What Bankruptcy Option is for You?
Filing for bankruptcy
protection is a very serious legal step that should be thought through
completely before making a decision. And, many times the decision is deciding
which chapter to choose. Some individuals only qualify for one chapter, while
others may have a choice when they have financial issues. Knowing what course is
best can be complicated, and it is always best to discuss the issue with an
experienced Gurnee Illinois bankruptcy lawyer before acting. It is not
absolutely necessary to have legal counsel, but the process can get complicated
and qualifying is not as easy as the novice filer may think.
Individuals who need to discharge unsecured debt will use Chapter 7 when claiming bankruptcy. Chapter 7 applies to delinquent debt such as credit cards, credit accounts, and personal loans. Personal assets can be seized and sold if they are not exempted, but other unsecured debt can be discharged successfully. The primary disadvantages of Chapter 7 are the damage it can do to the filer’s credit rating and limitations on when it may be claimed again.
Individuals who have a business or a home they need to protect can only opt for Chapter 13. Under a Chapter 13 filing, the debtor must submit a payment plan to the magistrate for approval that repays any delinquent amount and finalizes with all outstanding debt being paid current. There can be some unsecured debt discharged in some cases, but it is effectively a consolidation repayment plan. Claimants must provide proof of income within state and federal qualification guidelines and submit an acceptable family budget feasibility plan.
Contact Tomei Law Firm
Filing bankruptcy can be a complicated legal task without solid legal counsel who understands what the court will want to approve a bankruptcy submission. Always call Tomei Law Firm Gurnee Illinois bankruptcy lawyer for personal and comprehensive representation.