Only you can decide if bankruptcy is a good strategy for you after visiting with an experienced bankruptcy attorney. Your attorney can take a look at your debt and expenses compared to your income to determine if a chapter 7 liquidation bankruptcy or a chapter 13 repayment bankruptcy is appropriate for your circumstances.
Will My Credit Be Hurt By Filing Bankruptcy?
If you elect to move forward with the bankruptcy, you may be concerned that your credit will suffer. It is true that bankruptcy will have a negative effect on your credit, however, people often bounce back more quickly than is assumed because they have dealt with their financial situation and demonstrate financial acuity moving forward.
The Differences Between Chapter 7 Bankruptcy & Chapter 13 Bankruptcy
Which bankruptcy is right for you? Chapter 7 bankruptcy is referred to as the liquidation bankruptcy. Most of your debts will be wiped clean in a Chapter 7 bankruptcy, with the possible exceptions of student loans and more recent income taxes. Your attorney can determine your eligibility through a chapter 7 means test.
Chapter 13 bankruptcy is considered a reorganization bankruptcy, where a payment plan is set up over 5 years or less to pay off some of the debt before discharging the balance. Chapter 13 may allow someone filing bankruptcy to keep their home and car as part of the arrangement.
Preparing for Your Initial Bankruptcy Appointment
How do I prepare for an appointment with a bankruptcy attorney? It starts with a phone call to set up a good time to meet. Your attorney may ask you to bring in income information such as pay stubs and the last few years of tax returns; statements of accounts for debts you may owe; a list of your typical monthly household expenses that may include utilities, transportation or even alimony and child support you pay. Providing a snapshot of the last 6 months of your financial history will provide your attorney with information he or she needs to determine what strategy might work in your circumstances.
Contact an Experienced Bankruptcy Lawyer for Help Today
If you are considering bankruptcy the first step is to contact an experienced Illinois bankruptcy attorney to see where you stand. If bankruptcy seems like a good strategy for you and your family to solve a difficult financial situation, a knowledgeable bankruptcy attorney can help you every step of the way. Contact Charles E. Covey at 309-674-8125 for answers to all your bankruptcy questions.