Elgin IL Bankruptcy Attorney

Elgin IL Bankruptcy Attorney – ASM Law

Bankruptcy offers certain protections for debtors. However, it does not wipe out some types of debt. For anyone struggling with major debt, a bankruptcy filing can serve as a powerful option. It puts an end to most collection calls, wage garnishments and – with a few exceptions – most lawsuits. Additionally, bankruptcy eliminates multiple varieties of debt like credit cards and healthcare bills.

Nevertheless, bankruptcy status doesn’t cease all efforts by creditors to collect. For example, you will still have an obligation to repay student loans, alimony, child support and tax debts.

The Relief That Bankruptcy Can Provide

Bankruptcy enables Illinois residents facing overwhelming debt to eliminate some obligations and start over financially. There are two main types of bankruptcy: Chapter 7 and Chapter 13. Each provides different advantages. In some instances, they treat property and debts differently as well. An Elgin IL Bankruptcy Attorney can recommend which chapter is right for your situation. Your attorney will consider factors such as income, properties and objectives.

A few of the things a bankruptcy filing can do for you include:

-End harassment from creditors and collection actions.

-After you file for bankruptcy, the court enacts an automatic stay. A form of court order, a stay ends most types of creditor calls – as we mention above – but not all. As an example, creditors may still collect child support. Also, criminal cases shall continue too.

ASM Law – Elgin IL Bankruptcy Attorney

-Preventing foreclosure or eviction on at least at temporarily basis. An automatic stay puts an end to the following actions:

-Foreclosure or repossession of properties. While an automatic stay will halt these actions, a Chapter 7 filing doesn’t help retain the property. If the filer cannot get current on their accounts, they lose the home or vehicle when the stay concludes. In contrast, a Chapter 13 bankruptcy can enable the filer to make up payments and keep some assets.

-Evictions. A bankruptcy filing can cease an eviction that’s already in the process of litigation. However, the stay is probably going to be temporary. Note that when a landlord obtains a notice of eviction, a bankruptcy filing does not help in most states. Your Elgin IL Bankruptcy Lawyer can recommend your best course of action if you are facing eviction.

-Eliminate credit card debts and other types of unsecure debts. Bankruptcy is effective for wiping away credit card debt. Debt is unsecured in the event you did not promise to return the property if you fail to pay the balance. Examples include past due utility bills, personal loans, hospital bills or fitness club dues.

If you hold secured credit cards from an electronics or furniture store, for instance, you’ll have to return the items. In fact, a bankruptcy filing can eliminate most unsecured debts with the exception for school loans.

Struggling with Debts? Talk to a Bankruptcy Attorney Today at ASM Law

How soon your debts eliminate depends upon which bankruptcy chapter you choose to file:

-Chapter 7. This type of bankruptcy usually takes about three or four months to conclude.

-Chapter 13. If you choose to file for Chapter 13, you’ll probably need to repay a part of your remaining unsecured debts. Usually this is done on a repayment plan of three to five years. Although Chapter 13 discharges any balance that remains once you complete the repayment plan.

-Eliminating types of secured debts. However, the filer will still need to relinquish purchased properties. If you are unable to make a payment secured with collateral like a mortgage or auto payment, bankruptcy eliminates them. However, the filer cannot retain the home or vehicle.

Bankruptcy filings do not resolve every kind of debt. Following is a list of what bankruptcy cannot do:

-Bankruptcy cannot stop a secured creditor from repossessing or foreclosing on property you cannot afford. A bankruptcy does discharge some debts but does not wipe away liens. A lien enables the lender to reclaim property and put it up for sale at auction. Proceeds from the sale apply to the loan balance. Until repayment of the debt is complete, the lien remains on the property. When it comes to secured debt a bankruptcy filing can wipe out your obligation to repay the debt. Still, it does not remove the lien from the property. Without a doubt, the creditor can still take back the collateral. For instance, if you choose to file for Chapter 7, the lender’s lien remains upon the home. So long as a mortgage is behind, the lender may foreclose after the automatic stay ends.

Bankruptcy Filing Can Eliminate Many Types of Debt – Call ASM Law

-Elimination of alimony and child support obligations. These debts remain despite the status of bankruptcy. The filer continues to owe these types of debts, just as if the bankruptcy did not occur.

-Also, bankruptcy does not wipe out student loans except for specific circumstances. It’s possible to discharge student loan debt only if you can demonstrate repaying it would result in undue hardship. Certainly, it is difficult to meet this standard. You must show that you are unable to pay the loans currently and minimal likelihood of paying them later.

-Wipe away tax debts. It is not easy to eliminate tax debt through bankruptcy. It can be possible on occasion for older tax debts.

-Elimination of non-dischargeable debts. The type of debts that are not dischargeable via either Chapter 7 or 13 includes:

-Debts that you did not list in your bankruptcy documents.

-Debts resulting from personal injury or fatality due to driving under the influence. Also fines as punishment like traffic violations or criminal restitution. If filing for Chapter 7 bankruptcy, these debts remain after your case concludes. In a Chapter 13 filing, you must pay off these debts in total via a repayment schedule.

Bankruptcy may or may not eliminate debts in relation to fraud. Fraud-related debts do not discharge in the event a judge decides the debt should remain after your bankruptcy. These debts, for instance, may result from lying on a credit card application or using borrowed property as collateral.

End Harrassing Calls from Creditors

Chapter 7 and 13 filings provide specific solutions to debt issues. Chapter 7 is ideally for lower income filers. Consequently, it does not allow for you to keep your property if you are overdue on payments. However, if you do have sufficient income, then you will be able to take benefit from a Chapter 13 filing.

Chapter 13 bankruptcy can:

-Halt a mortgage foreclosure and push your lender to accept a payment plan that allows to get current. You’ll need to also stay up to date on your monthly mortgage payments. In order for this plan to succeed, you’ll need to show you have adequate income.

-Enable you to hold on to property that’s not under the protection of bankruptcy exemptions. No filer relinquishes everything they possess in bankruptcy. A Chapter 7 filer, though, gives up property that is not exempt. In contrast a Chapter 13 filer does not. This does not mean that Chapter 13 allows you to retain more assets. You must still pay for any nonexempt properties to your creditors according to your repayment schedule.

Talk to an Elgin IL Bankruptcy Attorney today to learn more about the protections of these different chapters. If you are facing rising debts and cannot afford to make payments, it’s important to get legal advice promptly. Call ASM Law firm today for a free consultation.