There is no doubt that the continuing recession has played a large part in the increase in bankruptcies across Illinois. There is also no doubt that you are not alone. A Chapter 7 bankruptcy may be the solution that you have been looking for in your search for freedom from financial debts.
There are three important steps that you will have to take when you are thinking about filing for bankruptcy in Chicago, Illinois:
1. Eligibility For Bankruptcy
Your eligibility for bankruptcy is determined, in conjunction with your local bankruptcy attorney, by the Means Test, which measures your income and your debts according to the state median income. If you are unable to service your debt or your income is under the state median, then you will be eligible for a Chapter 7 or a Chapter 13 bankruptcy. You will also have to complete a recognized Credit and Debt Counseling Program, which is approved by the United States Trustee’s Office. Your local attorney will be able to assist you through the process.
2. Filing For Bankruptcy
There is a certain amount of paperwork involved in filing for a Chapter 7 bankruptcy and while you can do it alone, the point of having an experienced local bankruptcy lawyer on your team is to make sure that you get through the process as fast as possible. There are a number of rules governing a Chapter 7 bankruptcy and an attorney will ensure that you complete it correctly and not cause any delays which could cost you time and money in terms of a foreclosure or legal judgments against your name.
3. Court Appearances For Your Chicago Bankruptcy
As soon as your bankruptcy attorney has filed your bankruptcy petition, you will have a trustee appointed to your case to oversee and disbursements of your debt and to organize a systematic way of dealing with your creditors. This is where it is so important to use a local lawyer to ensure that you do not lose your home of your vehicle.
Under the Chapter 7 bankruptcy code you will not be required to pay the trustee of your case and the outcome of the case will be to receive a full discharge of most if not all of your debts.
It is important to remember that bankruptcy is not the end of the road for you or your family. It is the start of a brand new future of financial freedom. The biggest step is facing the fact that you are in debt and that you cannot manage on your own. The courts, the laws and the justice system are there for the people and with a local Chapter 7 bankruptcy attorney on your side you will be able to emerge triumphant.