Understanding Bankruptcy in Chicago

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Understanding Bankruptcy in Chicago

A Chicago bankruptcy lawyer can explain to you the different bankruptcy options to help you resolve your debt issues – including Chapter 7, Chapter 13 and Chapter 11 bankruptcy. Each bankruptcy alternative has various advantages and disadvantages and it is important to understand how each specific type of bankruptcy will affect your financial future. A bankruptcy lawyer in Chicago can explain the different options to you. A Chicago bankruptcy lawyer can also help complete and file the necessary court documents.

Under a Chapter 7 bankruptcy liquidation, a debtor’s assets are liquidated in order to pay creditors a portion of what they are owed. In exchange, all debts, including secured debts, are forgiven unless the debt is reaffirmed.  Debtors are allowed to exempt certain assets from liquidation up to a certain amount depending on the type of the asset. Chicago bankruptcy lawyers are experienced assessing the financial situation of individuals to determine whether they interests will best be served by a Chapter 7 liquidation. 

Those persons that have filed a Chapter 7 bankruptcy in the past 8 years or a Chapter 13 bankruptcy in the past 6 years are not eligible to file a Chapter 7 bankruptcy. Similarly, individuals who have the ability to repay a portion of their debts are not eligible for Chapter 7 bankruptcy and, instead, must file a Chapter 13 or Chapter 11 bankruptcy. A Chicago bankruptcy lawyer can help you analyze your debts and income to determine whether you are eligible for Chapter 7 bankruptcy.

A Chapter 13 bankruptcy is available for those persons who meet certain income and debt limitations and have not have filed a previous chapter 7 within 4 years or a previous chapter 13 within 2 years. Under a Chapter 13 bankruptcy filing, the debtor repays some or all of the unsecured debts pursuant to a repayment plan and any unsecured debts balances that remain at the end of the repayment plan period are discharged. A Chicago bankruptcy lawyer will assess your income, unsecured and secured debt to determine whether Chapter 13 is the best option for you to resolve your debts and keep your assets.

A Chapter 11 bankruptcy is similar to a Chapter 13 bankruptcy except that there are no debt limitations as with a Chapter 13 bankruptcy. A Chapter 11 bankruptcy may be the best option for “high net worth” individuals who exceed the Chapter 13 debt limitations but do not wish to have their assets liquidated. Debts are repaid over a period of five years, though not necessarily paid in full.

Regardless of the type of bankruptcy filed, debtors are protected from creditor contact and harassment by the automatic stay once a bankruptcy petition is filed. A Chicago bankruptcy lawyer can help ensure that your rights are protected and that creditors stop harassing you once you have filed for bankruptcy protection.

If you are facing mounting debts, foreclosure and other financial difficulties, contact a Chicago bankruptcy lawyer. Our skilled Chicago bankruptcy lawyers will analyze your debt, income and assets in order to determine which bankruptcy options is the best option for your financial future. The Chicago bankruptcy lawyers will help you prepare and file the necessary court documents with your bankruptcy.

Loopbankruptcy.com is best firm of bankruptcy lawyers and attorneys, which work for debt settlement or debt relief. Call 866.525.3529 for a free consultation with a bankruptcy laywer at Lakelaw – Loop Bankruptcy in Chicago, Illinois.
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