With people all over the country going through hard times, many local families have faced the tough decision to file for bankruptcy. It provides relief from debt and allows filers to make a fresh start. A bankruptcy attorney in Crystal Lake, IL, will examine your assets and help you find out if filing is the right choice for you.
Consumer Bankruptcy Options
Numerous situations can lead to the decision to file for bankruptcy, including illness, death, divorce, and unemployment. Consumers can elect to file for Chapter 7 or Chapter 13 bankruptcy. They’re similar but work slightly differently.
• Chapter 7 is also known as liquidation or straight bankruptcy. When filing, a court-appointed trustee assumes control of your debts and assets. Anything that’s non-exempt and has value must be handed over to pay off your debts. At the end of the process, almost all debts can be discharged.
• Chapter 13 is also referred to as reorganization. When filing for Chapter 13, you’ll have to create a plan for the repayment of your debts over three to five years. When the term is up, all remaining debts—with few exceptions—are discharged.
A bankruptcy attorney in Crystal Lake, IL, will explain the ins and outs of these plans and help you choose the one that’s best for you.
Alternatives to Bankruptcy
Bankruptcy isn’t the right choice for everyone. The firm’s lawyers will discuss all your options, such as foreclosure, creditor negotiations, and loan modification, and they will ensure that you have the information needed to make an informed decision. Visit them online at mpsthelaw.com to schedule a consultation.
