There is one fact that any bankruptcy lawyer will always warn about: Filing for bankruptcy without knowing your rights and responsibilities. Bankruptcy does not mean that you will lose everything that you own. There are ways of minimizing the damage and ensuring a stable financial future for you and your family.
Understanding Bankruptcy Laws
There are two types of bankruptcy that can be filed by debtors depending upon their individual financial condition. The first is a Chapter 7 bankruptcy which is one of the most common types of personal bankruptcy in the United States. Under Chapter 7 the property and assets of the debtors may be taken over by a trustee in a court-supervised procedure. However, this rarely happens; most people do not lose anything. This form of bankruptcy is has been devised for people who are unable to make payments towards their debts. If you consult with a bankruptcy lawyer, you may be able to protect all of your assets.
Chapter 13 bankruptcy should always be handled by your bankruptcy lawyer. This is filed by those who still have some source of income available to pay their creditors. Your bankruptcy lawyer will work with you on a repayment plan and present it to the court for acceptance. This plan shows how you propose to repay your debts. Chapter 13 also does not come with the facility of immediate discharge from debts as possible in Chapter 7.
The Role Of Your Bankruptcy Lawyer
As a debtor you cannot be expected to understand the legal ramifications and details of bankruptcy. Many people wait until their financial affairs are beyond repair before seeking legal counsel for bankruptcy. A good bankruptcy lawyer in Illinois can guide debtors in reassessing their financial standing and see whether they should opt for a Chapter 7 or 13 bankruptcies. They help debtors face the future with minimum aggrevation. You have a number of rights under the law and an attorney will use these rights to minimize your stress. As soon as you file for bankruptcy, your creditors may not contact you in any way. It’s just one way that the law works for you and your family. Any kind of harassment from creditors that the debtors may have been victim of, can also be effectively dealt with by your attorney.
Life After Bankruptcy
Your financial future is not over with the decision to file for bankruptcy. You will not be shunned or embarrassed, when you file for bankruptcy. It may, in fact, be the most important decision that you ever take. Make a positive decision in your life by choosing to consult with a bankruptcy lawyer in Chicago.