Bankruptcy Lawyer Palatine IL – ASM Law
For individuals falling deeper into debt, declaring personal bankruptcy is often an effective way to resolve their financial struggles. In contrast to businesses filing for bankruptcy, a personal filing permits individuals or married spouses to eliminate certain debts. Both Chapter 7 and 13 bankruptcy filings are personal chapters offering individuals the chance for a new financial beginning.
Personal Bankruptcy Filing Can Halt Collection Calls
After a bankruptcy filing, the court issues what’s known as an automatic stay. It is an order that directs creditors to stop trying to contact you. An automatic stay stops your home from going up for sale at an auction, for instance. In addition, it stops your employer from removing wages from your check. Other collection actions that personal bankruptcy filings can protect you against are:
- -Car repossessions.
- -Calls and correspondence from creditors.
- -Home foreclosures and litigations seeking repayment.
Bankruptcy Lawyer Palatine IL
However, the relief in some cases may be only temporary. Even though bankruptcy status puts an end to collection actions, it doesn’t resolve all debt issues. For example, a lender can ask the court to lift the automatic stay. This allows the lender to move ahead with a foreclosure proceeding or lawsuit. The court will frequently grant the request when the filer is unable to get current on their payments.
Automatic stays are typically very effective right away. If you do continue to get collection letters even after filing for bankruptcy, it’s usually accidental. Creditors generally will not ignore an automatic stay.
They are aware of that they can face significant consequences if they violate and order from the court. However, there are steps you can take if collection actions continue against you.
ASM Law – Bankruptcy Attorneys Serving Cook County IL
Firstly, you should verify that you did include the particular debt with your petition for bankruptcy. There is an obligation that filers must notify their creditors. This is done by detailing each debts within the documents you file. If you discover that the creditor is not upon the list, call your Bankruptcy Lawyer Palatine IL to correct the matter.
If you did correct document the debt, it’s still probably that the collection call is accidental. Simply provide the creditor with the relevant information they’ll need to confirm your bankruptcy filing.
Naturally, personal bankruptcy is primarily a tool for people looking to recover from debts. The type of debts that bankruptcy can possibly discharge includes credit cards, doctor bills and overdue utilities. It can also wipe out debts like personal loans or even fitness club memberships.
Bankruptcy will not wipe out all forms of debt, though. As an example, filing for personal bankruptcy doesn’t relieve obligations like spousal support or child support payments. Additionally, overdue taxes, school loans and government penalties do not go away with bankruptcy. For more information about which debts you may be able to discharge, talk with a Bankruptcy Lawyer Palatine IL.
Talk with a Lawyer at ASM Law for Expert Advice If You’re Struggling with Debt
Prior to filing for any type of bankruptcy, you’ll select which chapter will best resolve your situation. Both Chapter 7 and 13 present different eligibility requirements and resolve different debts. The chapter your Bankruptcy Lawyer Palatine IL recommends for you mainly depends on factors like:
-The amount of your debt and your current income.
-Property you presently own.
Bankruptcy Lawyer Palatine IL – ASM Law
Furthermore, people with average or low income can file for a Chapter 7 bankruptcy. This discharges specific debts without the need to follow a repayment plan every month. Those with greater incomes must repay a part of their debts in accordance with a Chapter 13 repayment plan.