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Bankruptcy Lawyer Naperville

Bankruptcy Lawyer Naperville – ASM Law – Call 847-231-3999

Bankruptcy Lawyer Naperville

Bankruptcy Lawyer Naperville

Many people who can qualify for bankruptcy don’t consider its possible advantages. While true that filing for bankruptcy impacts one’s finances for a length of time, it is often the appropriate option. However, each individual’s circumstances are specific to their own financial situation.

Determining if and when to file for bankruptcy is a very complex process. The consequences of filing if you actually should not, however, can be significant.

It is essential to consult with a Bankruptcy Lawyer Naperville to determine if it’s truly your best option. Call our offices today for a confidential, free consultation. Our experienced lawyers can review your particular financial and explain how bankruptcy would impact you.

The benefits of filing for bankruptcy in Illinois include:

-Bankruptcy establishes an automatic “stay” against your creditors. After submitting your filing with the guidance of your Bankruptcy Lawyer Naperville, the court automatically grants a stay against all debt collection efforts against you. It doesn’t actually mean cancellation of your debts.

It does suspend debt collections until your case concludes or until the court lifts the stay.

A stay means there will be no more:

-Letters and calls from aggressive debt collectors.

-Lawsuits regarding your debts.

-Efforts to garnish your wages.

-Foreclosure on your home mortgage.

-Repossession of your property.

Struggling with Debt? Talk to a Bankruptcy Lawyer Naperville – Call 847-231-3999

If creditors attempt collections after the court issues an automatic stay, your lawyer may seek contempt of court action. Essentially, that means the court orders them to cease their collection efforts. In addition, the court could fine the collector or even order them to pay damages to you.

However, an automatic stay will not stop any of the following:

-Establishment of paternity.

-Criminal proceedings.

-Tax audits by the government.

-The establishment or collection of child or spousal support.

-Dischargeable debt. You might be able to cancel or discharge your obligation to pay these types of debts. A dischargeable debt is among those that bankruptcy can eliminate. These usually include utility bills, medical bills, personal loans and credit card debts.

If, within the last year, you filed bankruptcy you may petition the court for an extension of an automatic stay. If you filed bankruptcy twice (or more) over the last year, the stay doesn’t take effect without a court order.

A bankruptcy exemption may enable you to retain ownership of property. If you are able to get exemption for an asset, it means you won’t need to worry about losing it after filing. Without a doubt, exemptions serve an essential role.

Some exemptions shield up to a specific amount of an asset. In other instances, the exemption protects the asset’s whole value. There are some exemptions that apply to particular kinds of assets such as an engagement ring or a car, for example.

-Credit score. Concerns about a poor credit score can lead some people to postpone a bankruptcy filing. Generally, a bankruptcy filing stays upon your record for seven to ten years. Some people actually see an imp roving their credit rating after their filing.

After cancellation of dischargeable debts, this enables them to proceed with a fresh start and rebuild their credit.

However, a bankruptcy filing at the wrong time risks making a poor financial situation even worse. Filing too soon, for instance, can mean a person will lose property he or she otherwise could have kept. Regardless, even when a bankruptcy filing is in a person’s best interests, the action has a lasting impact.

This is another key reason why it’s beneficial to consult with a Bankruptcy Lawyer Naperville. The possible disadvantages of filing for bankruptcy can include:

-Losing your credit cards. Some credit cards automatically cancel out in the event of a bankruptcy filing. You may receive multiple invitations to apply for unsecured credit cards after you file. These may help you restore your credit score. Usually, though, these cards charge an annual fee and interest.

-Filing for bankruptcy results in an immediate impact to your credit rating.

-Bankruptcy makes it difficult to get a loan or a mortgage.

-Loss of real estate. Exemptions do not always cover real estate and personal property. This can mean the court seizes a portion of your property to sell it and repay your creditors.

ASM Law – Bankruptcy Lawyer Naperville – (847) 231-3999

-Some debts are not dischargeable. There are some types of debt that bankruptcy cannot eliminate. These non-dischargeable debts usually include spousal and child support, criminal restitution, fines and student loans.

Alternatives to Filing for Bankruptcy

Even when facing a lot of debt, it’s not surprising that many people are hesitant to reach out to a Bankruptcy Lawyer Naperville for help. This an understandable concern because bankruptcy can present a negative impact on credit scores.

In addition, it can restrict the filer’s ability to obtain loans for a home or a car. To that end, many people struggling with debt will consider the alternatives to filing for bankruptcy.

People with significant debt issues frequently must endure litigation, calls from creditors and even foreclosure. There is a long list of harassment that can stem from not paying debts. In general, anyone carrying debt ought to contact a Bankruptcy Lawyer Naperville and begin settling their debts as soon as they can.

There are a few practical options to this. They include bankruptcy, paying the debts or simply ignoring them.

-Filing for bankruptcy. This option is typically the more affordable and fastest solution to debt problems. Whether a filer selects chapter 7 or chapter 13, each provides the opportunity to quickly erase large debt amounts.

ASM Law – Call for a FREE Consultation with a Bankruptcy Lawyer Naperville at 847-231-3999

-Paying the debts. When somebody is against filing for bankruptcy, they must recognize their debts are not going away. Frequently, a debtor or their Bankruptcy Lawyer Naperville can negotiate with creditors to reach a solution.

Settlements usually come in two categories. One is in the form of a lump sum, one-time payment, while the other is a payment schedule.

In some cases, creditors might be willing to provide a bigger discount if the debtor, with the guidance of their Bankruptcy Lawyer Naperville, agrees to a one-time payment. It is difficult to predict which type of debt discount the creditor will extend, since each is different.

What is usually certain, though, is that the discount is bigger for lump sums than for repayment plans.

In a repayment plan, the debtor will pay off the debt over a time period that usually takes a number of years. In exchange, the creditor will agree not to pursue a lawsuit or and stop making collection calls. For those who want to avoid a bankruptcy and who are able to pay off their debts, these options are a viable alternative.

-Ignoring your debt. While simply choosing to ignore debt issues might be an option, it’s not necessarily a good one. Some people who carry debt realize that they have minimal – or no- property that could be subject to seizure in a lawsuit. They may decide to endure and keep ignoring constant collector calls or lawsuits.

However, this is not a wise choice and will only result in mounting problems.

Consult with a Bankruptcy Lawyer Naperville today at ASM Law and get started on the road to financial recovery! Call 847-231-3999.

Get FREE Consultation today by calling us at 847-231-3999!

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