Bankruptcy was created to give people a fresh start with their finances and allow them to recover from past life-altering events such as job loss, a traumatic accident or illness, a pay cut, or divorce. Individuals who file for bankruptcy enjoy immediate relief with the automatic stay imposed on all creditors by law. This helps to relieve the enormous stress associated with the financial problems and the inability to pay debts.
Automatic Stay
Collection agencies are notorious for their unethical debt collection practices that can include threats, harassment, and constant phone calls. Consumers do have some protection from illegal collection practices under the Fair Debt Collection Practices Act. However, often times, it is wise for consumers experiencing a financial downturn and the inability to pay debts to seek counsel from a bankruptcy attorney in Chicago. Once bankruptcy is filed, creditors must cease all collection activities.
Discharge Debt
Chapter 7 Bankruptcy can discharge debts releasing debtors from their personal liability and it prohibits creditors and collection agencies from ever taking collection action again. Bankruptcy, years ago, may have had a bad stigma, however today with the current state of the economy and the high unemployment rates, bankruptcy has become a necessary tool to reset the economy and give consumers their lives back.
Asset Protection
Many people who file for bankruptcy fear they will lose all of their possessions. This is simply not true. A bankruptcy lawyer in Chicago acts as in the best interest of their clients filing for divorce by assisting with the determination of exempt and non-exempt assets. In a Chapter 13 bankruptcy, debts are restructured and a payment plan is constructed to allow individuals to retain their property while paying back the debt.
If you or someone you love has become overwhelmed with debt, and debt collection agencies are harassing you for payments you simply cannot make, consult with an attorney. Relief is available through bankruptcy. Everyone from time to time needs some sort of reset button in their life; bankruptcy is that tool to give you a fresh start and allows you to recover from whatever life events brought you to financial distress.