Sometimes, things do not go as we please and in most cases, these may be sad, but not life threatening. However, when your financial situation takes a turn for the worse and starts going downhill, this can cause you to panic. For some people, debt consolidation or simply tweaking their habits will help. On the other hand, for others, declaring bankruptcy in Chicago might be the only way out. This is a big decision and not one that should be made lightly.
Under the constitution, you can file for chapter 7, or chapter 13 bankruptcy. In the first scenario, most of your debts will be absolved and you are granted a clean slate. In the second scenario, your income will be assessed and your lawyer and a financial counselor will come up with a monthly payment plan allowing you to pay the arrears at a slower rate. Generally, the amount of money you make, and the creditors you owe, will determine which chapter you can file under.
When looking over your debts, you need to be completely honest about who and how much you owe. This way, the debts which can be forgiven or reduced can be identified and marked. On the other hand, some debts cannot be exempted like alimony and child support. In rare cases, school loans can be forgiven or reduced.
The impounding and selling off of some assets is common with these cases. In most scenarios, these will be items which are not crucial to your survival, like an extra houses or cars. This process might also affect your social standing, because the details of the case become part of the public record. However, logically it is better to safeguard your financial security, than to save face.
Filing this case will affect you credit rating for up to ten years. This might make it difficult to get a loan, or to take a mortgage. However, there are some lenders who specialize in lending money to high-risk individuals at higher rates. You will also find that after clearing your debt, you can start working on rebuilding your credit.
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.
Regardless of your financial situation, legal fees will still need to be paid. Different lawyers will have different rates depending on their expertise and the particulars of your case. You should visit a number of them to get estimates. From the figures you are given, you can settle on one whose prices seem reasonable and are affordable 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.
Under the constitution, you can file for chapter 7, or chapter 13 bankruptcy. In the first scenario, most of your debts will be absolved and you are granted a clean slate. In the second scenario, your income will be assessed and your lawyer and a financial counselor will come up with a monthly payment plan allowing you to pay the arrears at a slower rate. Generally, the amount of money you make, and the creditors you owe, will determine which chapter you can file under.
When looking over your debts, you need to be completely honest about who and how much you owe. This way, the debts which can be forgiven or reduced can be identified and marked. On the other hand, some debts cannot be exempted like alimony and child support. In rare cases, school loans can be forgiven or reduced.
The impounding and selling off of some assets is common with these cases. In most scenarios, these will be items which are not crucial to your survival, like an extra houses or cars. This process might also affect your social standing, because the details of the case become part of the public record. However, logically it is better to safeguard your financial security, than to save face.
Filing this case will affect you credit rating for up to ten years. This might make it difficult to get a loan, or to take a mortgage. However, there are some lenders who specialize in lending money to high-risk individuals at higher rates. You will also find that after clearing your debt, you can start working on rebuilding your credit.
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.
Regardless of your financial situation, legal fees will still need to be paid. Different lawyers will have different rates depending on their expertise and the particulars of your case. You should visit a number of them to get estimates. From the figures you are given, you can settle on one whose prices seem reasonable and are affordable 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.
About the Author:
Get a summary of the advantages you get when you consult an experienced attorney and more info about a knowledgeable lawyer who specializes in bankruptcy in Chicago at http://abogadoenchicago.com now.
No comments:
Post a Comment