Bankruptcy Lawyer Arlington Heights IL

Bankruptcy Lawyer Arlington Heights IL – ASM Law

Bankruptcy can provide Illinois residents facing steep debt with a new start so they can become financially solvent again. However, a bankruptcy filing is not without its costs. For those already struggling with living costs, it can be equally tough coming up with sufficient funds for bankruptcy.

Despite these common challenges though, most people do find the means to proceed with a bankruptcy filing. Please keep reading for more helpful information if you’re thinking about bankruptcy.

Legal, Filing and Court Fees

Numerous factors play a role in what lawyers change their clients in bankruptcy proceedings. There are also fees with respect to filing and financial education costs. In addition, the type of bankruptcy appropriate for your case also affects the costs.

In Chapter 7 bankruptcy filings, debtors agree that the trustee overseeing their case can sell their nonexempt properties. Basically, these are the type of assets the debtor must give up. Proceeds from the sale go to pay the creditors. Most filers can hold on to the majority of their possessions as part of a Chapter 7 case. Because the debtor agrees to relinquish their property, they receive relief from their debts. The court issues and order that states the eligible debts eliminate through the bankruptcy filing.

There’s typically a requirement that Chapter 7 filers pay lawyer and court filing fees plus educational costs before filing. The cost of filing for Chapter 7 is lower than filing for Chapter 13 bankruptcy. This is largely because Chapter 7 filings tend to be much shorter and less complex.

Affordable Bankruptcy Lawyer Arlington Heights – ASM Law

In a Chapter 13 bankruptcy filing, the filer submits a payment plan schedule to the court. The payment proposes to repay some or all debts during the course of three to five years. Chapter 13 bankruptcy is a common option for people who want to catch up mortgage or car loans.

The cost of filing for Chapter 13 is higher than a Chapter 7 filing. This is because they take longer and call for more work by the lawyer.

In some instances, those anticipating bankruptcy will already have their fees ready. Others opt to borrow from family or friends. In the event that’s not an option, they are still ways to cover the fees. For example, you could cease making payments for unsecured debts like credit cards or medical costs.

Furthermore, bankruptcy frequently wipes away unsecure debts entirely, or allow the filer to repay a lesser amount. For that reason, continuing to make payments on these types of debt prior to filing can be wasteful. Instead, set aside the funds you usually commit to those debts and apply it to the bankruptcy costs.

Not all varieties of unsecured debts disappear in bankruptcy, however. The filer will still be responsible for paying some taxes as well as child support or spousal support. Student loans are another form of nondischargeable debt too. To that end, you’ll want to put a plan in place for covering these debts.

Get Protection from Collection Agencies – Talk with a Bankruptcy Lawyer Arlington Heights IL Today at ASM Law

Paying Bills Until You Qualify for Bankruptcy

Anyone planning to file for bankruptcy should continue paying their daily expenses like rent, utilities or school loans. Also, keep making payments on any property you want to retain during bankruptcy like a home or car. In general, it’s best to stay current with those payments until confirming that you are eligible for bankruptcy and proceed with filing for it. If you cease paying your debts but then learn that filing is not right for you, it can be hard to catch up again.