Bankruptcy is the legal status of a person that cannot pay what is owed to the creditors. Mostly it is imposed by a court order. Bankruptcy Chicago Illinois is a legal process that allows a person in an expected financial difficulty to be considered for debt relief by the court.
- Medical bills
- Being laid off
- Any unforeseen economic hardship
All are considered legal reasons for Chicago Bankruptcy Filings.
The creditor or the insolvent person may file in order to get a court proceeding. In Chicago, Illinois there are laws that govern bankruptcy Chicago and make the process of filing a bankruptcy more complicated to the consumers.
Types of Bankruptcy Chicago
There are two types of bankruptcy Chicago that a person may find themselves filing.
- Chapter 7 Bankruptcy Chicago Illinois
- Chapter 13 Bankruptcy Chicago Illinois
Chapter 7 Bankruptcy Chicago, IL
1. A judge will decide if you are eligible for Bankruptcy or not. If you have financial means you may not qualify.
2. Any available assets that can be, will be used to settle as much of your debt as possible.
3. The remaining debt will either be:
- Paid Off
- Set up for a payment schedule
- Done away with
4. You may have to surrender property to pay off these debts.
Chapter 13 Bankruptcy Chicago, IL
1. A judge will decide if you qualify for bankruptcy in this case also.
2. Here you will pay back the debt you owe on an extended schedule.
3. You will be allowed to keep your property as you are paying the agreed upon debt in full.
*The ways of determining which type of Chapter to be filed depends on what type of assets you own or have in interest.
*Individuals living in the United States and companies are qualified to file for bankruptcy.
*When filing three parties are involved and they both get a say in the outcome:
- The creditors
- The insolvent (that’s You)
- The Court
1. One thing that happens when filing is that a person is issued with the “automatic stay” order which implies that all the creditors are legally obligated to stop all collection efforts.
2. Normally, the creditors are informed of the petition after it is filed to stop them from
- Harassing phone calls
- Racing to the court house to try to collect on the debt before creditor can
3. Debt relief
This law is designed to help people who need assistance in making a clean break rather than spending the rest of their lives being chased by the burden of unsettled amount of debts.
Costs of Bankruptcy Chicago, IL
The cost for filing is more than just the filing fee. There are fees for:
- mandatory pre-filing in a Bankruptcy Chicago, IL Bankruptcy Court. (This may also be located at the city of Chicago Bankruptcy Court)
- mandatory debt management counsel
- advice and information to help you decide whether to file
- preparing your forms for filing
- other court procedures that may be beneficial
Each court has its own rules but in Bankruptcy Chicago Illinois, the minimum requirements for filing a petition will include:
- a filing fee
- social security numbers signed by the debtor
- credit matrix (either in form of CD or form that contains names and addresses of all creditors)
- certificate of credit counseling and debt repayment
It is rare for one to go to jail for bankruptcy, but if you have other criminal penalties the courts can hold you for failure to pay and one can be incarcerated. If you want legal advice and analysis of the details on your Bankruptcy Chicago IL you can hire a Bankruptcy Lawyer Chicago IL for help.
For the best bankruptcy attorneys in Chicago Illinois, it’s time to let us help you with the filing, forms, hassle, and help you understand your rights. Let us deal with the stress and provide a safe haven for you today.
Call the Bankruptcy Chicago Pros today at 312-216-0399.
Bankruptcy Chicago Pros
30 S Wacker Dr 22nd Floor
Chicago, IL 60606
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