Find Help Today from Bankruptcy Attorneys in Lisle, IL

When someone falls behind on payments or takes on too much debt, to begin with, it can quickly become overwhelming and stressful. If you have more debt than you can feasibly repay and it is wreaking havoc on your life, it may be time to take drastic measures on a fresh financial start. Bankruptcy is a common way to get out from under too much debt and may help you wipe the slate clean. However, filing for bankruptcy is a serious matter not to be taken lightly, which is why seeking legal counsel is essential. With the help of bankruptcy lawyers in Lisle, IL, find out if this is the right move for you.

Should I File for Bankruptcy?

It is important to keep in mind that filing for bankruptcy is a serious legal matter and may not be right for everyone. Generally, it is unwise to file for bankruptcy if you could feasibly pay your way out from under the debt. In some instances, where you owe very little, filing for bankruptcy will hurt more than help since it negatively impacts your credit score and ability to qualify for new loans. Filing for bankruptcy should be a last resort used because debt has severe consequences such as wage garnishment, foreclosure on a mortgage, or repossession of assets. If you are unsure if this is the right step for you, speaking with a bankruptcy lawyer can help you decide.

What are the Different Types of Bankruptcy?

Bankruptcy can be filed under several different types of bankruptcy, known as chapters. The type of situation, and whether you are filing as a business or an individual, will dictate the right chapter of bankruptcy for you. Here are the most common types of bankruptcy:

• Chapter 7 may be used by both individuals and businesses when there are assets to liquidate in an effort to settle with or pay back creditors for the debts owed.
• Chapter 11 is used by partnerships and corporations. This type of bankruptcy allows for the business to remain operational while settling debts with creditors.
• Chapter 12 bankruptcy is used by farmers since there are special considerations regarding land exemptions and assets.
• Chapter 13 is for individuals with an income. These individuals typically do not have assets to liquidate in the way of an individual filing for Chapter 7 bankruptcy.
• Chapter 15 may be used in rare situations when a cross-border bankruptcy is necessary, such as for someone with dual citizenship or partial residence in the United States.

Determining the right bankruptcy type for your situation is worth discussing with a bankruptcy lawyer. For example, you may not qualify for certain types of bankruptcy, and a bankruptcy attorney can save you time and money by suggesting a better chapter filing for your needs.

Will Bankruptcy Stop a Foreclosure or Repossession?

Many people file for bankruptcy in order to stop foreclosure or repossession, but it is a complicated matter. Generally speaking, filing for bankruptcy will grant an “automatic stay” on foreclosures or repossessions, but the length of time and expectations pertaining to the debt may vary. For example, filing for Chapter 7 and/or Chapter 13 bankruptcy will only stall the foreclosure or repossession, and the creditor will have the right to ask for the stay to be lifted in hopes of collecting payment. It is important to remember that filing for bankruptcy may only stall a foreclosure or repossession rather than fully stop one. There are exemptions under certain circumstances, which is why speaking to a bankruptcy attorney is always a smart move.

Will Bankruptcy Stop Creditor Calls and Harassment?

When you are behind on payments, phone calls from creditors can quickly go from annoying to stressful. The frequency of the calls may even cross the line into harassment by violating the terms of the Fair Debt Collection Act. The Fair Debt Collection Act prohibits debt collectors from harassing consumers, but without taking legal action, most people just suffer through the harassment. One of the benefits of filing for bankruptcy is that it means that creditors are not allowed to contact you while the stay is in place. If your bankruptcy lawyer is able to have your debts discharged under Chapter 7 or Chapter 13, you would not have to deal with the creditors at all on your end. Even in the event that you are expected to work out a payment plan under the terms of your bankruptcy filing, your bankruptcy lawyer can still serve as your liaison. Once you hire legal representation and file for bankruptcy, creditors are only allowed to speak to your bankruptcy attorney.

How Can a Bankruptcy Lawyer Help Me?

A bankruptcy lawyer may be able to help you in several important ways. For starters, they will consider the specifics of your financial situation and explain the options available to you regarding how to file. They will also work with you on the process of liquidating any necessary assets in order to cover debts. An experienced bankruptcy lawyer will also communicate with creditors regarding payment plans for an outstanding debt or discharge the debt altogether. Finally, your bankruptcy attorney will answer your questions and guide you through the process from start to finish. Filing for bankruptcy can be a confusing and personal matter, which is why hiring legal help in the form of an asset protection lawyer is a good idea when taking this financial step.

Start Over Today

Bankruptcy is a complex legal and financial matter with a lot at stake. Whether you have questions about filing or what happens after you file, we are here to help. Bankruptcy proceedings can be a stressful time for anyone, and you deserve compassionate legal counsel along the way. Our team is here to help you during this difficult time. Contact us today at (708) 575-1500 to set up a free consultation to discuss your next step toward financial freedom.