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.
In order to determine which clause you should file under, you will need to do a means test. This will look at your gross monthly income, against the total amount of arrears you owe. Whether your debts are secured or unsecured will also have to be considered. Most people file under chapter thirteen or eleven. However, they are other options like chapter eleven and chapter twelve, but these are limited to specific creditors, and people specific professions.
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.
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.
This move might save from financial ruin, but it will also wipe out any history you may have had, of good credit. In a country where most people use credit cards to pay for items, this can be a major blow. It might also affect the way creditors look at your case in future. Because of this factor, you are advised to look at all the other options that may be available, before settling for this one.
After looking at your financial state and reviewing the pros and cons, if you still want to go ahead with this process, then you should hire a good lawyer. There will be a lot of legal jargon to sort through and paperwork to fill, and if you try handling it alone, you might just be setting yourself up for failure.
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.
Even if your debts get wiped out, you still need to reevaluate your relationship with money to ensure you do not end up in debt again. This can easily be done by scheduling a meeting with a financial counselor, who can quickly detect the problem and give you a tailor made solution.
In order to determine which clause you should file under, you will need to do a means test. This will look at your gross monthly income, against the total amount of arrears you owe. Whether your debts are secured or unsecured will also have to be considered. Most people file under chapter thirteen or eleven. However, they are other options like chapter eleven and chapter twelve, but these are limited to specific creditors, and people specific professions.
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.
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.
This move might save from financial ruin, but it will also wipe out any history you may have had, of good credit. In a country where most people use credit cards to pay for items, this can be a major blow. It might also affect the way creditors look at your case in future. Because of this factor, you are advised to look at all the other options that may be available, before settling for this one.
After looking at your financial state and reviewing the pros and cons, if you still want to go ahead with this process, then you should hire a good lawyer. There will be a lot of legal jargon to sort through and paperwork to fill, and if you try handling it alone, you might just be setting yourself up for failure.
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.
Even if your debts get wiped out, you still need to reevaluate your relationship with money to ensure you do not end up in debt again. This can easily be done by scheduling a meeting with a financial counselor, who can quickly detect the problem and give you a tailor made solution.
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