what will happen.
When you start reading about this process, you notice that your income, and the kinds of debts you owe your creditors, will determine which category you fall in. If you happen to have a significant amount of debt and a small source of income, you are eligible for Chapter 7 bankruptcy, which will wipe out the cash balances. However, if you have a steady source of revenue, you should go for Chapter 13 bankruptcy. This way, you have a longer time frame to clear the balances.
When you file for bankruptcy, you are essentially declaring that you cannot pay your debts. However, it is important to keep in mind that not all kinds of debt will go away. Things like student loans, taxes or child support will remain and will require being dealt with.
To pay some of your creditors, some of your possessions might be ceased and sold. This especially happens if you own luxury cars or holiday homes. You should also keep in mind that the documents relating to your financial state are public. Therefore, anybody can access them at any time. This might, therefore, affect your social life.
Credit ratings or reports are imperative if you want to take a loan or mortgage, at some point. Filing for bankruptcy, regardless of which section you file under, will affect your credit report, causing it to read negative for a long time. This might be reversible, but will require a lot of work and monitoring of your finances from that point on.
To ensure the success of your case you should get good legal representation. This way, you will understand what is going on, in and out of the courtroom. Choose someone with adequate work experience and who comes highly recommended, even if your case looks straightforward.
Getting good legal counsel is not free, but it should not be that expensive either. Most lawyers do not charge over one thousand dollars, but this price will differ depending on the complexity of the case. Stay away for attorneys whose charges seem too small, as these could compromise the quality of the work they do for you.
While going through this process, you will be advised to see a financial expert in order to determine how you got into this mess. These sessions should also be used to educate you on better money management to ensure you do not find yourself needing to file for bankruptcy again.
When you start reading about this process, you notice that your income, and the kinds of debts you owe your creditors, will determine which category you fall in. If you happen to have a significant amount of debt and a small source of income, you are eligible for Chapter 7 bankruptcy, which will wipe out the cash balances. However, if you have a steady source of revenue, you should go for Chapter 13 bankruptcy. This way, you have a longer time frame to clear the balances.
When you file for bankruptcy, you are essentially declaring that you cannot pay your debts. However, it is important to keep in mind that not all kinds of debt will go away. Things like student loans, taxes or child support will remain and will require being dealt with.
To pay some of your creditors, some of your possessions might be ceased and sold. This especially happens if you own luxury cars or holiday homes. You should also keep in mind that the documents relating to your financial state are public. Therefore, anybody can access them at any time. This might, therefore, affect your social life.
Credit ratings or reports are imperative if you want to take a loan or mortgage, at some point. Filing for bankruptcy, regardless of which section you file under, will affect your credit report, causing it to read negative for a long time. This might be reversible, but will require a lot of work and monitoring of your finances from that point on.
To ensure the success of your case you should get good legal representation. This way, you will understand what is going on, in and out of the courtroom. Choose someone with adequate work experience and who comes highly recommended, even if your case looks straightforward.
Getting good legal counsel is not free, but it should not be that expensive either. Most lawyers do not charge over one thousand dollars, but this price will differ depending on the complexity of the case. Stay away for attorneys whose charges seem too small, as these could compromise the quality of the work they do for you.
While going through this process, you will be advised to see a financial expert in order to determine how you got into this mess. These sessions should also be used to educate you on better money management to ensure you do not find yourself needing to file for bankruptcy again.
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