BANKRUPTCY LAW

Bankruptcy is a legal process through which individuals who end up in financial trouble are able to work out their debts under the protection of the bankruptcy court. Bankruptcy allows you to get a fresh start on your finances, without the burden of an overwhelming debt load. The two kinds of bankruptcy that you can file for are Chapter 7 and Chapter 13. Many of my clients failed to pay creditors due to events out of their control, such as unemployment, medical issues and unexpected expenses. When they fall behind in their monthly payments, they find out that creditors have very little sympathy. For my clients, bankruptcy is the best and quickest way out of debt. I make sure that my clients understand that there is no reason to feel ashamed. The right to file bankruptcy is a privilege. By offering reliable and quality bankruptcy service, I have helped many clients like you begin a better future.

CHAPTER 7 BANKRUPTCY

Like most clients, you would probably opt for a Chapter 7 bankruptcy to eliminate most or all of your debts within a short period of time. Any assets that are considered non-exempt can be liquidated to pay part of your outstanding bills. Your legal obligation to repay your remaining bills is then forgiven. In practice, the vast majority of my clients are able to retain all their personal assets. After your chapter 7 discharged, you will never have to repay bills such as credit cards, medical bills and repossessed car loan balances. Under the current bankruptcy law, we need do a calculation called a “means test” to determine whether you qualify for Chapter 7. If you are not eligible for a Chapter 7, then filing for Chapter 13 bankruptcy may be another option.

CHAPTER 13 BANKRUPTCY

While Chapter 13 bankruptcy may not be as quick as a Chapter 7 bankruptcy, it is the next best thing. Under a Chapter 13, you make a monthly payment to a court appointed trustee to pay some or all of your debts back based on what you can afford. Generally, you are able to keep all of your properties. Secured debts such as car loans can be conveniently paid off through the Chapter 13 plan. Filing a Chapter 13 will immediately stop lawsuits, garnishments, foreclosures, repossessions, tax levies and all other collection activity against you, including harassing phone calls and collection letters.

COLLECTION ABUSE

It is important that you know your rights against collectors even before a bankruptcy is filed. Under the Fair Debt Collection Practices Act (FDCPA), debt collectors may not harass, oppress, or abuse you or any third parties they contact. An example of such harassments is when collectors use threats of violence to intimidate you. It is also harassment when collectors threaten to have you arrested for failure to pay. Even if you owe debt, you're still  protected under the law. There are many other examples where debt collectors may be engaging in illegal practices when they try to collect a debt. Talk to me if you feel that you are a victim of collection abuse.

FORECLOSURE AND REPOSSESSION

In Illinois, loss of income and the rising household debt are at fault for causing financial hardship for many families. If you have fallen behind on your car or house payment, bankruptcy will stop the finance company from foreclosing your home or repossessing your car. Bankruptcy can consolidate all missed mortgage payments and then spread the repayment out over 3-5 years. Likewise, past due payments and the balance on your vehicle loan can be consolidated. Some people use bankruptcy to buy time. For example, if you are behind on mortgage payments and about to be foreclosed on, you can file bankruptcy papers to stop collection efforts, and then attempt to work things out with the creditors.