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.
Another thing you may discover is that this will not be way out for all your money problems. Some debts like child support and even school loans will not be forgiven, and you need to come up with a plan to pay them. Your creditors will also be allowed to contest your case, and if they win, you will have to pay them in full.
Once you go ahead and file this case, the documents will be part of the public record. This might make some people wary of you, and might also cost you a few friends once the word gets out. For individuals who have many non-exempt possessions, this might be reposed by the court, to settle the debts.
Credit ratings or reports are imperative if you want to take a loan or mortgage, at some point. Filing for bankruptcy, regardless of which section you file under, will affect your credit report, causing it to read negative for a long time. This might be reversible, but will require a lot of work and monitoring of your finances from that point on.
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.
Regardless of your financial situation, legal fees will still need to be paid. Different lawyers will have different rates depending on their expertise and the particulars of your case. You should visit a number of them to get estimates. From the figures you are given, you can settle on one whose prices seem reasonable and are affordable for you.
Even after applying for bankruptcy and winning you will still need to reevaluate you spending habits. This might mean being more frugal with your spending habits and changing your lifestyle. This way a few years down the line you will not need to go through the whole process again. This can easily be done by visiting a financial counselor who can help you embrace healthy spending habits.
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.
Another thing you may discover is that this will not be way out for all your money problems. Some debts like child support and even school loans will not be forgiven, and you need to come up with a plan to pay them. Your creditors will also be allowed to contest your case, and if they win, you will have to pay them in full.
Once you go ahead and file this case, the documents will be part of the public record. This might make some people wary of you, and might also cost you a few friends once the word gets out. For individuals who have many non-exempt possessions, this might be reposed by the court, to settle the debts.
Credit ratings or reports are imperative if you want to take a loan or mortgage, at some point. Filing for bankruptcy, regardless of which section you file under, will affect your credit report, causing it to read negative for a long time. This might be reversible, but will require a lot of work and monitoring of your finances from that point on.
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.
Regardless of your financial situation, legal fees will still need to be paid. Different lawyers will have different rates depending on their expertise and the particulars of your case. You should visit a number of them to get estimates. From the figures you are given, you can settle on one whose prices seem reasonable and are affordable for you.
Even after applying for bankruptcy and winning you will still need to reevaluate you spending habits. This might mean being more frugal with your spending habits and changing your lifestyle. This way a few years down the line you will not need to go through the whole process again. This can easily be done by visiting a financial counselor who can help you embrace healthy spending habits.
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